Fire sales on stocks of gold and silver miners
GDX hits new 52 week low today. Gold miners like ABX and GG are priced lower than the valuation/multiple of homebuilders like PHM and DHI now.
Hope premium of housing recovery surpass the fear of gold crash. Is this a start of a long term trend? Or it is just HF trading to the extreme? Gold can correct 30~35% during the credit crunch like it did in 2008 but it will always come back beause there are now endless of money printing around the world. Don't forget about widening US trade and fisical deficit. In additions, soverign debts problems are only postponed, not solved.
Western bullion banks are in control of commodity and precious metal markets but it will change with the rising of BRICS. PAGE will soon be on stage to challenge the dominance of LMEX and COMEX.
Chinese Dragon year (2012) will be the baby boomer year of China and many of the newborn baby will be given gold or silver on their first month of birth. Demands like this from China and India are for kept long term, not like HFT flipping positions in a fraction of a micro-second.