Stackers smiling, traders trounced

The disconnection between physical reality and derivative volatility became obvious in gold and silver pricing this week. No silver? No matter. Futures carry on regardless.

This week has seen price instability in gold and particularly silver. This morning in European trade gold was $4875, up $210 from last Friday’s close and silver at $73.80 is down $11.60 having been as high as $92 on Wednesday.

Contrary to most commentary, speculative interest in both metals Comex contracts is very low, in gold’s case the lowest it has been this decade:

So, what is happening?