Note: This text is a translation from the original language, German.
Gold and silver currently provide the macroeconomic foundation. However, the actual value creation takes place in mining stocks. Historically, the highest returns have not come from the metal itself, but from where rising prices meet scarce resources, new discoveries, and acquisitions. This is precisely the environment that is currently forming again.
Gold remains a strategic reserve asset in a world of high debt, political uncertainty, and ongoing central bank purchases. Silver is adding a second, increasingly dominant role: as an industrial metal for the energy transition. For mining companies, this combination means rising price assumptions coupled with limited supply growth: a classic setup for a revaluation cycle in the mining sector.
Junior mines are the lever – not the risk
The market is still focused on established producers. This is convenient, but historically incorrect. The greatest gains in value regularly occur in junior mines: where resources are defined, projects are developed, and takeover fantasies are awakened. Juniors are not a fringe segment, but the engine of returns in every precious metals bull market.
With a junior quota of around 94 percent, the Commodity Capital Global Mining Fund is positioned precisely where the cycle is decided. This allocation is not a tactical outlier, but rather an expression of a clear understanding of commodity markets: producers secure capital, juniors create value.
In the long term, there is no way around developers/junior mines
In a long-term comparison, strategies with a high junior share are clear outperformers in the mining sector – provided they are implemented actively and selectively. This is exactly where the Commodity Capital Global Mining Fund comes in. Instead of index proximity or large-cap weighting, the focus is on consistent stock picking: early project phases, strong geology, experienced management teams.
While traditional mining funds primarily manage existing cash flows, the Commodity Capital Global Mining Fund invests in future reserves. In M&A phases, which typically begin early in the bull cycle, this is the decisive difference. Takeover premiums do not arise with majors, but with successful juniors.
Volatility is the price of outperformance
Of course, this approach is not for risk-averse investors. A high junior weighting means volatility, cyclical setbacks, and at times significant drawdowns. But it is precisely these fluctuations that are the prerequisite for above-average returns. Those looking for stability buy producers. Those looking for value creation must accept exploration.
The Commodity Capital Global Mining Fund deliberately moves closer to a private equity logic than to classic equity funds. The result is a higher beta, but also a structural return advantage across complete commodity cycles.
Conclusion: The decision is made by the mines – not by the metal
Gold and silver provide the direction, mining stocks provide the performance. The next precious metals cycle will not be won by holding metal, but by targeted positioning in companies that define and acquire new deposits. In a long-term comparison, this is precisely why the Commodity Capital Global Mining Fund is one of the leading strategies in the sector: focused, cyclical, and invested where added value is created.
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.