Loading ...FWIW – I think he’s light on some of his estimates, but can’t hurt to have them pimping our pm’s and shares.
- With global risks escalating and geopolitical tensions rising, central banks around the world are implementing diversified allocations.
- As U.S. fiscal risks increase, investors are moving funds into gold.
- Concerns about gold being replaced by cryptocurrencies are no longer valid.
- Meanwhile, macroeconomic headwinds are turning into tailwinds for gold: TIPS yields and a weakening U.S. dollar, these “conventional” macro factors may drive gold prices up by another 10%.
- After adjusting for inflation, gold has not yet returned to its historical high in real terms (to reach this level, gold would need to rise by 40%),
- Market positioning (i.e., overall investor positioning) has not fully reflected the recent movement in gold prices.
- Gold stock valuations are low, with price-to-earnings (P/E) ratios 40% below normal levels., stock prices should rise by 45%.