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Good analysis. Peter Lynch once advised not to buy gold but to buy gold stocks, for the reasons you outline.

Note that when you say "leveraged to the price of gold," you do not mean that they have owe a lot of money, as in real estate leverage. You mean that a small increase in the price of gold means a large increase in the profits of the companies.

That said, I must admit that I have been a total failure in trading gold stocks. So much so that I just left them off my list of things to consider, and missed this recent rally.

Perhaps I will learn.
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