The Golden Ticket in a Once in a Generation Investment Opportunity
Why Invest in Gold? Gold is an enduring monetary asset with 5,000 years of continuous use. A contra cyclical investment hedge against monetary debasement. Demand for the USD is declining globally due to economic sanctions and geopolitical conflicts, and increasing demand for a neutral reserve asset.
Demand for USD Declining
Gold Follows Debt – U.S. public debt is growing exponentially. Debt servicing is on an unsustainable path. There are too many political roadblocks for any debt resolutions. Geopolitical conflict is inflationary. Inflation and monetary debasement are now an entrench policy.
Gold 93% Correlation to Federal Debt
Gold vs Gold Miners – Mining equity shares are currently deeply undervalued vs the underlying gold commodity. Precious metals miners historically have a 3:1 leverage to gold price. Mining equity shares are a much cheaper way to own gold assets.
Gold Price vs Gold Miners
NYSE Arca Gold BUGS Index/Gold Price
Severe lack of capital flows
Under-Owned by West – Western allocations to Gold are severely depressed with 71% of money Managers have only 0-1% exposure to gold (BoA Fund Manager Survey, 2023).
Allocation Opportunity – Top 15 Precious Metal Stocks make up only 1.49% of Mag 7.
1999
2024
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