Monthly report (T8 Gold) – January 2025

Monthly fund update

Key points

• T8 Gold ended January up 15.5% (in Australian dollars, or up 16.1% in US dollars), outperforming its benchmark (the Gold Miners Index) up 14.9%.

• Gold rebounded after cooler than expected inflation data triggered a reversal in bond yields.

• Markets were rattled by multiple left field factors (US Presidential executive orders, DeepSeek and tariffs) which increased the appeal of gold and gold miners as a safe haven.

• An improvement in equity risk appetite combined with the stronger gold price resulted in gold mining equities posting solid gains and outperforming gold bullion.

• Gold mining stocks remain extremely attractive with valuations at what we believe are 25-year lows. We see this dislocation as a significant opportunity which markets haven’t yet recognised.

• There is no change to our belief that gold bullion ETFs are in an accumulation cycle at the same time as central banks are buying gold in volumes not seen since the 1960s.

• The potential for a protracted global trade war (which would be inflationary) at a time when inflation is already elevated and proving sticky, should be motivating investors to identify investments which would stand to benefit from such a scenario. We recall that the second inflation shock in the 1970s resulted in the gold price spiking by 179% over 12 months.