The markets are hanging in reasonably well as the middle east war intensifies. Reasonably well though is in the eye of the beholder. Investors who are used to volatile assets may be taking this in stride but still think perhaps it is time to re-evaluate the longer term thesis here.
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Gold and silver has played the role of a safe haven asset for thousands of years. These metals also had significant price increases in the last year or so. The elevated price levels have helped the miners increases their revenue, profitability and cash flows and these are, and will increasingly be, returned back to the shareholders, in terms of dividends, share price increases and stock buybacks.
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It takes time to reflect the benefits of the increasing commodity prices on the miner's income statements. Over time as the market prices of the assets (inventory and in the ground) are re-baselined, the balance sheet of these companies will expand as well. This is a one-two punch in a good way for an investor in these stocks.
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I am working on one such opportunity and will post a review soon. It may be restricted to the Inner Circle members.
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