Metals are lower this week in a consolidation phase, providing another good entry point into an overall upward trend. For the week, gold is down 2%, silver is down 4%, platinum is off 1%, and palladium is tied with silver, down 4%.
Looking back a year ago today, gold is off 1%, silver is down 15%, platinum is 6% off, and palladium is down 12%. YTD, palladium takes the lead, up 20% this year.
We are starting to see signs of a topping in the bear market rally for stocks; the rotation back into metals will likely help jumpstart momentum in the metals back to the upside.
Half of zinc smeltering and production has been halted across Europe to deal with out-of-control energy prices. Some businesses have experienced an 8-fold increase in utility costs this year. This is important for silver (and other metals), as 35% of silver production is a byproduct of zinc and lead mining operations. Less zinc production typically leads to less silver production.
The 50-day and 100-day rate of precious metal leaving the COMEX is at record levels, signaling record demand for physical gold and silver by large investors.