Metals Minute 13: Fireworks for Precious Metals

We had some fireworks over the weekend and into Monday, with Silver being the main beneficiary, up 9% for the week to $27.05. Gold was up 1/2% to $1849, Platinum was up 4% to $1,110, and Palladium was down 2% to $2,298.

Since this time last year, Gold is up 17%, Silver is up 53%, Platinum is up 14%, and Palladium is down 2%. Palladium is struggling to keep up; may see further weakness there, depending on how quickly the economy recovers.

You may remember the song “Let’s Get Physical”, from the 80’s. At least that portion of the lyrics would apply well to the precious metals. After a wild up and down swing from those pursuing a “short squeeze” on stocks such as Game Stop and AMC over the weekend, they are back down 80% and 60% respectively from recent highs.

While the paper price of Silver is currently down 9% from Monday’s high, it is still up 9% from last week. Also, the price for physical Silver continues to show strength.

To show the power of these metals to disconnect from the manipulated paper price, you can currently receive a premium over spot to sell physical Silver Eagles or Gold Eagles. This will likely continue, until the paper price catches up to reality.