Top Three Videos – June 24 2023

Despite recent declines in silver, it is too early to conclude that the year is lost and selling gold and silver positions may not be wise, as there is still uncertainty surrounding interest rate hikes and potential economic events, and history shows that the Federal Reserve’s promises often lead to higher metal prices and quantitative easing.

• 00:00 Consider the future trajectory of gold and silver before selling, as current statements from the FED may not be the best indicator; despite silver’s recent decline, gold is performing well and on track to match its average annual gain since 2000, causing some to feel discouraged.
  • Consider the future trajectory of gold and silver before making any decisions to sell, as the speaker believes it may not be wise to do so based solely on current statements from the FED.
  • Craig Hemke from TF Metals report discusses his yearly forecast for silver and reflects on the progress halfway through the year.
  • Despite the recent decline in silver prices, gold has been performing well and is on track to match its average annual gain since 2000, causing some to feel downtrodden.
• 03:34 Hemke  expresses frustration with the delay in rate cuts and the market’s adjustment, but believes it is too early to conclude that the year is lost and the Fed will keep rates unchanged, as there is still a lot of uncertainty and the Fed predicts significant economic events in the next 12 to 24 months.
  • Hemke expresses frustration with the delay in rate cuts and the market’s adjustment, but believes it is too early to conclude that the year is lost and the Fed will keep rates unchanged, as there is still a lot of uncertainty and the Fed predicts significant economic events in the next 12 to 24 months.
  • The FED meeting in June included the release of the summary of economic projections, which may not hold much significance due to the lack of real-world experience among the academics involved.
  • Hemke highlights the projection of a 21% increase in the unemployment rate and the potential rate cuts by the FED, emphasizing the need for gold and silver investors to focus on the bigger picture.
  • The speaker believes that the economy is slowing and the Fed will pause, pivot, and start cutting rates, although there is a possibility that they could be wrong and the economy could continue to grow with high inflation.
• 08:20 It may be wise to reconsider selling gold and silver positions due to the uncertainty surrounding interest rate hikes and recent bank failures, as experts cannot accurately project the outcome of the silver market and predict that gold may drop while silver may not fall significantly below 22.
  • Silver prices are unpredictable and experts cannot accurately project the outcome due to the uncertainty surrounding interest rate hikes.
  • The recent bank failures in Silicon Valley caught the Federal Reserve by surprise, suggesting that their current optimism may be misplaced, and it may be wise to reconsider selling gold and silver positions in light of where the market is likely headed in the future.
  • The speaker discusses the current state of the silver market, noting that hedge funds and speculators have been selling their positions due to the lack of rate cuts, and predicts that gold may drop to the support level of 1920 while silver may not fall significantly below 22 due to the cost of production.
• 11:42 The price of silver has a limit to how low it can go due to banks going long instead of short, providing a floor related to the physical price, making it unlikely for gold to reach extremely low levels, and the low levels of physical silver on the comex could be seen as a buy signal.
  • The price of silver has a limit to how low it can go due to banks going long instead of short, providing a floor related to the physical price.
  • The physical market for gold and silver provides a floor to the paper price, making it unlikely for gold to reach extremely low levels, and the low levels of physical silver on the comex could be seen as a buy signal.
  • Hemke believes that while the price of silver could potentially go as low as $10, there is a physical floor due to the limited supply of physical silver available.
• 14:46 If silver prices continue to drop, banks may cover their shorts and specs will dump, but it’s not a time to panic and dump silver as the banks usually win and there is potential for more upside than downside.
  • The price of silver is not driven by physical supply and demand on a daily basis, but it does impact how low the price can go, as the responsibility falls on the Bullion banks to deliver metal at the trading price, and if the price falls and metal becomes scarce, the banks may decide to go long.
  • Hedge funds shorting silver led to four separate occasions of short squeezes, causing the price to increase from $18 to $20 or $18 to $21.
  • If silver prices continue to drop, it is likely that banks will cover their shorts and the specs will dump, putting us in a similar situation as last fall, but knowing that the banks usually win, and with the potential for more upside than downside, it is not a time to panic and dump silver.
• 17:41 Short sellers are expected to reduce their positions in silver, while speculators may add more short positions, potentially leading to a similar situation as last fall.
  • As of last Tuesday, the banks were net short on comex silver contracts while hedge funds were net long, but the positions have fluctuated in the past and it is expected that the banks will likely reduce their position in the future.
  • Short sellers will continue to cover their positions as the price of silver declines, while speculators will add more short positions, potentially leading to a similar situation as last fall.
• 20:33 Despite current difficulties in the metals market, it is a good time to add to your silver position as history shows the Federal Reserve’s promises never materialize, leading to higher metal prices and quantitative easing, so either add to your stack or wait for the next few months, while also emphasizing the importance of community support and information sharing.
  • The speaker believes that despite the current difficulties in the metals market, it is a good time for those looking to add to their position, as history has shown that the Federal Reserve’s rhetoric about normalizing the balance sheet and interest rates never materializes, leading to an increase in metal prices and the restarting of quantitative easing.
  • Hemke  advises people to either add to their silver stack or do nothing and wait for the next three to six months, while also mentioning the importance of community and not being isolated in 2023.