Hi Gary, something about GSR v. SGR: given that GSR is one of your two horsemen of apocalypse, and the two are the inverse of each other, does that mean you expect 1) SGR to go hyperbolic for some time if we have a more “orderly” deflationary process, and 2) GSR to go hyperbolic instead if we have a “market crash”? Or maybe a higher SGR is beneficial to the *entire* mining sector, but not to gold miners?
(Since you consider GSR to be one of the indicators for the kind of counter-cyclical environment most conducive to gold miners)
Gary March 15, 2023
Hi Lucius, if the GSR and USD rise together I’d have a level of caution on everything, including gold miners. I am not bullish on the “entire” mining sector because I am not bullish on inflation. The question I have is whether or not the gold miners will get drubbed with the next upturn in the GSR. But a non-crisis/mass liquidation rally in the PMs could be led by silver. It just may not be the ultimate FUNDAMENTAL rally, if that makes sense.
Hi Gary, something about GSR v. SGR: given that GSR is one of your two horsemen of apocalypse, and the two are the inverse of each other, does that mean you expect 1) SGR to go hyperbolic for some time if we have a more “orderly” deflationary process, and 2) GSR to go hyperbolic instead if we have a “market crash”? Or maybe a higher SGR is beneficial to the *entire* mining sector, but not to gold miners?
(Since you consider GSR to be one of the indicators for the kind of counter-cyclical environment most conducive to gold miners)
Hi Lucius, if the GSR and USD rise together I’d have a level of caution on everything, including gold miners. I am not bullish on the “entire” mining sector because I am not bullish on inflation. The question I have is whether or not the gold miners will get drubbed with the next upturn in the GSR. But a non-crisis/mass liquidation rally in the PMs could be led by silver. It just may not be the ultimate FUNDAMENTAL rally, if that makes sense.