Stijn Scmidt welcomes Adrian Day to the show. Adrian Day is CEO of Adrian Day Asset Management & Manager of EuroPacific Gold Fund. In this comprehensive discussion, Day provides insights into the current precious metals market, highlighting several key trends and investment opportunities. Day argues that the fundamental reasons for gold investment remain strong, particularly from central banks and wealthy individuals concerned about fiscal instability. Central banks continue to diversify away from dollar assets, with dollar holdings in foreign reserves dropping from 75% to around 47.5% in recent years. This trend, coupled with geopolitical tensions and concerns about dollar weaponization, suggests continued gold purchasing. Regarding market dynamics, Day notes that generalist investors are beginning to show increased interest in gold. Recent data shows significant inflows into gold-related ETFs, with $3.3 billion entering the GLD in just one month. He believes the current economic environment - characterized by potential interest rate cuts, stubborn inflation, and a weakening dollar - creates an ideal scenario for gold investment. Day sees significant potential in gold mining stocks, arguing that despite recent price increases, valuations remain attractive. He highlights opportunities in both large-cap producers like Barrick and intermediate-sized companies like Equinox and B2. For silver, he suggests the market remains promising, with potential for meaningful price increases due to unique supply and demand characteristics. In the exploration and junior mining sector, Day sees substantial untapped potential. Many companies remain undervalued, and he believes the broader sector has yet to experience a significant uplift. He emphasizes the importance of patience and quality management when investing in exploration companies. Regarding other metals, Day expresses particular enthusiasm for silver and maintains a neutral stance on oil, preferring to focus on gold, silver, copper, and uranium. His investment approach remains globally diversified, sector-agnostic, and focused on understanding the fundamental value of potential investments.
