Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
The Fed dollar support strategy is for now, but it cannot last. At some point the impact of these policies on the real economy will become key. The world is floating on an ocean of fiat denominated debt, how is it going to stay afloat these rate hikes? It feels like the last throw of the dice to support a failing system.
As I see it currently the Fed is using interest rates to prop up the dollar in an environment of stagflation/recession. The real economy is in a mess. This approach will be successful for a time but every time they hike rates the economy gets worse. At some point this approach becomes untenable and the Fed will have to loosen support of the dollar. That, I believe, will be the moment for PMs.
I see people saying a huge premium for physical over paper suggests a bullish correction. But, to be honest, I've given up trying to predict this market. Lots of bullish gurus but it ain't happened yet.
Currently it doesn't look like I timed my foray into PMs very well!
My average is above our current price and I have endured the same pain many others have here.
My timing has been less than optimal with FRES but we are where we are and we need the production narrative to improve. As I see it that is what happened today so it is to be welcomed.