Craig Hemke, Founder and Editor of TF Metals Report, joins us to discuss the set up in the precious metals sector as gold closed today at the all-time high on a quarterly basis. While this was an encouraging technical data point for the longer-term trend, we review that there has still been lower volume in the gold and mining stocks trading and that most of it has been focused on the senior miners like Newmont.
We then go on to outline the ongoing Fed policy and rate hikes in the face of stickier high inflation and slowing growth, and how eventually the environment of stagflation could turn into a recessionary environment and ponder if the PM sector would get sold down with everything else. Craig believes that the generalist will be reminded, once again, when the curtain is pulled back showing the reality of monetary policy’s limitations, that the Fed cannot normalize interest rates, and eventually will need to shift back to cutting rates to placate the markets.
Next we unpack that it may take gold and silver to break out to new all-time price highs before we really see big generalist moves into the mining stocks. We wrap up with getting Craig’s thoughts on silver price action and the silver miners, and some parting thought on being a patient value investor and precious metals accumulator.