It is a hard time for PM stock longs, failure to break 1,800 then again at 1,700 and what looks like a savage over-reaction in the quality producers.
Yield is king and equities are on the move, but can they deliver profits or will PE ratios get toppy?
Can US grow their GDP faster than their debts, can they really stop buying their own debt?
Is the paper gold market controlled by US-centric forces and the physical by China?
Is Gold falling because people think that troubles are over and it is back to consume and grow mode.
Is Gold falling because Deflation is inevitable?
Can shale push Peak Oil fears into the next century or are the costs too high and the consumption too great?
True Cost of Production for Goldies is probably 900-1,500 with 1,200 being common. 1,650 is not a huge margin, then again, Gold is not consumed either.
What I do know is that PE ratios for Dividend paying Gold stocks are falling, and that represents value for the contrarian, with an inflation-hedge up-side.
I am 30% divs, 30% PM producers or low cost near term, 30% stuck in my last great idea...
