Groot ... good question, there have been times when the stock prices lag the price of gold, if that occurs it would be an effective strategy, since you have the POG increase while your short is lagging in increasing value. Of course if gold prices drop the expectation is that new supplies especially would be hurt as would marginal cost producers.

Seems very high risk to me fundamentally ... after all if a company has a cost to produce of 500 an oz and the gold price is 1000, a 50% increase in the POG is a 100% increase in GP. All other things being equal the stock should outperform the commodity.

As Casey points out we are dealing with an unregulated or even worse skewed regulations in the market making it more risky than the casino.

Since fundamentals mean nothing to computer algorithms, the same people who rely on them are likely to be following patterns.

GIGO applies to these computer programs and algorithms so time will show what a risk taking set of behaviours along with brainwashing to believe in integrity upon which our society has engaged.

the prophet