Comment: Physical demand must drive paper prices higher.

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Physical demand must drive paper prices higher.

Physical demand is strong, but paper is being dumped. If physical demand stays strong, the paper prices have to turn around. At least that is what I keep telling myself. I've lost my shirt over the last two years in mining stocks.

Barrick is currently trading at a P/E ratio of 6.9 with a 3.27% dividend

Newmont is trading at a P/E ratio of 10.0x with a 4.36% dividend

IAMGold is trading at a P/E ratio of 7.0x with a 3.89% dividend

Hecla, Gold Fields, Eldorado, Coeur d'Alene, Pan American Silver, Kinross, and others are all trading at or well below book value.

A lot of these stocks look like extreme values right now. I wish I had waited to buy into the market until now.

We all want progress, but if you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.

-C. S. Lewis