That's right – mining stocks. I posted on here about these a couple months ago, and I'm here to pound the drum once again.
Due to rapidly rising industrial demand and investor interest, supply-demand deficits continue to grow for both these respective metals. China is buying up silver by the boatload for solar and EV and shows no signs of stopping, and copper demand for one of about 10,000 different use cases for it has squeezed its price per pound to new ATH's.
Silver looks to be breaking out of its consolidation phase on another run, and while the mining stocks have lagged the rising price up to this point, especially due to concerns about higher oil prices, at some point the profit margins are going to be undeniable. Wall Street is going to get a clue, and they'll start rallying in droves to buy them up.
Believe it or not, some of these silver stocks in particular print as literal 30-baggers or higher from this point if silver prices trend to $200 from here. This is no doubt one of the most assymetric bets I've seen in a long time.
Positions: AG, CDE, HL, AYA, EXK, ASM, SVRSF, AGXPF, TGB
Silver and Copper Mining Stocks – the Commodity Supercycle Asymmetric Trade
byu/daddysgirl794 instocks
Posted by daddysgirl794
3 Comments
Silver is so underpriced still, and the miners even more so. Have a big position in SLVP.
Copper and silver definitely have real structural demand behind them now. AI infrastructure, electrification, EVs and grid expansion aren’t temporary narratives. But mining stocks are still a brutal sector. In commodity cycles, the story usually sounds the most convincing near the top. The winners can do 10-30x… but most miners still disappoint investors.
COPX