Precious Metals Rally Still in Early Innings Despite Gold Hitting New Highs

Interview with Michael Gentile, Investor

Recording date: 6th October 2025

Michael Gentile, a strategic investor with 25 years of institutional money management experience, is conducting a five-city European roadshow featuring six of his largest portfolio investments. The tour through London, Paris, Geneva, Zurich, and Frankfurt comes at a pivotal moment—gold prices are reaching new highs while institutional appetite for precious metals equities returns after years of dormancy.

Gentile's investment approach centers on contrarian positioning in the junior mining sector. His gold thesis, established during the 2018 downturn, was built on concerns about unsustainable government debt levels, excessive spending, and questionable monetary policy. While these fundamental concerns have intensified over seven years, market recognition has lagged dramatically as investors remained captivated by extraordinary returns in technology and artificial intelligence sectors.

The investor manages a portfolio of 25-30 junior mining companies, typically entering positions at $5-20 million market capitalizations. His philosophy emphasizes three critical elements: significant insider ownership to align management with shareholders, disciplined capital allocation that avoids excessive dilution, and strategic acquisitions during downturns rather than expensive drilling programs when capital is scarce.

What makes the current environment particularly compelling is the fundamental shift in gold demand. Central banks have been the primary driver of gold prices since 2019, acting as price-agnostic buyers targeting specific allocation percentages. Now, institutional investors and family offices are beginning their first meaningful allocations to precious metals—a sector representing just 0.5% of global investor capital despite its growing monetary importance.

Gentile notes that mining companies are already highly profitable at current gold prices, eliminating the need for further appreciation to justify equity valuations. Despite recent strength, the sector shows none of the typical exuberance that characterizes late-cycle peaks, suggesting the rally remains in its early innings with substantial room for growth.

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