A number of macro factors favor gold and silver, said Bart Melek, global head of commodity strategy at TD Securities.
This week Melek recorded an episode of Green Rush with Matt Watson, founder of Precious Metals Commodity Management.
The two discussed gold’s recent run. The metal has made a several all-time highs this year.
Gold production requires real labor, capital, and energy. It’s a tangible store of value and a protector of wealth, noted Watson and Melek. During inflationary periods, investors turn to gold as a safe haven, as demonstrated by recent rallies in gold and silver prices.
“It takes real labor and real capital, and it takes energy to get those physical products from the ground,” said Melek, and all those costs have been going up. “We are potentially in a world of escalating prices for the long run.”
Matt Watson, Founder and President, Precious Metals Commodity Management LLC
Matt is an Operations executive with over 30 years of international and domestic experience, including various engineering, statistical consulting, and supply chain commodity management positions.
Matt spent the first 15 years of his career teaching and consulting in statistical methods in a wide range of industries. Matt then transitioned to the Hard Disk Drive sector for 17-years, most of that time with Seagate Technology. It was here that Matt managed $540M in platinum and ruthenium positions.
Recently, Matt led Tanaka’s North American R&D and Marketing efforts for Tanaka America Inc. Matt helped lead the deeper penetration of the HDD market PVD targets, micro machined medical components and medial PGM wire product markets, and semiconductor/OLED wet chemistry markets.
Matt is now consulting once again, this time with Precious Metals Commodity Management LLC. This new consulting entity supports clients with precious metals market research, risk management, trading/hedging, and design and process thrifting. Matt is working clients in the hard disk drive sector, mining, connector, PVD target fabrication sectors, and precious metals analysts. Matt has developed extensive three way auto catalyst demand models and forecasts, and is a student of the apparent structural deficits in palladium, rhodium, ruthenium, and iridium.
