Why gold is like the minivan you secretly love

I had about 14 minutes before school pick up to figure out why gold hit a new high.

It turns out, it's not just fear. The math actually works.

• Interest rates (after inflation) started to dip.

• The U.S. dollar weakened slightly.

• And central banks keep buying gold and piling it up like Lego bricks.

In a market that’s sick of earnings surprises and earnings-call drama, a 5,000-year-old asset that just sits there is suddenly doing everything.

This isn’t magic. It really is just math. 

When inflation-adjusted yields soften, the opportunity cost of holding gold shrinks. 

Central banks continue to buy, and retail access to ETFs, vaulted accounts, and even micro-bars is easier than ever. So, the breakout makes sense.

I think a simple barbell works best for this one:

• Core exposure: bullion or a low-fee ETF

• Torque: a sprinkle of quality miners or royalty names

Don’t forget that not every miner benefits when the price increases. 

Diesel, dilution, and dubious capex can eat rallies faster than a toddler asks why.

Here are a few things that could dull the shine:

• A spike in real yields

• A dollar rally

• Sudden ETF outflows

• A surge in cheap supply

Until then, gold is the minivan you secretly love: unflashy 90% of the time, heroic when carpooling.

Size it right, sleep better, and skip the sports car, because even central banks are choosing the minivan right now.

🚴‍♂️ A Cause Close to Home

This Saturday, September 27, we’re proud to sponsor the Canadian Securities Exchange (CSE) team at Bay Street Rides Far for Autism Research.

There are still spots open if you’d like to ride or walk—and plenty of room to support as a donor. Every contribution helps move research forward.

👉 Support the CSE team here

PS We have ad space on Capital Markets Dad. Right now, it’s 16 months for $1,000 CAD. That’s less than $63 a month to put your brand in front of interested capital markets professionals who actually want to hear from you. Once the slots are gone, they’re gone.

Reply to this email if you’re interested.