Gold Miners: Value Trap, Short Term Buy, Generational Buying Opportunity, or None of the Above ?

LST is currently in the mood to play some late night macro jazz, so will jot down below a few (incoherent) thoughts regarding none other than… zee barbaric relic, and those who mine for them:

  • A few of LST’s indicators are signaling accumulate/buy (now, if not within the next few trading days), if not monitor VERY CLOSELY on the long side (especially for medium/long duration holding purposes);
  • A certain @Paul3222 says gold miners will be “stupid cheap” : “…when management stops destroying shareholder value. Or, when recoverable reserves are worth more than the company.”
  • @freegold , Hugh Hendry, and others of the uber-risk conscious mold (rightfully?) believe that one cannot hedge/price in the risk of nationalisation … whether that’s true, or whether the mere headline risk can drive miners to absurdly low prices, it’s something to bear in mind.
  • LST wondered whether Paulson’s 2012 trades gone wrong would be 2013 trades gone right (at some point in 2013)…such as gold/miners …
  • Impact of gold, gold-related ETFs on gold mining stocks (i.e. “market structure” issues of the secular variety)
  • “Gold fundamentals remain strong”
  • Eventual reversal of the short miners, long gld/physical trade?
  • and some food for thought, per @tejus_sawjiani :

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