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Otavio (Tavi) Costa, portfolio manager at Crescat Capital, warns that real yields have climbed to two-year highs, putting mounting pressure on the economy.
He suggests that breaking an economy burdened by debt does not start with hiking rates and indicates the next Federal Reserve Chair will face significant challenges.
Costa has previously highlighted strong profitability among silver producers, noting the potential for a breakout as selling prices reached $75 per ounce and exceeded typical production costs by a wide margin in recent analysis. He also observed signs of a bottoming process among gold miners as the sector shifted toward firmer investor control, according to comments on the gold sector. Costa’s recent warnings on real yields follow a period of close monitoring of mining industry trends.