by Stewart Thomson
1. Are gold miners poised to begin a long period of outperformance against gold?
2. I’ve argued that most gold stocks peaked against gold bullion in 2006. GDX $31 and GDXJ $46 are my “launchpad” numbers for a major new bull run, a run that could last for decades.
3. Please click here now. Schroders fund manager James Luke believes the miners peaked in 2005.
4. He argues that the company managers and directors believed the “hubris” of much higher gold price predictions that were made in 2010-2011. They spent too much money on expansion while cash flow cratered.
5. My view is that gold was heading to their projected prices, but a sudden Indian import duty ramp-up was unforeseeable and halted the rally. The duty hikes crushed gold demand and economic growth in the world’s most important physical gold market.