To say that investors are bearish on gold and, in particular, the gold miners, is a trite point of view in the summer of 2013. Everywhere you look, blogs, newspapers, CNBC, cocktail parties, it doesn't matter: investors are terribly negative on the precious metal.
But along with the negativity has come a drastic decline in prices and expectations. Low prices and low expectations, though, are requisite in a favorable risk and reward equation: low prices indicate low risk coincident with potential high rewards.
I'll be the first to tell you that miners are outside my "circle of competence" and that I understand that gold has no productive use and does not throw off any cash flow. But what it does...
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