Scaling In

It’s Do or Die time for Gold.  For the last month we have chronicled the potential gold bottom.  Either gold breaks and we calmly walk away, or we are still in the toehold of a historic rally.  Regardless, speculators with starter a position in GDX would be looking to add on this strength…

“The ratio of the largest gold miners’ enterprise value to their earnings before interest, tax, depreciation and amortization dropped to 6.3, less than half the multiple at the end of 2010, data compiled by Bloomberg show.”  Bloomberg

The thesis for higher gold prices remains intact (Sober Look).

Jim Sinclair has been in peak form.

The Fed is not “printing money” says Scott Grannis.  He make a fantastic case but the comments provide quality rebuke.

The Periodic Table of Commodities Returns 2012 by U.S. Global Investors.

Hans again:  Australia sees iron ore prices only getting worse at Mining.

Revisiting: An end to the commodities Super Cycle at Black Swan Trading.

2 thoughts on “Scaling In

  1. Excellent links, Mr Butler! Good reading by Black Swan and US Global Investor with interesting comods chart.
    I had no idea, that zinc has depreciated each year over the past decade and would have lost the bet! I am saving the chart which has very handy information.

    I certainly made a serous mistake on Cliff’s Natural Resource (CLF) and am very glad I did not execute a buy order.

    Iron ore is certainly a staple for the Aussie economy, so I am surprised their dollar is holding up so well…

    • Thanks Hans.

      Last summer the Austrialian dollar looked on the the brink of falling sharply, but it rebounded instead.

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