Loading ...I get feedback on my positive coverage of the mining sector. Some of my followers don’t like the miners for understandable reasons. Specifically; why during a crisis-in-credit should gold and silver mining prosper as everything else struggles for survival? With the understanding that I don’t have a crystal ball to see the future with, that’s a good question I have a good answer to.
Currently everything else trading in the financial markets has been soaking up the “liquidity” flowing from the Federal Reserve System. Stocks, bonds, real estates are all over dangerously overvalued, and the companies managing these financial assets are leveraged as if the good times will never end.
But taking another look at the BEV chart for the BGMI I published last week (Below), gold mining is currently near its lows of the past 100 years! The only people owning gold mining companies today are true believers; people who most likely purchased them after the 85% decline from 2011 to 2015.
The prospects of seeing gold mining shares declining with everything else in a coming bear market are slim to none in my opinion; they already had their bear market as valuations in everything else inflated. The survivors in the precious -metal mining industry who have survived this bear market are lean and mean!
https://www.gold-eagle.com/article/mr-x-i-don’t-care-i-gold-and-silver-miners