RE:Price When I turned bullish on gold and silver in 2001, I had an impossible time convincing anyone I talked to. Even miners and coin dealers had given up years before. I well remember the doubting looks on their faces.
And I suppose you couldn't blame them. They had not taken vacations from the gold market for years the way I had. Day after day of watching had simply beaten them down.
There were many miners that were trading at or even below their book value. I was reminded of this when a sharp-eyed reader, RE, pointed out that SSRM last week at least twice was trading below price to book value. This is a great sign that lows are in. Many miners are trading at price to book values of 3 or under. And just as they are, and just as they were 20 years ago, it is hard to get anyone to buy them.
Some things never change!
Compare the price to book ratios of the most popular stocks to see how different things look between the expensive and the bargain stocks. Apple is at 57.5 times book value. For Tesla it is 27.7.
The markets seem intent on torturing all holders of metals. People need to see prices moving in their direction before they'll jump in...at least most people. The bull market that began in 2001 needed several years to start convincing people. Prices had to double from the $256 lows before people began talking about it.
I don't have any guarantees that the worst is over. After all, in March of 2020, when Covid woke the world up, prices collapsed to $1200 for a while. Of course, from those lows, gold went to $2100 a few months later, but how many people wanted to buy at the lows?
It is a fact that people always lose hope at the lows, not just of gold, but of anything. Trying to talk them into staying the course is usually an exercise in futility. So there is not much I can say to you now.
I am holding all my positions, but can understand those who just want to cash out. If I can offer any form of help, it is to not watch prices each day. That tends to destroy any long term perspective and leads people to get out at the exact wrong times. However, I know that at times like this, it is hard not to watch the hourly moves.
I've been hearing from people who have never been pessimistic that now, finally, they are ready to throw in the towel. Maybe, just maybe, that is what the market needs to finally turn around. No more constant cheer-leading but instead the deepest, darkest pessimism everywhere you look.