Watch: UBS' Seven Reasons to Own Mining Stocks

Authored by GoldFix ZH Edit

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1. With global risks escalating and geopolitical tensions rising, central banks around the world are implementing diversified allocations.
2. As U.S. fiscal risks increase, investors are moving funds into gold.
3. Concerns about gold being replaced by cryptocurrencies are no longer valid.
4. Meanwhile, macroeconomic headwinds are turning into tailwinds for gold: TIPS yields and a weakening U.S. dollar, these "conventional" macro factors may drive gold prices up by another 10%.
5. After adjusting for inflation, gold has not yet returned to its historical high in real terms (to reach this level, gold would need to rise by 40%),
6. Market positioning (i.e., overall investor positioning) has not fully reflected the recent movement in gold prices.
7. Gold stock valuations are low, with price-to-earnings (P/E) ratios 40% below normal levels., stock prices should rise by 45%.

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