Every time we've had a major pullback, it's been what people would call an opportunity to buy on a dip, You're getting some bargain-hunting in silver and you're getting some bottom-picking in gold. |
Funds are buying gold because they notice the decoupling from the euro and the decoupling from the energy market. |
Gold is a safe haven. We have major political problems in Iran and energy problems in Nigeria. |
It seems that general commodity highs are adding purchasing power to momentum players' funds, so they are increasing positions in the metals. |
It was an unbelievable run-up. It was done pretty orderly. |
It was triggered by the dollar, the yen, and of course the idea of $70 crude. (Higher) oil didn't help the stock market, so investors were looking for another place to put their money and they seem to be looking at the metals. |
Now you have momentum players and volatility players being attracted into the market. |
Palladium and platinum are incredibly robust. There are questions about Russia's deliveries -- no one knows what Russia means. |
Recently, funds who were selling oil also were selling the metals, but then everything seemed to change. Investors see that there are whiffs of inflation out there. |
Silver had been less lively than gold (before Wednesday), and now it's doing a pretty good job of a catch-up. |
Silver has new sponsorship. We are starting to see new funds coming into silver. Part of it has to do with the fact that a lot of traders who follow gold and silver think the silver/gold ratio was out of kilter. |
Some of the houses look OK from the outside, but then you see the trailer next to it and you know [the family isn't] living in it. |
The inverted yield curve, which sent the stock market reeling yesterday, made gold one of the few safe havens. |
The large funds are long metals of every class and there's been general selling today, which touched off stop-loss orders below the market. |
The market keeps bouncing back and, once we climbed back above $550, more investors came back in. |