Brien Lundin, Editor of The Gold Newsletter and out host at the New Orleans Investment Conference, joins us to review the rebound in the precious metals sector over the last few months and kicking off 2023, and why it is that the mining stocks haven’t responded with more leverage. We discussed the sector sentiment still lagging the moves we’ve seen for months in silver, gold, and the PM mining stocks, and the old truism that: “A market is often loved least by those who know it best.”
The discussion then turns to where the macroeconomic drivers are heading this year that have been so prominent over the last year like inflation expectations, Fed policy, and what may happen once they wrap up their tightening cycle in the first half of this year. We also reflect on how if inflation is starting to moderate, while metals start climbing higher in price, that this should be a boon for the PM producers financial margins and for the economics of development projects. Brien feels that companies that have large scale resources will start to shine as they have their economics rerated higher, and he is still also animated by some of the select drill play exploration stocks with quality work programs for the year to come.
We wrap up discussing that Brien feels the bottom in the precious metals sector is now behind us, and after seeing a pattern of higher highs and higher lows in the metals and mining stock ETFs, that we should not be disheartened if we see a near-term pullback to digest the last few months gains.
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Click here to visit the Gold Newsletter website to learn more about Brien’s letter.