Western gold under-ownership to re-rate equities
The guest argued that Western institutional portfolios are historically under-allocated to gold, and their eventual return will drive a major re-rating of undervalued gold equities.
The argument
Western exposure to gold is currently under 0.5%, compared to a historical average of 2% to 3%. This under-ownership has left gold mining equities trading at historically cheap valuations relative to the spot gold price.
The thesis, stress-tested
✓ What validates it
- ✓Western gold ETF holdings showing sustained net inflows
- ✓Gold mining equities outperforming spot gold price
▸ Risks discussed
- ▸Persistent high real interest rates reducing gold's appeal
- ▸Continued Western investor preference for tech equities over hard assets
Hear it yourself
"the formation of SeaBridge. Happy to do so, Trey. Yeah. So I've been in the business now for forty five years. Most of the time running publicly traded gold companies. I built mines in third world countries. I've had those mines I built expropriated by governments, you know, learning the hard way how real political risk can be in our space. Specific to SeaBridge Gold, that's a company that I formed with my colleague about twenty seven years ago, and our goal was to try and create within a public company the best optionality and, and leverage the gold price."
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