As inflation takes center stage, financial markets are witnessing historical patterns reminiscent of the 1930s-40s, challenging the fixation on the 1970s comparison. Tavi Costa emphasizes that inflation evolves in waves, with the current environment resembling the distressed energy sector of 2020, eventually leading to two years of outstanding performance.
Undervalued gold miners are capturing attention, with dividend yields hitting historic highs. Costa points out that even seasoned precious metals experts are wavering in their convictions. Drawing parallels to the energy sector’s remarkable turnaround in 2020, Costa sees an unprecedented opportunity in the gold mining sector.
John Rubino notes a peculiar trend in mainstream money tiptoeing into gold miners, despite the assumption that big gold miners should thrive with gold near all-time highs. The divergence raises questions about the relationship between gold and its miners. Rubino suggests two possible conclusions: either the relationship is fundamentally broken, or this divergence signals an undervalued opportunity.
Jordan Roy-Byrne highlights the recent bounce in Gold, Silver, and gold stocks from strong support levels at $2000 and $22.00, respectively. The rebound follows an oversold condition, raising considerations about potential downside breaks and evaluating the robustness of support levels. The evolving dynamics in the precious metals market add complexity, inviting investors to navigate carefully in this environment.
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Interesting how people get so fixated on the 1970s comparison rather than the fact that inflation develops through waves.
Look no further than the 1930s-40s. pic.twitter.com/M7LAIqxOyp
— Otavio (Tavi) Costa (@TaviCosta) February 16, 2024
Gold miners are so undervalued that even their dividend yields are now at one of the highest levels in history.
While there may be more opportunistic ways to deploy capital in such a distressed environment, this reminds me of the energy sector in 2020 before having two years of… pic.twitter.com/yvQT5SZpNS— Otavio (Tavi) Costa (@TaviCosta) February 15, 2024
rubino.substack.com/p/mainstream-money-tiptoes-into-gold
Gold & Silver have bounced from support at $2000 and $22.00 and the gold stocks have rebounded from a very oversold condition on Wednesday. But what if $2000 and $22.00 are broken to the downside? We evaluate the strong support levels in Gold, Silver, GDX, GDXJ.