Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver End Slightly Lower in Mixed Trade
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 1 15 2019
By: Ira Epstein

Gold and Silver 2019 Price Forecast
By: Craig Hemke

Gold: An Institutional Stampede Into Miners
By: Stewart Thomson

Gold dollar vs Greenbacks: Civil War and After
By: James Anderson

2018-2019 Pop Goes The Bubble
By: Darryl Robert Schoon

Gold and Commodities Set to Soar in 2019
By: Frank Holmes

GET READY FOR TURBULENT MARKETS IN 2019: Gold and Silver To Outperform Most Assets
By: Steve St. Angelo

New Shortfall in Production Capacity for Fabricated Silver and Gold
By: Clint Siegner

Liquidity, Money Supply, and Insolvency
By: Andy Sutton and Graham Mehl

 
Search

GoldSeek Web

 
Checking Gold Stocks Valuations


 -- Published: Friday, 19 October 2018 | Print  | Disqus 

By Jordan Roy-Byrne CMT, MFTA

 

Itís no secret that gold mining stocks are historically cheap and have been for several years.

 

Traditional metrics like price to cash flow and price to book value showed that gold stocks in late 2015 were at arguably their cheapest points since the start of the bull market in the 1960s.

 

Other metrics showed gold stocks to be the cheapest since the Roosevelt administration.

 

It has been almost a year since we examined some of these charts and with the sector moving closer to another epic low, we wanted an update.

 

First, letís look at the performance of gold stocks over various long-term periods. In the chart below we plot the monthly performance of the S&P TSX Gold Index over those periods.

 

Going back 60 years we find that gold stocks are (in the context of the past few years) at one of their most three depressed points. The other points were around 1960 and 2000.

 

http://www.goldseek.com/news/2018/10-19jb/10182018GoldStocksroc.png

 

Next, letís see how gold stocks stack up against the stock market and Gold. We put both charts in the same image.

 

Prior to the current rally, the gold stocks relative to the stock market made new lows, which surpassed the 2015-2016 lows! The recent low marks at a minimum a 90-year low!

 

http://www.goldseek.com/news/2018/10-19jb/10182018GoldStocksvsStocksGold.png

 

The gold stocks to Gold ratio is not quite as cheap. But when you look at the chart, you can see that ratio is not far from its own 90-year low.

 

These charts (and others) show an industry that is extremely and historically cheap. The setup for near term and long-term price appreciation is extremely bullish. Gold stocks are extremely volatile but they are in a position to generate strong returns and dramatically outperform US financial assets.

 

That begs the question.

 

Can gold stocks get and cheaper?

 

If not now then when is the right time to buy?

 

Itís certainly possible gold stocks could get even cheaper but probably only marginally so. They are already so cheap and so underowned that itís impossible they become dramatically cheaper.

 

We are beating this point like a dead horse but the turning point for precious metals will be when the Federal Reserve ends its rate hikes. That is the time you want to be a strong buyer.

 

Itís still too soon for that but itís likely coming sometime in 2019. To prepare for an epic buying opportunity in junior gold and silver stocks in 2019, consider learning more about our premium service.

 

 


| Digg This Article
 -- Published: Friday, 19 October 2018 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.