Erik Wetterling – Valuation Disconnects Continue In The PM Stocks As Markets Climb A Wall Of Worry

Erik Wetterling, Founder and Editor of The Hedgeless Horseman website, joins me to reflect on the continued disconnect we are seeing in valuation that many of the #gold and #silver stocks are receiving in their market caps, compared to what the value of their banked success of defined resources in the ground are worth, or in light of the expanding net present values of their economic studies at today’s spot #preciousmetals prices. We review the many investors are getting worried that they’ve already missed the moves in most companies, simply because they’ve run up multiple-fold. However, those investors are not really considering that the big moves higher on the charts are coming off incredibly oversold valuations that were not reflective of the value created even at much lower metals prices. Now that gold and silver have run up so much higher, many of the stocks are actually just a undervalued now than they were before they put in big 3x or 5x moves to the upside.

“Some of the highest margin of safety I’ve ever seen in this sector is still present despite some of these juniors having gone up X multiples.”