"When it's raining gold, reach for a bucket, not a thimble."
- Warren Buffet
Hello friends. We think that this is a big opportunity to get bullish exposure to gold miners, and it's good to adjust the sizing according to the edge so we are building a big long position for gold miners.
There are several factors that make this a great time to get long.
For one thing, gold miners are simply priced well. They are trading at a cheap P/E ratio average of 16.6 presently, down by a lot from the bubble highs.
Another factor to consider is seasonality. Gold enters an enormously bullish period in September and then continues to rally through the end of the year with the exception of October.
A big factor that the market isn't even seeming to consider is the fact that gasoline futures have now fallen by around 40%, which is a good sign that inflation has peaked and also means a lower cost basis for the gold produced by gold miners since they use up gasoline and many other commodities within their process of extracting gold. Cheaper gasoline will mean the other commodities used in production can also get cheaper.
- Warren Buffet
Hello friends. We think that this is a big opportunity to get bullish exposure to gold miners, and it's good to adjust the sizing according to the edge so we are building a big long position for gold miners.
There are several factors that make this a great time to get long.
For one thing, gold miners are simply priced well. They are trading at a cheap P/E ratio average of 16.6 presently, down by a lot from the bubble highs.
Another factor to consider is seasonality. Gold enters an enormously bullish period in September and then continues to rally through the end of the year with the exception of October.
A big factor that the market isn't even seeming to consider is the fact that gasoline futures have now fallen by around 40%, which is a good sign that inflation has peaked and also means a lower cost basis for the gold produced by gold miners since they use up gasoline and many other commodities within their process of extracting gold. Cheaper gasoline will mean the other commodities used in production can also get cheaper.
Note
It is no longer raining gold.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.