What matters now?A lot of people are buying jr. miners on the assumption that they're cheap and a magnificent rebound rally is on the way.
What if they're wrong?
I expected precious metals mining stocks to act as hedges going up when things are down. Instead they're going down with everything else. I'm surprised. I thought Trevali's silver would help to provide a 'silver' lining for the stock...but no, doesn't matter in the slightest.
Figuring out what does matter, what moves Trevali, has been difficult since 2016. Remember our non-stop posts about low LME inventories and their inevitable bullish effect? They just had to matter...but they didn't. Inventories have been bumping along the bottom for years now and the stock has gone down 95%
Central bankers worldwide have been 'easing'--printing money--since 2008. They seem to think that recessions can be postponed, or if were are NOW currently in recession, that it can be hurried along as this 'easing' seeds the next expansion with 'liquidity'.
I disagree. Recessions cannot be indefinately postponed. I find the current stimulus' more than a little unnerving.
I've posted here recently that thinking in terms of where we are in the 'business cycle' has been useless because never ending waves of quantitative easing has more or less annulled it and/or rendered it beside the point utterly.
I suggest the realities of the business cycle are currently reasserting themselves. One of the forlorn facts of the business cycle is that piles of debt, both government and individual MUST bring about a reckoning.
That's when the current 'liquidity' will be proven useless AND precious metals again become 'real money'.