Gold miners’ $1200-cost fallacy

The entire gold-mining sector was crushed last month, suffering a full-blown panic. This was triggered by an extreme shorting attack on gold by American futures speculators. As fear-blinded traders rushed for the gold-stock exits, they claimed their selling was rational because gold miners’ very existence was threatened by such low gold prices. But that’s a total fallacy, this sector has no problem weathering sub-$1200 gold.

Gold miners’ $1200-cost fallacy