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Craig Hemke –  Gold Slumps, Silver and PM Mining Stocks Trend Sideways, And Copper Rallies

Craig Hemke, Editor of TF Metals Report, joins us to discuss the recent pricing slump in gold, while silver and the precious metals stocks trend sideways, and copper continues to rally.  Craig points out that a number of the last few weeks have started off with gold taking a pricing hit, and so this feels like another déjà vu moment in the sector to kick things off this week. 

 

We do review the constructive setup in copper that made new recent highs again today, and postulate that if it continues higher that it could also take silver along for the ride, even while gold is consolidating it’s recent gains.  Silver remains in a tug of war between gold acting on the precious metals component, and copper acting in sympathy with the industrial base metals component.

 

Craig is not so sure that the move higher in copper necessarily equates to overall economic health and growth, but rather a more focused supply shortage, and copper-specific macro demand picture setting up.  We do consider whether there may be some overall money rotation from paper assets into hard assets overall, with a number of commodities starting to head higher. As it relates to the resource stocks, the money has mostly gravitated toward the larger producers, much more so than the junior pre-revenue companies, but we consider what incentive prices and macroeconomic data may be needed to see more capital move down the risk curve.

 

 

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

Discussion
13 Comments
    May 13, 2024 13:11 PM

    Wolfster, you seem excited about your copper stocks, remember if you get a double sell half and let the rest ride. You don’t want to get overly confident in this market. The Big One is coming and I don’t mean a lollipop, it will take the suckers with it. LOL! DT

    Reply
      May 14, 2024 14:11 AM

      Appreciate you think of me DT…….and under a normal scenario I’d be following that type of a game plan but this is a super bull cycle. As Exs article below mentions, copper is at least in the short term looking overbought but there’s still a long ways to go here. Copper will be going through $5 just like silver will be going through $30 and that’s when things will get really interesting….and regarding Canadian housing which you’ve been anticipating a collapse in I can tell you in Toronto they still haven’t gotten the memo. Still going gangbusters on the renovation and full gut/tear downs in the rich areas.

      Reply
        May 14, 2024 14:01 AM

        Hi Wolfster, the rich are doing full gut tear-outs and adding additions. You know how they don’t tear the houses down completely but leave the entrances standing so they can build on the larger lot envelope that was allowed in the old days. The rich can always hire architects to help them get around the new and revised building codes, and to pay-off the gatekeepers. Life is always about the haves and the have-nots, it only changed for a brief period in the 50’s, 60’s, 70’s, and 80’s.

        The rich won’t feel comfortable in their renovated McMansions if the have nots are forced out of their middle-class dwellings. Central Toronto is a city where they live side by side, and they don’t enjoy gated communities. We have more regulated building codes than the U.S. Here the residential, commercial, and industrial areas are more rigorously divided into separate zones. DT

        Reply
          May 14, 2024 14:36 AM

          Bondage ………….. by Govt… the sheeple need to wake up….
          Of course Canada is just an extension of the Crown…. Sheeple have been in bondage
          for generations….
          US bondage, … is current…. dumb SHEEPLE have not spoke/woke up yet…

          Reply
          May 14, 2024 14:38 AM

          A friend of mine got a penis extension, now his house looks really stupid.

          Reply
          May 14, 2024 14:48 AM

          Canadian PM Trudeau proposes raising capital gains tax to 67% on income over $250k

          Just give him your check…. lol…..

          Reply
    May 13, 2024 13:27 PM
      May 13, 2024 13:32 PM

      Yeah I saw that circulating today. Roaring Kitty is back… along with the meme stock apes.

      Reply
    May 13, 2024 13:35 PM

    Copper prices power to 26-month high, some say entering overbought territory

    Carl Surran – Seeking Alpha – May 13, 2024

    “U.S. copper futures climbed to their highest settlement in more than two years on Monday, but some analysts warn the metal that has jumped 28% in the past three months has reached overbought territory.”

    Copper prices have been “on a tear… reflecting optimism over renewed global growth led by the U.S. and supported by the hope for a bottoming out in the Chinese economy,” analysts at Pave Finance write, according to MarketWatch, but the metal has topped its “preferred measure of overheated sentiment,” where any gain or loss exceeding 25% is a “sign of extreme sentiment.”

    https://seekingalpha.com/news/4105555-copper-prices-power-to-26-month-high-some-say-entering-overbought-territory

    Reply
    May 14, 2024 14:13 AM

    This is a basic one year chart of the TSX.v Materials Sector Chart. July23 high around 53, a Feb24 low around 37 and now at 44… we are not yet even close to where we were last year.

    https://www.spglobal.com/spdji/en/indices/equity/sp-tsx-venture-materials-sector-index/#overview

    Reply

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