Gold and Silver Prices Poised for Surge Amid Debasement Trade
A recent report from Vallum Capital suggests that gold and silver prices are likely to surge due to debasement trade. The firm argues that fiscal dominance and shifting real yields have reshaped the macro-outlook, leading to a substantial rally in precious metals.
The report notes that central banks bought 288.9 tonnes of gold in the second quarter of 2026, marking a 411 per cent surge quarter-on-quarter. This is despite Western ETF outflows reaching 44.8 tonnes and jewellery demand falling 17 per cent.
Vallum Capital believes that either path - hiking or holding - taken by the US Fed will lead to debasing the currency. The firm points out that this setup has been priced correctly through every prior cycle, suggesting a durable reversal rather than just a chart pattern.
The report also highlights that silver has outperformed gold in every cycle where gold made a sustained advance. In the current cycle from 2021 to 2026, silver has gained 263 per cent versus gold's 164 per cent, a significant 99-point outperformance.