Millennials Flood Into Precious Metals: Is Gold The Next TSLA?

[SanMiguel]

Zero Hedge is just riding the anti-Robinhood trader bandwagon.

I'm with the kids on this one.

Until the institutions decide to fuck them all over and down we go

 

[Nine_Ender]

Robinhood'ers need more gold...
https://www.zerohedge.com/markets/millennials-flood-precious-metals-gold-next-tsla

Playing the Gold/Silver and related miners this year is a very rational trade not at all dissimilar to what occurred from 2009-2011. If anything it's been underplayed the stocks are badly lagging the metal prices suggesting more people then not don't think the metal prices will sustain at all. Many of these companies are solidly profitable at $1500 Gold and we are at $1900 now.

 

[Nine_Ender]

seems like a retarded play no matter what happens in autumn, gold was the first thing to get sold. The only angle I can see is more Unemployment Benefits with no 2nd wave in October, but the downsite overweights

I don't understand your post at all. The miners are a great trade I've been heavily in on since March. The fundamentals should be good through October and possibly for two years if things break certain ways.

If you need an angle, here's three. One, the miners were dirt cheap in March after being slammed for years. Two, the stocks are still lagging metal prices.Three, Gold may do well in an era where governments are heavily into stimulus and large federal debt.

 

[themickey]

I don't understand your post at all. The miners are a great trade I've been heavily in on since March. The fundamentals should be good through October and possibly for two years if things break certain ways.

If you need an angle, here's three. One, the miners were dirt cheap in March after being slammed for years. Two, the stocks are still lagging metal prices.Three, Gold may do well in an era where governments are heavily into stimulus and large federal debt.

....four, digging up gold is becoming more difficult due to scarcity of new greenfield prospects/projects.

 

[Nine_Ender]

....four, digging up gold is becoming more difficult due to scarcity of new greenfield prospects/projects.

Yes, that point came up the other day, as well as any shut downs due to Covid are reducing total output. So the miners like Yamana that exceeded production estimates in the second quarter despite Covid were being severely undervalued, and we are in the process of seeing these companies be revalued as their numbers come out.

 

[themickey]

Surprisingly China is the largest global producer which I find difficult to comprehend.
The Chinese have investments in mines is Australia and Africa, possibly elsewhere, not sure therefore if Chinese production figures come from other juristictions.
Anyway, assuming China digs up gold in China, the heavy rain there currently may affect them.

 

[volpri]

View attachment 235933
Surprisingly China is the largest global producer which I find difficult to comprehend.
The Chinese have investments in mines is Australia and Africa, possibly elsewhere, not sure therefore if Chinese production figures come from other juristictions.
Anyway, assuming China digs up gold in China, the heavy rain there currently may affect them.

Wash that gold away?

 

[themickey]

Wash that gold away?

Mines flooded dumbo Hehe
Can't dewater.
Edit: one of the many reasons Aust is great for mining, good weather.

 

[volpri]

Mines flooded dumbo Hehe
Can't dewater.

Just joking. Like can’t pan for gold very well in flooded rivers. In Honduras in my treks through the jungles I would see many holes gold panners dug and washed looking for gold.

 

[Bugsy]

Just joking. Like can’t pan for gold very well in flooded rivers. In Honduras in my treks through the jungles I would see many holes gold panners dug and washed looking for gold.

Was there any reason for them to believe they might actually find gold in the holes or was it completely random?