Supercycle = Gold & Silver to 7X. Jeff Currie with Steven Feldman on Open Position

Summary

Jeff Currie outlines a precious metals supercycle with gold at $10,000 and silver at $300, driven by debasement and solar demand. He warns that AI compute is a resource-intensive cyclical commodity, potentially overbuilt, and that hyperscalers like Microsoft may face margin compression. Currie also details his deeply undervalued Gulf of Mexico oil company preparing an IPO, while highlighting long-term threats to oil from China’s energy strategy and defense-driven electrification.

• Gold and silver are in a 7x supercycle, targeting $10,000 and $300 respectively.
• Gold bullish from fiat debasement and central bank reserve rebuilding.
• Silver bullish from solar panel demand and Chinese strategic buying.
• AI compute consumes raw materials, making it a cyclical commodity; recent price drops hint at overbuild.
• Microsoft and similar AI stocks are overvalued, trading like railroads should command lower multiples.
• 1947 Oil & Gas, a shallow-water Gulf producer, trades at 1.5x earnings and will IPO on the LSE.
• China’s push for zero-marginal-cost renewables and nuclear threatens long-term oil demand.
• Technological breakthroughs in batteries and fusion could disrupt commodity supercycles.