Gold and gold miners possibly constitute the smallest share of global assets in the last century. The same people who previously doubted the metal's potential for entering another cycle are now criticizing the miners. If you ask me, this industry offers the most asymmetric opportunity I've seen in my career. The multitude of structural forces driving metals has yet, in my opinion, to prompt a major re-rating of the valuations of these businesses, which continue to linger at historically depressed levels. H/t to @LawrenceLepard for this outstanding chart idea.
@TaviCosta Tavi, gold and gold miners are different, gold mines has high operating costs, Fed high rate for longer is bad for miners, unless gold price break significant higher, such as goes to $4000. Miners may not have significant inventories/ it was used as collateral.
@TaviCosta Are you worried about foreign governments nationalizing assets?
@TaviCosta mining is a scam to trap greedy investors seeking higher profits in paper promises of gold. they want gold and will unload the paper to get the real thing once they figure it out.
@TaviCosta I am not saying you are wrong but what if golds value is declining because we are becoming more and more digitized
no it definitely has NOT. most gold mining stocks are absolute garbage. I hope many people have learnt their lesson that a higher gold price is no guarantee for disportioncate gains to become rich quickly. this of course also applies to silver. especially Barrick and Newmont have historically been great value destroyers, not creators. just look at some per share metrics and you'll see why they're not standing up, despite seemingly strong tailwinds.
@TaviCosta If the miners earn so much money and are so undervalued, why do they pay so little dividends? Newmont pays less than 0,5 %.