Precious metals sold off sharply yesterday which resulted in the busiest trading day of the year for our corner of the market as physical buyers especially in silver took advantage of the drop below $15.00. The USD and bond market seem to be the “safe haven” at the moment as the ongoing situation in Greece and the collapse of the Chinese stock market have not pushed gold and silver higher. Instead, we have followed crude oil and the base metals lower as they have dragged most commodities down.
For those that did not hear it yesterday, the U.S. Mint has temporarily run out of 2015 silver Eagles as demand has surged. While it is difficult at best to call the bottom of any market, the demand for silver this week, which continues this morning, may signal that the bottom, at least for the short term, may have been seen. If we can hold the mid to upper $14.00s for a day or two, I would expect the speculative short positions to begin covering which could see us trading back above $16.00 very quickly.
*** Please continue to check with our trading desk for current premiums as they can change quickly ***