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Q: Hi William.
Everyone seems to complain about gold, myself included, but....gold has been very resilient for weeks now, it refuses to go below the $1900 level.
What does gold see that the rest of us don't?
Thank you.

Fleck: Massive Asian buying along with central banks is why it is so resilient.

Q: what are your favorite sentiment indicators which you use in order to buy or sell? put/call ratio, cnbc, aaii investor sentiment survey, etc

Fleck: I don't use sentiment much, but my favorite is the DSI.

Q: It looks like a lot of smart analysts believe inflation is going to pick up again due to the YoY comps. If the Fed doesn't continue to hike in the face of increasing CPI PPI, does this dovish pause become a powerful catalyst for the gold price? And does is temporarily cause stock to rally as well?

Thanks

Fleck: That outcome would likely be positive for metals (and other inflation beneficiaries) but not stocks in general.

Q: Hi Fleck,

I know you know the games about CPI seasonal adjustments and hedonics. However, this article was a surprise to me, as it exposes the crazy way that health insurance costs are calculated in the CPI!

The next driver of inflation: health care

Good Trading

Fleck: Thanks.

Q: Apologies.
Was referring to spot China gold up substantially.

Fleck: Yes, the premiums are large and have lasted for some time now. That is NOT bearish. :)

Q: GM Bill

Doesn't this create upward arb pressure for gold and silver? Tweet

Are you satisfied with Mike Taylor's PCT explanations on twitter/X?

Thanks

Fleck: I don't know about arbitrage in China. It would depend on the free flow of capital and gold, so I'm not sure. Mike knows PCT better than anyone IMO, so his optimism is encouraging, but I'd prefer to see more evidence of them getting back on track.

Q: One commenter wrote "Some say baby boomers retiring is disinflationary, some say inflationary.'

I would like to know who says that baby boomers' retirement in inflationary (his cousin?). Most baby boomers have very little retirement savings and many will have to rely primarily on social security (IOW they will be living in poverty). This is hardly inflationary.

This wil put added pressure on those still working who will be asked to fork out even more of their income to support Boomers. It will lead to deflation if not depression IMHO.

Fleck: I'm not sure that boomers retiring triangulates to either outcome. They may to some degree, but it is not at all obvious to me.

Q: I happen to read a couple commentators mention the risk of governments including the US/Canada imposing royalties on miners as gold rises and as governments need revenue as their deficits continue to explode.
Is this a legitimate concern for miner investors?
With the frustration us miner investors are feeling, it could only be worse if gold explodes like we think and miners still don't work cause of royalty taxes!

Fleck: Biden wants to do that, but I don't expect to see retroactive royalties become a common thing.

Q: Re: PCT's challenges. I've been in/around this industry searching for nearly a decade for the "magic bullet" that would allow us to shovel a bunch of mixed plastic in one end and come out with something that would sell for enough to pay for the investment. Still searching. The technologies that do the job are out there, and have been known to the industry for awhile. It's just how to get them to work reliably at scale and generate a return that's been a challenge. A lab experiment/pilot plant isn't the same as a full scale facility but best of luck to them.

Fleck: It isn't an experimental plant, it is a full line, though in the future they plan to have multiple lines per facility. Having said that, they still need to prove that this plant can run at full capacity and do what it is rated to do, which they have not done yet.

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