The discount to the fair value of gold names since the precious metals high, in $US terms, back in mid-2020 is huge, it’s as much as 50% for a number of stocks. Gold follows the policy of the Fed but while interest rates are likely to go higher if “Real Interest Rates” start to moderate it should be the catalyst to push gold stocks much higher i.e. A real interest rate is an interest rate that has been adjusted to remove the effects of inflation.
- We can see gold higher into 2023 with the sector by far the cheapest pocket of today’s Resources Sector.
- MM is planning to add to its gold exposure through Evolution Mining (EVN) which as a company has some solid tailwinds unfolding into 2023.
MM remains long and bullish and NCM
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