The commentator suggested that the beat up large producers were trading about 5 times earnings... as referenced to more historical earnings of 15 to 20 times. All-in costs are basically allowing them to tread water ( re ABX and Goldcorp ). He then mentioned how the gold stocks have significantly underperformed gold ... all of this we are more than aware of.

What stood out was an echo of mumblings mentioned by a few others, namely that 'the trade' may change from going long gold and short the stocks ... to short gold and go long the stocks. If this is part of the plan then it would have to follow that a lot of accumulation has been taking place rather under the radar, because these guys are always away ahead of the rubble. If this philosophy is indeed credible, then the stage is near set one would think. The only question is 'when'. The only other thought is that they plan on the fact that gold is not going up that much this year if PE ratios are going back to ( hoisted to ) historical norms.

What am I missing?