Despite the surge early this year, both gold and silver are still in the early innings of bull cycle. 1. Years of underinvestment in mining due to low prices in the 2010s created structural supply deficits, this shows up first in physical markets (tight spreads, inventory drawdowns, premiums for spot vs futures) 2. Paper markets are still pricing the old regime, gold and silver futures reflect a world where deflation/safe-haven demand dominates, not a world where physical supply is the binding constraint 3. The capital rotation is the catalyst, not the physical fundamentals. the fundamentals are already there (deficits, underinvestment, central bank buying). When institutional investors finally allocate to commodities as an asset class, the paper market will catch up to the physical reality(BloFin Research)