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Gold Tightness Has Now Translated To Silver Tightness (COMEX Update)

|Includes: SPDR Gold Trust ETF (GLD), SLV

I have a small warning here for the COMEX stock.

I predicted that the total gold stock would come down here. That's because I saw a very high surge in registered gold from J.P. Morgan's vault. And several months later the total gold stock hit new lows (Chart 1).

There is a tight gold market right now, as we see lease rates go above 0%. GOFO rates are still at record lows and premiums are highest ever. APMEX premium on silver coins just went to the highest level on Friday, namely 18%.

Chart 1: COMEX gold

A new thing has happened now in the silver COMEX stock. For the first time this year, we see the eligible silver stock go down. I also see that the registered silver went up, probably the same that has happened with gold. So I expect that total silver will now start to go down and we will see tightness in the silver market. We also see that the commercial shorts have finally covered their shorts.

Chart 2: COMEX silver

The future is again bright for precious metals...

Disclosure: I am long AGQ.