| PROSPERITY PUB MARKET TALK
Challenging Golden Beliefs
Following our recent discussion with Geof Smith on gold's market dynamics, we sought Jeffry Turnmire's insights for another view.
Jeffry, known for his nuanced understanding of the markets, stresses the importance of considering assets independently.
While Geof stressed the need for silver to start “playing along” in the rally before gold can go much higher, Jeffry challenged the narrative.
In particular, he pointed out the distinct market size and behavior of silver compared to gold.
As a sort of similar — though unrelated — example, Jeffry debunked the myth linking the dollar's strength directly to gold's performance, telling us that a deeper analysis is usually needed before relying on surface correlations.
Drawing parallels with the crypto market, he illustrated how Bitcoin miners sometimes mirror or diverge from Bitcoin's price movements.
He emphasized the critical role of analyzing the underlying assets so as to not be led astray by analyzing derivatives of the underlying.
As a practical example, you can look at how Bitcoin has been skyrocketing recently while the major Bitcoin miners, MARA, RIOT, HUT and CIFR among them have been retreating.
Jeffry told us that there could be many reasons for that — and while deeper analysis is necessary to find out exactly what is going on, sometimes these kind of divergences can point us to a “knowledge advantage” that institutional traders with vastly more resources and connections have.
All told, with regard to gold, Jeffry’s all in on NEM (Newmont Corp) with a long term view to having the stock potentially hit $100+ over the next (18 - 24 months months.)
— The Prosperity Pub Team
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