Let's do a quick analysis on precious metals here.
First off, I said yesterday that China lost interest in gold during the past months in this article.
Second, we were expecting a drop in net shorters for silver when we saw a drop in the silver price, but this didn't happen.
LCNS went back up, so that means there are still a lot of people with interest to get the silver price down.
Third, the declining lease rates are also indicating that weaker prices are still to come.
Fourth, the silver stock at the COMEX has been rising, which indicates to me a further decline in prices is probable.
Another indicator at the Sprott PSLV says that premiums have been dropping. This drop also indicates a disinterest in silver.
And finally, we saw that since September 2012, the gold and silver miners have been greatly underperforming the gold and silver price, which indicates further weakness in precious metals to come.
Chart 5: Gold Miners Vs. Gold Price
I have to say, I'm not that bullish on precious metals at this moment when I see all these indicators going downwards.