"Are you saying I should sell all my EVN, NST, RRL, DCN, GOR & SBM today?"
Absolutely not. I haven't done any work analysing those companies so to recommend that you sell them would unprofessional on my part.
The share prices of gold mining companies are influenced by many factors, of which the price of gold is only one. I would want to understand the other factors specific to each of those miner before I passed judgement on whether they were a good investment or not.
I hope that you have done the analysis that I have not done, and I hope you do well out of those stocks.
I am not an experienced analyst of gold miners. I am an experienced analyst of the wholesale gold market. One of the principal characteristics of that market in recent years is surplus supply. The fact that this surplus hasn't pushed the PoG much lower before now is very interesting. My view is that there is enough balance sheet capacity among the bullion banks to absorb the physical gold, and enough positive sentiment in the future market (particularly COMEX) to absorb the surplus price risk.
The price of gold is still inside the $1,250-$1,350 range where I believe that balance is sustainable. There are plenty of buyers at these lower levels, but they will turn into sellers towards the top of that range. So we are where we are, until something fundamental changes.
