Precious metals sold off sharply on Friday on the back of news that OPEC would not lower current production quotas for their member nations. Gold, silver and platinum traded on higher than expected post-holiday volume as the dramatic fall in prices caught many by surprise. Investors of all sizes continue to exit individual commodity positions and commodity funds where there is talk that several funds could be closed before year end if the pace of redemptions does not subside. With all of the negative headlines, our corner of the financial landscape continues to shine as physical demand remains brisk globally.
Trading resumed yesterday with heavy losses again seen as crude oil prices continued falling to fresh 5-year lows and the resounding defeat of the Swiss Gold Referendum likely brought speculative sellers to the market. Silver continues to lead the charge lower as the overnight low of $14.17 brought us to levels last seen in the fall of 2010. At the lows, the closely watched gold silver ratio traded above 80 which was the level that several “experts” had called for months ago and just as many thought was a level that would signal a low for the price of silver. Keep in close contact with our trading desk throughout the week as demand is likely to remain very strong which could result in premium changes and delayed shipping in several products.
On a personal note I would like to say “thank you” for all of the emails and text messages wishing me a speedy recovery from back surgery. I look forward to speaking to you next week when I resume trading a few hours per day.
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