Gold Miners: Capex Adjusted for Gold Prices

Who would have thought that with gold at $4,200/oz and silver nearing $60/oz, total capex across the mining industry would still be as depressed as it is now?

When you adjust for gold prices, aggregate capex is currently at one of its lowest levels in history.

Almost 90% lower than its previous highs.

If youre looking for a classic sign of a mining-cycle top, its when companies start spending like drunken sailors.

Today, we couldnt be further from that.

All of this underscores my view that were still in the very early stages of what could become one of the most important mining cycles in a century.