DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.

Gold’s recent price correction may prove to be one of the most attractive buying moments in years, according to Brad Dunkley, Co-Founder and Chief Investment Officer at Waratah Capital Advisors.

His view is straightforward: policymakers around the world may talk tough about inflation, but in the end, they will not accept real economic pain.

That means the long-term bull market for gold remains alive and well.

Dunkley argues that the era of allowing natural recessions to run their course is effectively over. Governments and central banks have become addicted to easy money, high spending, and debt-financed stimulus.

Here's What They're Not Telling You About Your Retirement

“The debt’s too high, so they can’t let interest rates go up,” he explained in an interview with Kitco News. “They’re just going to run it hot. They’re going to print money.”

It’s a blunt assessment, but one with an unmistakable logic. Modern economies depend on cheap financing to sustain growth, and any meaningful tightening would expose structural imbalances built up over decades.

Dunkley believes that this reality guarantees more monetary expansion, not less.

He first outlined this thesis at the Sohn Montreal Investment Conference, warning that structural monetary debasement—not temporary inflation fears—is the real driver of gold’s long-term rise.

This Could Be the Most Important Video Gun Owners Watch All Year

With governments locked into rising debt and consumers dependent on low rates, negative real interest rates have become policy, not a mistake.

Policymakers may claim to value discipline, but history has shown they panic at the first sign of market stress. “They’ve shown us time and time again no pain is allowed,” Dunkley said.

“No recessions are allowed to happen. Unemployment’s not allowed to happen. Bad things happen? We’ll just send you money.”

That mentality, he argues, has permanently changed the investment landscape. Investors banking on a return to the kind of restrictive monetary policy that once tamed inflation are likely to be disappointed. “It’s very clear that they’re going to run it hot,” Dunkley reiterated.

For gold investors, this setup is ideal. When policymakers suppress real interest rates while expanding the money supply, the stage is set for sustained strength in hard assets.

Gold benefits most in such conditions because it carries no counterparty risk and cannot be printed at will by governments trying to paper over their debt problems.

Dunkley pointed out that history supports this view. Since the early 1970s, when gold traded at roughly $35 per ounce, the precious metal has climbed to over $4,500 per ounce on an inflation-adjusted basis.

“It continues to preserve purchasing power across generations,” he said, noting that few other assets can claim such performance across multiple monetary regimes.

Beyond monetary policy, he also sees geopolitical division as a major reason to stay bullish on gold. “We live in a world where countries don’t trust each other,” Dunkley said. Central banks have responded by aggressively buying gold as a reserve asset, a clear sign that even governments are hedging against currency volatility and financial chaos.

Waratah Capital doesn’t hold bullion directly, preferring gold miners instead. “We actually don’t own gold. We own gold producers,” he said. He believes the market undervalues mining stocks because many are still priced as if gold will drop significantly, despite strong fundamentals.

“If you didn’t know they were gold companies, you would think these are the best companies on Earth,” Dunkley said, citing their free cash flow, clean balance sheets, and strong earnings.

His colleague Grant McAdam, Associate Portfolio Manager, agreed that gold producers continue to deliver standout returns even after recent weakness in the metal.

Institutional investors, however, remain largely absent from the sector. Most major funds are overexposed to popular high-growth equities and underweight in tangible assets.

Dunkley expects that to change only when broader equity markets begin to break down. “Investors are only really going to care about this sector when it’s the only thing going up,” he noted.

That behavior, he explained, mirrors patterns from the 1970s when inflation, energy shocks, and monetary instability drove investors into commodities and gold miners.

Back then, while broader markets struggled, gold and energy holdings provided refuge and profitability. “It’s one of the few sectors that did great,” Dunkley said. “That’s what saved you in one of those multiple-compression periods.”

As for where the best opportunities lie, Dunkley remains focused on Canadian producers and developers. Canada’s political stability, clear regulatory framework, and established mining infrastructure make it an appealing place to allocate capital.

“Mining’s already hard,” McAdam added. “We don’t need to layer on jurisdictional risk on top of that.”

Among the firm’s favorite holdings are Artemis Gold, Alamos Gold, and IAMGOLD. Dunkley expects further consolidation as senior producers seek to acquire mid-tier miners to replace depleting reserves. That activity, he says, is another tailwind for valuations in the space.

For investors discouraged by gold’s recent pullback, Dunkley’s message is blunt but optimistic: governments worldwide have chosen stimulus over austerity, currency debasement over restraint, and political convenience over long-term reform.

In that environment, hard assets like gold—and the companies that produce it—may represent not just a hedge, but a lasting form of protection against monetary excess.

DISCLAIMER: GoldInvestors.news is not a registered investment, legal or tax advisor or broker/dealer. All investment/financial opinions expressed by GoldInvestors.news are from the personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors and misprints may occur.