Gold continues to seesaw at the lower end of its established range
Legion of strong-handed silver investors’ bullish omen for the future’

(USAGOLD โ€“ 10/5/2021) Gold continued to seesaw at the lower end of its established range this morning. It is down $10.50 at $1761. Silver is down 17ยข at $22.62. We spend most of our time in these reports parsing gold’s prospects, but what about silver? It, too, has been subject to rangebound trading since early 2021 though with a bit more volatility. Zeal LLC’s Adam Hamilton sees the stubbornly high levels in silver ETF stockpiles as a sign that last year’s “legions of new investors” have proven themselves to be strong-handed investors โ€“ a development he sees as a “bullish omen for silver.” (Please see our Chart of the Day)

“Silver is poised for another investment-demand-fueled upleg once this latest bout of Fed-tightening-fear-driven heavy gold-futures selling burns itself out,” he writes in a piece posted at Seeking Alpha, “Interestingly speculators’ silver-futures positioning also supports big silver gains coming. As of late September, their longs and shorts were running 8% and 100% up into their past-year ranges! That’s near silver’s most-bullish-possible setup of 0% longs and 100% shorts. That implies selling exhaustion, that speculators have both sold all the silver-futures longs they are likely to as well as done all their probable short selling. That leaves room for nothing but buying, which propels silver sharply higher due to the big leverage inherent in silver futures. Investment demand should soar as investors see silver powering decisively higher again. That has real potential to fuel a big coming silver upleg.”

Chart of the Day

Chart courtesy of GoldChartsRUs.com

Chart note: As you can see, despite silver’s rangebound to lower pricing, ETF stockpiles have held their own over the past 12 months โ€“ a bullish omen, according to precious metals market analyst Adam Hamilton. Please see today’s Daily Market Report (above) for details.

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