Loading ...PM Stocks – Limited downside from here…
Pm stocks continue to trade well below historic values relative to the price of gold. For example, the $XAU is presently trading at a value of between $500-$600 gold. Sure – anything is possible but I’m not going to be placing a big bet on a double bottom forming in the chart below anytime soon. Instead, I expect limited downside from here regardless if gold & silver go lower. I would like to see some of the fractal doomsayers put their money where their forecast is.
Where does this $400-$500 gold equivalent in Miners Come from?
Just because the price of ABX is now the same as it was in 2003 at $450 Gold…doesn’t mean THA was the right price for ABX
Maybe ABX was way overvalued in 2003 . I am sure you get my drift RTV.
I happen to agree that PM Stocks have bottomed…But remain open to all possibilities.
Added a second chart…showing $XAU trading at a value of between $500-600 gold rather than $400-500. Still low relative to historic mean and on that basis I reiterate my stance on limited downside from here.
hey fully – yeah, maybe schmaybe.
i will go with the 30-year mean as a benchmark in terms of “value” and what appears to be a bullish H&S pattern as my guide until proven otherwise.