Note: This text is a translation from the original language, German.
The gold and silver markets are currently the focus of many investors. In recent weeks, there have been unusually strong price movements – coincidentally, albeit probably by chance, immediately after the fund congress in Mannheim. Intraday fluctuations of several hundred US dollars per troy ounce were not uncommon, underscoring the current high volatility of the precious metals markets.
Numerous investment funds available on the market hold physical gold or gold-related instruments and are therefore directly linked to the short-term price development of gold. Depending on the market phase, this dependency can have both a positive and a negative impact on performance.
Commodity Capital AG deliberately pursues a different, independent approach with its commodity funds. Instead of investing in physical (precious) metals, the funds focus exclusively on mining companies – specifically on developers and junior mines in the small and mid-cap segment. Investments in large, established producers (majors or large caps) are expressly not part of the strategy.
In this market segment in particular, capital increases to finance exploration, development, and production expansion are common. In the financing offers currently available, mining operators are increasingly calculating with a gold price of USD 2,500 per troy ounce – and this in serious, conservatively structured investor presentations. With average production costs of around USD 1,500 per ounce, this already results in an operating margin of around USD 1,000 per troy ounce. Price levels above USD 2,500 have a corresponding margin-boosting effect.
Just a year ago, the underlying assumptions in comparable project calculations were significantly lower: Production costs of around USD 1,200 per ounce were often calculated at a gold price of only USD 1,500 per troy ounce. These significantly more conservative scenarios illustrate how much the economic conditions for mining projects have improved within a short period of time.
Against this backdrop, mining companies – largely independent of short-term fluctuations in the gold price – are proving to be economically attractive, solidly financed, and structurally well positioned.
In general, the metals-focused commodities market, which also forms the basis of the Commodity Capital AG fund, is fundamentally very robust. Despite the dynamic price developments since the beginning of 2025, we believe that small- and mid-cap mining stocks in particular remain undervalued. The availability of key metals such as gold, silver, and copper is limited, while demand cannot be met by mining production alone and is increasingly dependent on recycling—an area that has seen little growth in recent years.
We elaborate on our current market assessment in the following articles, among others:
• Webinar recording “Boom or Bubble”: https://www.youtube.com/watch?v=S3SzJOHeILY
• Interview from the FondsKongress with Dana Kallasch, CEO and co-founder of Commodity Capital AG: “Gold, silver, copper & co.: Are commodities the new underestimated world power?”
https://www.youtube.com/watch?v=QGfzwUC605g
Legal notice: This content is for informational purposes only and does not constitute financial advice or investment recommendations. Before investing, please consult a qualified financial advisor and review the fund's prospectus and KID.