Written by Jeff Nielson Monday, 15 August 2011 14:09
The picture is very straightforward with gold. Gold has been in a steady, rising trend while the price of oil has fallen considerably from previous levels. This means that not only are the gold miners selling their metal at a significantly higher price, but they are producing it at a cheaper cost – and yet the share price of these miners falters (especially the exploration companies).
This presents a fabulous opportunity for any/every “value investor”. Soaring revenues and shrinking costs are a pretty simple equation. Best of all (as has now been proven) gold will continue to prosper in any fear/recession/deflation scenario. Meanwhile, it was already well-established that gold has thrived in any high growth/high inflation scenario.
Producing gold miners have become the “blue-chip stocks” in the entire world of equities: record profits, profit margins continuing to grow, able to prosper in any/every foreseeable economic scenario. It doesn’t get any better than that for investors seeking a “safe haven” – and yet their valuations flounder due to bankster manipulation.
Throughout the 10+ years bull market in precious metals we’ve seen how this dynamic plays out. The longer/more severely the banksters compress the valuations of these miners, the greater the “explosion” upward when their choke-hold inevitably fails. Currently we see one of the best valuation entry points for these miners in this entire bull market, and certainly the best “buying opportunity” since the beginning of 2009.
With the silver market being much smaller than the gold market, the banksters have traditionally been even more effective on “stomping on” this market than with their gold manipulation. In fact, they were previously so “successful” that they pushed the price of silver to a 600-year low (in real dollars), while driving more than 90% of the world’s silver miners into bankruptcy during the 1990’s.
Enjoy the rest of this great article and click below: