After several abysmal weeks of declines in precious metals, I see a renewed physical interest in gold and silver.
First of all, mining companies keep their physical bullion prices at the same level which leads to high premiums.
Furthermore, precious metal dealers see a high premium again. Not too shabby, but it's improving. We will need to give this some time.
Shanghai gold premiums are moving up very swiftly, indicating that China is bargain hunting.
However, the COT report is not looking good at all. Managed money is still very long and a lot of large commercial shorts are still in the market. So weakness in precious metals could persist until the end of the year.
First of all, mining companies keep their physical bullion prices at the same level which leads to high premiums.
Furthermore, precious metal dealers see a high premium again. Not too shabby, but it's improving. We will need to give this some time.
But what is most interesting is that China is buying all the gold and silver the West is selling. Once again, what we saw in 2013 is happening all over again. Shanghai silver premiums have skyrocketed back to 8%, so a bottom is near.
However, the COT report is not looking good at all. Managed money is still very long and a lot of large commercial shorts are still in the market. So weakness in precious metals could persist until the end of the year.
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