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Wednesday, 08/31/2016 7:58:32 AM

Wednesday, August 31, 2016 7:58:32 AM

Post# of 756
Gold Mining Stocks: The Best Investment Asset For The Next Decade

Aug. 30, 2016 9:12 AM

http://seekingalpha.com/article/4003004-gold-mining-stocks-best-investment-asset-next-decade?lift_email_rec=true

Summary

To start a bull market, gold miners only need a period of poor stock market returns.

On a CAPE Ratio basis, the U.S. stock market is at the third most expensive level it has ever been.

Gold is money denominated in dollars, therefore gold and gold mining stocks should revalue themselves from a similar way to increase of the money supply in dollars in the long.

Investors often have the belief that movements in gold and gold mining stocks are caused by nominal interest rates, inflation, gold production, gold demand, the U.S. Dollar, etc. Likely, all these factors have a significant impact in gold price (at least in the short term), but in my opinion those are not the main factors affecting the price of gold in long rung. The only cause that always correlated with the gold and gold mining stocks bull markets has been a period of no value in U.S. stock markets, as we shall see below.

....charts can be seen on the site

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  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y
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