Mines are starting to shutdown… What it means for the metals price vs metals stocks
News is starting to pick up regarding mines shutting down around the world. There was the hope that mining activities would continue, and some will, but some of the recent news is showing us that mining is not immune from COVID-19.
Erik Wetterling joins me to share his thoughts on how the mine shutdown will impact the metals prices and general interest in the shares.
Makes sense. I have no idea where we are going but I know I have never seen miners this cheap… So I can’t justify staying out ATM.
I agree and it appears that big money agrees too. Barrick is now just a nickel away from its August high while GDX vs the Russell 2000 is about to put in its highest weekly close in years.
https://stockcharts.com/h-sc/ui?s=GOLD&p=W&yr=5&mn=0&dy=0&id=p64031970825&a=601078119
That and stuff like Novagold, which seems to be a popular with the billionaires. Like you say, big money seems to be buying into the most typical/well known gold companies. I am ofc biased but I want to believe that is a good sign for what might happen in the not too distant future. Thanks Matthew
I was reading the comments over at zero hedge.
One post was authored by hedgeless_horseman.
Was this you?
That is not me John :). When I realized there was a “hedgeless_horseman” it was already too late to change 😛
Heres my camp.
A major months-long bearish non-confirmation between gold and silver, and all the current hype surrounding precious metals is also bearish. sold my leverage plays only long term core now. GL