John Rubino, [Follow John on his Substack https://rubino.substack.com/], joins us to discuss the recent break higher in both gold and silver, the contrasting moves within the PM mining stocks versus juniors, looking ahead to Q4 earnings, the improving margins in the gold and silver producers, and the macroeconomic trends behind inflation.
We start off discussing some of the geopolitical factors like China buying more gold as they stimulate their economy, the conflict in Syria, and parts of Europe, and how this is bringing in a steady amount of safe haven buying. There are a number of factors underlying the robust gold and silver metals prices, and it was encouraging to see silver catching up and rallying in a bigger way to kick off this week.
Next we shift over to the precious metals mining stocks, noting the cost creep this year eating into some of the gains in the underlying metals from a margins perspective, but that over the last 3 quarters many producers did finally start seeing margin expansion and share price appreciation. Looking ahead to Q4 earnings, we may finally see some upside surprises as costs have moderated. This leads into a larger discussion on labor costs as a key driver of inflation both in the mining sector and across the broad economy.
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