/biz/ - Business & Finance

>>21346523

>the whole mining sector has a black cloud over it from over-leveraging and heavily diluting shares in years past. There's no reason to assume that SILJ must go up. Those small businesses could have management that's incompetent or doesn't care about shareholders, or takes on disproportionate risks, or simply can't profitably operate with a decent profit margin.

This idea that the miners are fair value from dilution is a myth; the miners really are historically undervalued when compared to the metals to an insane degree. See >>21343348. It's no different from the GSR going to 1:125, it's a historical anomaly to take advantage of before it gets corrected. At current gold and silver prices, these companies are going to be making a fortune, and either paying enormous dividends, or getting acquired by companies who pay enormous dividends; people simply don't realize this yet.

>>Most of all I'm happy I got in Barrick and other large cap miners. Yeah less possibility of it mooning, but I like a management team with a proven track record, and the gains speak for themselves.

The large-caps are a case in point. NEM is trading as it was on 22 May, when gold was $1650 and silver was $17. And yet NEM has a dozen gold mines, and is the only miner in the S&P 500; it is also the world's largest silver producer. And here we are with $1950 gold and $26 silver, and it hasn't moved. If a stock as safe and obvious as that hasn't moved, that tells you something. The bull market hasn't even started yet. This is the accumulation phase for the intelligent money.

>>21265226

>The miners are themselves already valued

The miners are themselves already undervalued*

>>21262606

This is exactly why you should be buying all the SILJ and silver miners you can. Buying silver miners now is like what buying silver was when the GSR was 1:100 or 1:110. When it dropped to 1:125 you didn't panic if you had an ounce of sense, you simply bought more.

>>21255118

Your own fear is the strongest argument that the bull market has not even started yet. Bull markets climb a wall of worry.

If you buy the GDXJ, you are objectively a value-investor. You are buying something which is objectively cheap, and which should already be 3x higher on the basis of the Gold:Gold Miner ratio during the past century. Whereas people buy something Tesla without blinking, even though the company is completely worthless.

>>20692943

Junior gold miners have been going bankrupt during one of the worst bear-markets in history, yes. That bear-market is now coming to an end, and gold is going into a ferocious bull-market which will draw up every junior miner with it. The list of junior miners which I gave to /biz/ exactly one month ago has doubled. >>20597543 >>20603169 I felt no hesitation in giving that list, because the fundamentals demand that, if gold and silver rise, and they will rise, junior miners will rise with them, exponentially.

My point about John Law was in answer to this statement of yours: "Ponzi schemes don’t get to 170B valuations, there is something else at work." My analogy was perfect. John Law created a ponzi-scheme which was on a level with Bitcoin. Hence the market-cap of Bitcoin is not, in and of itself, an argument that Bitcoin is not a ponzi-scheme.

Read what Mike Hearn says in that article, and consider that nothing has changed. The Lightning Network is always two years away; and even the Lightning Network, as I have said, is not an answer to BTC's problems. The end-point of BTC is to rely on second-layer solutions which track and trace everything you do. BTC is evil.

>>20651504

Mining stocks are not. Mining stocks are the most undervalued assets in the world, even more so than gold and silver. GDXJ needs to go 3x higher simply to catch up with where it was in 2011, when gold was at an equivalent price. Then gold, in this bull market, is going at least 3x higher to reach its $1900 nominal peak in real terms; so even somebody who guys the mid-tier GDXJ and SILJ ETFs is going to make 10x their money. When it comes to the small-caps, 100x and 150x gains are going to be made. 150x is normal for silver juniors in a PM bull market. First Majestic went 150x from 2001-2011.

>>20625618

Not only gold and silver, but the miners. When they recover from this mindless sell-off and run up to their true value, the gains will be utterly astonishing.

>>20624748
>>20625342

Be patient. Miners selling off is a temporary anomaly, and their run will be enormous when it comes.