Middelkoop Sees Silver Steal Amid Commodities Selloff

Willem Middelkoop, founder of the Commodity Discovery Fund and author of The Big Reset, remains bullish on silver and gold despite a recent selloff in commodities. In an interview with Top of Mine, he stated that he has been adding to his personal silver position and investing fresh fund capital into the market while miners correct.

Middelkoop views the pullback as a gift within a generational commodities boom, citing the sector's long-term undervaluation. He notes that gold miners have spent over a decade in a valuation trough after the 2008-2010 cycle peak and still trade at price earnings ratios of 11 to 13, historically lower than the multiples seen during previous cycles.

Central banks are also a key factor in Middelkoop's thesis. He believes that they have been quietly accumulating gold as a hedge against a declining dollar-centered world, with official buying now exceeding 1000 tons per year for the fifth consecutive year. This purchasing power has led to physical gold in official vaults surpassing the value of all US Treasuries held there.

Middelkoop's long-term target for silver is $500, which he believes will be driven by both monetary and industrial demand. He points out that silver often lags behind gold before outperforming it, referencing its rapid rise to 120 after breaking above $30 in less than two years ago.

Middelkoop's fund has seen success this year, with a 15% year-to-date return and a strong August performance. He remains focused on quality juniors, highlighting the potential for discovery and development names to drive future growth.