Gold is on the move again and closed Au-gust at USD 4,447, giving +10% for the month. 

As you may know, we wrote last month that we were patiently awaiting the next leg, and what a start it turned out to be – despite the mini-correction on the final two days of the month. The five-month wait is over. 

We expect US Treasury Secretary Scott Bessent to lead the way through his actions, and the Fed to have to follow with stimulus, whatever they may say. When the market is once again surprised by reality and by that stimulus, gold will shine, probably even more strongly than it already has in recent years. 

Gold price per troy-ounce (Oz) in USD

Silver was also strong, quoted at USD 66.55 per troy ounce, a gain of +15.5%. It is positive for the precious metals trend when silver moves more strongly than gold, and the moves were in line with the expectations we described in last month’s letter. 

Silver price per troy-ounce (Oz) in USD

During the correction, the gold/silver ratio has crept up into the 65–70:1 range, which leaves room for silver to keep rising more than gold. We expect the ratio to move back towards 45:1, where it stood at the turn of February/March. 

Gold/Silver Ratio in USD

The mining companies showed strength and the returns of our gold and silver funds, AuAg Gold Rush and AuAg Silver Bullet, practically exploded, up 32 %. They also held their ground through the smaller corrections on the final two days of the month, falling no more than the metals themselves – which is unusual for a sector that otherwise amplifies moves in both directions. 

In last month’s letter we wrote about a second chance for more investors to rotate capital into our sector. They have now been given the signal that the next leg has begun, which means we may see more investors as buyers. This new capital will be another factor driving prices in both the commodities and the companies. 

The mining companies now have the highest margins of any sector. Even so, the sector remains heavily underrepresented in investors’ portfolios. As we have said, more and more will come to realise this, and that is when the rotation becomes a further driver alongside the factors already speaking so strongly for the industry. 

We also note that the copper companies, together with copper itself, are performing very strongly. It looks as though supply will be unlikely to meet the rising demand, which should keep the copper price heading higher. This will genuinely benefit the companies and their coming earnings. 

We now have a twin trend: no major new discoveries in recent years, and signs of falling production at many companies. 

This also becomes clear when looking at the development of copper production in Chile. It is worth knowing that Chile is the world’s largest producing country for copper and accounts for roughly a fifth of annual global production. 

The AuAg funds - Highlights

What a month. Especially up until Kevin Warsh’s speech in Jackson Hole, which led some algorithmic traders to believe in a ”hike”, and to swiftly turn their positions into the dollar and out of gold and silver. Warsh managed to get the word ”hike” out three times in his opening remarks alone. In context, he was talking about hiking in the mountains. 

You can read more about that in our interview with Kitco News – ”All talk and no action”.

Even so, we had a record month, and it was AuAg Gold Rush that snatched first place with +32.05% (B EUR), two basis points ahead of "Europe's riskiest fund", AuAg Silver Bullet, at +32.03%. 

That AuAg Gold Rush, our more defensive fund in the precious metals segment, also turned three (1 September 2026) deserves to be celebrated a little extra with this internal monthly record. A high CAGR of 38,80 % is very fine in itself, even if it does not compare with AuAg Silver Bullet’s brilliant three-year CAGR of 64,02 %. Of course, we can't forget that our lowest-volatility fund, AuAg Precious Core, also turned six on the same day. 

Global Outlook with AuAg

Beyond the uneventful appearance in Jackson Hole, we note that the world’s central banks have continued to be large buyers of gold during the first half of the year. It is the tenth strongest half-year since the financial crisis and confirms the central banks’ journey towards holding assets without counterparty risk. 

We now have 15 consecutive years of net purchases, and on top of that the purchases have risen to very high levels, particularly over the past four years. What is interesting, as this chart shows, is that this half-year is the second highest in terms of how many fiat dollars they have used to buy gold.

Can the US grow its way out of its debt crisis? It will certainly try, and that will lead to clearly higher gold and silver prices once they put the proverbial pedal to the metal. Fiscal stimulus alongside simultaneous monetary stimulus will erode the value of fiat currencies at an even faster pace. 

The other way we see of trying to restore confidence in the US (even though we do not believe it will happen) is a sharp increase in its gold reserves. Were the US to become a forceful buyer in competition with all the other central banks, the price would rise sharply. We would then be talking about levels far beyond USD 6,000 and 10,000. For the US, this would raise the value of its existing gold, and with further gold added it would create much better backing in relation to its large national debt. 

Things are more difficult for the US than they’ve previously been, and it will need to find more miracle medicine to work its way out of today’s situation. On almost every metric the picture looks challenging, whether you look at the debt level relative to GDP, interest costs relative to tax revenues, or the budget deficit relative to GDP. 

Take a look at our event calendar, where you can see where in the world we are on stage. Next up is Stockholm and ”Investerardagen hösten 2026”. And do not miss Nordic Funds & Mines, where you have the chance to meet all of us at AuAg. Entry is free, but let them know AuAg sent you when you register – select "Invited by Partner (AuAg Funds)" so they know you're one of us.

”Au-tumn” has a couple more months left to deliver, and we look forward with anticipation to how everything will develop.