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vand

GSR and other ratios

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I don’t think there’s a dedicated thread for this, so starting one.

 

GSR has now moderated to about 76 as silver has been leading the climb in recent weeks. Silver still clearly a better buy above 72-73 imo. 

Gold/Plat levelled off at 1.46, currently 1.44. Platinum is outstanding at these generationally cheap levels for future outperformance.

 

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my limited research means I will unlikely be jumping on the

platinum bandwagon any time soon. so far my ideas are if

solar + better batteries makes electric vehicles more viable,

will that affect the demand for platinum? ratios hitting

extremes could be also be a sign that a trend is emerging/

changing.

 

HH

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The miners have been outperforming the metal during this recent decline. That is very unusual. Normally when gold gets a tonking the mining sector gets absolutely smashed, but in the last few weeks they have held up remarkably well... I would not be surprised if the mining sector is gearing up for a BIG move similar to H1 2016.

sc?s=$GOLD:$HUI&p=D&yr=4&mn=0&dy=0&i=t50

http://schrts.co/Ap9QSn

Edited by vand

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47 minutes ago, HawkHybrid said:

imo the miners are looking forward in production and prices.

spot price is just for that moment in time.

HH

Yes. Share prices to a large extent determined by future earnings. Some of the stock prices today are in la la land with PE ratios of 100's. These are justified on the basis that there will be large earnings growth in the future. If the view is over the next year or so the price of gold will appreciate, then this will be partially reflected in the share prices. The gold price is highly leveraged in mining stocks. Say a miner needs the gold price to be $1000 to make profit and the gold price is $1250. The miner makes $250 per ounce. If price went to $2500, that is a 100% increase in the gold price but the miner all things being equal now makes $1500 per ounce, that is a 8X increase in profits. Gold went up 100%, the miner's profits went up 800%.

If it is expected gold is at the lows and higher prices are in the pipeline you will see that in robust miners' pricings despite lackluster gold performance.

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