Monthly Letter

Elements | December 2022

January 16, 2023

During the last month of the year, we worked hard to make it possible to launch our new fund at the beginning of 2023. We also made an outlook for gold and mining companies that has received a lot of attention internationally.

On the second of January, AuAg Essential Metals, our fourth fund, was launched. It invests in companies involved in the extraction and processing of the metals that we will need in the future. The focus is on industrial metals such as copper, aluminium and steel but also on new technology metals such as lithium, silver, cobalt and uranium. The fund complements our current fund offering by being a much broader "metal fund". The fund will be made available on more platforms over time and is currently available on Avanza, Fondo, Nordnet, SAVR, and Alpcot. We want our funds to be available on all platforms, and you, our investors, are important ambassadors when it comes to making requests and putting some pressure on the platforms.

At the end of December, we sent out our outlook for gold and mining companies for 2023. There we summarize important themes and trends for gold, silver and mining companies that we see in 2023. You can find the link to the full text below. It was extra fun that global media, e.g. CNBC, picked it up and quoted us, link to the article below.

Use our unique "Research Centre" on an ongoing basis to take part in our current view of the market and the macro environment. We communicate all the time.

Here are a few media links from the past month:

Investment Solutions

Click on one of the funds below to get to the respective fund page. There you can find more information, such as: how to invest, the updated fund sheets (under "Documents"), and the live ticker price on the holdings.

AuAg Thoughts

After a very volatile year for both stocks, currencies and other asset classes, most people wish for a more stable 2023 with new upward momentum for the stock market. We will likely see an upswing for the stock market, but it is, unfortunately, entirely dependent on the central banks changing their footing and once again becoming dovish. Government stimulus and expansionary central banks have become the solution to avoid deep and/or prolonged recessions. Such efforts will, as always, increase the amount of credit/debt in the financial system and thereby erode the value of money (fiat currencies). The consequence is that the price of assets, such as shares, and above all, the entire commodity sector, will be pushed to significantly higher levels.
Commodity prices will increase due to weakened currencies and a completely new de-globalization/security mindset in the world. Local production is good but rarely cheaper. New momentum in China and increased investments from large institutional investors looking for alternative sources of return will also affect the market. This consequentially results in the mining companies becoming more profitable and thus more attractive to more and more investors.
In our outlook for 2023, we introduce with the following:

"Gold and silver are ending 2022 with a powerful finish and are looking strong for 2023. We anticipate a new all-time high for gold during 2023 and the start of a new secular bull market when the price goes over 2100 USD per troy ounce. After a series of fines, we finally see an end to the commercials' negative and manipulative action on the COMEX-exchange. Central banks as a group have continued, since the great financial crisis, to add more and more gold to their reserves, with a new record set for q3 2022".

Read the entire outlook and more about the reasoning behind it here.

AuAg Trends

Metals have been essential to the development of our civilization. Metals enabled humanity to make great leaps during the Bronze and Iron Ages. The Industrial Revolution of the late 1800s and early 1900s was marked by the spread of electrical engineering and the use of electricity, internal combustion engines, and manufacturing at scale. Trains, cars, boats, airplanes, and skyscrapers are a few examples of things we have made thanks to the metals.
Now in the 21st century, humanity is entering a new metal age. A high- and green-tech world where, among other things, electrification is entirely dependent on us being able to extract enough of all the essential metals needed today and in our future.