Gold and silver mining stocks are trading at an average discount of 24% compared to current spot prices, according to analysts at Berenberg. This valuation gap is a persistent theme during the current precious metals bull market, which might close as macroeconomic pressures intensify.

Miners Underperforming Despite Gold Gains

Gold recently surged above $3,000 per troy ounce, yet mining equities have struggled to keep pace. Analysts at Berenberg anticipate that investor interest will return to high-quality mining firms, particularly those demonstrating consistent cash flow and solid shareholder returns.

Among the miners facing significant discounts:

• Endeavour Mining: trades at a 32% discount to spot prices

• Wheaton Precious Metals (NYSE:WPM): currently at a 27% discount

• Fresnillo (LON:FRES): trading at a 25% discount

Berenberg asserts that these gaps will likely narrow as market conditions shift in response to rising macroeconomic concerns.

Strong Outlook for Gold

Despite market fluctuations, analysts maintain a positive outlook for gold prices amidst ongoing uncertainty regarding global trade, inflation, and recession risks. Central banks continue purchasing gold, further boosting demand against a backdrop of geopolitical instability.

As current gold futures sit at $3,018.90 per troy ounce— up 1.5% for the day but down 4.2% for the week—Berenberg projects that any subsequent downturns will be short-lived.

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