I continue to be excited by the gold and silver market because it simultaneously provides both pro-tection and optionality on what I believe to be the ultimate tail event:
the inevitable reversion back to a tangible/commodity money standard.
This event is so alien to present avant-garde economics it has been ruled out as a solution to the problems facing the global economy. However, when analyzing the current state and trajectory it is not only more logical by the day, but mathematically inevitable and soon to be competitively sought by the remaining capitalists on the globe.
There are only 580 mines and deposits on earth with over 1 million troy ounces of in-situ gold with less than 200 in North America. Compare that to 2,000 billionaires, 50,000 Picassos, and $230 trillion in global ﬁnancial assets. I cannot think of a better asset class I would rather be invested in over the coming decades. As for physical gold, our research this year shows that we are nearing peak gold production as the total in-situ ounces when adjusted for metallurgical recoveries and average mine life are about 50% less than what is required to maintain the current production trends.