#Gold / #Silver Mining Stock!

Many of you recognize me as a pessimist of the artificially inflated stock market.

IMO we will see a crash in the coming future due to a drought of stimulus from governments.

Yet I still have a portion of my portfolio in stocks... Why?

[THREAD]

My investments in stocks prominently consists of mining stocks!

Let me explain...

I believe the crash in the stock market will be accompanied by a global recession.

A financial reset of the world which currently runs on debt via fractional reserve banking.

...

Currencies are being printed at an alarming rate which is eroding their value.

This is causing true money, such as gold, to sky rocket in price as people look to store their wealth in safe havens.

You can read more about my view on precious metals here: https://twitter.com/Lion_Investor/status/1293985605920096256

Silver mining companies remain profitable since the $XAG price reached its lows of $12 in March.

Since then the price for #Silver has reached (as of today) $28, more than double.

Now... to fully grasp why mining stocks have such great leverage we need to understand their margin

Mining companies will have a margin for every oz of silver they pull out of the ground.

Hypothetically it may cost a company $8 on average per oz.

At a spot price of $9, they would receive $1 per oz profit

At a spot price of $10, profits would double, at $11, triple

This gives the potential for mining companies to increase in valuation and provide better returns than investing in the underlining asset itself.

Just my thoughts, opinions?