The mining stocks as an asset class are as cheap as they’ve been relative to the rest of the stock market since 2002. Back then the gold price was $300 and silver was below $5. The mining stocks are also historically cheap relative to the prices of gold and silver. And gold and silver are historically cheap relative to the money supply and amount of Treasury debt outstanding. The M2 money supply has increased at annualized rate of 20.2% Since February 2020. It’s now 90% of GDP vs 44.4% at the beginning of 2000. Going into 2022, gold is considerably mispriced relative to the amount of currency that has been printed. And silver, at a gold/silver ratio of 79, silver is extraordinarily mispriced vs gold.
Bill Powers had me back on his Mining Stock Education podcast to discuss the precious metals sector along with some of my favorite junior exploration plays going into 2022:
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