Gold mining/exploration stocks will never be cheaper than today. The situation in Panama yesterday that took down the best managed large-cap gold company Franco Nevada (FNV) by -8.15% in a single day feels like the type of event that marks an extreme bottom. FNV is the second largest holding of GDX.
The HUI Gold Miners Index/Gold Price Ratio is currently 0.113 and near its all-time low. The long-term average is 0.2911.
At the beginning of the last gold boom, the HUI Gold Miners Index/Gold Price Ratio rose from 0.1335 in November 2000 up to 0.6376 in December 2003.
The highest quality gold exploration stocks like Augusta Gold (TSX: G) that are backed by billionaires with large resources in top jurisdictions like Nevada are highly likely to gain 10-20X more than gold.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.