June 27, 2011

This Is A Huge Wall Of Worry And Everybody Is More Fearful Than Greedy In The Gold Mining Market

“Well I think they are throwing these stocks away. I mean gold is less than 20 dollars from a record high, yet if you look at the HUI (Gold Bugs Index) a 16 percent rally is what it would need just for the index to get back to where it was when gold was less than 20 dallars higher than its current price. You look at some of the big gold mining companies, Barrick Gold is trading at 10 times forward earnings, 10 times earnings!

I remember when that stock was 30 to 40 times earnings, yet here we have a huge bull market in the price of gold and the PE’s have compressed to 10. I think anyone who believes there is a bubble in precious metals, all you have to do is look at the PE’s of these mining stocks and realize this isn’t a bubble at all. This is a huge wall of worry and everybody is more fearful than greedy in the gold mining market.” - in King World News

Tickers: SPDR Gold ETF (GLD), Newmont Mining (NEM), Barrick Gold (ABX), Anglo Gold (AU), Goldcorp (GG), New Gold (NGD), Novagold (NG), Seabridge Gold, Inc. (USA) (AMEX:SA), Seabridge Gold Inc (TSE:SEA), Rubicon Minerals Corp. (TSE:RMX), Goldcorp Inc. (TSE:G), Kinross Gold Corporation (TSE:K), Yamana Gold Inc. (TSE:YRI), Yamana Gold Inc. (USA) (NYSE:AUY)

Peter Schiff`s comments on the economy, stock markets, politics and gold. Schiff is the renowned writer of the bestseller Crash Proof: How to Profit from the Coming Economic Collapse.
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