Inflation seems to be something that I fall back on quite frequently, it’s happening like crazy right now and a successful hedge is something that’s very important in market conditions like we are in. For many people, crypto is that successful hedge, crypto is in their portfolio as a hedge against inflation. But with the crypto market slowly starting to slow down and the “season of alts” coming to an end, there is an age-old volatile inflation hedge. Precious metal miners.
Gold and silver miners are weird little stocks, they follow the trends of the precious metals but they are so much more volatile. Think of it almost as a leveraged ETF. One company I like is Newmont corporation, Newmont Corp (NEM) is the world’s largest gold mining company. With locations in Nevada, Colorado, Ontario, Quebec, Mexico, Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname, I can safely say they are the largest gold mining company.
The reason I bring up precious metal mining is that I think investors are more open to volatility. After holding bitcoin and seeing it swing 10-15% in a day I believe investors are overall more comfortable with volatility.
BUT there’s a huge problem with investors and Bitcoin…the influence individuals have on cryptocurrency. If I am getting close to retirement and I see my investments swinging 10% every day because of a guy tweeting…I’m nervous. That’s why I like metal mining so much is because it has volatility but it won’t be affected by someone tweeting and the volatility is much lower than Bitcoin.
I think gold miners are a great inflation hedge and I think that NEM is a good bet for playing the gold mining edge.