Is Now the Time to Buy Gold Miners?

Please read my original post here for background information.

The ratio of the Barron's Gold Mining Index to cash gold is getting into buy territory where future excess returns are nicely positive (around 1.2 currently).

Comments

[jcw92025:]

Gold is undervalued. Still in a bull market. If it drops to 759 support,and breaks it,then is the time to sell mining shares. Gold mines can't operate if gold is under 700/ounce in price.

2008 Sep 10 02:40 PM

[whidbey:]

No the post is correct, buy the ratio. There will be dips below the break-even production levels as certain hedges unload.

2008 Sep 11 09:09 AM

[KERTHS COM:]

WHY does this stock drop in price when it appears it has cash flow and gold is $200. higher than when I bought it??

2008 Oct 13 10:14 AM