The End Game Knock Is Getting Louder
Mining stocks have not seen a significant increase due to the current commodity rally that keeps their margins steady, rather than a specific gold rally.
Mainstream media is starting to focus on the benefits of investing in gold and silver, indicating a shift in narrative.
The repo market has reached $2 trillion in volumes, signaling potential desperation for overnight cash as the dollar shortage worsens.
As I write this, gold just moved up to $2,340. I don't know what the catalyst was, and it's almost Shabbat so I have to sign off. I wrote the below before I saw the price move. Iran hasn't bombed us yet so I should send this off first I guess.
Why Miners Haven't Exploded Upward Yet
I had a question from a subscriber yesterday asking me to address why mining stocks haven't really taken off yet. They're rising, but it hasn't been impressive, especially considering how badly they've been performing. The main reason is that despite nominal all time highs in gold, this hasn't been a gold rally. It's been a commodity rally. The gold to CRB ratio is stable since 2023, and is at the same level as it was in early 2016.
This means gold is rising, but only as part of a broader commodity rally. So this is an inflationary rally, not a monetary panic yet. If all commodities are moving higher, miners don't increase their profit margins, and so the stocks don't outperform. They stagnate. But we will see a monetary panic,
Keep reading with a 7-day free trial
Subscribe to The End Game Investor to keep reading this post and get 7 days of free access to the full post archives.