Transport Trackers made the unique observation that dry bulk ships now trade at very depressed levels vs. gold.
For example, in the recent past these ships were worth over three times their current gold valuation (in ounces).
If a dry bulk stock trading near the value of its fleet can be found (feel free to suggest names), perhaps there’s an interesting, off-the-beaten-track, dry bulk vs. gold pair trade out there. Ships that go for 35,000 ounces of gold today could go for more in the future, regardless of where the dollar goes.
This is because dry bulk ships share many features with commodities. They are generally fungible goods, and a weak dollar is supportive for their prices since they are hard assets. Their shipping rates also tend to benefit from higher commodity prices, since they ship commodities.
Obviously they are far different as well. Their lives aren’t infinite, as with gold. Yet they generate cash flow which gold doesn’t. They are also highly sensitive to the supply/demand situation for their industry, which right now is pretty bad.
Still, the divergence between these hard assets and gold can’t go on forever.