Chart, page-138

I agree with your comments.

Bull markets in any asset can lead to over valued stocks (look what is happening to lithium stocks - there is a reason why PLS is the most shorted stock on the ASX and there are a number of other lithium stocks with significant shorts. Bear markets result in under valued stocks which has been the case for gold stocks for about 2 years now but this situation can change very quickly. Even the POG can become over valued in a gold bull market just like lithium was late 2022 and gold was around 1980. If this did happen to gold in the next few year then POG may end up at $3,000 or more but that situation is unlikely to be prolonged for long. I do have a lot of scepticism about gold bugs suggesting POG will go to $10,000 or more this decade but anything is possible.

The reason I used 3 times is that’s about the average - some stocks like EMR and CMM are more like 2 times while others will be more than 3. If money starts moving from lithium stocks to gold stocks then lithium stocks could move a lot lower.

I feel that lithium is yesterdays story and the big money has been made and those people who hold onto lithium stocks for too long will miss the next commodity to boom which maybe precious metals (but I may be wrong). If money starts moving from lithium stocks to other commodity’s like precious metals then lithium stocks could move a lot lower. For that to happen precious metal prices need to keep on increasing to probably to $2,200 for gold and $30 for silver and lithium prices need to be stable at current levels or decline further in the next 12 months.

All these comments are just my thoughts and people should do their own research and not rely on what is posted on HC. I certainly don’t rely on what is posted on HC as the great majority of study posted is nonsense or plain wrong but there are a few exceptions like you and @Joelstar and @speculator101.