Perspective on the Gold Miners; Management

Miners long term

SP long term

lt cape

Gold and Nixon

2Q 2016 Tocqueville Gold Strategy Letter – Final

The above charts came from this article.  I would ignore the conclusions but focus on the historical perspective.


Enterprise Product Partners August 2016 Presentation

Note the information they give investors. How management communicates is important. Do they provide sufficient detail for you to assess their capital allocation skills and operational performance. Note page 5.

Celebrate when your stock gets downgraged

Analyst Recommendations Do they add value

2 responses to “Perspective on the Gold Miners; Management

  1. It is interesting that Gold Companies did well in Deflation and Inflation times as well as when earnings were high. But that is all there is to say. They might have been cheap as their cycle turned (I don’t have the data to make any useful observation in this regard.)

    • Yes, you are correct to not jump to any spurious conclusions. The main point is how long-dated mining assets tend to be. It takes a long time for the gold/silver price to rise enough for investment to come into mining and for new mines to be built, then a long-time to shut down.

      Currently, no euphoria in the miners until gold price go above $1,700 in USD for any sustained opening of new mines. I am not surprised by the sell off
      in gold and miners now–but a long-term bear market we are not in–IMHO.

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