I am looking at markets today, following themes and trends, and one stands out: The ticker $GOLD (gold.com) is going parabolic. As the price of gold and silver increase, the dealers, miners, builders, and manufactures of these metals also catch a bid. Check out the chart I made on Finviz:

A lot of people are saying gold and silver are in a bubble. That is the obvious reaction after more than a decade of being structurally underweight metals. This looks like panic buying. That’s not always a bubble.

For example, there are endless trading desks realizing they have no exposure to any precious metals. There are people sitting on hundreds of millions in Bitcoin or AAPL with zero exposure to precious metals or rare earths whatsoever.

So, I think this needs to be viewed as a structural shift, not a bubble. Gold and silver form the basis of the atoms trade. Gold is dense, durable, corrosion resistant, and extremely malleable. When you combine all of those properties, it is the single most impressive element on the planet. No other set of atoms even comes close to what gold can do in the physical world.

Then there is silver, the most electrically conductive metal on Earth. More data centers, more AI, more robotics, more electrification. All of that means more silver, more gold, more of the best metals this planet offers. As AI pushes forward what’s possible for humanity in the physical world, quickly, people begin to remember that these are core inputs to reality itself – the elements that build things.

If we are going to build the next phase of the world in the physical domain, not just the digital bits world, these elements first need to rerate to price levels that actually push the next wave forward. Mining, building, development, and expansion of raw material supply does not happen without price signals.

That is my view.

Is it a bubble? Or can this can continue for several more years as the economy shifts from bits back to atoms? If the last fifteen years were dominated by tech and software, what are the next 15 going to be dominated by?

No matter how you cut it, everyone is still underweight metals right now, even after the insane price action. For example, this is how metals currently weight in the S&P 500:

Tech stocks: 33%
Healthcare stocks: 15%
Financial stocks: 15%
Communication stocks: 8%
.
.
.
Gold, silver, and mining: 0.9%

The key to everything is skating to where the puck is going. Right now, the puck is moving into a corner of the ice that very few prepared for.

Atoms over bits.

The next wave is well underway.

A final note: never rush into anything. If this just inning 1, then there is countless days, weeks, and months ahead to find a way in to this trade for the next great run.