Thoughts on the under-performance of Precious Metals to the rest of the commodity sector

January 14, 2021

Erik Wetterling, Founder of the Hedgeless Horseman joins me for an initial discussion about the under-performance of the precious metals to other commodities, including base metals and energy. This ties into the inflation narrative but there are some other factors that seem to be holding gold and silver down. We wrap up the interview by looking at a couple of the juniors that are bifurcating from the broad pullback in PM stocks.

Click here to visit Erik’s site to keep up to date on what he is writing about.

    Jan 14, 2021 14:43 AM

    Eric Coffin at MIF just had significant graphs regarding overexuberance in the general market.

      Jan 14, 2021 14:17 AM

      Yep, a very good presentation. Scary part is, what if it goes on for a few months more……

    Jan 14, 2021 14:07 AM

    What will gold do when The Bidens, Romney, Cheney, Pelosi, John Roberts, Obama, and the Clintons are in jail and Trump takes the oath on Jan. 20?

      Jan 14, 2021 14:19 AM

      Nice idea Bonzo, sadly, not going to happen………………

        Jan 14, 2021 14:30 AM

        But what would gold do if the rats are jailed and Trump wins? Humor me.

          Jan 14, 2021 14:45 AM

          On that one I have no idea………..maybe not much either way.

          Jan 14, 2021 14:48 PM

          Take it to the politics board bonzo.

          Jan 14, 2021 14:45 PM

          Bonzo, if it gold were to react negatively, it wouldn’t last. The Fed is going to inflate no matter what happens. It’s do or die which is why they are trying everything they can think of to distract the masses from what’s really happening. Joe “Biden” Blow thinks covid is the the source of all his troubles when in fact it is, as usual, the neo-Keynesian collectivists in charge that are to blame.

    Jan 14, 2021 14:37 AM

    Wow. Is that above my pay grade.
    If civil war breaks out gold will rocket up. But how can a civil war happen in this day and age?
    Are the military leaders behind Trump or Biden is a tough question to answer.

      Jan 14, 2021 14:08 PM

      What does civil war have to do with bullion bank manipulation?

    Jan 14, 2021 14:39 AM

    Hate to say it but the Democrat’s have all the power and own the FBI etc, Trump will be convicted of something, taxes, something and go to jail.

    Jan 14, 2021 14:47 AM

    long VVPR and long CKPT

    Jan 14, 2021 14:48 AM

    If we assume a cold, as opposed to hot, civil war, like USSR, or CCCP, in the seventies, it is less probable that gold will shoot up, but rise slowly.

    I think after the past couple of decades, it is reasonable to consider most tangible assets to be at the start of a bull market. That goes for most metals, food items and energy.

    Given that global warming theories are total BS for the next couple of decades, food is going to be in limited supply; we are reachng a Malthusian limit.

    Jan 14, 2021 14:10 PM

    Silvercrest( SILV) gets crushed again on very good infil results,

    Jan 14, 2021 14:13 PM

    (BRC) (BKRRF) Blackrock Gold: Silver Junior With Big Plans for 2021

    Soar Financial – Jan 14, 2020

    “Blackrock Gold Corp. CEO Andrew Pollard joins SF Live’s Kai Hoffmann for a comprehensive update on the drilling in Nevada. ”

    Jan 14, 2021 14:14 PM

    SILV- right at the .236 retracement level, or are we going to see it test $8, near the .382

      Jan 14, 2021 14:22 PM

      Some of that may depend on if Silver consolidates here and then ratchets higher again, or if the PMs stay under pressure and break support down to the next level.

      Personally I would love to add more to SILV if it got back to $8 or below again.

    Jan 14, 2021 14:25 PM

    End of the day on the conventional markets are in all likelihood setting up for a dump tomorrow morning. It could be that the crime boss Joe doesn’t meet wallstreet’s expectations tonight in recommending the kind of stimulus they would like.

      Jan 14, 2021 14:11 PM

      A dump tomorrow will be a continuation of the 6 month downtrend.

      Jan 15, 2021 15:53 AM

      Hey Doc, I just now saw this comment of yours and worry that a large general market dislocation looms on the horizon.

      Ironically, this morning as the markets opened I picked up a position in (RWM) ProShares Short Russell2000NYSE.

      The United States is a precarious place at present politically, in complacency, and especially with the economic fallout from the pandemic for small businesses on Main St. still not yet fully registering with Wall St.

      The Russell 2000 has been racing higher and higher for a long time now, and I haven’t shorted the general markets in a long time; but suddenly have a growing feeling that we are about to see some real volatility in the markets.

      I’m not sure that all the kings horses, and all the central bankers men, can put the Humpty Dumpty economy back together again…

    Jan 14, 2021 14:23 PM
    “Voice” Talking communication.

    Jan 14, 2021 14:09 PM

    Some percolating in the juniors today

    Jan 14, 2021 14:11 PM

    Joe’s stimulus bails out the irresponsible democratic States

      Jan 14, 2021 14:27 PM

      Depriving the banks.

      Jan 14, 2021 14:54 PM

      Bailouts are subsidies and that means we can expect more of that which is being subsidized: bad behavior. Spendthrift politicians with no economic sense or a conscience, don’t change their ways unless/until forced to.

        Jan 14, 2021 14:28 PM

        You are right Matthew, but I have always had problems with bailing out banks that, due to deregulation, take massive risks and then want bailouts with future tax dollars from the people to cover what amounts to covering fraudulent derivative bad risks.
        Meanwhile, the States who are required to only spend what they earn (which is current tax dollars) , are denied future tax dollar assistance because they have unanticipated income losses due to a Pandemic, or falsely reported unemployment data or other factor not caused by the tax payer.
        In other words, banks that are corrupt no more deserve future tax receipts than States that are corrupt or poor planners.
        The difference being the Tax payer gets nothing from a bank bailout, not even the right to audit the Fed to see where and how many funds are created and paid out and to whom.
        I prefer when tax payers are obligated for future debt, at least they are beneficiaries of the debt.

          Jan 14, 2021 14:47 PM

          The final sentence didn’t make sense: I prefer when the tax payer is the recipient of the bailout of future tax debt rather than the banks that have their criminal behavior covered. It seems like the tax payer who is going to be obligated for future debt, be the recipient of any bailout before any criminal bank.

            Jan 14, 2021 14:53 PM

            I think a partial audit of The Fed back in the 2009 era or so, showed The Fed was bailing out domestic and foreign banks as well as corporations. I would rather have that money go to States for Citizens of the US before any Corporate entity.

          Jan 14, 2021 14:05 PM

          David, over one-hundred years of central banking is what caused all the instability we now have and the central bank will not be screwed over by any of these bailouts. The Federal Reserve creates the “money” out of thin air to fund the bailouts and put the country into even more debt and this situation was absolutely coming soon with or without covid, so don’t fall for the cover they’ve created for themselves. I knew this outcome was certain since at least 2006. (My realization should have been earlier but I was considering other possible scenarios a little too seriously.)

          To be clear, there is no such thing as too big to fail. That nonsense was designed to scare the sheep into submission to endorse the massive bailouts for bankster buddies. Yes, the people should get all of the money since such inflation is a tax on the people. The problem is, the federal government has no business, morally or otherwise, transferring such wealth to anyone. It is criminal to steal or “pledge” the future productivity of the people most of whom are either not born yet or are children. That is the ultimate in despotic, insidious collectivist/leftist control and couldn’t be more against the principles America was founded on. Furthermore, the citizens of responsible states should not foot the bill for the mistakes of the irresponsible states (especially when those (mostly blue) states think they are superior to and should rule the morally superior responsible ones (mostly red)! Bailouts assure that psychopathic and economically illiterate people will continue to run us all into the ground.

          Governments MUST be forced to live on taxes taken directly in the “here and now” and not from the future in the form of debt as they have been for decades. The people are unwittingly allowing the central banks/governments to consume a greater and greater portion of their future prosperity as well as that of their kids and grandkids. This unbridled debt growth is the reason the government has become so massive and our freedoms and opportunities are disappearing as a direct result. Debtors don’t make the rules. Pathetically, even most Republicans have no clue just how destructive debt is to a nation as well as its people’s freedoms. A couple here on KER have even suggested that the debt is no big deal for various completely bogus reasons and even thought MMT would be fine. Idiocracy is here (watch the movie “Idiocracy” if you dare).

          The government, not the virus, has decimated the economy and the tax base and there will be no middle class left when they are finished. That has been the goal for a very long time since the bourgeoisie can be hard to control. The poor and the rich both get subsidized so both will keep growing while the middle class disappears. This situation makes much worse times inevitable and the powers that be will squeeze until they get what they want. It will look a lot like a death spiral for a long time and “experts” will declare the end but they can and will stop the cycle and launch a new system of their choosing when they decide to.

            Jan 14, 2021 14:55 PM

            Ditto Matthew!

            We are living in turbulent times and all I can say is find shelter and location that can at least keep you safe for what is coming. The left socialist movement has convinced the world that what we say is wrong, unworthy, radical and ludicrous. All the while they are the venom and evil of this world, making all believe that one is at fault the way they move, speak in tongue or act. It’s a very clever for lack of words but superior Evil intellect that they have adopted and will die preaching it. So powerful that the right or normal people believe that they are constantly at the wrong. These people move and and act very convincingly and destroy anything in there path with jargon such as your in violation or broken the rules all the while using media, and video.

            Tour a very clever man Matt, I think I would like to know if you see a path to fighting back and winning against this evil. Is there hope? She’d done light

            I still believe that good always rises to the top and we will have our day.


            Jan 14, 2021 14:41 PM

            Glen, there is a real possibility that the elite leftist’s plans will be derailed but it will not happen because the people took up arms. On the contrary, that is probably what they want and will foment. No, their defeat (which would only be a partial defeat) will have to come from enough people waking up. That alone is enough but is a tall order according to history and human nature. The main thing that makes this time different than all others is the internet. The free flow of information, knowledge and truth is an extreme threat which is absolutely beyond any doubt the real reason for big tech silencing everyone BUT the clueless. Every single reason they give is just to cover their actions and the sheep swallow it because they don’t know better and aren’t even close to knowing better. As I said right here 10 years ago, it’s a psychic war and always has been. Everything else comes after they’ve colonized the mass mind.

            Jan 15, 2021 15:33 AM

            The government and the people were perfectly willing to allow Central Banking to transfer wealth to criminal corporations through joint Congressional actions. Where they drew the line was assisting the tax payer after destroying the middle class, offshoring jobs, not dealing with a pandemic leaving 99% of the population worse off with little hope of recovery. They continue to pump funds into the banks but draw the line when it comes to the tax payer who is defenseless. That creates a state where the power of government is coupled with the wealth of corporations leaving the vast majority of the people without resources to fend for themselves. That is not a democratic republic. Our current system undermines freedom.

            Jan 15, 2021 15:33 AM

            The Orwell discussion is similar to this weeks David McAlvany’s Weekly Commentary concerning Voices.

            Jan 15, 2021 15:47 AM

            Matthew very true! Thanks for the response

            Jan 15, 2021 15:16 AM

            Thanks David, I’d forgotten about McAlvany.

    Jan 15, 2021 15:24 AM

    Hey were is the $40 TRILLION…….missing at the Pentagon………lol…..
    USA IS BROKE…….audit Ft. Knox…..never was done.

      Jan 15, 2021 15:23 AM

      Missing Pentagon funds. That is why I have said to Start by auditing The Fed and Exchange Stabilization Funds. The Pentagon gets audited. How do they know $40 mil is missing without an audit. Is it money that was never funded and was laundered through the Pentagon. Where did it come from…The Fed or ESF? Did it get printed and run through Treasury. Was it a foreign government running through the banks into the system?
      Audit Audit Audit. None of the tax payer money or Fed printing should go anywhere without audit. Why does Congress not demand audits? Why don’t Presidents’ request audits? Why aren’t a lot of people in jail? Our prisons are nonpartisan?

        Jan 15, 2021 15:40 AM

        One more question: Where is OMB (Office of Management and Budget) who has all Administrative Branch budget requests run through them? They are charged with oversight. And…if OMB is not providing oversight Where is the IG for OMB that is supposed to monitor OMB ? Who neutralized OMB? There’s a clue.
        Another one: who moved Consumer Protection under The Fed? Consumer Protection was designed to respond to complaints about fraud concerning businesses/corporations including banks. Who allowed that to happen? Another Issue: Why can’t someone on Wall Street go to jail. JPM has 5 corporate criminal felonies against the Citizens United corporate “persons”… where in the concept of “too big to fail” does it say that John Doe employee of the bank is too big to go to jail…Animal Farm: all animals are equal but some more than others.

    Jan 15, 2021 15:05 AM

    The American Dream……..You have to be asleep to believe it…….George Carlin….lol

      Jan 15, 2021 15:57 AM

      +1 OOTB Carlin was so great!

      “It’s a big freakin’ club, and you and I aren’t in it…. They don’t care about you….”

        Jan 15, 2021 15:12 AM

        That is so evident today…….circus and breadlines……

          Jan 15, 2021 15:16 AM

          Say it ain’t so Joe…..

          Jan 15, 2021 15:15 PM

          Agreed OOTB…. about the circus and breadlines…

          Let them eat cake!