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Only 10% of miners are currently above their 200-day moving averages, according to Otavio (Tavi) Costa, portfolio manager at Crescat Capital. Costa added that such low levels have historically appeared during significant market bottoms and commented that long-term-minded investors know how to respond in these situations.
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Costa has previously identified gold miners as offering the highest free cash flow yield among U.S. equities, describing the sector’s yield as roughly 10% in a recent analysis. In a separate note, he called attention to the lag in silver prices, describing it as a notable divergence as copper prices advanced further, according to an earlier report. These observations highlight Costa’s continued focus on identifying valuation gaps and market divergences across metals and miners.