A looming recession in the United States, surging government debt and structurally-driven global inflation is setting the stage for explosive growth in precious metal stocks.
That’s according to prominent Denver-based macro investment firm, Cescat Capital.
“The stage is set for an incredibly bullish environment for hard-money-based assets over the long term,” the firm wrote in a recent investor letter.
“Precious metals are likely to play the starring role for investors as the most credible alternative to protecting real wealth in this sharply depreciating fiat currency environment.
“At the same time, the leading precious metals mining companies are likely to soon be entering a golden age of alpha generation.”
Time to take advantage of negative sentiment in the gold and silver sectors
Crescat highlighted gold and silver, the two best-known precious metals, as sectors to watch.
“General investor sentiment toward precious metals has become far too negative recently and is wholly unwarranted given the supply-driven inflationary environment.
“Gold and silver are typically safe havens for such times and should soon prove so again.
“It is very impressive how gold has been holding up despite the bloodbath in global sovereign bonds. Wait until something really breaks in the economy and the Fed is forced to reverse its policy in an already inflationary environment.”
Crescat manages Hedge Funds and Separately Managed Accounts (SMAs) with a focus on exposure precious metals via global listed exploration companies, developers and producers.
Related: “Prepare for a recession” – grim warning from leading investment strategists