Will silver be next?

There has been an enormous squeeze on the Comex copper contract, driving it to unheard of premiums against London and Shanghai. Similar conditions could be ahead for silver.

Gold and silver continued to rally this week, challenging the highs established in mid-April. In European trading this morning, gold was $2385, up $16 from last Friday’s close. Silver was $29.68, up $1.54 on the same timescale. Comex turnover in both contracts was not excessive, though Open Interest is creeping up, as shown below.