No single ticker was named. Gold & precious metals ETFs are one way for retail investors to get exposure. Not a recommendation.
Gold serves as a structural equity hedge
The speakers argued that direct gold ownership provides an effective, uncorrelated portfolio hedge that historically preserves purchasing power without the premium costs of derivatives.
The argument
They explained that while M2 money supply grows by 7% to 8% annually, the gold supply only increases by about 1%, creating a structural tailwind. They target a 5% to 15% portfolio allocation, trimming the position when gold outpaces equities.
The thesis, stress-tested
✓ What validates it
- ✓Gold maintaining its high-single-digit compounding rate relative to M2 growth
- ✓Strong inverse correlation holding during equity market downturns
▸ Risks discussed
- ▸High short-term price volatility
- ▸Gold miners carry operational and risk premiums compared to physical bullion in a vault
Hear it yourself
"I'm Tobias Carlisle joined as always by my co host, Jake Taylor. Our special guest today, First Eagle, Julian Albertini. Christian Heck, how are you, gents? Welcome to the show. Good. How are you? Good morning, guys. So let's start with who's First Eagle? Sure. I'm happy to start. And, yeah, thanks again for for having us. So First Eagle is actually a very old forum. You know, it dates back to 1864. Started as a private bank in Germany and for a long time, for six, seven generation, run by two families. We used to be called Arnold and Blaise Schroeder."