Goehring & Rozencwajg, a leading investment firm, predicts a surge in gold demand driven by central bank buying and renewed investor interest.
In a recent interview on VRIC Media, Leigh Goehring and Adam Rozencwajg, Managing Partners at Goehring & Rozencwajg, a prominent investment firm specializing in the natural resource sector, shared their insights on the evolving commodity landscape. Their analysis points to a resurgence of gold demand, a bright future for uranium, and a compelling investment case for undervalued oil.
Goehring emphasized the growing competition for gold between central banks and Western investors. “Now central banks have bought all that gold and then some from the Western investors,” he explained. “What happens if real interest rates start to go down, which they look like they’re going down now? Western investors… have turned back into buyers.
You’ve got Central Bank buyers competing with the Western investor who has returned. I believe that that’s going to force the gold price higher.” This renewed demand for gold, driven by both central bank accumulation and resurgent Western investor interest, is seen as a key factor in the precious metal’s upward trajectory.
The discussion also highlighted the bullish case for uranium. While acknowledging the recent price increases, Rozencwajg emphasized that the market remains in a structural deficit. “The market slipped into deficit a couple of years ago… Mine supply was no longer covering reactor demand,” he stated. Despite recent price appreciation, significant investment in new uranium mines has been lacking. “Investor interest is… as low as it’s been in some time,” Rozencwajg noted, highlighting the potential for significant supply constraints in the coming years.
This, coupled with the growing demand for nuclear power, particularly with the emergence of advanced technologies like Small Modular Reactors (SMRs), positions uranium for continued growth.
Goehring & Rozencwajg also offered a contrarian perspective on the oil market. While many analysts have predicted a decline in oil demand, the firm believes that oil remains fundamentally undervalued. “We’re telling you what’s going to happen in oil,” Goehring stated, “No one agrees with us… but I think we’re going to be right.”
This contrarian view is based on an assessment of the long-term supply and demand dynamics of the oil market, with the firm emphasizing the potential for significant supply constraints in the years to come.
Goehring & Rozencwajg: A Focus on Long-Term Value
The firm’s investment philosophy centers on identifying undervalued assets in bear markets and capitalizing on long-term trends. “We love to pick bear market bottoms,” Goehring explained. “It’s something we’ve been able to repeat over and over again… By using the pessimism that comes at bare Market bottoms where everyone is bearish, the equity valuations are radically low, that’s where we try to get involved.”
This focus on long-term value, coupled with in-depth research and a contrarian perspective, has enabled Goehring & Rozencwajg to achieve significant investment success.
