Gold bullion prices have been closely correlated with negative real yields, which are likely to remain negative for some time, given the amount of credit created to support global economic activity. Gold prices are building a base after a mid-August flash crash and rapid recovery. Gold mining stocks remain inexpensive relative to bullion and are very attractive given the sector’s cash flow generating ability and favorable balance sheets while the sector offers numerous corporate opportunities to enhance resource and asset values. At this point in the long-term cycle, investors are presented with an opportunity to establish and/or increase long positions in gold bullion and gold stocks, especially at attractive valuations.
Webcast Replay ¦ Sprott - Alpina SDG Gold