Monthly report (T8 Gold) – September 2024

Reporting — October 2024

Monthly fund update

Key points

  • We believe the US interest rate cut cements a new gold bullion ETF accumulation cycle which we expect to be a materially positive, long duration driver of the gold price.
  • Despite being up 25% year-to-date and setting new all-time highs in nominal terms, the gold price remains well below its all-time highs adjusting for structural inflation factors, of approximately US$3,500 per ounce.
  • Gold mining stocks are at what we believe is a roughly 25-year low in terms of valuation.
  • Recently, gold mining stocks have not been exhibiting their typical commodity producer leverage to the gold price. We expect this to prove a temporary phenomenon, creating considerable asymmetry for gold mining stocks.