There is a very strange situation that has developed in the gold bull market.
Very Strange Situation In The Gold Sector
July 10 (King World News) – E.B. Tucker: “You look at this (mining) business and you really scratch your head because you’ve got the big gold companies, and you know all the household names — I’m not talking about exploration stocks but the big guys — they’re making 35% operating margins. And so you just wonder how long until private equity comes in and just buys these things up because you see those guys buying businesses that have much, much less impressive streams of earnings. And so there’s going to come a time where people say, ‘I don’t care if these guys are mining gravel. If we can make 35% on every dollar of sales, we’ll just take that thing private and be done with it.’ And let’s not forget, Eric, that the investment in new discoveries is just way off historic levels. So it’s a very strange situation.
Who Is Going To Buy?
Like you, I’m super connected in this space and the question that I ask myself is not, who’s left to sell?’ because there’s really nobody left to sell, but, ‘Who’s going to buy?’ That’s the real question. So we are in a spot where we are coiled up here. We’re really coiled up. I mean this is what you see when something…to continue listening to E.B. Tucker discuss the recent panic in the gold sector and what investors should expect next CLICK HERE OR ON THE IMAGE BELOW.
***To listen to Alasdair Macleod discuss the gold and silver markets and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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