Metals Minute 15: Precious Metals Demand
A huge disconnect out there between spot and physical, and the rigging of Silver seems ready to implode.
Since last week Gold is down 2.8% to $1,788, Silver is flat at $27.21 and climbing, Platinum is up 6/10% to $1,259, and Palladium is up 2% to $2,407.
From last year this time Gold is up 13%, Silver is up 53%, Platinum is up 30%, and Palladium is down 5% from it’s meteoric rise.
Meanwhile a Federal Reserve official has announced that there is no reason for anyone to be concerned about inflation. Usually when an official announces no need to be concerned, there is a need to be concerned or they wouldn’t discuss it. A trip to the grocery store, lumber yard, gas station or utility office can illustrate inflation in action.
Physical metals are responding with heavy demand; the Perth Mint of Australia recently announced they are out of physical Gold bars. While usually a short term phenomenon, it does illustrate a growing appreciation for precious metals.
Silver ETF’s are changing their prospectus to discuss a shortage of available silver leading to a difference between the physical and paper price. This confirms the advantage of owning physical Gold and Silver.