Core Viewpoint - The current bull market for gold is expected to continue until the new technological revolution, represented by artificial intelligence, drives real interest rates higher [1][3]. Group 1: Market Dynamics - Gold prices have seen the largest increase since 2018, driven by a restructuring of gold pricing logic, shifting from commodity attributes to financial asset safety attributes due to declining trust in the US dollar [2]. - Global central banks have purchased over 1,000 tons of gold annually from 2022 to 2024, indicating strong demand [2]. - If global central banks increase the proportion of gold in their foreign exchange reserves to 15%, the demand could reach 5,000 tons, significantly impacting gold prices [2]. Group 2: Supply Constraints - Gold exploration investments have declined in recent years, limiting the ability to increase gold supply in the short term [4]. - The average annual compound growth rate for mined gold over the past 15 years is only 1.6%, while recycled gold has a growth rate of 0.6% [4]. - The global mining exploration budget for 2024 is approximately $12.5 billion, with only $5.5 billion allocated for gold exploration, showing no signs of recovery [4]. Group 3: Future Outlook - High gold prices are making lower-grade mines profitable, which is expected to increase mining and exploration expenditures in the coming years [5]. - The next three to five years are anticipated to be a high-price window for gold, potentially allowing several leading Chinese gold mining companies to enter the top ten globally [5]. - Companies are advised to focus on quality project development, optimize their asset structures, and explore international capital platforms to promote internationalization [5].

Core Viewpoint - The gold market is expected to experience a high price window in the next three to five years, driven by a shift in gold's pricing logic from a commodity to a financial asset due to declining trust in the US dollar [1][2]. Group 1: Gold Price Dynamics - Gold prices have seen the largest increase since 2018, attributed to a restructuring of gold pricing logic [1]. - The demand for gold is primarily driven by central banks, financial institutions, and the public, with a potential increase in demand if central banks raise their gold reserves to 15% of foreign exchange reserves, which could lead to a demand of 5,000 tons [1]. - Financial institutions are increasingly purchasing gold, recognizing its resilience against rising interest rates [2]. Group 2: Supply Constraints - Gold exploration investments have declined in recent years, limiting the ability to increase gold supply in the short term [4]. - The average annual growth rate of mined gold over the past 15 years is only 1.6%, while recycled gold has seen a mere 0.6% growth [4]. - The number of high-grade gold mines is decreasing, with most gold grades falling below 3% since 2021, leading to rising costs for gold mining companies [4][5]. Group 3: Industry Outlook - The high gold price environment is expected to increase exploration and mining investments, with many lower-grade mines becoming profitable [5]. - The current high price window is anticipated to enable at least three leading Chinese gold mining companies to enter the global top ten [6]. - Companies are advised to focus on quality project development, optimize asset structures, and explore internationalization strategies [6].