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Podcast: Mining Stock Daily
Episode: The Broken Equity Structure and Gold's Rally: Michael Green on the Systemic Risk of Passive Investing
Description: Mining Stock Daily welcomes Michael Green to delve into the broken equity structure and its profound implications for the metals and miners audience. Green outlines his serious concerns regarding the explosive growth of passive investing, estimating that north of 50% of the total market capitalization is now contained within passive vehicles. This structural change creates a passive mandate bias toward large-cap concentration, which specifically distorts the valuations and liquidity of smaller cap resource and precious metals stocks. He illustrates how incremental passive flows disproportionately magnify the price impact on the largest stocks while shrinking buy orders for smaller index components...