Precious metals base-building before next leg up
The guest argued that despite recent sharp pullbacks, gold, silver, and miners are in a massive base-building process that will ultimately resolve to the upside, with silver potentially doubling.
The argument
The guest noted that the current correction is shaking out latecomers and over-leveraged positions, but the long-term technical trend remains intact. Additionally, the hosts argued that a potential geopolitical resolution in the Middle East would lower oil prices, relieving sovereign liquidity pressures that have forced countries to sell gold to fund expensive energy imports.
The thesis, stress-tested
✓ What validates it
- ✓SLV breaking and staying above 80
- ✓GDX holding its 200-day moving average and reversing upward
- ✓A decline in oil prices and bond yields following geopolitical de-escalation
▸ Risks discussed
- ▸Over-leveraged positions getting shaken out by short-term volatility
- ▸Resumption of kinetic conflict in the Middle East causing further short-term liquidity sell-offs in metals
- ▸Breaking below key support levels on daily charts
Hear it yourself
"It creates better profits for companies, creates greater technological development, creates, global expansion and peace, but it creates massive inequalities and haves and have nots. And the second we move back towards that pendulum swinging the other way, which is where we are now, right, this is when you start to see global conflict. This is when you start to see, commodity, scarcity. Because if we start splitting up and doing protectionism, inflation through fiscal spending and fiscal dominance end ups ends up slowing things the the broad growth and"
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