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One of the (many) disappointing things about the gold/silver miners has been their failure to respond when precious metals have gone up. Gold, though not exactly on fire for most of 2023, did touch a new all-time high in early December. But (as far as I know) not a single gold/silver miner was anywhere near a 12-month, let alone an all-time high.

It’s not supposed to be that way. Historically, the miners have moved along with the metals but more so, outperforming — sometimes dramatically — during bull markets. Why they haven’t done this lately has been a subject of some debate.

Then yesterday (Dec 13) happened. The Fed made some dovish announcements, lighting a fire under gold (up 2%) and silver (up 5%). And instead of lagging, the mining stocks did what they were supposed to, rising as much or more than the metals. Here’s a list containing a mix of royalty/streamers, junior producers, and explorers, most of which beat the metals nicely.

New normal?

There’s a stretch of several years coming when days like yesterday are common, and the best-run, highest-quality miners outperform pretty much everything else. That stretch might be starting now, or it might kick into gear when the Fed panics during next year’s recession. But it will happen, and today’s beaten-down prices will look, in retrospect, like gifts from the market gods.

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