Discounted Gold Miners - BNN InterviewAn interesting interview of David McAlvany - CEO of McAlvany Financial Companies on BNN today about the numerous gold miners trading at rediculous discounts to NAV (Net Asset Value).
I mentioned in an earlier post today that Newmont (NGT-TSX) technicals are indicating it is likely ready to break out and see McAlvany also mentions Newmont is trading at a 72% discount to NAV along with numerous other gold miners trading at unprecendented rediculous discounts. He doesn't specifically mention Victoria Gold but with VGCX trading at a market cap of under 400 million CAD and the valuations assigned by the analysts that follow VGCX, it too is obviously in this camp.
His comments at around the 5 minute mark are in particular interesting.
Look for discounted gold miners waiting for the yellow metal's price to break out: portfolio manager - Video - BNN (bnnbloomberg.ca) The US is obviously not interested in seeing the price of gold rise too high and become a direct competitor (as a currency) against the almighty US dollar, but the BRICS and their allies are gaining momentum in their move away from US dollar dependency and that has to eventually devalue the US dollar and drive gold prices higher.
Is the US intentionally holding the price of gold down and along with it gold stock valuations (in the interest of National Security) as a counter measure to stop or delay the BRICS move to gold and away from the US dollar? Well, it would certainly explain why the Newmont's of the world are currently trading at an unheard of 72% discount to NAV.
My opinion only - please DYODD.
HB77