Meet the “Hermès of Gold” the Chinese Can’t Get Enough Of

Laopu’s business model involves selling high-purity 24-karat gold pieces using a fixed-price, high-margin model. More than just a jewelry retailer, Laopu is selling exclusivity and exquisite design, which may be why some people think of the company as the “Hermès of gold.”

The stunning results speak for themselves.

Its stock has soared more than 2,300% over the 12-month period through June 4, 2025. Year-to-date, it’s up 315%—all while much of the Chinese economy has seen lukewarm recovery at best.

In an investment note dated May 28, JPMorgan projects Laopu’s annual revenue will reach nearly $20 billion this year, representing a 135% increase over 2024. Net income is forecast to reach $3.8 billion, up from last year’s $1.5 billion. Perhaps even more impressively, the company reported a gross margin of over 41%, nearly double that of Chow Tai Fook, China’s largest traditional jeweler. Laopu’s average store revenue exceeded 100 million yuan, the highest in the country for gold retail.

Gold as Culture, Not Just Capital

It wasn’t just Laopu’s stock performance that drew us to the company; it was also the story. As I’ve shared with you many times before, gold plays an important, auspicious role in Chinese culture. The yellow metal is given at births, worn at weddings and handed down as heirlooms. Young Chinese consumers aged 18–34 now account for over a third of gold jewelry sales, according to Bloomberg’s Chongjing Li.

Laopu has tapped directly into this demand. Their boutiques—36 of them so far, with at least eight more planned this year—are strategically located in some of China’s most prestigious malls and shopping districts, with lines sometimes stretching around the block. Their designs often go viral on Chinese social media.

A GDP-Backed Growth Story

Since the start of this century, China’s GDP per capita has increased over 13-fold, from under $1,000 in 2000 to approximately $12,600 in 2023. (For comparison’s sake, India’s GDP per capita has grown sixfold over the same period, or less than half as fast.) While there are signs of a slowdown, especially due to the real estate and demographic headwinds, we believe China’s long-term picture still supports growing discretionary spending in Tier 1 and Tier 2 cities. That’s where Laopu operates, and that’s where the luxury gold market is most resilient.

We believe Laopu is well-positioned to benefit from a shift in Chinese consumer behavior toward premium domestic brands. Much like how Moutai dominates high-end liquor or how BYD is overtaking Western electric vehicles (EVs) in China, Laopu is making the case that a Chinese company can lead in luxury jewelry.

They’ve also begun international expansion, with stores opened in Singapore’s Marina Bay Sands and Hong Kong’s IFC Mall.

The Biggest Risk May Be Sitting on the Sidelines

No stock goes up forever, of course, and Laopu’s meteoric rise has raised a few eyebrows. The company trades at earnings multiples some would call elevated (trailing 12-month price-to-earnings of 87x), and skeptics have compared Laopu to a “story stock” riding retail hype.

We’re watching the fundamentals closely. But as investors who’ve followed the gold market for decades, we’ve seen that price often follows passion—especially in culturally driven demand markets.

Laopu isn’t a typical miner or ETF proxy for gold prices. We believe it’s a pure play on China’s cultural and increasingly affluent relationship with gold. And at a time when Western luxury brands are losing ground in China, Laopu’s ascent feels like a secular trend, not a speculative flash. It’s riding the Love Trade, and it’s doing so in the most important gold market on Earth.

Interested in learning more about opportunities in luxury goods? Send us an email at [email protected] with the subject line LUXURY.

Index Summary

• The major market indices finished up this week. The Dow Jones Industrial Average gained 1.17%. The S&P 500 Stock Index rose 1.55%, while the Nasdaq Composite climbed 2.18%. The Russell 2000 small capitalization index gained 3.08% this week.
• The Hang Seng Composite gained 2.20% this week; while Taiwan was up 1.47% and the KOSPI rose 4.24%.
• The 10-year Treasury bond yield rose 10 basis points to 4.505%.

Airlines and Shipping

Strengths

• The best-performing airline stock for the week was Sabre, up 9.5%. JP Morgan learned Friday afternoon that Newark’s main runway is set to reopen two full weeks ahead of schedule. This means that the FAA capacity cap of 28 hourly flights, set for the duration of major construction, will increase to 34. This new capacity cap will remain in effect until the end of October. However, Scott Kirby is a strong supporter of the FAA continuing to enforce capacity limits at Newark.
• According to Vizion, when comparing bookings from the week of April 28 to the week of May 12, the products that saw the largest increases since the early May announcement were furniture (TEU bookings surged 205% the week of May 12 versus the week of April 28), glass products (311% increase), knitted fabrics and textiles (over 140% increase), fur products (581% increase), leather goods (117% increase), plastics (153% increase and the highest booking volume of the year), and toys and sporting goods (230% increase).
• IAG confirms that following its most recent share acquisition, the first tranche of €500 million from its share buyback program of up to €1,000 million has now been completed. IAG also announced today the launch of the second €500 million tranche of the program. Barclay card spending on travel was up 6% year-over-year in April, with data continuing to indicate year-over-year growth in pricing and unit revenues.

Weaknesses

• The worst-performing airline stock for the week was Airports of Thailand, down 4.3%. According to Bank of America, TSA throughput through June 1 was down 1.7% year-over-year on a trailing 7-day basis, compared to a 0.2% decline the prior week. Off-peak travel remains weaker than peak, with off-peak days (Tuesday, Wednesday, Saturday) down 3.2% versus a 0.7% decline on other days. May throughput data fell 1.7%, compared to relatively flat performance over the prior three months.
• Using fiscal year 2024 car carrier profit as a baseline of 100, Kawasaki Kisen projects fiscal year 2025 profit at 93, reflecting a mix of transport volume growth, benefits from eco-friendly ship deployment, and higher ship and operating costs. Including the impact of tariffs, the company expects profit to fall 25% year-over-year, according to JP Morgan.
• The RBC Canadian Airfare Index is down 3.9% so far in the second quarter, versus a consensus forecast for Air Canada’s second-quarter yield to decline by just 0.6%. This contrasts with management’s earlier commentary suggesting no negative yields for the quarter. Additionally, the Canadian Airfare CPI declined 5.8% year-over-year in April.

Opportunities

• The IATA noted ancillary revenue could be the most significant contributor to sales growth in 2025. Ancillary and other revenue is forecasted to grow 6.5% year-over-year from $135 billion in 2024 to $144 billion in 2025. This is a very slight adjustment to the industry group’s last forecast of $145 billion for 2025.
• Morgan Stanley continues to believe China’s express delivery will see faster segment consolidation because of escalated competition, due mainly to: 1) its much stronger economy of scale, versus other logistics segments, which should lead to a higher level of concentration; and 2) its asset heavy nature, which leads to difficulties for small players with relatively weaker cash flow and balance sheet to compete in a sustainable manner.
• Southwest Airlines announced a new international partnership through an interline agreement with Taiwanese carrier China Airlines, covering flights out of Los Angeles, Ontario, San Francisco, and Seattle.

Threats

• The IATA updated its forecast for 2025 global air traffic (RPK) and capacity (ASK) growth, lowering each by just over 2% to 5.8% and 5.2%, respectively. This revision largely reflects the impact of several macroeconomic developments, including uncertainty stemming from U.S. trade policy, decelerating global GDP growth, and rising unemployment rates. Separately, IATA highlights a lack of new aircraft supply as a constraint on growth, according to JP Morgan.
• According to Morgan Stanley, the share prices of Japan’s three major marine shipping operators have already rebounded sharply from recent lows. Dividend yields currently stand at 4.5% for Nippon Yusen, 2.9% for Mitsui O.S.K. Lines, and 5.5% for Kawasaki Kisen, suggesting that the perception of extreme undervaluation has lessened.
• Allegiant management stated that, given current demand levels, they will likely further reduce their previously communicated 13% year-over-year capacity growth target for 2025 (already revised down from 17% at the start of the year), with most of the adjustment focused on off-peak periods, according to Morgan Stanley.

Luxury Goods and International Markets

Strengths

• In the United States, the May nonfarm payrolls report showed job gains that exceeded economists’ expectations (139,000 jobs added versus estimates around 125,000–126,000), while the unemployment rate held steady at 4.2%.
• The Eurozone Services PMI demonstrated improvement, showing growing consumer confidence and economic resilience despite ongoing global uncertainties. Meanwhile, China’s Services PMI climbed above the crucial 50 mark, indicating expansion in the sector for the first time in recent months.
• Shares of Signet Jewelers — the owner of Kay Jewelers, Zales, and Jared — gained more than 12% on Tuesday after the company reported financial results and projected stronger full-year sales. Less than 10% of Signet’s inventory is imported from China, leaving it less exposed to tariffs imposed on foreign goods than other retailers, Bloomberg reported.

Weaknesses

• Tesla shares dropped 17% on Thursday following reports of an escalating dispute between Elon Musk and Donald Trump. Musk publicly criticized the GOP’s tax and spending bill, prompting President Trump to threaten the termination of government subsidies and contracts tied to Musk’s companies.
• Lululemon Athletica announced weaker-than-expected financial results, leading to a 12% drop in after-hours trading on Thursday. The company lowered its annual profit forecast due to slowing consumer demand and the impact of tariffs. The revised earnings estimate stands between $14.58 and $14.78 per share, down from a prior range of $14.95 to $15.15.
• PVH Corporation, a luxury apparel company best known for Calvin Klein and Tommy Hilfiger, was the worst-performing stock in the S&P Global Luxury Index, falling 21.9%. The company’s shares plummeted 18% on Thursday after PVH reported strong quarterly results but cut its full-year earnings guidance.

Opportunities

• Tesla’s Model 3 and Model Y have been included, for the first time, in China’s government-backed campaign to promote electric vehicle sales in rural areas—potentially opening new market segments for Tesla in smaller cities and countryside communities. Meanwhile, Model Y sales in Australia are rising; in May 2025, Tesla sold 3,580 units, marking a 122.5% increase from the previous year.
• Volkswagen announced plans to cut 35,000 jobs in Germany by 2030, aiming to save approximately €4 billion annually. The company will achieve these reductions through early retirements, voluntary buyouts, and natural attrition. Additionally, Volkswagen is offering substantial severance packages—reportedly up to €450,000—to employees who voluntarily leave, as part of a broader restructuring plan to address financial challenges.
• Constellation Brands is strategically repositioning itself as a premium luxury beverage company by divesting lower-priced wine brands and investing in high-end labels. In a significant move, the company sold several well-known California wine brands to The Wine Group, shifting its focus to offerings priced above $15. This aligns with consumer trends favoring quality over quantity.

Threats

• The Bahamas has introduced a new tax policy imposing a 10% Value Added Tax (VAT) on all passenger transactions at private cruise line islands, such as Royal Caribbean’s Perfect Day at CocoCay. While Royal Caribbean has expressed its continued commitment to The Bahamas, the new tax could impact both its profitability and the overall guest experience at its private island destination.
• Rémy Cointreau’s latest financial results showed a 19.2% organic sales decline to €1.19 billion, primarily due to weak demand in the U.S. and China. Operating profit fell 27.8% to €304 million despite €145 million in cost savings, while net profit dropped 37.1% to €185 million. The company has withdrawn its 2030 sales targets amid ongoing challenges but expects a gradual recovery and is aiming for high single-digit sales growth in the coming years.
• In the United States, more layoff announcements are making headlines. This week, notable job cuts include Procter & Gamble’s plan to reduce 7,000 positions—about 15% of its non-factory workforce (Reuters); additional layoffs at Microsoft, following 6,000 cuts in May, primarily affecting software engineers (Bloomberg); and staff reductions at Disney, Warner Bros. Discovery, and Hims & Hers.

Energy and Natural Resources

Strengths

• The best performing commodity for the week was natural gas, rising 9.78%. U.S. natural gas futures surged to nearly a one-month high as hotter weather forecasts across key regions fueled expectations of stronger cooling demand. Despite a larger-than-expected storage build, near-record June electricity usage in ERCOT and low wind output in MISO supported elevated power sector gas consumption.
• Ivanhoe Mines shares jumped after the Canadian company said it’s advancing work on reopening parts of a giant copper mine in the Democratic Republic of Congo, without committing to a restart date yet. Ivanhoe said in a statement that management is working with engineers “to safely and conservatively restart mining operations.”

• Teck Resources has been hit by unrelated port and mill disruptions at two copper operations in Chile, marking the latest example of global supply snags helping support prices of the wiring metal. The Canadian metals producer said Saturday that an incident at a northern Chilean port used by its sprawling Quebrada Blanca mine had taken the ship loader offline, according to Bloomberg.

Weaknesses

• The worst performing commodity for the week was sugar, dropping 3.28%. Raw sugar futures dropped to their lowest level since June 2021 as strong production forecasts from Brazil, India and Thailand reinforced expectations of abundant global supply. The widening spread between October and July contracts signals ample near-term availability, pressuring prices further despite a slight dip in Brazil’s overall cane output.
• Lithium markets remain oversupplied. Spot lithium prices are trading into the cost curve, with UBS expecting further supply cuts. However, they believe the market is still overestimating: 1) the level of short-term cost support, and 2) the long-term price. Having cut their 2030 electric vehicle (EV) demand forecasts by 16% and updated their long-term incentive price analysis, UBS has trimmed their long-term spodumene price by 8% to US$1,200/ton.
• Indonesia will suspend production at a nickel mine near a diving hotspot in the east of the country over concerns it could impact tourism. Owned by state firm PT Aneka Tambang, the mine in the Raja Ampat archipelago in West Papua will be halted while a government team investigates its impact on the area, Energy and Mineral Resources Minister Bahlil Lahadalia told reporters on Thursday.

Opportunities

• Nuclear stocks rose after Constellation Energy agreed to sell power from an operating nuclear plant in Illinois to Meta Platforms, an agreement that could lead to the construction of a new reactor at the site, according to Bloomberg. The AI boom has sparked a global race to secure power infrastructure, yet the U.S. risks falling behind without urgent investment in high-voltage transmission to meet soaring electricity demands. As of 2024, China leads with over 340 gigawatts (GW) of data center-related capacity either operational or planned, followed by Europe with approximately 150 GW and the U.S. with around 125 GW.
• RBC sees growing uranium demand from significant nuclear capacity expansion, while they expect the supply response could be challenged. They have recently revised their long-term price forecast to $100 per pound post-2035 to incentivize new production to meet the rising demand.
• The World Bank said it is committing $1 billion to help the Democratic Republic of Congo prepare for the development of the next stage of what could be the world’s biggest hydropower project. The bank will initially commit $250 million toward Inga III, a portion of the Grand Inga hydropower complex, according to Bloomberg.

Threats

• China’s decision on Friday to grant temporary rare earth export licenses to suppliers of major U.S. automakers eases short-term production pressures but underscores a strategic vulnerability in America’s supply chain. This move underscores China’s continued dominance in rare earth processing, posing a long-term threat to U.S.-based rare earth companies by hindering efforts to onshore or diversify critical mineral sourcing. China does not want to loosen its supply chain, as it has strategic bargaining value to keep it protected.
• After the U.S. and China agreed in Geneva to lower tariffs from astronomical heights, tensions started surging over access to chips and rare earths. Beijing increasingly appears to have an edge as Suzuki recently had to curtail their automotive production due to a lack of supply from China. This boosted the domestic and international share prices of potential rare earth miners.
• President Donald Trump has raised steel and aluminum tariffs to 50% from 25%, following through on a pledge to boost U.S. import taxes to help domestic manufacturers. Trump cast the move as necessary to protect national security. An order signed on Tuesday said the previous charge had “not yet enabled” domestic industries “to develop and maintain the rates of capacity production utilization that are necessary for the industries’ sustained health and for projected national defense needs.”

Bitcoin and Digital Assets

Strengths

• Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the week was Hyperliquid, rising 11.41%.
• JPMorgan Chase will allow trading and wealth management clients to use cryptocurrency-linked assets as collateral for loans, starting with BlackRock’s iShares Bitcoin Trust. The bank will also consider clients’ crypto holdings when assessing their overall net worth and liquid assets—similar to how it treats stocks, cars, or art, according to Bloomberg.
• Circle Internet Group and its shareholders raised nearly $1.1 billion in an upsized initial public offering, priced at $31 per share, reports Bloomberg. The company’s market value is $6.9 billion based on outstanding shares, with a fully diluted valuation of about $8.1 billion. Circle’s USDC stablecoin holds approximately 29% of the stablecoin market, with $61 billion worth of tokens in circulation as of May 29.

Weaknesses

• Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the week was Dexe, down 30.43%.
• Joe Lubin, co-founder of Ethereum, was persuaded by Michael Saylor to launch a firm focused on investing in Ethereum’s native currency. Lubin’s company led a $425 million private placement to purchase Ether for SharpLink Gaming. Following the May 27 announcement, SharpLink’s shares surged nearly 1,000% through Friday. However, after having declined more than 50% annually over the past three years, the stock dropped by about 40% on Monday, according to Bloomberg.

• Czech Premier Petr Fiala proposed a lawmaker from his party to become the new justice minister after her predecessor resigned over a scandal involving a $45 million Bitcoin donation to the state. Eva Decroix will be appointed to the post by President Petr Pavel on June 10, replacing Pavel Blažek, who stepped down last week, writes Bloomberg.

Opportunities

• Legendary short-seller Jim Chanos recommends buying Bitcoin and shorting Michael Saylor’s Strategy, Bloomberg reports, citing a premium of over 200% last year between the Strategy’s shares and the value of its Bitcoin holdings. Chanos calls the trade a no-brainer.
• Robinhood Markets is a “prime candidate for the S&P 500 with the next rebalancing,” a milestone that could fuel buying by passive funds. The stock was a focus among investors at a BofA meeting, according to Bloomberg.
• BitFuFu Inc. shares rose as much as 9.6% in premarket trading after the Bitcoin miner announced a 91% month-over-month increase in tokens mined in May, Bloomberg reports. BitFuFu mined 400 Bitcoin tokens in May, with a hash rate of 34.1 EH/s.

Threats

• The U.S. Department of Justice has filed a civil forfeiture complaint seeking to seize over $7.74 million in cryptocurrency and NFTs allegedly linked to North Korean money laundering operations. The DOJ alleges that North Korean IT workers, using false identities, earned crypto while working remotely for blockchain firms.
• Crypto users and decentralized finance protocols lost $302 million to hacks and scams in May, a 16.9% decrease from the previous month. The latest report, cited by Bloomberg, identifies code vulnerabilities as the primary cause, accounting for over $229 million in losses across multiple incidents.
• A leading House Democrat launched an investigation Wednesday night into a private dinner hosted by President Donald Trump for major investors in his meme coin, aiming to address ethical and legal concerns over the president’s willingness to profit from his position, according to Bloomberg.

Defense and Cybersecurity

Strengths

• Cohort reported record orders and strong revenue and profit growth for fiscal year 2025, driven by organic expansion and its acquisition of EM Solutions, with a £615 million order book covering 80% of next year’s expected revenue.

• Lockheed Martin and Boeing continue to dominate U.S. defense momentum. Lockheed secured a $1 billion contract for the Conventional Prompt Strike program and launched its AI Fight Club to test AI systems in defense, while Boeing is executing a $20 billion F-47 fighter jet contract—marking the largest defense contract shift since the early 2020s.
• The best-performing stock in the XAR ETF this week was Byrna Technologies Inc., which rose 17.59% after reporting stronger-than-expected preliminary second quarter revenue. This performance was driven by strong demand for its new Compact Launcher, expanded sales channels, and increasing international and e-commerce growth.

Weaknesses

• The cancellation of a $260 million contract with Huntington Ingalls Industries for the USCGC Friedman due to delays and cost overruns highlights persistent challenges in managing long-term shipbuilding programs. The reallocation of $135 million in parts to maintain the existing fleet suggests a shift toward short-term reliability over strategic modernization.
• Europe’s intelligence dependency on the U.S. became evident after German agencies failed to independently verify a CIA warning about a Russian assassination plot against Rheinmetall’s CEO—exposing a strategic vulnerability in the face of growing political uncertainty in Washington.
• The worst-performing stock in the XAR ETF this week was General Dynamics, which declined 0.72% without any significant news to report.

Opportunities

• NATO defense ministers approved the largest rearmament plan since the Cold War. Capability targets are increasing by 30%, with expanded investments in missile defense and mobile forces, and potential increases in defense spending to 5% of GDP—offering multi-year growth potential for defense contractors.
• AeroVironment completed its acquisition of BlueHalo, creating a $2 billion revenue entity with a combined market cap of $8 billion, strengthening its presence in counter-drone and advanced defense systems.
• Dell Technologies and Nvidia secured a U.S. Department of Energy contract to build the “Doudna” supercomputer, reinforcing the strategic role of AI infrastructure in national security and high-performance defense computing.

Threats

• In retaliation for drone strikes on its bomber bases, Russia launched one of the largest aerial assaults of the war, firing hundreds of missiles and drones at Kyiv and other Ukrainian cities. At the same time, the U.S. redirected critical APKWS fuses from Ukraine to the Middle East, potentially weakening Ukraine’s air defense and signaling a shift in Pentagon priorities.
• The Centers for Disease Control and Prevention’s plan to centralize disease data using Palantir’s system has raised concerns over patient privacy and potential delays in the analysis of health trends. State officials warn that the initiative may hinder data sharing and negatively affect the nation’s ability to monitor and respond to disease outbreaks.
• According to industry analysts, U.S. drone production remains limited to just a few thousand units per month—falling far behind China and Ukraine, which are producing drones in the hundreds of thousands or even millions annually. This shortfall creates a critical vulnerability in modern warfare, where the mass deployment of low-cost drones has become a decisive factor on the battlefield.

Gold Market

This week gold futures closed at $3,335.80, up $20.40 per ounce, or 0.62%. Gold stocks, as measured by the NYSE Arca Gold Miners Index, ended the week higher by 2.77%. The S&P/TSX Venture Index came in up 3.92%. The U.S. Trade-Weighted Dollar fell 0.13%.

Strengths

• The best performing precious metal for the week was platinum, up 11.24%, with palladium coming in a strong second at 9.85%. Traders are increasingly bidding up silver, platinum and palladium as they look to bridge the widening gap between gold’s record-setting outperformance and the lag in other precious metals. For platinum in particular, this rotation represents a key strength, as its extreme discount to gold, combined with industrial demand tailwinds, makes it a compelling catch-up trade in a broader precious metals bull cycle.
• New Gold hit a nine-year high, underscoring growing investor confidence driven by operational performance, sustainability leadership and consistent production across its Canadian assets. The company’s improved safety metrics, strong local hiring and emissions reductions signal not just financial strength but also long-term ESG value creation.

• Central banks have emerged as a driving force behind the record-breaking bull market for gold, and while the true scale of their buying is shrouded in mystery, nobody expects them to stop. Globally, they are accumulating roughly 80 metric tons of gold a month, worth about $8.5 billion at current prices, analysts at Goldman Sachs estimate.

Weaknesses

• The worst performing precious metal for the week was gold, still up 0.62%. Raging Canadian wildfires have forced evacuations from several mining operations as heat and wind push flames across the resource-rich western provinces. Fires prompted Hudbay Minerals to evacuate its gold and copper mine near northern Manitoba’s city of Flin Flon, the company said in a Wednesday statement, threatening critical gold supply chains.
• Metals refiner Johnson Matthey sees muted demand for platinum jewelry among Chinese consumers, despite a recent surge in imports by manufacturers that is straining global supplies of the metal. The world’s second-largest refiner of platinum group metals said that strong physical demand from China has exacerbated market tightness and pushed prices to two-year highs, as the jewelry industry aggressively stockpiles the cheaper alternative to gold, according to Bloomberg.
• West African Resources has announced that it will adopt the Government of Burkina Faso’s changes to the August 2024 Mining Code, which increase the government’s equity interest from 10% to 15%. This will be applied to West African’s operating projects: Sanbrado (including Toega) and Kiaka, according to Canaccord.

Opportunities

• As of the end of 1Q25, total gold holdings of $8.8 trillion are still only around 4% of global equity, fixed income and alternatives. A potential shift of just 0.5% of foreign U.S. assets to gold could yield 18% annual returns, taking gold prices toward $6,000 by early 2029, according to JPMorgan
• Artemis hosted a site opening/mine tour, highlighting a well-functioning mine since declaring commercial production on May 2, after the first gold was achieved in January. Management commentary in the May 2 press release highlighted that the milling circuit had operated at 93% capacity over 30 days and 102% over 14 days. BMO’s discussion at the site reinforced that the processing plant overall continues to operate consistently above design capacity.
• The gold-to-silver ratio, which peaked above 105 in April, is now contracting—a historically bullish signal for silver, as past reversals from extreme levels have preceded sharp silver outperformance. With the long-term average closer to 60, silver’s current breakout above $35 suggests it may be entering a catch-up rally toward gold, potentially targeting the $40–$50 range if the ratio continues to normalize, as it did during the 2008-2009 precious metals cycle. This serves as an opportunity for silver miners that move with operational leverage to silver.

Threats

• Platinum’s recent rally appears increasingly speculative, as macro headwinds from China, where EVs now outsell gas-powered cars and jewelry demand remains weak, undermine the sustainability of recent gains. With end-user appetite soft and inventories building despite tight supply, the metal faces heightened risk of sharp profit-taking as quickly as speculators piled in.
• The trajectory of gold ETF inflows will be important, with some slowdown recently with competition from other asset classes, particularly equities, while Morgan Stanley needs to see if the recent jewelry demand weakness will reverse as consumers adjust to higher prices.
• Scotia believes that the prospect of flat production, fewer multi-million-ounce discoveries and the need for diversification present a compelling case for increased M&A activity, especially in Tier-1 jurisdictions (Canada, the U.S. and Australia). For context, the senior producers (Newmont, Barrick, Agnico Eagle and Kinross) produce an average of 15- 16 Moz of gold per year, implying a need to replace these gold ounces every year.

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Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (03/31/2025):

Air Canada
Southwest Airlines
Allegiant Travel
Nippon Yusen
Melco International
Tesla
Lululemon Athletica
Volkswagen
Constellation Brands
Royal Caribbean
Remy Cointreauw
Ivanhoe Mines
Teck Resources
New Gold
Newmont
Barrick Gold
Agnico Eagle Mines
Kinross Gold

*The above-mentioned indices are not total returns. These returns reflect simple appreciation only and do not reflect dividend reinvestment.

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The S&P 500 Energy Index is a capitalization-weighted index that tracks the companies in the energy sector as a subset of the S&P 500. The S&P 500 Materials Index is a capitalization-weighted index that tracks the companies in the material sector as a subset of the S&P 500. The S&P 500 Financials Index is a capitalization-weighted index. The index was developed with a base level of 10 for the 1941-43 base period. The S&P 500 Industrials Index is a Materials Index is a capitalization-weighted index that tracks the companies in the industrial sector as a subset of the S&P 500. The S&P 500 Consumer Discretionary Index is a capitalization-weighted index that tracks the companies in the consumer discretionary sector as a subset of the S&P 500. The S&P 500 Information Technology Index is a capitalization-weighted index that tracks the companies in the information technology sector as a subset of the S&P 500. The S&P 500 Consumer Staples Index is a Materials Index is a capitalization-weighted index that tracks the companies in the consumer staples sector as a subset of the S&P 500. The S&P 500 Utilities Index is a capitalization-weighted index that tracks the companies in the utilities sector as a subset of the S&P 500. The S&P 500 Healthcare Index is a capitalization-weighted index that tracks the companies in the healthcare sector as a subset of the S&P 500. The S&P 500 Telecom Index is a Materials Index is a capitalization-weighted index that tracks the companies in the telecom sector as a subset of the S&P 500.

The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns. The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

The S&P Global Luxury Index is comprised of 80 of the largest publicly traded companies engaged in the production or distribution of luxury goods or the provision of luxury services that meet specific investibility requirements.

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