Loading ...Gold and Silver
Are Going Nuckin Futz and as usual Their Miners Cannot Keep Up
Which is itself Nuckin Futz
The “should” be multiples higher
Their products have increased in price at an exponential rate while their input costs ( Oil) are historically low
And still They languish in a bear market vs Gold which has gone on for 30 years
THINK ABOUT THIS ; IN 1996 GOLD WAS 400 AND THE XAU WAS AT THE SAME LEVEL NOW .. AT GOLD 2050.. AS IT WAS BACK THEN
IF I TOLD YOU IN ’96 THAT IN 25 YEARS GOLD WOULD BE 600% HIGHER BUT THE XAU WOULD BE THE SAME…YOU WOULD HAVE TO SHOOT ME FOR BEING AN IDIOT !
Gold Stocks SUCK !
Pass it On
Exactly what I keep thinking, Fully. When will people wake up to the value of these miners with the metals at these prices?
As you say, Fully. Totally baffling and unbelievable. When people do awaken to the miners’ value, watch out!
You give people too much credit North .
They rarely wake up
Just go outside and look at them …they are all wearing masks
Doesn’t seem like they have WOKE up to me
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Revisit the 2nd ’70’s bull.
Is it going to be different this time?
https://goldtadise.com/?p=470511
Although it’s been 9 years this time around, the memory of pain in the miners is not forgotten.
Maybe the Millennials and RH will save the day for us though.
The XAU:Gold ratio will break soon bc no one believes it will and too many ppl looking for correction. A correction will happen, but it wont happen when you think and it will be shorter than anyone thinks.
WHy you ask? I have ppl that were long term bulls and got scared and sold at 1800…..bc of what happened in 2011.
SILJ sucks
If you want smooth predictable trading, silver is one of the worst things to invest in, and silver miners are multiples worse than that. Investing in the silver sector requires ridiculous levels of pain tolerance and patience.
Maybe this like when Apple was at eight dollars and people thought it would never go up…
Yep. Mining stocks are cheap.
we will see in next metal correction.. if miners correct less…. then it’s gonna be signal to go strong stocks.
While there is huge demand for the metal, mines and refiners – if they are operating at all – are operating at reduced capacity. The virus thing, of course.
So we have scarcity of metal while demand increases due to money printing.
I doubt we will see juicy profits for the miners until and unless they operate at full capacity AND continue to benefit from higher prices for the metal.
Good point Fox…but what of “Future earnings…that is NOT priced in
I try not to predict but rather look at possibilities from different sides, positioning myself accordingly. I try to force myself to keep enough cash for expenses including some that I might not anticipate, I try to react to individual companies’ charts and fundamentals.
Nevertheless — wouldn’t it be funny (again, not a prediction–just a thought for amusement) if many, many precious metal and stock enthusiasts, sophisticates, and experts decided that there had to be a correction whereas the apparent idiots and so-called “sheeple”, “noobies” etc held on to these stocks and in fact piled into them for the first time as they rode to new, newer, and newest highs?
Good point too
Wow! The miners crawl up a bit and slowly diminish throughout the day.
Why take the risk when you can just play gold futures with some leverage?
I suppose there is added risk with margin that you avoid with a miner, but still even without leverage, gold has absolutely smoked miners.
As I mentioned previously, Hugh Hendry posited that the risk of mine nationalization goes up with bullion prices. Maybe that’s what they have been discounting for the last 40 years.
All that being said, I am long miners and have been more or less continually over the last 20 years. There has to be a mean reversion at some point, doesn’t there?
When you look at the BGMI, it has been range bound for 40 years. Needless to say if/when it breaks to new highs, the miners could explode beyond our wildest dreams, at least in nominal terms. I would assume it will be outperforming gold by a long shot at that point.
It seems to me if nationalization of the miners occurs, the gold including the futures would also be nationalized. See book by Lionel Shriver, “The Mandibles”
Let them come and find it I say. I lost all of my bullion in a boating accident recently.
This is THE chart to watch if you are long miners.
People could be shorting miners to hedge leveraged long positions in the metals.