the issue i find with gold miners is due to banks/commodity houses perpetually having a declining price forecast for gold they are nearly always undervalued. $18 seems like a good price at $3k gold and a long run price forecast of $2.5k.. but by the time we actually hit $18, spot is over $5k and banks say long run price is 3.5k.
i missed the lithium run (and likewise avoided the bust) but you look at some of the forecasts put out and it was lithium prices increasing nearly forever and a long run price higher than what the spot price was. Easy to see lithium miners get carried away as forward earnings look amazing.
gold seems to be the opposite. ive made this point before, but i can argue gold isnt a commodity, its money and should be on the bond/currency desks more than commodity ones.
A normal supply/demand or consumption model doesnt work when gold isnt really consumed and every oz thats been mined still exists somewhere. Very high stock to flow ratio that sets it apart.
Im starting to get lazy with my gold miners now they are well in the green so i dont really have a price target, other than it seems to keep trending up.
NST Price at posting:
$21.34 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)