You have really been hitting all the marks on with your ETF lens on this commodity investment, making a ton of money over the last couple of years for your clients and for investors. But yesterday, we saw some incredible volatility. What do you think caused gold to spike up through 5500 and then drop back down through 5000?
Thanks a lot, man. It's great to be here again with you. You know, the market was really excited about gold and silver.
Given the debasement trade over the last couple of weeks, that really was driving up the speculative element of this. And today you're getting the wet blanket of the Fed nomination and the dollar rallying. And because of that, you're seeing a pretty significant pull back to us.
This is a healthy sell off and a healthy correction within the context of a much longer term secular bull market, not only in precious metals like gold and silver, but also, as we call it, the tangible areas of the market which are broadly commodities, including energy, including other basin industrial metals that are really going to widen out and become a full blown commodity supercycle over the next several years. So you still I mean, you're still a buyer at 5000. I note your ETF has has basically doubled since its inception.
Do you continue to pile in to this strategy? Yeah, so that's a really good question. So for yesterday, it was our one year anniversary for the ETF.
And what did they to mark the one year anniversary? We had 100% return in terms of the positioning. We're actively managing everything that we have in the portfolio.
We have some some themes and gold and precious metals and silver and the mining stocks of those companies. They reside in our geopolitical and fiscal risk subtheme. And then we have our energy is life subtheme, where we have oil and gas companies and then we have our Build a Future subtheme, where we have other companies like copper miners and platinum miners and iron ore miners.
So to answer your question, we have been heavy overweight in gold and silver running up to this. And as early as this early this week, we were actually trimming some of the positions in that space to reallocate back to energy, which look much more attractive. So we're actively managing these exposures.
Gold, silver and their mining companies still remain a large part of the portfolio. A few years ago, the portfolio was much more overweight in energy and we switched that around in mid 2020 for late 2024. And that's been a great call.
And we think that the next year or towards the second half of this year, energy might be the bigger play. And so we're actively managing those exposures. Currently we're still overweight from our secular view on gold, silver and their mining companies given the geopolitical and fiscal risks that are still front center.
So I mean, that's a great clarification. So you're not necessarily married to the metals, You could go to other assets. And I notice that you can operate in all different regions as well.
Are you always I mean, you're always talking low dollar denominated assets, right? So the dollar debasement trade that you mentioned at the top has to be something you're watching really closely. What do you make of Kevin Warsh as a new Fed head?
And what do you make of the sell off in the greenback? Yeah. So today's is a rebound in the dollar because of the news.
And you know, this is the initial market reaction in our view. I've been in the industry long enough and you've been covering this stuff long enough to know that the first day move isn't necessarily the permanent move. And so, you know, in our view, the dollar bear market is still intact.
It will take several years to really come to its fruition. We are not necessarily in the dollarization camp. We sent you some charts.
If you look at the Dixie going back several decades, there have been about three different bear markets in the dollar since the 1960s, and we think we're in another one for now. But, you know, as you know, secular bear markets still have moves and on a short term basis. So we could we could get a rebound in the dollar, some strengthening not just on this news, but potentially if we get an economic slowdown and there is a bit of a flight to safety and people are concerned you could get a rebound in the dollar.
Having said that, on a longer term basis, we still think that a dollar bear market is still intact.
