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

The KE Report

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.

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