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.