On a day when inflation trades sink, the gold miners sadly but predictably do too

Ladies and Gentlemen, behold inflationist gold bugs’ handy work

It never fails.

On a day and during a week when industrial metals (incl. Doctor Copper), Agricultural commodities, outlier commodities and even the last inflated man standing, Energy commodities are down, and inflation expectations dropping so too are the gold miners. The same gold miners that should never be thought of as part of the inflation trades for reasons I will not bother to repeat here but did repeat during Saturday’s interview. They obviously have some level of inflationist population in the investor base.

So one day when the miners go bullish I ask you to please remember which gold bugs were leading you astray at key moments and which gold bug was presenting you with facts, rather than dogma. Because the promoters will be back in force with all the ‘I told you so’s’ they can muster and many people will forget or ignore the sordid history of their bad calls when greed is again in play.

It’s one part annoying, one part comical and 2 parts reality. Inflation-centric gold bugs will always lead their herds to frustration at best and disaster at worst. Right now the word is frustration. I wonder if that will morph to disaster as it has in the past.

hui gold bugs index

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5 thoughts on “On a day when inflation trades sink, the gold miners sadly but predictably do too

  1. You called it, Gary. Now, what constitutes a “wash out”? How do we know when the gold stock inflationistas have puked the last of their shares?

    1. Well, I don’t want to print it publicly here but there was an update last week (June 13) targeting the extreme downside potential on HUI. Also an update this week discussing a level that would paint a crash as more likely.

    2. Anecdotally, at the bottom the perma-pumpers and dogmatic Twitter influencers will be imploring their herds to hold the line, don’t let the cabal win. Crap like that. When the gold bugs herds stop lapping up the promoters’ pitches and start doubting everything, that along with technical targets will be good guides. That is assuming a big breakdown happens.

    1. Thanks. The truth shall always set us free, even if it does not make us money every time. In gold stocks, that should come later, with patience.

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