GUS100CORRINA

Gold Miners: Amazingly Cheap

Good article ... confirms my analysis ... gold miners are truly undervalued. In addition to information you have presented, I also looked at currency translation as well as some statistical measures of fear and greed. With regards to currency translation, the strong dollar while bearish for Gold can be bullish for miner costs for mines outside of USA. Nearest I can tell it is entirely possible that strong U.S. DOLLAR may have reduced miner costs in excess of 25%. I am expecting some commentary from miners confirming this reality. The other more interesting metric on value which is defined as the value that the daily closing price of an index or stock is away from it's 200 Day MA. For example, the XAU index that I used was plotted for time frame including 1999 thru present. Resulting Histogram (which I couldn't believe) contained 2245 samples. Using this simple greed and fear metric, it appears that XAU has 99% chance of advancing over coming days/weeks/months based on population of data points and behavior or index in relation to 200 Day MA.

One other item, my calculations also indicate that Gold and Silver mining stocks look to be priced at about 40% of proven and probable as well as Measured and Indicated reserves that they currently have in the ground.

To all ... take care ... God Bless

Gold vs. Miners: Looking Beneath the Surface

Good article ... confirms my analysis ... gold miners are truly undervalued. In addition to information you have presented, I also looked at currency translation as well as some statistical measures of fear and greed. With regards to currency translation, the strong dollar while bearish for Gold can be bullish for miner costs for mines outside of USA. Nearest I can tell it is entirely possible that strong U.S. DOLLAR may have reduced miner costs in excess of 10%. I am expecting some commentary from miners confirming this reality. The other more interesting metric on value which is defined as the value that the daily closing price of an index or stock is away from it's 200 Day MA. For example, the XAU index that I used was plotted for time frame including 1999 thru present. Resulting Histogram (which I couldn't believe) contained 2245 samples. Using this simple greed and fear metric, it appears that XAU has 99% chance of advancing over coming days/weeks/months based on population of data points and behavior or index in relation to 200 Day MA.

One other item, my calculations also indicate that Gold and Silver mining stocks look to be priced at about 40% of proven and probable as well as Measured and Indicated reserves that they currently have in the ground.

God Bless.