This filing discusses the ongoing gold supercycle, driven by central bank de-dollarization and fiscal dominance, and highlights the significant undervaluation of gold and silver miners. It suggests a structural repricing of gold and a generational boom in commodities, with silver being a particularly attractive investment. The analysis points to a disconnect between gold's performance and real yields, indicating a new paradigm for the precious metal.
The filing argues that a new gold supercycle is underway, driven by central banks swapping Treasuries for bullion due to fiscal dominance and de-dollarization. This shift has led to gold's resilience against rising real yields, breaking historical correlations. The long-term implication is a generational boom in commodities, with gold and silver expected to see significant upside. For traders, this presents a long-term opportunity in physical gold and silver, and particularly in undervalued gold and silver miners like Barrick and Newmont, which are trading at historically low P/E ratios compared to their past. The key risk is the potential for further rate hikes, as indicated by Kevin Warsh, which could temporarily dampen enthusiasm, but the underlying structural drivers are seen as robust.