John Rubino, [Follow John on his Substack https://rubino.substack.com/], joins us to discuss the fundamental factors behind the resilience of gold, the disconnect in gold stocks from the metals price action, the strengths of the royalty companies business model, and why he is even opting for accumulating various physical metals ETFs across various commodities.
John points out that gold has been holding up well all summer and into September, despite what is seasonally a weaker period of time for the precious metals. He reviews that with many gold producers cashed up and seeing very nice margins on their Q2 earnings reports, and likely to see that continue in Q3 earnings, that we may start seeing a the senior and mid-producers begin a bigger wave of merger and acquisition transactions. For now the uncertainty in the markets is keeping investors away from getting into the riskier subset of junior PM stocks. We then shifted over to the diversification and risk mitigation advantages of the royalty and streaming business model, and how those stocks fit into his portfolio. Wrapping up John outlines why he is increasingly mitigating risk in the resource stocks by positioning in the physical gold, silver, uranium, and even the new copper ETFs.
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Click here to visit the John’s Substack to keep up to date on his market and economic commentary.