Craig Hemke – Macroeconomic Factors Keeping Commodities And Precious Metals Well Bid

Craig Hemke, Founder and Editor of TF Metals Report, joins us to review the continued moves higher in 2022 with the precious metals and commodities sector, and the macroeconomic factors driving these trends.    We noted that the mining stocks have been outperforming gold and silver lately, and that even today with the initial sell-off, most of the mining stocks clawed their way higher by the close.   We also reviewed that GDX just made it’s highest weekly close since September of 2020, and the GDXJ made it’s highest weekly close since June of last year.


Craig pointed out that with the Chinese credit impulse moving higher this year, that seems to coincide nicely with rising commodity prices.  The point was also made that much of the reason for inflation is the excessive amounts of liquidity that were pumped into the system, and that this is the primary driver, where supply chain issues and the Ukraine war only accentuated the trends already in motion.   We then recounted what former Fed president Bill Dudley mentioned last week about advising the central bank to “inflict more losses on the stocks markets” which would be a reverse wealth effect scenario, that may get consumers feeling more poor, buying less, and thus reducing demand and inflation.  The reality is that real rate will remain negative even if inflation has peaked and that is constructive backdrop for higher gold prices.


We wrap up with a discussion of which headlines will continue to move the markets, and how the environment of stagflation will keep the PMs well bid as we see more financial volatility in the markets.



Click here to visit Craig’s site, TF Metals Report.

    Apr 15, 2022 15:43 AM

    Kerry Lutz and John Rubino talked about Elon Musk buying into Twitter about one week ago, and mentioned at the time that both thought Musk might try to takeover Twitter. They both felt it was positive having him involved with Twitter because Musk believes in free speech. They were right, two days ago Musk announced a takeover bid for Twitter.

    I am trying not to see the dark side of life in this deal, it really comes down to gaining control of mass media so you can control the populace and your agenda. DT

    Apr 15, 2022 15:54 AM

    Gary Tanashian – Whether it’s Stagflation or Liquidation (Deflation), It’s Bullish for Gold

    April 15, 2022 Jordan Roy-Byrne CMT, MFTA

    “In this interview we discuss, among other things, Gold and Silver’s technicals, the Gold to Silver ratio, Gold’s counter-cyclical fundamentals and how that impacts gold mining stocks.”

    Apr 15, 2022 15:02 AM

    Rare Earths Crucial to Advancement of Green Economy, Defense Systems

    McAlinden Research (4/12/22)

    “With geopolitical tensions rising, the US recently banned defense contractors from purchasing REE metals from China and will consequently attempt to revive its domestic rare earths industry. However, the US has just one rare earth mine and no processing technology, which highlights the need for a new wave of investment, writes McAlinden Research Partners.”

      Apr 15, 2022 15:56 AM

      I would think that a close look at the rare earths price determination process would be in order to determine where special interests fall. Then revamp that system quickly to maximize the production in the shortest time frame that would benefit the security of the country and its populace. Once special interests identified, they can be circumvented and blocked and prosecuted as an unintended consequence.

        Apr 15, 2022 15:54 AM

        Yeah, that makes logical sense Lakedweller2, but so far the US position in many strategic metals and minerals has been the opposite of logical.

        Right now only MP Materials (old Molycorp) is producing and Neo Materials is processing and using Rare Earths for industry in North America. The Aussie company Lynas is also producing outside of China, but that is about it. Most of the North American REE mines were shuddered long ago to hand the keys to the kingdom over to China, and now the US has banned those sources. It’s mind-numbing.

        I was invested in Rare Earths back in the 2010-2012 time period, and noodled around with some over the years, but currently my only 2 positions exposed to rare earths are Ucore Rare Metals (mostly for the rare earths separation and processing technology), and Energy Fuels, the Uranium/Vanadium producer, that also can process rare earths now, in partnership with Neo Performance Materials.

          Apr 15, 2022 15:56 AM

          (UUUU) (EFR) Energy Fuels Hits Critical Mineral ‘Trifecta’ in Rare Earths, Uranium & Vanadium; Now Performing Commercial-Scale Partial Rare Earth Separation

          April 13, 2022

          “High-purity mixed rare earth element (“REE”) carbonate to Neo Performance Materials’ Silmet facility in Estonia for separation into advanced REE products. The REE Carbonate had undergone partial separation at the Mill using existing Mill facilities prior to its delivery to Silmet, which is the first commercial-scale REE separation to occur in the U.S. since at least the early-2000’s (to the Company’s knowledge).”

          “This is the first time Energy Fuels, the Mill – and perhaps any facility in history – has accomplished such a feat. The Company believes it is clearly establishing itself as a “Clean Energy and Critical Mineral Hub” for the United States.”

            Apr 15, 2022 15:58 AM

            We also just had Chris on from Commerce Resources, and he did a really good job unpacking the sector and supply/demand picture in Rare Earth’s in that interview, along with why their Ashram deposit is one of the better undeveloped REE and Flurospar deposits in North America.


            Chris Grove – Comprehensive Review Of Rare Earth Elements Sector and Commerce Resources

            KE Report – April 7, 2022


      Apr 15, 2022 15:33 AM

      Hi Ex, Dumb and Dumber are running the American procurement system, it really makes a lot of sense to ban the buying of rare earths from China before implementing an alternative system that is home based and up and running. Life as we knew it is ass backward. This is the end of empire, much like went on in The Roman Empire. DT

    Apr 15, 2022 15:48 PM

    Since when has any one country been totally independent because they had an abundance of every mineral in the Periodic Table.

      Apr 15, 2022 15:00 PM

      Since China…

        Apr 15, 2022 15:32 PM

        I think they are short on oil but that is not on the table. Maybe under the table….

      Apr 15, 2022 15:10 PM

      China also has 50%-70% of world wheat, corn, rice supplies in storage, among other things. Chinese are big eaters, my wife is half my size and eats twice what I do.