Precious metals correction creates buying opportunity
The guest argued that the recent correction in gold and silver has washed out late-stage momentum players, setting up an attractive re-entry point for long-term investors.
The argument
The guest explained that they took profits on silver and gold miners earlier in the year when retail enthusiasm became too frothy. With prices having corrected significantly, they are preparing to rebuild positions in high-quality miners.
The thesis, stress-tested
✓ What validates it
- ✓Stabilization of gold and silver prices above key technical support levels
- ✓Agnico Eagle reporting strong cash flows despite lower average realized prices
▸ Risks discussed
- ▸Continued high real interest rates could pressure non-yielding assets
- ▸Further liquidations by momentum traders could push prices lower in the near term
Hear it yourself
"I'll be surprised if that selling doesn't go on another three or four weeks. It's just personal opinion. I have no idea what'll happen. But I would guess that, you know, when you start getting some selling, that typically is gonna give you a little more than you expect. And I would think you would get that over the next three or four weeks. I I don't know. There'd be a lot longer than that. But I because, again, they start ripping this thing up going up to the elections. Mhmm. And, it'd be different. We're in a recession. Usually, you're bad, bad, more markets will be they'll be associated with a recession too, and we're not in that right now."
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