The Trickle Down TheoryAlmost all of the larger gold miners are up 100% or 200% from their 52 week lows right now, while the price of gold continues to rise and hold in the $1700 to $1760 range.
However, if you went to your local gold supplier, you would quickly realize that you would be laughed out of the store if you thought that was the actual price that you would be paying for an ounce of gold.
Many premiums for an ounce of real physical gold are at least several hundred dollars an ounce on top of the spot price listed above.
And for Canadian customers, please add 38% or 40% on top of all of that for the exchange rate, and despite all of these things, supplies are still very tight.
No stories about any of this in any main stream media outlets.
The same main stream media has reported inflation rate at just 2% for the past 5 years, when house prices have risen by 50% over the past 5 or 6 years alone, and despite the fact that housing costs are major expenses for most people.
People often forget that the price of gold was just $275 an ounce in the year 2000, and previous to that was just $36 an ounce in the mid 1960s.
Most of the young generation (especially the younger money managers) doesn't have any ambition to own any gold or gold stocks, but sooner or later the earnings and strong balance sheets might change their minds.
Orefinders properties can be driven to by car, and drilled at a reasonable cost, and developed at a reasonable cost as well with exsisting infrastructure already in place.
Let's not forget that there also isn't a lot of institutional investors having very much ownership of gold in their portfolios, and the thought of buying U.S treasuries for half a percent interest when the U.S Federal Government will need to issue $13,000 of these bonds for every man woman and child in the U.S for just this year's deficit alone, is another matter.
As well, the FANG stocks are getting to be a very crowded space, and the pot stocks have finally gone to pot. (No big surprise there), so the money will need to flow somewhere.
Sooner or later, the price value for in the ground gold will finally be recognized.
Most of the gold miners haven't been drilling for the past 10 years, yet they have been mining full throttle most of the way.
ORX is certainly a good way to invest in gold as far as I'm concerned, but you won't hear about it from main stream news...but then again fewer and fewer people are now getting their news from main stream news outlets...not a conspiracy...just a welcome fact.