The Current Status on Precious Metals


Let's do a quick analysis on precious metals here.





First off, I said yesterday that China lost interest in gold during the past months in this article.




Second, we were expecting a drop in net shorters for silver when we saw a drop in the silver price, but this didn't happen.





LCNS went back up, so that means there are still a lot of people with interest to get the silver price down.





Chart 1: LCNS Silver Net Short Positions



Third, the declining lease rates are also indicating that weaker prices are still to come.






Chart 2: Silver Lease Rates



Fourth, the silver stock at the COMEX has been rising, which indicates to me a further decline in prices is probable.






Chart 3: COMEX silver stock



Another indicator at the Sprott PSLV says that premiums have been dropping. This drop also indicates a disinterest in silver.






Chart 4: Sprott PSLV premium



And finally, we saw that since September 2012, the gold and silver miners have been greatly underperforming the gold and silver price, which indicates further weakness in precious metals to come.




Chart 5: Gold Miners Vs. Gold Price





I have to say, I'm not that bullish on precious metals at this moment when I see all these indicators going downwards.

Comments

  1. AnoniemDecember 20, 2012 at 8:14 AM

    Very good analysis with clear and accurate prediction. Big drop in silver price today - see this article at EFT Trends

    ReplyDelete
    Replies
    1. katchumDecember 20, 2012 at 8:21 AM

      Not that I like this trend though, because I have always been long precious metals. Maybe I should try to buy European bonds or something...

      Delete

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