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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (16787)	12/25/2008 4:10:34 PM
From: jimsioi	1 Recommendation Read Replies (1) \| Respond to of 29622

bull dozer - article paints the bullish picture $2000 gold a year or so out wouldn't be out of the question assuming some massive reignition of inflation or under a set of circumstances where central banks engage in competitive devaluations, quantitative easing and massive budget deficit spending to pump prime their respective economies. 2.5:1 DOW 30 to Gold ratio with DOW at 5000 - again not unrealistic 4:1 DOW 30 to Gold with DOW at 6000 would of course be a step along the road to the ratio above. Simply looking at the daily DOW Chart with its crossed MACD into negative configuration suggests trouble if there isn't a pretty smart rally... stockcharts.com GDX chart presents a much better looking picture though it has to resolve its own consolidation favorably, soon, or a 15-20% decline wouldn't be beyond the realm of possibilities. stockcharts.com I don't find anything particularly cheap about gold miner valuations - perhaps only from a historical perspective. MINER/...Current PE/...’09 PE GDX 21 KGC 31... 24 GG 26.... 46 AUY 15... 14 AEM 58... 71 Looking at Yahoo earnings estimates for 2009 most have been cut in half over the last 3 months. Higher gold prices in the context of low oil and steel prices is what is needed to get these earnings some what more respectable...Paying for gold in the ground is older school I think....The issue is free cash flow...