Precious Metals Update - August 8th | SWP Cayman

Precious Metals Update - August 8th

Mark Yaxley | Aug 8th 2020, 5:17:25 pm

In the last 5 weeks; Gold prices have surged $280/oz or 16% Silver prices are up $10.50/oz or 58%


In the last 5 weeks;

  • Gold prices have surged $280/oz or 16%
  • Silver prices are up $10.50/oz or 58%


Price Action

Precious metals are enjoying a phenomenal run right now, most noticeably silver, after breaking through key resistance points at $21 and $27 dollars per ounce. Silver is now trading above $28/oz for the first time since 2012.

Gold hit all time highs priced in US dollars last week and continues to establish new highs almost daily.

Such positive momentum has not been felt in the precious metals space since 2010. It seems the 10-year cycle has run its course and we are now firmly entrenched in a precious metals bull market, which is likely to last as long as the next 2-3 years.


Supply Chain and Product Availability

With the positive price action comes record demand for physical metals. Just as the industry's supply chain was recovering from 'March Madness', 'April Insanity' and 'May Mayhem', we find ourselves again in the midst of a very busy market, where producers and suppliers are struggling to keep up with retail demand.

Renewed worries about COVID, particularly in the United States, continues to challenge the PM space. Delivery times have widened from 2-3 weeks, up to 4 weeks+ again. The supply chain is strained.

Best selling products such as Silver Maple Leafs were sold out temporarily on several occasions last week, and other best sellers are more and more difficult to come by. 

Product Premiums

When products are available, premiums remain high.

The best value, in terms of premiums right now, remains gold. If you are going to buy silver, generic products (1 oz rounds, 1 oz bars and 10 oz bars) have the lowest total spreads. 1000 oz silver bars are also an option, but not a size suitable for all investors.

Speak to our traders about your best options. We are seeing some clients liquidating, particularly silver, at these price levels, making some inventory available for short-term 'deals'.

Precious Metals Technical Analysis 

I had the chance to sit down this week with Chris Vermeulen, a seasoned technical analyst and trader. I wanted to know what Chris' research showed in terms of the technical charts for gold and silver going forward. His answers were very interesting!

Watch the interview on our YouTube channel now:


Until next time, enjoy the ride!

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