In gold, it’s the funds not fundamentals

Silver traded higher as well, adding 29 cents on the open, to start at $20.34 the ounce. The white metal’s ratio to gold shrank to about 61:1 – about the lowest since the start of the year. The more interesting statistic (or perhaps the more frightening one) is the one that shows speculative silver positions exploding by 60% or more over the past couple of weeks. It’s all about the lure of the $20 magic (price) marker. That, and the word “momentum.” Or the word “off-exchange hoarding” – as in, the more than 13,000 tonnes of silver piled warehouse ceiling-high on behalf of ETFs of the same ilk.

At any rate, seasoned RBC analyst George Gero cited “all night upward pressure [in gold] due to fund buyers from Far East and later Europe. Momentum buyers are in here as higher volume, higher close and higher open interest inspired traders in silver as well.”

Platinum jumped $18 higher on the open and was quoted at $1,569.00 per troy ounce on the bid side. Since its sizeable, 16% fall in Q2 (from $1741 to $1500), the noble metal has basically oscillated in the $100-broad price channel that ranges from $1,500 to $1,600 the ounce. Producer Northam’s striking mineworkers are reportedly causing a loss of 1,000 ounces daily in platinum output and that plus the aforementioned speculative plays are contributing to this latest upward burst in values in the complex.

Palladium rose $15 to the $545.00 level at this morning’s session’s start. That metal, too, fell from a high of $564.00 to $415 (a 36% correction) during late April/early May and since has added $100 to values up to this point-but certainly not in a pattern of uninterrupted gains.

Speaking of uninterrupted – the efforts of our good friends at continue to bring us stunning images of some of the world’s most captivating gold bars. The most recent updates to the world’s premier repository of gold bar (and other golden products) images include photos of ingots made by Al Ghaith Gold (United Arab Emirates), Johnson Matthey (Canada) and the world-renowned Perth Mint (Australia). Herewith, a “teaser,” if there ever was one:

Pure. Magic. At any price.

Jon Nadler is a Senior Analyst at Kitco Metals Inc. North America

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About the Author
Jon Nadler Jon Nadler is a Senior Analyst at Kitco Metals Inc. North America
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