➡ Governments and private businesses are storing important resources like gold, silver, and platinum to protect against geopolitical risks. This is causing markets to split and creating a strong market for these commodities. This trend is not isolated but is a strategic move driven by geopolitical risk and the need for insurance. The report also discusses the impact of the Chinese lunar year on commodity markets, suggesting it can cause significant volatility.
➡ Dolly Varden Silver’s CEO, Sean Cun Cun, recently shared exciting news about their home state deposit. They’ve discovered a high-grade, large, wide, silver and gold mineralization, which is much more than what economic geologists usually expect. This discovery confirms the potential for expansion and a very high-grade system. Since Sean took over the company six years ago, they’ve significantly increased their silver control, especially with silver prices now higher than before.

Governments are hoarding what they deem critical to hedge geopolitical risk, and the list of critical assets keeps expanding. Private enterprise is building its own buffers against supply chains that could seize under those same pressures. Markets are fragmenting. Key commodities with an inelastic supply including gold, silver, and platinum are simultaneously required for national infrastructure rebuilding in a post-global world. This is all against a hot backdrop as to why a commodity bull market is here for certain resources for the long run. Welcome to the Morning Markets and Metals with Vince Lancey. Where each morning Vince brings you the financial and precious metals news to get you ready for your day.

And now, here’s Vince. Good morning everyone. I’m Vince Lancey and this is the Golf Fix Market Rundown. Special program today. Goldman Sachs argues that the Great Gold Rally is not an isolated event, but the clearest signal yet that we have entered an era of strategic commodity hoarding, driven by geopolitical risk and insurance demand. If gold is the purest expression of this shift, the question becomes, and which commodities will follow, which will break down under the weight of supply response and regional fragmentation. Then, in the premium section, we will walk through a key chart and a recent report by Goldman, the report just mentioned, as it pertains to silver, gold, and commodities during cold wars.

And, of course, we’ll go through yesterday’s collapse, for lack of a better word, the nasty sell-off, right? But first, the markets. 10-year yields are unchanged bid. The dollar is up 15. The S&P 500 is down 25. The NASDAQ is down another 100. The VIX is up 39 basis points. Gold is $49.52. Up $31 was up about $60. Silver is $77.23. Up above $90 was up about $3. Silver in China versus the U.S. is 11. So the basis trade is widening as the market drops and it’s stabilizing as the market rallies. Everything is normal. There’s no end in demand in China yet.

WTI is down 48 cents. Natural gas down 10 cents. Platinum up $9. Palladium up $16. Gold silver down $1.24 at 64 and change. And grains are mixed. Okay, there’s another page. We’re going to discuss top right-hand corner GS commodity prices during cold wars. And we’re also going to go through a key chart in that is the key to everything in terms of how supply chains are redeveloping. We’ll do that part in premium. Anyway, so here we go. Governments are hoarding what they deem critical to hedge geopolitical risk. And the list of critical assets keeps expanding.

That’s how it starts off. The Goldman Sachs commodity prices during cold wars breakdown of ours. Private enterprise is building its own buffers against supply chains that could seize under those same pressures. Markets are fragmenting. Key commodities with inelastic supply, including gold, silver, and platinum are simultaneously required for national infrastructure rebuilding in a post-global world. This is all against a run-in-hot backdrop as to why a commodity bull market is here for certain resources for the long run. Barry Poole went out this morning. Yesterday, we put out a report, or news item, I should say, I Am Gold, the next major breakout.

They’re a takeover target. Franklin Templeton, we put this out this morning. They put out a little cursory explanation of gold and miners. But the key to that report, if you’re a professional and you’re saying, well, that doesn’t really tell you much, know that the bigger firms are pushing miners to normal people now. So maybe you don’t feel it yet, but when the deluge of selling in stocks is over in general, the next rally will be in miners. Why you do not sell your physical? I think we said that a billion times.

Rapo, the return of hard power. People were interested in that. That’s basically a positioning of ships overseas. It goes in with the cycles that we’re going to talk about. Texas launched its own money, gold and silver coins, its own non-monetary money, we should say. People have been a little bit confused about that. We did put out, right in the story in the first paragraph, it says commemorative coins, not legal tender. But it’s money. It’s just not money that’s legally going to get them in trouble. Found this first look in Goldpix PM. We did fix the chat, although it had another hiccup last night.

We had a chat with about 10,000 responses in it. So we created a new one. This is the main chat. And every chat has its separate thing now. We’ve got chats for technicals, miners, options and founders. And they’re all open now. But there’s the main chat. It’s just getting going. And after a sub-stack had a technological glitch last night, a lot of stuff was freezing up. Links were changing. And it looks like they may have gotten that fixed. So hopefully, if there’s any problems, I’m sure you’ll let us know. Data today, unemployment today.

I’m sorry, unemployment CPI today. Let me go to that. 830 a.m. CPI is due January 0.3 percent, 830 a.m. CPI year over year comes in at 2.7 percent and core CPI at 0.2 percent, core CPI year over year 2.6 percent. Famous last words, right? I don’t think CPI should be important unless there’s a surprise higher. If there’s a surprise lower, I don’t think the market really cares that the market’s starting to discount the lower prices that have been in the system. The market has been worried more about unemployment, which might be what happened yesterday or in the last couple days.

It might be that unemployment is rising from the job revisions. We had a major job revision down at like a million jobs over the last four months or so. And in doing so, hopes are being dashed that we will cut rates fast enough. So pal’s not going to cut rates, and he’s here until he’s out. And meanwhile, the jobs are being revised lower, and unemployment is a lot worse than it looks. If that is the case, then gold is a hedge relative to stocks. But it may suffer for some time until the rate cut cavalry comes running, whoever the replacement is, whether Warsh is a hawk or not, who knows.

If, however, this move is tied to a Russian overture for peace with Trump, which I don’t think it is, then the sell-off could be driven by speculative players puking positions. But we don’t see if this stocks, we wouldn’t see stocks dropping if that were true. Finally, I think this is the most important thing going forward. Keep in mind that the Chinese lunar year is upon us in the last two weeks. This can affect commodities. It will affect commodities, sometimes very significantly, but it usually happens before and after the holiday. China pulling their bid before the holiday, China putting their bid after the holiday.

Now, you can’t guarantee that the market’s going to go up going into the holiday, because sometimes they don’t buy. Sometimes they wait to come out. It has to do with allocations. And the allocations may come leaked midway through. So all you really know is that for the two-week window, there will be volatility. And if China’s not playing, if the mouse is away, if the cat’s away, the mice, meaning the bullion banks that are bearish, will play. So you cannot be aggressively bullish in the first few days of the holiday, as short-term players often fish for stops below, which could have been why we had an exaggerated move yesterday.

But as time goes on, that effect diminishes, and you start to see the real reality come in. So it’s not, it’s viewed as the first day, the last day, but it’s more like an easing in and easing out, because people start to work early. It’s like, you know, between Christmas and New Year’s, do you not work? Maybe you don’t. Traders do, because they have a mental illness and they need to trade. So I think that the banks will be doing what they do, but the bullion banks are definitely going to be doing what they do.

They’re the hats. That’s pretty much it. I want to, before I pivot to premium, because I want to walk through this in detail, because it’s not just an informative chart that they put out. It also begs questions. For example, those of you that are reading the report, metals are in the insulation phase, oils in the expansion phase, allergies in the concentration phase, and rare earths are in the leverage phase. That’s not black and white. Anyway, we’re going to go through that in premium. All right, so I’m Vince. Have a great day. Well, thank you, Vincent, as always, for this morning’s Mercantile show.

And thank you to everyone at home who is watching. Do sure hope that you’ve had a great week so far here and appreciate you tuning in as we cover the twist and turns of the gold and silver markets, of which there have been plenty this year, last year, year before that, and a lot of years before that leading up to this. So I hope you found that helpful and did want to pass along a note from Dolly Varden Silver, who kindly brought us this morning’s show with Vince. Dolly Varden did have some drill results out recently where they drilled 4.66 grams per ton gold over 48 meters and also an intercept of 52.15 grams per ton gold and 306 grams per ton silver over 1.01 meters at their home state deposit with Sean Cun Cun of Dolly Varden Silver.

He is the CEO. And he came and joined me on the show last week to walk through what they found here. And let’s take a little listen. The red is demonstrating where the ore body is. And that yellow is identifying where we have found a bend in the system. And in that bend in the system is where we’re seeing things really open up in terms of consistent, high grade, large, wide, silver and gold mineralization. And it’s a wonderful ore body. It’s super high grade. As you can see, it’s very close to surface. The results that we put out were on a gram meter basis, like 200 gram meters on a gold basis, which is two times what you want to see.

So it’s 200% greater than economic geologists want to see to say, hey, this is a discovery. This is economic. So we’ve consistently found high grade gold and silver. And these results just reiterate expansion potential and confirm a very, very, very high grade system. Well, thank you, Sean. Sure. Appreciate that. It is really exciting to see how much silver they have gotten under their control since he took the company over just about six years ago. And certainly with silver in the 80s rather than the teens like it was back then. Good times for Dolly Varden silver.

And to hear the rest of those results in that call with Sean. Well, that video is coming your way now. [tr:trw].

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