The Gold And Silver Markets Have Changed

By David Smith – Re-Blogged From Gold Eagle

We tend to spend a lot of time looking into the rearview mirror, especially when under duress.

Connected to this is something psychologists call “recency bias.” This simply means that what has happened in the near to intermediate past tends to inform and influence us as to how we should behave in the future.

The 2011 to early 2019 precious metals bear saga was broken only by a six-month bull hiatus in early 2016 – which then gave most of the rise back over the next two years!

Now, in spite of some very powerful evidence to the contrary, the general investing public still questions both the validity and upside potential of physical precious metals and the share prices of producing miners.

Continue reading

Silver Demand Exploding!

By Adam Hamilton – Re-Blogged From Silver Phoenix

Silver investment demand is exploding in recent months, skyrocketing higher in wildly-unprecedented fashion!  That has catapulted silver sharply higher since mid-March’s COVID-19-lockdown stock panic.  Accelerating even in this usually-weak summer season, the massive capital inflows deluging into silver show no signs of abating.  This is very bullish for silver, yet most traders remain unaware it is happening.

While silver prices are fairly-widely followed, the data revealing the underlying fundamentals driving this metal is sparse.  The best silver global supply-and-demand data is only published once a year by the venerable Silver Institute in its outstanding World Silver Surveys.  The latest covering 2019 was released in April, and is essential reading for all traders interested in silver.  One key trend is very relevant to today.

Last year global silver demand edged up an ever-so-slight 0.4% to 991.8m ounces worldwide.  Every demand category fell except for two, net physical investment and net investment in exchange-traded funds.  The former rose a respectable 12.3% to 186.1m ounces.  It makes sense investors’ interest in silver should grow with its price climbing 15.3% in 2019.  That translated into far faster growth in silver ETFs.

Continue reading

Gold/Silver Shorts Extreme

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold-futures and silver-futures short positions held by speculators have rocketed up to extremes in recent weeks. These elite traders are aggressively betting for further weakness in gold and silver prices. But history has proven extreme shorts are a powerful contrarian indicator. Right as speculators wax the most bearish as evidenced by their collective bets, gold and silver decisively bottom and birth major new rallies.

Futures trading has a wildly-outsized impact on gold and silver prices, especially over the short term. It is amazing how much volatility futures speculators’ collective buying and selling generates, often drowning out everything else. Two factors are responsible for this dominance. The extreme leverage inherent in futures trading and the unfortunate fact the resulting gold and silver prices are the world’s reference ones.

Continue reading