While POG in the last month was flat or very slightly lower, it...

While POG in the last month was flat or very slightly lower, it was a very different situation for gold stocks which significantly outperforming POG many with doble digit gains - GOEX up 13.56%, Sprott junior miners up 11.64% and GDXJ up 11.26% with the ASX gold index up about 12% (see images below) but GDX (large gold miners) only up 7.58% and Sprott gold miners up 8.07%.

Note that junior miners significantly outperformed larger miners in the month.

Since February 2024 when Gold started to climb gold miners have barely kept pace with the increase in POG when they should have increased by about triple the increase in POG ie despite the big increase in the POG gold miners are now significantly more under valued than they were 18 months ago.

At times in past gold bull markets a pullback in the POG did not lead to a fall in gold miners share prices instead the miners kept going up and when the POG did resume its upward trajectory gold miners outperformed POG even more more so the junior miners.

Are we seeing the same happen now? If so look out for a major increase in gold miners MCs.

If POG continues its strong upward trend then if history repeats, we are likely to see the gold miners, more so especially developers and then later pure explorers, go much much higher. Gold producers share prices have a long way to catch up with the major increase in their profits from the rise in POG. Junior miners, developers and good explorers will increase multiples of their current share prices based on historical trends in the current environment. Some may increase 5, 10, 20 times. The same will happen to silver miners.