Precious metal miners trade at deep discounts
The guest argued that major and junior gold and silver miners are trading at a fraction of their fair value due to systemic share price manipulation.
The argument
He pointed out that companies like Agnico Eagle and Newmont saw their stocks decline despite reporting record earnings. In his view, these equities are being artificially managed but will catch a massive bid during the next major precious metals rally.
The thesis, stress-tested
✓ What validates it
- ✓Mining stocks outperforming the underlying metals during a market upswing
- ✓Agnico Eagle or Newmont reporting expanded dividend payouts from record earnings
▸ Risks discussed
- ▸Continued suppression of mining stock valuations by institutional actors
- ▸Rising operational and input costs for miners eroding profit margins
Hear it yourself
"And they continued to decline and decline as they covered more and more shorts. The price rose higher and higher and higher. And starting about the December 1, the speculators started piling in. That's when things started going parabolic. But even with that going even the price is going parabolic, the commercial Big Kate commercial traders continue to cover their short positions right up to and including a commitment of traders report that we saw on, last Friday. Right now, the short positions in the big eights in silver and gold are the lowest on record. It is unbelievable to see where they are today."
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