00:00 Speaker A
Art staying with you.
00:02 Speaker A
You think we are in the start of a commodities super cycle? And if you do think that, as I think so, uh I think that we are. How how long could this last?
00:10 Art
Well, I tell you this, if you take a step back and say, how long did it not move, right? So gold broke out of a 12-year base a year and a half ago, but on an inflation adjusted basis, it broke out of a 40-year base. So momentum players have finally noticed that gold can actually go higher after years of doing nothing.
00:27 Art
Central banks continue to buy it. You certainly have a ease of use with the GLD ETF and across the board, aging demographic would rather have that as their diversifier than cryptocurrency. So I think the precious metals, industrial metals complex is just at the beginning of this rally. We’ll continue to see this uh through this year.
00:41 Art
I don’t think we’re going to have the kind of performance we saw last year on both gold and silver, but I certainly think it’s going to outperform the S&P 500.
00:49 Speaker A
Inez, I didn’t think I was going to start my day today at 2:40 a.m. reading a story on our site about a rally in tin. I can’t remember the last time I talked about tin prices.
00:58 Inez
I know, supply constraints, uh Indonesia also putting some curbs uh on tin mining. But look, uh the metals complex in general has been parabolic. You’re looking at silver that’s above $90 per ounce. Traders are talking about $100 per ounce for uh silver.
01:19 Inez
Uh watch out with these levels because this this has been a huge rally. Silver up 20% in the last two weeks. You’re looking at tin that’s also up more than 37% year to date.
01:31 Inez
And then you’ve got copper that’s also at all-time highs.
01:36 Inez
Look, so much of this has started with gold expecting lower rates and you’ve got the Fed independence issue and geopolitical issues, but also you’re looking at traders talking about a metals war and supply constraints.
01:50 Inez
And also uh concerns about tariffs on imports of some of these metals, like copper, for example. So, all of this is driving this huge rally, but you’ve got a lot of shorts on some of these because you’ve got uh bets that uh as much as it went up that it will also come down.
02:03 Speaker A
Inez, do they still use tin in food cans? I’m trying to figure out how much my Campbell’s soup’s going up.
02:07 Inez
Yeah, I’m not sure if they’re still using tin. Broke probably would know on that one. But tin is definitely used a lot in everything that we’re talking about onshoring, data centers, electronics. All of these base metals are very important for these industries.
