Real Assets, Weak Dollar
nazih@lol
+2.1%
since Sep 30
The idea
I believe growing deficits keep pressuring the dollar, and something within the next year or two, a debt-ceiling fight, a rough Treasury auction, a Fed forced back toward easing, forces a repricing of hard assets over paper money. So I built a broad basket of real assets tilted toward gold and silver, since the monetary metals tend to move first, with miners and royalty companies adding leverage, energy producers and land as a steadier layer, and copper and infrastructure rounding it out.
What it owns
- Producers and royalty holders on precious metals benefit from rising metal prices with minimal cost increases, amplifying gains. · Agnico Eagle MinesIt converts rising gold prices into profit, since production costs stay stable while metal prices increase with currency weakness., Newmont CorporationIt is the world's largest gold producer, capturing gains from rising metal prices with operational leverage built in., Wheaton Precious MetalsIt holds streaming rights to precious metals at fixed prices, converting rising gold and silver prices almost directly into earnings., Pan American SilverIt mines silver and benefits disproportionately when silver prices rise during periods of currency weakness., Franco-NevadaIt collects royalties on gold production, capturing upside from rising metal prices with lower exposure to mining cost risks.26%
- Copper producers and toll-based infrastructure generate cash flows tied to inflation while holding tangible asset value. · Freeport-McMoRanIt produces copper from low-cost mines, benefiting when industrial metals reprice upward alongside a weaker dollar., Invesco Optimum Yield CommoditiesIt holds a diversified basket of commodities that benefit when real assets reprice against a weakening currency., Brookfield InfrastructureIt owns pipelines, ports, and utilities with contracted cash flows that often adjust upward when inflation rises with currency weakness., Southern CopperIt produces copper at some of the lowest costs in the industry, so rising copper prices from currency weakness flow primarily to profit.18%
- Oil, gas, and uranium reserves are priced in dollars, so their value rises when the dollar weakens against real goods. · Exxon MobilIt holds large reserves of oil and gas that appreciate in value when the dollar declines relative to physical commodities., ConocoPhillipsIt operates low-cost oil reserves that generate outsized profit when dollar weakness drives energy prices higher., CamecoIt supplies uranium to a growing reactor fleet while supply lags demand, benefiting from both long-term energy needs and currency depreciation., EOG ResourcesIt produces shale oil that responds quickly to price increases, amplifying returns if energy reprices in a weak-dollar environment.17%
- Gold and silver are assets that cannot be printed and tend to appreciate when confidence in currency weakens. · iShares Gold TrustIt tracks the price of gold, which tends to gain when the dollar weakens and serves as a store of value outside the financial system., iShares Silver TrustIt tracks silver, which moves with gold but with greater volatility, providing amplified exposure to precious-metal repricing.16%
- Acreage and timberland retain value through inflation and cannot be created by central banks. · WeyerhaeuserIt owns millions of acres of productive timberland, a physical asset that holds value while paper currency loses purchasing power., Texas Pacific LandIt holds land in the Permian basin and collects royalties on oil production, combining real estate and energy exposure., Gladstone LandIt owns productive farmland and collects rent on it, holding value in a tangible asset as the purchasing power of money declines.11%
- Cash12%