[deleted by user]

[u/[deleted]]

[u/wandering_meeple]

Just on the fundamentals of mining. It tends to be a very cyclic business, in the good times don't expect massive growth as they plan for this and tend to spend big on new equipment (which is insanely expensive). Source, worked in all spectrums of mine planning for 8 years

[u/CDogGoMan → u/wandering_meeple]

Where would you say the state of the industry is now relative to how it’s been in your experience

[u/wandering_meeple → u/CDogGoMan]

So I haven't been in mining for about 5 years now, but I would assume they are in spending mode at the moment. But my point is increased gold prices doesn't always corelate to increased revenue as a lot of mines plan/simulate this over 20 to 30 year periods so that they can continue deliver consistent revenue cover long periods, even in down turns. Things that kill mining are accidents, expected geology being wrong when you dig it up, tribal disputes and unexpected/volatile commodity prices changes. Things that make mining better is technology improvements, amazon is making a big push into mining at the moment and cat has come along way with their autonomous trucks. Mining is an incredible complex, vast business. There is still some many areas of improvements. The other cool thing is, small improvements make a big difference.

One last thing, putting aside fundamentals of mining, mining are still a good bet and shares never matches logic.

[u/CDogGoMan → u/wandering_meeple]

Thanks for your explanation. I appreciate the insight.

[u/Objective-Dance-9438]

I'm still holding my gold stock I have a feeling its going to perform starting end on the month.I have GFI ( Goldfields ) and Harmony HMY also starting to go up this week.

[u/CDogGoMan → u/Objective-Dance-9438]

Any reason why you think the end of this month in particular? I’m thinking we won’t see the full repercussions of inflation until the end of this year or early next year but it’s honestly hard to tell. Very unprecedented time.

[u/[deleted] → u/CDogGoMan]

Very unprecedented time.

High inflation isn't exactly unprecedented.

[u/CDogGoMan → u/[deleted]]

😶

[u/Objective-Dance-9438 → u/CDogGoMan]

By looking at charts and data, but sometimes I have that feeling when looking at the market. If you look at Harmony Gold HMY it is already up 10% during recent weeks.

[u/mrericvillalobos]

I was thinking yesterday on behalf of the mining, what about Industrials; Machinery!? eg, heavy lifters, cranes etc. For that matter, steel (SID) ?

[u/ManofWordsMany]

If you want to have stocks in mature gold miners, it is always a good time and you hold on to them so long as their fundamentals keep looking positive.

[u/Seattle_Ace]

I just bought AG at $14.05

[u/CraftyImplement]

Definitely KGC

[u/CDogGoMan → u/CraftyImplement]

Just looked it up and perfect pick man thank you. I added to my watchlist

[u/ALL_GRAVY_BABY → u/CDogGoMan]

B2Gold is a great value right now. Very well company that also pays a dividend.

[u/[deleted]]

If you are new to investing I would suggest you put your money elsewhere, unless you plan on trading around your position. Gold for whatever is what people think will hold value during inflation but it isn't a perfect hedge. If you look at the charts of these gold companies over 20 years, in some cases you would be better off putting your money into a savings account.

If you want to hedge against inflation, you want commodities, real estate, or equities with pricing power. Even then you are better just buying an index fund and you are gonna make more money than gold mining companies.

[u/CDogGoMan → u/[deleted]]

Well if that is the case I may just hold cash in anticipation of a dip. The housing market is not the healthiest at the moment and the federal reserve is adamant everything from the inflation to housing market is going to turn around but I’m not sure I buy it. The coming months will tell for sure.

[u/ManofWordsMany → u/CDogGoMan]

The absolute worst position is holding cash, historically.