Chris sits down with Craig Hemke of Sprott Money to talk about the recent rallies in precious metals, crude oil, and the US dollar and also breaks down the charts for the summer months coming ahead. The discussion also delves into Fed moves and what role inflation could play.
On the daily chart, we can now see a series of higher lows and higher highs for crude. The weekly chart has closed at the highest level since 2008. Short term, we are still in a very strong uptrend for crude. We are in a phase where we could see energy prices explode. Across the board producers and consumers are struggling with supply/demand and inflation and the resulting increase in costs.
He also talked about the long-term dollar index which can act as a head or tail wind for precious metals. If the US dollar has topped out, precious metals will benefit from that unwinding. Gold, silver, and the miners are all trading at resistance on the daily chart. Can they pop and break through? A lot depends on the US dollar.
Based on a graph, commodities are undervalued in comparison to the S&P 500 ever. Stocks and real estate are not looking to be one of the best investments in the coming years. The perfect storm is forming where the commodity basket as a whole could swing to the upside for the next few years.
Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
