Brien Lundin, Publisher of The Gold Newsletter, joins us today to discuss the precious metals sector and how the upcoming Fed rate hikes will affect the markets. We discuss the pattern of how each time the central bank has done a tightening cycle that it has ended with rates hiked to lover and lower levels before reversing course. We also review the massive federal debt levels and how it isn’t feasible to truly normalize rates to the hot inflation levels we’ve seen recently.
Next Brien shares why he doesn’t feel a large corrective move in the general stock markets is a prerequisite for a rally in gold, silver, and the mining stocks. He believes both the precious metals sector and general equities can both float higher together on the ocean of Fed liquidity. We discuss the potential reasons and market psychology for why PMs didn’t respond in 2021 to the higher inflation and what may change that moving forward. We wrap up discussing a few mining stocks that Brien feels are doing good work to move their projects forward. Companies mentioned are (GSHR) Goldshore Resources and (MAI) Minera Alamos.