On the back of another big drop in crude oil prices yesterday and this morning, precious metals are sharply lower across the board. Add to this a strengthening USD, a U.S. equity rally that shows no sign of backing off, and non- existent inflation and we find precious metals have become an asset class that is finding no demand outside our corner of the market where physical demand remains brisk. According to Bloomberg, holdings in the global ETF’s have fallen to their lowest levels since May of 2009.
As crude continues to be pressured in early U.S. trading, all four precious metals are following suit with gold now trading below $1,150.00. Silver having already traded down to $15.25 could be in the $14.00s sooner than later. Keep in close contact with our trading desk as product availability and premiums are changing quickly due to the outright demand and we are at that time of the year where “mints” are preparing for the release of 2015 coins.
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