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May 9, 2024 | Finally, Some Good-Looking Gold/Silver Miner Charts

John Rubino is a former Wall Street financial analyst and author or co-author of five books, including The Money Bubble: What to Do Before It Pops and Clean Money: Picking Winners in the Green-Tech Boom. He founded the popular financial website in 2004, sold it in 2022, and now publishes John Rubino’s Substack newsletter.

Long-suffering mining investors have been wondering how high gold and silver would have to go to finally breathe some life into their portfolios.

It looks like $2300/oz gold and $27/oz silver have done the trick. Behold the (suddenly very pretty) price charts:



Higher Metals Prices = Wider Profit Margins

These price moves aren’t a response to miners’ recent earnings reports, which are still mostly mediocre. They’re anticipating what the next batch of results will look like if today’s metals prices hold up.

Mining is a highly leveraged business. That is, costs are partially fixed, so higher gold/silver prices go straight to the bottom line. And every day the metals hold their current levels — or, like today, rise another percent or two — the conviction among investors that mine profitability is about to jump grows stronger.

This is great news, but not a reason for giving in to FOMO (fear of missing out). The broader markets are fragile, with overvalued tech and financial stocks colliding with “higher for longer” interest rates, risking a sudden trend reversal.

So enjoy these relatively good times, but stick with your dollar-cost-averaging. Buy the stocks listed in our portfolio a little at a time, and be ready to take advantage of sharp pullbacks.

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May 9th, 2024

Posted In: John Rubino Substack

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