Aug 18, 2021
Summary:
Today, I speak with Craig Hemke to discuss what’s new with gold,
the repo market, and the real economy. Supply and demand have
played a large role within the latest decline in gold and silver,
and Craig breaks down some of the changes in the market within the
last few years. We see time and time again that nothing ever goes
straight up in a trend line, and that these trends are
ever-changing. We also talk briefly about crypto, emphasizing the
benefit to owning multiple types of currencies in the shifting
market.
Highlights:
-What is going on with the price of gold, the Repo market, and the
real economy?
-What is behind the latest decline in gold and silver? It’s a
multi-faceted answer—supply and demand for the future’s contract
plays a large role.
-Why is there so little demand? This has to do with the people that
are buying contracts and transitory effects
-Repo demand was rising, but so was the demand for everything
short-term
-When you hear about the dollar going up, they are referring to the
dollar index
-if we slow the creation of dollars, then the dollar relative to
the Euro looks slightly better
-Expecting to see a taper of QE
-Nothing ever goes straight up in a trend line; trends are always
changing, and this is especially relevant to gold.
-The idea of having an expiration date on a currency isn’t
feasible
-Have we hit the physical floor again?
-We have spent a year with market participants getting used to a
particular level within long-term consolidation—once it moves out
of this, it will shift very quickly
-Have cryptos become the new gold?
-We should be able to own multiple currencies rather than adhering
to a binary
-The argument for/against Bitcoin hasn’t necessarily changed
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