zondag 25 januari 2015

Managed Money Short Update Gold/Silver

This week, the short covering continued. In fact we are at the same level of shorts as in June 2014. So you would expect that the gold and silver price is at the same level as well. This is true for gold. We are again at $1300/ounce.

But this is not true for silver. We were at $21/ounce in June 2014, today we are only at $17.7/ounce. Silver has underperformed gold tremendously and I attribute that to the lower oil price. Because lower oil typically means lower silver.

Now that the cat is out of the bag on the ECB QE, I expect people to sell on the news. Especially when managed money shorts are all covered. The shorts could now come back in and drive the price down temporarily. Of course in the long run, it won't matter.

Premiums have come down again and are now almost back at June 2014 levels.

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