Despite their best fundamental performances ever, gold stocks remain deeply undervalued relative to their underlying corporate profits. This extreme anomaly won’t last, gold stocks have to revalue much higher.
At Cottonwood, the focus was to confirm and expand the area of known gold mineralization. The three RC holes intersected highly altered rocks with associated gold anomalism from the beginning to the end of all holes.
For a bullish view to continue for the counter-cyclical gold mining sector, GDX will need to prove to be in a pullback within an uptrend, and the stock market in a bear market rally (BMR).
The Gold/SPX chart above advises that there is a very long way to go in this new macro, inevitable gold price corrections included. “Price” is not value.
