~*~Mining and Metals Du Jour~*~

[starboy]

https://aheadoftheherd.com/false-gold-stock-panic/
The most detailed articles come from ahead of the herd.
May be a long read but worth every word...

Excerpt:
"Sooner or later gold-futures speculators and gold investors are going to realize the US dollar can’t keep soaring indefinitely, especially with raging inflation relentlessly eroding its purchasing power. They will come to realize ultra-aggressive Fed rate hikes aren’t slaying inflation, that requires the FOMC to unwind the majority of its QE4 money printing. And they will fear this Fed-fueled major stock-market bear deepening.

They will remember gold has proven the ultimate inflation hedge for centuries. Speculators will flood back into gold futures with a vengeance as the inflation-debased US dollar mean reverts way lower. Investors will aggressively boost their meager portfolio allocations to gold as it surges with general stocks burning all around from the Fed’s scorched-earth tightening. As gold runs, battered gold stocks will soar multiples higher.

The bottom line is battered gold stocks are literally trading at panic levels today! They haven’t been lower or more oversold since March 2020’s pandemic-lockdown stock panic, after which they violently mean reverted massively higher. Today’s extreme lows are just as anomalous and unsustainable, based on a false premise that recent months’ big gold selloff was fundamentally-righteous. But that simply isn’t true."