Central Bank Buying Impact on Gold Stocks

The Western speculators are selling gold and gold stocks due to high real interest rates, leading to poor performance of gold stocks. Central banks, on the other hand, have been buying physical gold, putting pressure on the gold price. This discrepancy in buying behavior is creating undervaluation in gold compared to other financial metrics. As central banks continue to accumulate gold and Western speculators potentially shift back to buying, there might be a sharp increase in the gold price, potentially signaling the start of a major bull market in gold driven by the ongoing commodity cycle.