User 280726

Why Gold Stocks Failed (And Why I'm Still Holding On)

But Gold hasnt fallen that much relative to the producers so margins havnt been squeezed! If Gold had fallen then your observation is of course correct - maybe the producers are discounting the relationship between Gold and Oil. However if oil falls to $50 as GS suggests (an amazing turnaround from $200 in a 4 month time period - must be an Abbey Joseph Cohen type "analyst") and Gold HASNT decoupled from Oil then Gold will fall to say $400. The answer is IMHO that stock portfolio liquidations are throwing the (producer) babies out with the bathwater