Silver leads the way higher

Silver swaps are facing a short squeeze in poor liquidity, with lease rates on the September Comex contract at over 5%. Gold continues to consolidate in a bullish pennant formation.

This week, gold continued its consolidation, while silver squeezed higher from Wednesday onwards. In European trade this morning, gold was $3350, down a paltry $5 from last Friday’s close. Silver was $38.35, barely changed on balance.

As our headline chart shows, silver is now outperforming gold, up 32% v gold up 27% this year so far. Will it continue?