Stanley Druckenmiller, one of the greatest investors of all time, recently bought two gold mining stocks, Barrick Gold and Newmont. Investing in gold can be volatile, so do your own research.
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So the great money manager Stanley dren Miller just bought two gold stocks he bought Newmont Mining and he bought Barrett gold so I’m going to talk about that right now and remember everything I talk about here is not investment advice do not listen to what I say it just take
This as my opinion so there’s nothing in here I’m talking about you should buy or sell these stocks I’m talking about so let’s get into it right now I got the laptop in front of me and it just came out recently that Stanley dren Miller who’s one of the greatest Traders
Investors of all time I believe he ran uh the soros’s fund and he made I don’t know how much he made there but he made something like 30% compounded return over the long term and he’s just known to really have impecable timing now he’s not always perfect if you listen to a
Lot of his interviews he says how he bought NASDAQ stocks at the top of the NASDAQ but then he said he was able to understand he made the wrong trade and then went short and he made money so it’s very interesting how you’ll see one of the common themes with these really
Great investors and Traders is they’re able to just switch on a dime uh they’ll admit they’re wrong and they’ll just change so it’s just another reason why when they come out with reports like this as as to what certain super investors did what they’re buying what they’re selling you really have to be
Careful because they could really change on a dime so one second he could say I’m buying long-term treasuries and then the next second he could say well I’m going short and he he said that in interviews so it came out that he bought about $26 million of Barrack gold and about $16
Million worth of Newmont Mining and I believe this is for for his family office so this is a big bet and this is a big bet on gold miners and it makes sense because gold miners have gotten destroyed the price of gold is actually near an all-time high and gold miners
Have collapsed over the over the years now I’m not a huge fan of gold miners for the long term because if you look at the gold mining index going back all the way to like the 70s or even the gold the baron gold mining index going back even
Further gold mining stocks have terrible long-term performance uh they’re they’re selling a commoditized product there’s no moat there’s no brand value um so they’re just not good performers over the long term but when they become cheap when it gets to a point where there’s so much value there uh that’s when I start
Getting interested so again barck is one of the the biggest gold miners so there’s a lot of other companies within this sector but Dr and Miller because he has such a huge amount of capital he needs that liquidity he needs to be able to get in
And out if he does change his mind he doesn’t want to really get locked into an illiquid stock but it’s very interesting how gold miners have it’s like maximum pessimism right now with the gold miners and if we look at the ratio the GDX to NASDAQ ratio so we look
At the GDX to NASDAQ ratio and we could see here I mean since 2007 this chart it’s showing that GDX when priced in the NASDAQ is making an all new Time Low uh so that’s just how much gold miners have underperformed Med the NASDAQ not only have they underperformed gold bullion but they’ve
Just massively underperformed the NASDAQ and look over the long term rightly so the NASDAQ has much better companies they’re selling things you look at Microsoft Nvidia Google I mean those companies are basically the global economy they’re selling products that businesses need and use whereas a gold miner is not selling anything anybody
Needs yes central banks are buying a lot of gold but it’s it’s not something they need to do or have to do although you could probably argue that in this environment uh with the dollar Reserve currency being under threat they probably do need to buy gold as a
Central bank and that is why they’re buying it but the GDX QQQ ratio it’s it’s incredible it almost seems like it’s making sort of like that climax run to the downside we’re seeing this kind of like usually when stocks Bubble Up they get that super Spike hockey stick
To the upside here it’s almost like there’s a hockey stick forming on the downside almost like a little support was breached but I think this is going to quickly revert right back up I think just my opinion I think that gold stocks are going to start rallying throughout
The end of the year all the way into the whole year of 2024 I believe uh because the gold price really isn’t coming down and the interesting thing with the gold price is that the gold ETFs are selling off like crazy the amount of bullion within the ETF but yet the spot gold
Price is not so it’s it’s a crazy disconnect that we’re seeing and I think what’s going on here is that the paper price is not really dictating the spot price anymore so it used to be they would always knock the paper price down or they would sell tons of gold Within
These ETFs so the ETF gold Holdings would shrink and then you’d see the spot price come down but we’re not seeing that anymore I I think there’s such a strong bid under gold because of what’s going on in the global economy with possible Wars everything money Printing
And I really think that the paper price may eventually just become irrelevant and it almost seems like the beginnings of that is happening uh so it should be interesting to see what happens but Dr and Mill are buying these two big miners it’s one thing if they buy gold but
These guys never buy miners so to see them buy miners which is like one of the most hated asset classes and has like some of the worst long-term performance I mean to to see guys like him buy gold miners is very very interesting so anyway everybody remember to subscribe
I’m going to have videos every week talking about things like this so hit that like button and subscribe and I’ll talk to everybody soon
1 Comment
This is great news. Thanks for the update, Chris!