From Precy Dumlao, Opalesque Asia:
After waiting "patiently for four years," gold stocks are now finally liquidating, said Vedant "VK" Mimani, managing director at Atyant Capital, a specialty investment manager that focuses on the Indian equity markets and precious metals.
"From 2011 to present, gold stocks have been annihilated (down 45-75%, depending on your index) and today, April 3, 2013, they are being liquidated. We are now buyers," added Mimani in his monthly letter to investors. Atyant manages the Atyant Capital Global Opportunities Fund LP.
He added that from 2009 up to 2011, investors bid up the entire precious metals complex on the fiat currency debasement thesis. But Mimani said Atyant has determined that the thesis is flawed so they decided to preserve their capital instead.
"The reason we maintain a long term interest in the gold mining sector is because historical study shows gold miners have been the big winners in each and every post credit bubble economy. We believe 2007/2008 marks the beginning of the sixth credit bubble deleveraging of the modern era (the prior five being 1720-1740s, 1772-1790s, 1825-1849, 1873-1899 and 1929-1949), and at some point in the future, gold mining will transition from the marginal enterprise it is today to the......................
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