Jason Burack, Sept 15, quotes a Kitco story on a recent Bank of America report:
“This is more than 3x the recent 2022 cycle low of $170bn and more than 8x the 2016 cycle low of $70bn. Remarkably, total global gold sector market capitalization is now nearly 2x the 2020 and 2011 cyclical peaks of $331bn and $334bn, respectively,” the analysts said.
However, BofA also noted that compared to global equities, the mining sector represents about 0.39% of total global market capitalization—roughly in line with levels seen five years ago, but well below its 2011 peak of 0.71%.
“We wonder, if the current cycle were to continue for a sufficient period of time, could the 0.71% be reached again? It seems possible in our view,” the analysts said. “Assuming no change to the current world equity total market capitalization, the global gold sector at 0.71% of the world total would imply a market capitalization of around $990bn.”
