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<p>[QUOTE=&quot;medoraman, post: 1312190, member: 26302&quot;]Investing in the mining companies has problems, and if Mr. Paul does indeed invest in PM mining companies on their own I personally am now very shaky concerning his ability to be President.</p><p><br /></p><p>The &quot;problem&quot; is PM mining companies are counter cyclical, and have a negative beta. This fact alone makes them highly desirable in someone planning a portfolio of stocks. Lots of people have gotten rich forming PM mining companies, fewer have gotten rich running them. Because of this their P/E ratio is too high, relatively. If you wish to invest in them solely for their returns then you have to overcome this price malady first before it can become profitable. An example in bad PM times the share price is still too high for the return because of negative beta. The price of the share does not fall enough to make it a good buy if you are betting on PM price appreciation. When PM market is good they can doo better, but you have started off your investment at too high a starting price, therefor the return is muted. Couple this with the fact the industry has a long track record of sqaundering profits in good times instead of returning them to investors, and you have an extremely difficult industry to invest in well.</p><p><br /></p><p>If none of this is understood by Mr. Paul and he blindly invests in PM miners thinking he will gain excessive returns, its troubling. Look at PM stock prices during this latest PM bull market.</p><p><br /></p><p>just my opinion.</p><p><br /></p><p>Chris[/QUOTE]</p><p><br /></p>

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