Metals Minute 155: Whole Lotta Shakin Goin’ On
There are some interesting developments in the silver and gold markets going on with paper investments sensitive to metals prices. Nearly 14 million short positions for SLV (paper silver ETF), and over 14 million short positions of Barrick Gold were closed out over the last few days. 1/3 of SLV short positions were closed in one day - yesterday.
Short positions are used to hedge or profit from a dropping silver or gold price. When massive short positions are closed abruptly, it often indicates that insiders believe something big is changing behind the scenes that will become public soon. By closing short positions, they are expressing a belief that silver and gold are likely headed higher soon; we’ll keep an eye on it.
Also have reports of gold moving from West to East, as refined bars, scrap, and dory products are moved through Swiss refineries enroute to the Middle East and Far East nations. Due to strong demand for physical metal, higher premiums are being paid on eastern exchanges for the metals.
My take on the 2022 Election Impacts on the economy and precious metals is up.