Thanks. History gives lessons and I expect we will peak higher this time, with the POG already much higher than 2011; but will there be a similar SP crash afterwards? The company has increased its production since 2011 with more mines and hence more reliability, but the POG will remain the key driver unless there are advances in technology that lower production costs. At present the company is successfully generating gains in the SP with its buy-back scheme, but if it had chosen to pay dividends instead, then there would be greater variability, even if overall the ROI was increasing. That is when price charts fail to tell the full story. The other factor affecting the post 2011 story is market sentiment which was profoundly tech stock oriented with a low cost of money environment and precious metal investment was mostly derided.
PRU Price at posting:
$3.82 Sentiment: None Disclosure: Held
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