People often believe that a rise in Gold price must necessarily result in a rise in gold stocks. While generally true, it has not been as true in recent times as gold stocks have been underperforming relative to Gold. Gold stocks did not enjoy proportionate gains relative to Gold's gains. That can and will change if Gold's rise can be more consistent and when it continues to make higher highs.
Similarly people believe that continued EV growth must necessarily be accompanied by rising lithium prices. Again while generally true, this thread has argued that future EV growth (which will be more moderate than what was seen in the past) is more likely to be accompanied and supported by a more sustainable moderate lithium price, a price that can ensure viability of major miners and yet which can support the EV industry to produce cheaper EVs that can compete with and replace ICE vehicles at a faster pace. But while lithium prices will rise, it is unlikely to return to 2020-22 bumper prices that had delivered bonanza profits to the major producers and superb project economics for the upcoming developers. Accordingly, valuations previously achieved by lithium players on those lofty lithium prices then would unlikely be replicated, a realisation that eventually market participants will have to eventually accept.
So it may well be that Gold stocks are not Gold, it could also be the case that EV growth is not Lithium price growth.
