Core Insights - Gold and silver are among the best-performing assets this year, reaching all-time highs and significantly outperforming the S&P 500 [1] - The Neuberger Berman Commodity Strategy ETF (NBCM) is benefiting from its substantial allocation to precious metals, confirming the advantages of including them in a diversified investment strategy [2][3] Group 1: Performance of Precious Metals - Gold and silver have generated returns that exceed those of the S&P 500, making them standout assets in the current market [1] - NBCM, which is actively managed, has also outperformed the S&P 500 this year, highlighting the effectiveness of its investment strategy [2] Group 2: Allocation and Strategy - As of the end of the second quarter, precious metals represented the largest sector exposure in NBCM, with a 17.7% allocation to gold, which is more than double the ETF's second-largest exposure [3] - The management style of NBCM allows for flexibility in increasing exposure to gold and silver, especially during a period rich with catalysts for these metals [4] Group 3: Market Catalysts - Factors driving gold prices include ongoing purchases by global central banks and the anticipated lowering of interest rates by the Federal Reserve, which enhances gold's appeal as it does not yield dividends or interest [5] - Silver has experienced a significant rally, reaching prices not seen since the 1980s, although it may be showing signs of a temporary peak [6] Group 4: Supply Dynamics - The market for silver is characterized by structural deficits, with five consecutive years of global supply shortfalls leading to a persistent short squeeze [7] - The tight supply situation is exacerbated by lagging industrial recycling volumes and strong import activity from India, indicating robust demand for silver [7]