Commodities
Home›Commodities›Precious Metals›Gold seen as shifting from bond hedge to monetary alte…
Gold seen as shifting from bond hedge to monetary alternative
Speaking at the Precious Metals Summit in Beaver Creek, presenters argued central bank buying and de-dollarization are driving a longer remonetization cycle rather than a purely cyclical run.
Gold’s expanding role as an alternative to government bonds and the U.S. dollar could signal a structural change, not just another cyclical bull market, Sprott managing partner John Hathaway and Incrementum partner Ronald-Peter Stöferle said at the Precious Metals Summit in Beaver Creek, Colorado, on Sept. 22, according to Mining.com.
The pair pointed to persistent central bank purchases and de-dollarization, and said gold has risen since 2022 even as bond yields climbed. Stöferle framed the debate for investors as whether gold is in a normal cycle or a broader remonetization cycle, with his view increasingly favoring the latter.
Hathaway tied the evolving relationship between gold and bonds to weakening confidence in fixed income as a safe haven. He added that gold participation from both institutions and retail remains low, which he said leaves room for capital to move into bullion and mining shares if traditional portfolios start shifting away from bonds.
Both presenters also said gold miners remain undervalued despite stronger balance sheets, margins, and cash flow than a decade ago, and argued the industry needs to make its case more clearly to bring in more generalist investors.
Latest closeGold $4,150.40 ▼0.3%