Comment: Right now gold mining stocks

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Right now gold mining stocks

Right now gold mining stocks are getting hammered. I'd say they're already pricing in $1200/oz gold. Whether gold actually gets that low I am in no position to guess.

The truth is that for most of the gold boom you'd have been better off holding gold rather than gold stocks. While the gold price was going up the expenses of mining gold were rising faster. And now gold is off $400 from its peak. Also, during the early stage of the gold boom gold stocks were priced at outrageous P/Es, like 40. Now they're priced at sane P/Es like 10, meaning the price has come down.