Durrett’s whole case fits in his opening shot: “The forward S&P PE is about 22. That’s frothy… If you look at the miners, they’re still bouncing on the bottom. They’re like all-time lows. They’re not even close to frothy. So we still have two more stages to go and we have two more legs to go in miners” (0:00).
His map of the cycle: leg one took gold from $2,000 to $5,600 and silver from $35 to $121, with silver fashionably late to the party as always. Leg two, by his reckoning, starts Q3 or Q4, with gold around $5,500 and silver $80 to $100 by year-end (6:38). The chart he says actually matters: gold versus the S&P, sitting near 0.55 today against roughly 3 in 2011 and 6 in 1980. “This time I think it’ll get to two” (15:16).
One supply nugget worth keeping: China imported 173 tonnes of gold last month against roughly 3,700 tonnes mined worldwide all of last year (19:50). Durrett’s legs and targets are forecasts, clearly labelled as his. This interview was published by MINING; embedded here with attribution, SilverTrade didn’t conduct it.
Gold has already delivered one of the biggest stories of the year-but has the real opportunity in mining stocks only just begun?
Veteran mining investor Don Durrett believes the current rally is still in its early stages, with NOT ONE, but TWO more MAJOR bull moves potentially ahead for the gold mining shares:
