When we talk about gold equities - we really should split them...

When we talk about gold equities - we really should split them into specs and producers.

Yes, I agree they have all underperformed. But so do all sectors of the stock market at times - and companies that produce solid profits usually perform badly within those sectors at the same time - but the solid ones don't perform as badly as the poor quality stocks - and that is the way it should be.

As to solid gold stocks - the usual things (debt free, reasonable or low cost producers, with good assets etc) -- they must be starting to look for a bottom soon -- some of the p/e's are becoming a joke.

And with gold just maybe (maybe) being seriously looked at for a greater physical demand -------- if that happens and the pog in all currencies begins to have a decent climb

then the catchup of producers sp will be astronomical.

You still 'have to dig this stuff up' - it has to come from somewhere ------- and if producers are getting swamped with cash from gold sales whilst their costs are reasonably contained -------- then those company shares only can go one way --- up up up.

The tide will turn - and just like the tide of water, that turn will be hard to pick - but when it begins to run out (or in) it just goes faster and faster and is unstoppable - until the next turn.

Asians are not going to start disliking gold in the near future - in fact the reverse.
Gold is not going to get easier to find - in the near future.

Unless chinese all of a sudden find gold brings bad luck or someone finds out how to cheaply get gold from sea water - the metal is going North - the little bumps on the way will be quickly forgotten.

have a good morning Pinto