Deglobalization Sparks Resource Race, Bolstering Gold and Copper Outlook at Sohn Montreal

Deglobalization is triggering a worldwide scramble for commodities and rare earths, creating conditions for a sustained commodity bull market while reinforcing gold’s position as a vital reserve asset. At the Sohn Montreal Conference, Karen Karniol-Tambour of Bridgewater Associates and Louis-Vincent Gave of Gavekal described a move toward “modern mercantilism,” with nations prioritizing security over efficiency amid geopolitical tensions.

This shift, alongside massive AI infrastructure expansion, is fueling higher inflation and demand for copper, aluminum, and power metals. Karniol-Tambour called it a “grab for stuff,” including defense needs, while Gave cited demographics and fiscal deficits as further inflationary drivers. Both experts noted that bonds no longer serve as reliable equity diversifiers.

Governments are increasingly stockpiling physical resources instead of U.S. Treasuries after the freezing of Russian reserves. Karniol-Tambour prefers gold amid uncertainty, whereas Gave sees strong upside for copper in rebuilding electricity grids. The event raised $1.4 million for pediatric healthcare and cancer research.