A: No one can predict the future with certainty. That’s why I look at multiple paths, different scenarios with multiple twists and turns. I think there's at least a 10% chance that we could ultimately have a hyperinflation over the next ten years. So we have to be prepared for that possibility. But what happens if we get a scenario with a global recession first? In this case, it’s highly likely that commodity and energy prices decline. If gold stays flat or even down slightly, the miners should benefit as their cost structure falls more than the price of gold. They already generate strong free cash flows, and the industry is much more conservative than it was ten or twenty years ago, much more focused on profitability. So we have the best of both worlds: Not only do we have a cash flow generative business and a disciplined industry that’s not destroying capital, but we also have an option value if something were to go badly wrong with the great monetary experiment.
~ Kevin Duffy, "The Next Bear Market Has Already Started," The Market, July 1, 2021
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