via BNN.ca - David Rosenberg

@7:47 discusses the big valuation gap of gold miners with the underlying commodity, and that they have been looking at gold mining stocks, that they match their outlook going forward for market valuation, and distributions.

As far as the outlook for GBN.V is concerned, they're not really giving anything out, are they? Financials amortized to a loss, restricted production, exploration results withheld. It's as if they are making a paranoid move into caution while awaiting the outcome of the gold markets.

There isn't enough margin over costs yet? As I have said before, it will take something exogenous to the economics of mining gold, such as a fixed gold price to change this scenario.

If the attempt was made to fix the gold price, the eventuality is that devaluation against it will occur. By then gold prices ironically be fixed into the $3500/oz. range.

http://watch.bnn.ca/headline/november-2012/headline-november-19-2012/#clip809852

-F6