‘Why take the risk if you were better off buying the metal?’ – Lobo Tiggre on soft mining equities

Kitco Mining, Released on 5/6/24

Mining equity investors need to be patient, said Lobo Tiggre, editor of the IndependentSpeculator.com. In early May Tiggre spoke to Kitco correspondent Paul Harris at Deutsche Goldmesse held in Frankfurt, Germany. Tiggre noted the disconnect between high metal prices and mining equities that are not performing as well as they should. Gold has hit several all-time highs in 2024, but the gold miners, measured by the GDX, are only up 12% this year and well-off highs hit early this decade. Tiggre notes that the key appeal of mining stocks is their leverage to rising metal prices. With strong gold prices, the underperformance of mining stocks has been a source of frustration. “If the metal goes up and your stocks are still in the doghouse…something is wrong,” said Tiggre. “Why take the risk if you were better off just buying the metal?” Tiggre believes mining stocks still have room for significant growth, even if the recent surge was not based on the fundamental factors he anticipated. He expects the market to realize the undervaluation of mining stocks compared to gold, leading to upward price movements in the sector.

0:00 – High metals prices. Is the sector rebounding?
2:30 – Will gold go higher when Fed cuts?
6:11 – When do mining equities start trading higher on good metal prices?
8:20 – No sign of the generalist investor?
11:49 – M&A in the mining sector

Lobo Tiggre, aka Louis James, is a legendary speculator and was Doug Casey’s protégé at Casey Research for almost 14 years, until early 2018. He joined the Casey team in 2004. By 2007, he was writing and making investment recommendations in Casey’s flagship newsletter, the International Speculator. Now he brings his experience, his connections and his deal flow directly to you, without the barrage of marketing hype used by larger publishers. He is now the editor of IndependentSpeculator.com.

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