Precious metals squeeze intensifies
The squeeze in silver is now creating headlines in the media. If this leads to a wider recognition of why silver continues to rise, it could spark additional ETF demand.
Christmas week has been particularly dramatic for silver and platinum, marginally less so for palladium while gold quietly sails into new unchartered territory. Our headline chart below says it all…
Christmas week appears to have intensified the squeeze on silver and platinum, with dramatic moves higher in Shanghai, silver even challenging the $80 level at one point last night. In European trade this morning, silver was $74.80, up $7.80 from last Friday’s close, and gold at $4518 was up $187 over the same timescale. Predictably in a holiday week with London closed yesterday and today (Boxing Day holiday), Comex volumes were light.
Our favourite chart of silver and Comex open interest illustrates how little speculator participation there is in this rally:
