This page has been archived and commenting is disabled.  Is This
The Start Of China's Gold Miner Buying Spree?  Tyler Durden's
picture   Back in October of 2012, Hugh Hendry proposed a simple
investment thesis: '"I am long gold and I am short gold mining
equities. There is no rationale for owning gold mining equities.
It is as close as you get to insanity. The risk premium goes up
when the gold price goes up. Societies are more envious of your
gold at $3000 than at $300. And there is no valuation argument
that protects you against the risk of confiscation. And if you
are bullish gold why don’t you buy gold ETFs, gold futures or
gold bullion." Since then, anyone who listened to Hendry has
made a substantial double digit return (yes, one can make double
digits returns on gold even when gold is sliding: such is the
"magic" of long gold, short GDX pair trades). However, following
a massive, 50%+ selloff, there comes a time when even gold miner
stocks become attractive to those with deep pockets filled with
reserv