Moore Sees Upside in Gold Stocks Amid Inflation and Geopolitical Tensions

Veteran Australian investor Paul Moore sees upside in gold stocks due to inflationary pressures and geopolitical tensions. His PM Capital Global Opportunities Fund (ASX:PGF) is raising $175 million in capital this week, targeting opportunities in the markets.

Moore believes that the world is now in an inflationary environment, driven by decoupling between the US and China, high fiscal spending, and geopolitical tensions such as the war between Ukraine and Russia. He notes that there are constraints on new mineral supply, making gold stocks attractive.

PM Capital previously targeted copper stocks but now sees them as fully valued. Moore writes that gold equities have 'much ground to make up' after underperforming the gold price for two decades. Newmont (ASX:NEM) was highlighted in PM Capital's capital raising presentation, with a price-to-earnings ratio of around 15 times for 2027.

According to Porter & Co analyst data, sentiment among gold traders has dropped to levels only seen nine times in the last 18 years. In each case, gold prices were higher one month later, with average returns of 4.1%. The US gold price has risen by around $275 per ounce since then.