gold has jumped us$82.00!!, page-24

I meant to say VERY LOW single digit PE
Here's the original... and apologies the poster was "cdchi1"

"People that are claiming gold stocks (and I'm referring to good quality producers here) are going to go the same way as equities if (or I should say WHEN) the DOW really tanks, as they did during the GFC need to understand one very important thing.

The current gold price IS SIGNIFICANTLY HIGHER than the average cost of production per oz than it was in GFC times. In GFC times, even a decent margin was not enough to protect them due to everything selling at multiple PEs getting smacked.

Things have changed...a good quality gold producer at current gold price is not trading at many multiple PEs, but only at 1 or 2 or 3.

Lets take a look at a company I am a large holder in, Northern Star Resources (up from the 4c I purchased it at thank you very much, so you can keep your physical gold!).

Northern Star is producing at around $1,000 margin per oz at current gold price.

You are trying to tell me that with a market cap of around $200M (fully diluted) if it makes $100M before tax profit a year assuming it maintains current production rates, that it is going to go the same way as all equities even if the DOW tanks.

Well then, I look forward to my dividend payment when it decides to give back to shareholders what it will be holding in cash (ie equivalent or more than its market cap if as some people say it will collapse with the rest of the market)!

Cdchi1"