The generational investing opportunity ahead of us

The generational investing opportunity ahead of us:

The generational investing opportunity ahead of us.

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Gold and silver miners.

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In 2025, while the S&P made 18% for the year, how do you think gold and silver miners did?

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The GDX went up 155% and SIL, the silver miners ETF, went up 166%.

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Both gold and silver miners delivered 9-10x the returns of the S&P!!!! (Source)

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And yet, we are at the beginning.

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Early innings of what could be one of the greatest investing opportunities of our lifetime.

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The world is shifting.

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West to East.

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Paper to physical.

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Financial assets to real-world assets.

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None more so than gold and silver.

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I started writing about gold several years ago (here)

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Since then, it has gone up a lot.

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I’m glad I bought then, but boy do I wish I bought more.

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Same with silver.

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It was around $30 US/oz back in 2023.

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Now it’s tripled, just in the last few years.

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It’s now sitting at over 94$ US/oz, having gone up 20% just this month.

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And yet I’m going to argue we’re at the beginning.

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There’s still so much room to run.

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Silver’s high was $50 US/oz in 1980.

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But adjusted for inflation, to get back to the previous high, it’s got to be closer to $200 US/Oz. (Source)

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Meanwhile gold has become real money again.

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Because of the actions of the US government over the last few years, central banks all over the world have moved away from the US dollar as the reserve currency.

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Ever since the Biden administration took Russia out of the SWIFT system in 2022, the US dollar was no longer a neutral reserve asset.

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It became political.

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Since then, countries around the world have slowly been accumulating more gold and getting rid of their U.S. Treasury holdings.

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Why would you hold an asset of a country 38 trillion dollars in debt, with a 1+ trillion dollar interest expense, plus a wildcard president who kidnaps foreign leaders, goes to war with his allies over not receiving a Nobel Peace Prize and wants to increase the military budget by around 500 billion every year when the Pentagon has never passed an audit?

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You are never getting your money back.

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Meanwhile, gold has a 5000 year history of being real money.

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Gold is now the largest central bank reserve in the world.

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And the buying doesn’t stop.

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The case for gold is clear - people don’t trust the system.

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Especially the way the Americans have acted globally over the last several years.

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But the silver case is even more interesting.

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We’re in a massive supply deficit.

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And silver is used in a TON of industrial processes.

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Because of its high electrical and thermal conductivity, plus its antimicrobial and catalytic properties, it's used in many applications making it hard to replace.

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This includes semiconductors, which are needed for the AI boom and EVs/solar panels, which we need more of to accelerate our transition away from fossil fuels.

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This is a metal the world can’t live without.

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There’s also been speculation for decades that the large banks have been suppressing the silver price to ensure that Western companies have been able to get the metal for cheap.

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Now the price is being set by the East, specifically China.

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There are 3 major metals exchanges globally - the Comex in the US, the LBMA in London and the Shanghai Gold Exchange in China.

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The Shanghai Gold Exchange in particular is now setting the price.

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We have seen the price in Shanghai in silver close above $104.

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That’s a massive price difference compared to the West which means all the metal slowly moves to where it is priced the best.

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Ala the East.

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Wrote about this in November 2022 - Precious Metals are Moving East.

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It’s only accelerated since then.

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But here’s the opportunity.

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The miners.

The companies that take this stuff out of the ground.

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They’re still trading as if the metals were priced from a few years ago.

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Only they’re not.

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Wall Street has not caught up yet to the cash and earnings these companies are going to generate in the next few quarters.

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Especially if the prices stay where they are.

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You can buy major miners right now for P/E of around 10 given current prices. 

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That’s a steal, especially when everything else is so overvalued.

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But the junior miners are even cheaper.

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Imagine buying the whole market cap of a company where they make that amount of free cash flow in a year.

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The Warren Buffet indicator, one of the best indicators of how overvalued a market is, is also at all time highs.

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Nonetheless, the last 100 years in financial markets have told us that when a crisis hits, everyone buys US treasuries.

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The safe neutral reserve asset.

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Only we saw a glimpse of how the world is shifting away from that last April when Trump had his tariff tantrum.

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When the market started to crater, instead of bond yields going lower, they went higher.

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This means that in a crisis, people were selling instead of buying US treasuries.

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What went up as well?

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Gold.

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What if the prices of these metals keep going higher?

What if the demand continues?

What if central banks keep buying at any price because they don’t trust the US government?

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What if the US government starts creating policies about the importance of rare earths, including silver, which they just did this week?

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I believe we’re at the beginning of the next big commodity supercycle, which I wrote about in 2023 - A Commodity supercycle is coming.

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The last big one was in the 1970s.

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While the stock market made little to no money, if you invested in commodities, especially gold and silver, you crushed it.

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I believe we’re at the same place.

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At the early stages of one of the great opportunities of our lifetime.

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You may never get this chance again.

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Look at the gold and silver miners.

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GDX.

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GDXJ.

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SIL.

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SILJ.

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And if you want even more info on specific names, check out the guys on Twitter including Don Durrett, Rick Rule, Garrett Goggins, amongst many others.

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Some of these miners, especially the juniors, could go to insane heights.

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People might ask why I’m sharing this?

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As you can see I’ve been talking and writing about this for years in silence, and it’s slowly starting to play out.

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Now I want to own my predictions.

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Put it out there for all to see.

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Plus it’s boring to make money and be successful on your own, so why not bring people along with you?

Hope you’ll join me.

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The next few years will be bumpy.

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Already has been.

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But please keep your hands and feet inside the vehicle at all times, and enjoy your ride.

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Oh yea, and the game with the hedge funds never stopped ;) (but that’s for another day)

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***

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Keep Going, You’re Doing Great!

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