Commodity Beta
Gold exhibits an average 0.82 real purchasing power preservation beta across multi-decade fiat currency expansion regimes.
1. Commodity Super-Cycle Supply-Demand Lags
Capital expenditure cycles in mining and energy exploration take 7 to 12 years to reach production capacity, driving multi-year super-cycles when demand surges.
2. Contango vs. Backwardation in Futures Contracts
Roll yield dynamics create structural return divergence between spot commodity prices and exchange-traded futures contracts.