Doug Casey

Commodities and commodity stocks are historically very cheap relative to the financial end of the market, so he likes to buy them as they are undervalued.

Commodities and commodity stocks are historically very cheap relative to the financial end of the market, so he likes to buy them as they are undervalued.

I speculate in small gold mining stocks... these mining stocks are, believe it or not, still undervalued. Gold slightly overvalued. Mining stocks still very cheap. While physical gold has run up significantly, retail and institutional capital has largely ignored the junior miners due to ESG mandates and long production lead times. As gold sustains higher prices due to fiat debasement, the massive margin expansion for these smaller producers will eventually trigger a re-rating and significant capital inflows. LONG junior gold miners as a high-leverage, deep-value catch-up play to physical gold. Mining is highly capital intensive; jurisdictional risks, operational failures, or a sudden drop in physical gold prices could severely impact junior miners.