Gold miners offer strong sleep-well-at-night value
The bull case argued for tier-one gold producers is that they are generating record profits at current gold prices, with lower oil prices further supporting their margins.
The argument
The guest argued that while gold miners have less torque and volatility than silver miners, high-quality producers are being sold off despite reporting record earnings. He believes the market is incorrectly pricing in lower future gold prices.
The thesis, stress-tested
✓ What validates it
- ✓Gold prices stabilizing in the $3,500 to $5,000 range
- ✓Sustained lower oil prices reducing mining input costs
▸ Risks discussed
- ▸Gold price dropping toward the extreme low end of the range ($3,500)
- ▸Input cost inflation if oil prices spike
Hear it yourself
"I think in other words, I think the mining the market is pricing in lower silver prices. So even if silver prices just hang hang out, if they could just maintain where they're at now around in the fifties and gold around the $3,500 to $4,000 level, these companies are gonna continue to to print profits."
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