vrijdag 13 maart 2015

How have gold miners done versus gold in euro terms?

It's interesting to compare the gold miners versus gold itself in euro terms.

Gold miners in euro terms have done nothing since a year already.

 But gold has surged in euro terms.

The same is true in Canadian dollar and Australian dollar.

So if gold is going up in Canada and Australia's currencies, why aren't gold miners going up in these countries? On the asset side the gold is going up, on the liability side, debt is going down because their currencies are dropping. I believe this is an arbitrage opportunity.

A possible reason could be that the gold miners are finally starting to go bankrupt after these years. For example Allied Nevada Gold (which was part of the GDX) recently filed for bankruptcy. 

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