Precious Metals Market Analysis - Central banks are diversifying into gold and silver, treating them as an asset class [2] - Institutional investors are showing increased interest in gold, with some suggesting allocations of up to 20% of a portfolio [2] - China's gold holdings are at record highs, while their Treasury holdings have decreased [4] - Silver's price has significant upside potential relative to inflation-adjusted highs [5] - Silver has underperformed gold by 40% over the last 20 years, suggesting a potential catch-up trade [8] Factors Influencing Market Dynamics - Every $10 billion of gold demand equals a 3% move in the price [3] - Dollar weakness has stabilized, leading to institutional allocation driving gold's price movement [3] - Central bank differentials are catching up, impacting the dollar's strength [10] - Being short on the dollar was a crowded trade at the beginning of the year [12] Gold Mining Companies - Gold miners typically have a beta of 2 to 3 during periods of rising gold prices [9] - Upgrades are expected for gold miners due to their free cash flow yields [9]