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Craig Hemke at Sprott Money: Comex silver to test 2015 lows

Section: Daily Dispatches

7:12p ET Tuesday, September 4, 2018

Dear Friend of GATA and Gold:

Craig Hemke of the TF Metals Report, writing at Sprott Money today, argues that futures trader positioning in the monetary metals, by traditional measures enormously bullish at the moment, may mean nothing if central banks and particularly the People's Bank of China and the Bank for International Settlements aim to keep selling to keep commodity prices down in tandem with the devaluation of the Chinese yuan.

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The price-positive aspect of this policy, Hemke writes, is that it may push metal prices below their cost of production and cause mines to suspend operations, resulting in the ultimate strain on supply, whereupon China (and maybe other governments) would acquire the mining industry at distress prices before driving metals prices way up to reliquefy themselves.

In any case most gold and silver mining company executives won't mind more suppression of the price of their products, as with a few exceptions they mine their shareholders more than their properties. For all the sense they make when they talk about the monetary metals "markets," they already might as well be speaking Chinese.

Hemke's analysis is headlined "Comex Silver to Test 2015 Lows" and it's posted at Sprott Money here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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