Gold Price Correction Not Collapse, Vallum Capital Sees Big Rally Ahead
Vallum Capital is bullish on gold and silver, despite recent price corrections. The firm believes that the current market conditions are favorable for a new phase of the 'debasement trade,' which involves owning assets that cannot be created by governments or central banks.
The investment firm points out that US real yields have turned, the dollar is reversing, and central banks are buying gold at an extraordinary pace. This, combined with the muted supply response from gold miners, creates a long-term case for holding the metal.
Vallum estimates that the entire gold above ground is worth roughly $31 trillion, compared to around $350 trillion in global debt. The firm's argument is not that gold will automatically rise because of global debt, but that the enormous gap between scarce physical gold and an expanding pool of money and debt creates a long-term case for holding the metal.
Indian investors have been pouring money into financial gold, with ₹93,000 crore flowing into gold funds and ETFs between January 2025 and January 2026. However, the correction saw around ₹23,000-28,000 crore wiped from the mark-to-market value of that year's new inflows.
Vallum notes that it is time to 'reload Gold and Silver' as they appear poised for a significant upside move. The firm believes that investors should focus on structural markers such as the 2% real yield threshold and a reversing DXY, rather than chart patterns.