Central banks now hold more gold than US Treasuries for the first time since 1996, with foreign central banks at a 49-year high in gold ownership and the US at a 90-year low.
The excess global debt and instability of fiat currencies are driving central banks to accumulate gold, with the European Central Bank noting gold has surpassed the euro in official global reserves.
A potential global monetary reset aims to create a parallel settlement system moving away from the US dollar, with China setting up global warehouses and using embridge to establish a new system with gold as a base layer.
Gold prices could potentially reach $30,000 an ounce if central banks accumulate 70% of their reserves in gold, while silver prices might quadruple and reach triple digits.
Central banks may soon add silver to their reserves as a monetary asset, not just for industrial uses, with countries like China buying silver above current prices.
The gold to silver ratio is currently at 80, considered extremely cheap, with a potential major breakout if it falls below 40-30.
Gold mining companies are deeply undervalued due to conservative gold price projections, with most banks assuming a long-term gold price of $2,500 despite current prices above $3,800.
The gold mining ETFs (GDX and GDXJ) are up over 113% year-to-date, while the Philadelphia Stock Exchange gold and silver index is still 70% lower than its prior peak.
The Orion $5 billion partnership with the White House signifies significant institutional engagement in the mining sector, laying groundwork for future collaborations.
The AI arms race and reshoring/reindustrialization driven by the Trump administration are shaping a new world order, with the US aiming to assert sovereignty and reduce foreign dependencies.
The silver market’s small size relative to the overall market could lead to significant price increases, similar to the mining industry’s potential for growth due to global imbalances.
The US government has two options to revalue gold: either set a higher price or accumulate gold themselves, potentially pushing prices over $10,000 an ounce.
There’s a potential risk of governments nationalizing mines in the future as part of strategic asset control.
Lyn Alden predicts a gradual shift towards Fed balance sheet increases, similar to the 2019 repo spike, marking a trend reversal and new normal for the Fed’s balance sheet.
Despite a somewhat sluggish private sector, Fed balance sheet increases will provide stimulus, supporting the economy even if the labor market softens.
An emerging market style recession with high inflation and a misery index is more likely than a major recession like the Great Depression 2.0.
The Fed’s tools primarily accelerate or decelerate bank lending, but can exacerbate inflation by widening the deficit if bank lending isn’t the core issue.
Mortgage rates are expected to pull down from highs to around 5%, not triggering a big refinancing cycle and maintaining a two-speed economy.
The government’s accumulated multi-decade decisions on tax cuts, stimulus spending, and bailouts have contributed to wealth concentration and income inequality.
Stablecoin issuers earn up to 10 times the profit per employee compared to traditional banks, but their potential to fix US debt is limited.
The US government is attempting to codify stablecoins by making them compliant with regulations, viewing them as a venture-like opportunity.
Lyn Alden advises focusing on acquiring hard scarce assets like Bitcoin, which she believes will have the best performance over the next 5-10 years.
Emerging markets are considered undervalued and underappreciated, offering growth opportunities less correlated with the US economy.
Residential real estate is expected to enter a sideways pattern, with prices levitating rather than crashing due to the fiscal dominant environment.
Individuals are advised to avoid falling into loops of despair, anger, or tribalism, and instead focus on making things better in their local area.
People should train themselves to look at statistics in context, comparing them to previous levels over 5-10-20-30 years to gain a more balanced perspective.
Empress Royalty has achieved four consecutive years of doubling revenue while maintaining a net cash positive position, demonstrating strong financial performance in the gold and silver sector.
The company’s portfolio of four producing assets, with an investment of $22.5 million, is projected to yield $80 million in returns over five years based on current precious metal prices.
Empress Royalty’s annual net income of $1.5 million and gross margin of $2.5 million allow for reinvestment and accumulation of cash and precious metal credits.
Empress focuses on $5-25 million investments in gold and silver assets, acquiring them at a 20% discount to spot price through its royalty and streaming model.
The company maintains a globally diversified portfolio across Africa, South America, and Mexico, leveraging its team’s expertise in complex jurisdictions and structured finance.
Empress’s strategy of patient capital deployment aligns with its large shareholder base, allowing for careful vetting and execution of deals that meet strict criteria.
The restart trend in the mining industry, where previously shuttered mines become viable due to higher gold prices, presents a surge in investment opportunities for Empress.
The gold and silver market is shifting towards rewarding immediate cash flow over long-term royalties, aligning with Empress’s focus on producing assets.
Empress’s expertise in complex jurisdictions and ability to create bespoke streaming agreements provide a competitive edge in deal structuring and execution.
The company’s laser focus on gold and silver investments, rather than diversifying into other commodities, capitalizes on growing demand for these precious metals.
Empress Royalty’s CEO suggests the company has 10x potential in the current gold bull market, based on its financial performance and strategic positioning.
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