What's Wrong With This Scenario?

As we realize more poor earnings reports in 2009 from the general market, the gold producers, even with gold selling for as little as $800/oz, will have superior profits. When that happens, we should get more investment in the PM sector, even to the extent that the explorers start to see their share prices rise. (I believe it was Bob Hoye and others who spoke about this.)

How might this scenario not get played out over the next six months?

Is it that the smart money is now going into those beaten down plays, not in the PM sector, that are expected to recover later this year with more gain than the miners?

Baires