I think so -- compared to the bullion.
But note that my view only remains valid if my assumption that the gold bull market is real, and has not reached "blow off" bubble stage yet.
We've seen some wild times over the past week. I haven't been posting because I'm swamped with non-blogging stuff in life. But I'm keeping my eye on things, and my gold/equities/cash positions have let me sleep well in these markets. My overall portfolio is down a bit. But, aside from gold, the good thing is that my VXX position in back in the black.
Anyway, back to the subject of this post.
If you haven't seen it yet, and you have access to FT.com, read John Dizard's piece on gold mining stocks from the end of July. He quotes a familiar name in these parts -- John Hathaway:
The financial statements for those companies are meaningless, because they don’t produce anything.” Only extensive contacts, checks, and site visits will sort them all out.
Like many gold market professionals, Mr Hathaway thinks it’s about time for a gold price correction.
After that, he sees a resumption of the secular bull market in gold. However, the gold mining stocks could rise even in a stagnant or falling gold market. That’s what happened for a couple of years following gold’s last peak in early 1980.
And after that? Mr Hathaway says: “We talk among ourselves about what would be the right moment to shut down the fund, or at least steer investors to other funds.”
That’s apostasy to a real goldbug, but this should be about money, not religion.
Hathaway started his fund in 1998, when everyone was ga-ga over tech stocks. That's one reason I pay attention to him. He's not some promoter.
You read Dizard's column here (again, if you subscribe to FT.com).