Vallum Capital Sees Gold and Silver Rally Amid Shifting Real Yields

A recent report by Vallum Capital suggests that gold and silver are poised for a major rally due to shifting real yields and fiscal dominance. The report states that the recent correction in precious metals was merely a repricing of ownership, rather than an invalidation of the investment case for accumulating gold and silver.

The report identifies a 2% real-yield threshold and a reversing Dollar Index as structural markers, indicating a durable reversal rather than a temporary chart pattern. Vallum Capital notes that either policy path chosen by the US Fed - hiking or holding - could result in currency debasement, which the firm describes as 'the setup gold has priced correctly through every prior cycle.'

The report also highlights strong central-bank demand for gold, with a 411% quarter-on-quarter surge in purchases in the second quarter of this year. This is in contrast to Western exchange-traded fund outflows and declining jewellery demand.