Founders Note: Compelling logic to own miners

"The re-rating of metals and mining shares in its infancy."

Housekeeping: cheers

Summary:

This report describes a concept we have seen before in ad hoc fashion, but never so starkly. Miners and natural resources in general are cheap compared to financially anchored companies.

But in light of the recent BOA report on ESG Gold, the several reports by firms we respect in mining stocks like Jefferies, and the now increasing cacophony of the MSM on Gold and Silver… we wonder if this sector isn’t extremely overbought in the short term, but ridiculously cheap in the big picture.

To add: Silver is criminally undervalued based on Copper inventories and Gold remonetization. But the goldilocks quality of Silver will be a factor once this gets going.

We don’t need much convincing on the big picture, but are glad to see the big boys are finally coming our way. The short term is just a painful scar of previous bandwagon pile-ons we’ve all seen. The answer if you are deploying capital and agree with us is simple: Put 1/3 to work now, hope things go down, and put the other 2/3 to work then.

The re-rating of metals and mining shares is in its infancy. Case in point: Apple's $2.1 trillion market value at year-end 2022 exceeded the $1.4 trillion combined market value of the world’s top-50 mining companies by a wide margin.- Report