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Gold price explodes, is the commodities cycle next? Grant Williams

As gold price keeps hitting new record highs on quickly rising global tensions, is the commodities cycle ready to surge as well? Grant Williams, author and host of the Grant Williams Podcast, warns of investors of shifting geopolitical landscapes and the debasement of currencies, suggesting a significant shift in the global order.

“It feels like we’re getting to a point where people are going to start putting money to work in commodities again,” Williams told Kitco Mining on the sidelines of the Vancouver Resource Investment Conference.

He noted that the equity markets, particularly tech, are overvalued and that “the debasement of currencies is happening at a much, much faster rate and people are going to want to own physical assets”.

Williams pointed to precious metals, particularly gold, as a safe haven in the current climate. “There’s a terrific tailwind behind precious metals, particularly gold,” he said, adding, “silver will catch up at some point, but the weight behind gold is very much safe-haven buying”.

Energy markets also have potential in this environment, especially with shifts in political leadership in the US and Canada, he added.

Decline of American influence

Williams also pointed to the shifting global power dynamics. “What I feel viscerally in recent months is an acceleration into the end of the American Empire,” he said. “Wherever you look, there’s increasing conflict around the world.”

This is in the context of a new presidential term in the United States where, according to Williams, “Trump is very much anti-war”.

According to Williams, this potential shift could lead to a vacuum in Asia, where China may seek to expand its influence. “If America pulls out of Asia, it would, it would be a big problem in terms of how much antagonism, how much conflict we’d see,” he said.

Economic implications

Williams highlighted the importance of reshoring supply chains, especially in critical minerals. “If your number one threat is a war with China, and your munitions supply chains go through China, you’ve got a real problem.”

However, he cautioned that such moves would be “very inflationary” for Americans.

Williams also mentioned the need to rethink investment strategies in 2025. He stated, “I want to do the best I can to earn safe yield,” adding that “finding private investments to make,” and “reimagining the way that you think investment is” are key.

He argued that investors need to go “back to the practice of investment, not buying stocks,” and focus on “owning a piece of that business” rather than merely chasing stock prices.

Williams warned that the coming years will be marked by uncertainty, risk, and volatility. “A lot of things are going to come to a head in these four years, politically, geopolitically, financially, economically,” he said. “It means more and higher chances of a miscalculation somewhere”.

Source: Kitco