Craig Hemke – Factors Driving The Precious Metals Sector
Craig Hemke, Founder and Editor of TF Metals Report, joins us to review a number of factors, both technical and macroeconomic, that are driving the precious metals sector prices. We start off by observing the continued run higher in gold the last few months, with gold well above $1900 and heading to even higher levels today. However, Craig notes that silver has been stuck around the $24 level for a month now. Since it led the precious metals mining stocks both down the middle of last year and back up from September to present, that this may point to a corrective digestive period in the PMs in the near term. Craig feels that any corrective move would be more mild, as the macro factors are just not there in the bonds or interest rates, in the US dollar, or in COT positioning for a big crash in the PMs to occur.
The discussion then evolves into looking at how the 2 forces of economic weakness and recession hurting demand, could be counter-balanced with legitimate concerns of new supply of metals coming to market or even being available in current stockpiles and exchanges. Craig points out the very low inventories of many metals on the LME, or Comex, or even backing electronic funds, and discusses the recent comments from Zoltan Posar on the problematic supply challenges commodities may face, while noting how critical they are for current policy initiatives moving forward.