'Understandable correction', says BMO's Heppel on silver and gold prices falling

Summary

George Heppell of BMO discusses the sharp drop in silver and gold. He calls the move an understandable correction after a meme-like silver melt-up and temporary Asian physical demand. He expects silver to underperform gold, sees gold's longer-term drivers intact, and flags Kevin Warsh's smaller Fed balance sheet as a near-term bearish factor for precious metals.

• Silver's selloff followed a parabolic, meme-like investment surge and heavy ETF inflows.
• Asian physical silver demand was boosted by India's import-duty change and Chinese New Year buying.
• BMO expects silver to unwind into a physical surplus and underperform gold.
• Gold's correction is viewed as healthy, with debasement, de-dollarization, and inflation concerns still intact.
• Gold may not repeat a 100% year-over-year gain but could still make another run higher.
• Kevin Warsh's smaller Fed balance sheet is seen as bearish for precious metals near term.