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
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