Gold, silver reach record highs, Lockheed Martin’s new Pentagon deal

00:00 Speaker A

Let’s talk about metals. Wow, Gold surging again topping $5,500 and then pulling back a little bit from those levels. Silver’s higher, copper’s higher. It’s not just precious, right? Like wow, it has been quite a move in these metals.

00:10 Speaker B

Yeah. So who are who’s buying all this stuff? We know there’s incredible investment demand. And that by the way, is 2,175 tons. And uh I don’t even know how many ounces that is, but that’s huge. Central banks have been the biggest marginal buyers over the last few years. And in fact, that trend started about 10 years ago, but we’ve seen starting in 2022, they have been buying 1,000 tons a year and I just got some statistics only a few hours ago from the World Gold Council. They say that fell off a little bit in terms of the pace, but still central banks bought about 863 tons. So down from over 1,863. and then ETFs is part of that 2,175 tons, 801 of that, so almost equaling central banks is ETFs. and we have just seen explosion in all kinds of things. Not only the regular plain vanilla ETFs, but the leveraged ones as well. And then you’ve got the inverse ones, so people betting on both sides of the market there. Uh when you put it all together, just huge demand. So that’s gold. And then in silver, we have just seen uh ETFs that have been dead for years and really had no assets under management come to life over the last few months. And uh I was just doing an episode of stocks in translation with Steve Sosnik yesterday and our number sponsor, our number of the day was $210 and that was the price inflation adjusted high from way back in 1980. Uh there’s a story about the Hunt Brothers cornering the silver market. Look it up. It’s a fascinating story. But if you adjust for inflation, that means you uh we had a high of $50 and change back then multiplied by 4.2 because everything is 4.2 times as expensive as it was 40, 46 years ago, then you get to $210. And uh so that’s kind of an upside price target. We’re looking at silver what, 115, 120 right now. And if we go quickly to the Wi-Fi interactive, I just want to show you the year-to-date totals on our heat map. So this is year to date. Up in the upper left, that is silver up 53%. Number two is gold up 20%. Then we’ve got platinum, palladium, 19 and 17%. Then we got some energy, heating oil, Brent, crude, Rbob, OJ, etc. and copper. Copper’s been hitting record highs too. That’s up 8.5%. So uh you put it all together and this is and look at there’s not a lot of red on this heat map there. So arguably we are in a commodity super cycle and this is predicated on dollar weakness which we have seen recently.

02:29 Speaker A

Yes, we have. Um we’ll talk we’ll save a bigger discussion of the debasement trade for another time. Maybe that’s a good stock in translation. Uh but next up let’s talk about Caterpillar because the industrial giant jumping on earnings thanks in part to AI. Sales sales of power equipment…