I posted on the GDO thread this morning an article I read on bloomberg about how birch the former head of the blackrock commodity funds who managed the best perfrormjng funds for 2 decades stating that the gold sector forward PE has fallen from 30 two years ago to 14 today and that prices have lagged increasing revenue cashflow profits and dividends.
Although I subscribe to the gold fever Similar to the silver stock fever we have seen I would rather be investing in a producer who will benefit in a fundemental sense from any further appreciation in the gold price as well as from any speculative excitement. Like previously mentioned GDO is a low cost, low risk 120k oz producer ( going to 150k plus) with huge upside, a massive resource and a second first quartile project also being developed. Although it may sound like a stock ramp I encourage Amy serious gold bull who hasn't done so already to read up. The benefit for me is they are in the enviable position of doing well if gold is at 1100 and doing ridiculously well if gold is at 2000. With all decisions best to protect the downside while keeping upside untouched. I am sure all gold stocks mentioned will do well if gold takes off but from a risk reward perspective I would be shocked if there is something better ( yes I am biased and heavily Exposed but for good reason)
