Indisputable Proof of the Massive Misalignment Between Western PM Mining Share Prices and Reality

This will soon resolve itself in the proper direction

Has your perception in any endeavor ever been massively misaligned with reality? Have you ever thought that a pool of water was deep enough to jump into off a perch until a friend stuck a measuring stick and informed you that if you jumped, you may break an ankle or leg because the water is too shallow? Have you ever watched a professional MMA fighter fight, and with an abundance of delusion, thought, because you train in martial arts, “I could take him”,  even though this professional trained five hours a day while you only trained five hours a week?  Just watch this comical video of regular Joes that tweet about how they could easily outperform a professional NFL or collegiate kicker that missed an important field goal and then attempted to make the same field goal under ideal conditions - a clear path to the uprights, no one rushing them, and in perfect weather conditions – and failed miserably, quickly realigning their delusions with reality. 

And this is the wide gap between perception and reality that exists among many of us in many arenas of life that can lead to harmful decisions if we do not close this gap and quickly realign it. Such a gap exists between current perception and reality with the best (not the worst) gold and silver mining stocks in August of 2023. Of course, I’m not denying the importance of perception, because with investors, often perception is their reality. However, it is the inability to see, or refusal to understand, the misalignment of perception with reality in investing that often leads to wrong decisions at critical moments.

I am publishing this article to further illustrate the degree to which gold/silver prices are suppressed by the US/UK in Western markets versus in Asian markets and why I may discuss a couple of Chinese mining stocks here soon for those that understand that times like these are buying opportunities, not times to panic sell. If massive misalignments exist between reality and perception in PM mining stocks one may currently hold, then there is certainly opportunity in other misalignments that will exist in other financially robust and solid PM mining stocks as well.

I’ve never understood why the vast majority of investors never seek to take advantage of buying opportunities like these and only seek to buy when share prices of gold/silver mining stocks are soaring and positive headlines are plastered all over the media. The best times to buy are always when there is blood in the streets, when an asset class plunges by 40% to 50% or more. Though this has not happened with the PM mining stocks this year, when large declines in share price happens to an asset class, this statement has relevancy in that I’ve always discovered that this is the time to seek out more opportunities.

When the share prices of stellar companies are greatly depressed and their prices are greatly misaligned with their economic future, other opportunities will exist in the same sector. This article should greatly help newbies to this game that have no experience in investing with this specific asset class during periods like this (I’ve been vested through a few windows like this in PM mining stocks in prior years) to more clearly understand, without doubt, the proper decisions to undertake, when the financial reality of these stocks become grossly misaligned with their share prices. Furthermore, I will discuss certain conditions that exist right now in this asset class, of which the majority of you are likely unaware, that will further calm your nerves about this situation as I will demonstrate crystal clear points about this asset class that many of you may not be able to discern because of tunnel visioned focus. Though “laser eyes” became a popular, positively-promoted meme with cryptocurrency investors, laset-type of focus can prevent an investor from seeing the bigger investment picture, which I will reveal in today’s article.

For this reason, I have always stated that analysts that have only been through bull market periods can never provide the proper perspective of analysts that have experienced multiple past historical difficult periods of price performance in a specific asset class. By far, the much more difficult periods through which to provide proper guidance are the downtrends, not the uptrends. In fact, many here that are newbies were completely unaware that gold/silver mining stocks, as a sector last year, experienced a very difficult period last year, with both ending up negative on the year and with the silver mining stock sector provided significant negative yields last year, simply because they just followed my buy and sell opinions on individual stocks that yielded very high double- digit returns during that same investment period.

And even though this year has been another down year for PM mining stocks (year-to-date), and we are down this year in our PM assets, allow me to explain why I believe that this year can still turnaround quite significantly, as more than a third of the year still remains. Despite the severely negative sentiment surrounding PM mining stocks at this time, there are real reasons for optimism. By real reasons, I do not mean hope as you know I firmly believe hope is not an investment strategy. These real reasons, as I’ll discuss in this article, come from areas that most Western investors rarely or never investigate. In fact, the most difficult part of my job as an analyst at times, is realizing that the majority of investors do not understand the things I do and thus, sometimes I forget to discuss topics that are super important to discuss because I forget that most others probably are not aware of these factors.

To use an analogy, I teach a couple of female friends mixed martial arts and I was teaching them the calf kick. Both were not generating sufficient force on the kick to the point where I could allow them to kick my naked calf with no padding or protection on my calf. If you are a martial artist, you know that one can only suffer several full force calf kicks before it impedes one’s ability to walk. I couldn’t figure out why they were failing to generate significant force on that kick so I recorded their kicks and watched the video later at home. When I was watching it on video, I immediately identified incorrect foot placement on the lead foot that stripped them of the majority of power on the calf kick, but while watching it live, I was completely unable to see it simply because I had practiced that kick thousands of times to the point at which my muscle memory did not allow me to identify the obvious mistake they were making. And because I do not need to think of proper form when I throw the kick as muscle memory automatically ensures I kick with proper form, this prevented me from seeing a glaring mistake both were making when I initially taught them the kick.

Investing is also like this sometimes. Sometimes, I think there is no need to discuss things that are obvious to me due to my long tenure in investing in PMs and PM assets that I mistakenly believe everyone already understands the very things I understand when I make my decisions whether to buy/hold during downturns/or sell. Last week, I pondered if I had missed discussing any factors in the PM asset class that could further properly guide investors through this price dip? I originally thought, nope. But then over the weekend, as I was discussing a Chinese gold mining stock with a friend of mine whose help I needed in translating the simplified Chinese of a company’s financial statements, the obvious finally came apparent to me. And this formed the basis of this article. Thus, I sincerely hope that this article exposes factors in the PM mining sector that without pondering the question, I expect everyone to know, but in reality, likely almost no one knows.

Furthermore, as this development is new to this year, I doubt that you will read about these factors from any analyst that has not been in the game for a minimum of a decade, as familiarity with past history of multiple up and down price periods with this asset class will be necessary to spot this new development, especially in light of the massive threat the Western Military Industrial Banking Complex (MIBC) feels in response to escalating global dedollarization efforts.

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