Steve Rocco, of the Rocco Report, returns with in-depth analysis on the precious metals, energy and equities markets amid news, gold spot briefly touch, $2,140 on Monday.
"We're like $40 away from a new high, all-time high. The precious metal investors: they're not buying and so I think we could see higher prices due to the momentum of the algorithms, of the futures trading, and of the inverse dollar trade that could continue, as well as the markets are going up, right? So everything is going up in the same way.
So yes, we could see higher precious metal prices. But what's interesting, I'll conclude here, Chris, we're not seeing bullion buyers coming in, they're actually more [into] selling."
- Rocco outlines a compelling case for owning PMs mining shares:
"The gold miners, right now my number is about $1650 - that's their break even, total cost. And so now with gold at $2050 and the oil prices have been selling off, right? And the metal and the natural gas price has been weak. So this is actually very beneficial to the miners because a couple of quarters ago or into 2022, you had very high energy prices. So now, we see some activity in the miners due to high precious metal prices.
...What's interesting: the precious metal investors in physical metal are not buying. But we're seeing investors buy the miners due to the high prices of what they receive for the metal and also the lower energy inputs. So that's actually one of the bright spots of the precious metal industry."
- Evergrande officially declares bankruptcy - China's 2nd largest real estate investor.
- Record debt levels may be supporting the financial markets.
- The next 6-12 months could be extremely volatile, from an economic perspective.
- Lower crude oil inventories and low energy growth, suggests that the global economy could face a recession.
- "Right now,...people should be buying precious metals."
- "If you understand the energy sector, you won't sell your precious metals."