The New Standard: Poortith bullion having absolutely trounced gold equities for an extended period, the question to ask is: "Is my assumption that the price of a commodity ultimately dictates the price of the producer fundamentally flawed?" If the answer is yes, then one must cut one's losses. As they say, the market can remain irrational longer than the investor can remain solvent.
So what gives?.
In a word, I believe the answer is fear. When you can give the government $100 to hold for a year in the hope of getting $97 back, the magnitude of the fear factor becomes evident. We posters are very likely mostly long on gold equities and simply cannot appreciate what a rare breed we are. The whole world is lined up right now against our belief that gold exploration companies are a good investment bet.
And you know what? The only time I make decent money is when I go against the conventional belief. It is not easy to do, but tough it out we must.
As I have said before, first come the senior producers, then the intermediate, then the juniors and finally the explorers. This time will be no different. We just have to be patient.