The line is being held as I said yesterday. 1800 is the next 'first down' marker for gold, if they can cross it and hold it. Silver *could* lead the way, but that might look more like a deep pass to midfield.
Ben Davies thinks that the next move in gold can be big. I think he might be right IF they can break and run with it past the prior highs. And that is a big if with Ben and his extended team of thugs throwing cheap shots all over the field and 'managing' the scoreboard. This sometimes seems like The Longest Yard. Maybe its time for the bulls to call Split Right, Ball Curl on 1. Heads up Ben.
Here is some commentary from Lauren Lyster on the use of ETFs in the precious metals markets.
"Investors can gain exposure to precious metals using ETFs. Specifically, Gold and gold miner ETFs have become increasingly popular. But if you buy shares in a gold ETF like the GLD for example, the largest gold ETF in the world, do you actually own gold? The answer is NO. You are effectively buying shares in a fund indexed to the gold market. This is not the same thing as buying physical gold bullion and storing it in allocated vaults, a key distinction.
Also, in the case of GLD, the Trust does not insure its gold. Which means it may not have adequate sources of recovery if its gold is lost, damaged, stolen or destroyed. And this may surprise you when reading the prospectus as we have. According the prospectus for GLD:
"The amount of gold represented by the Shares will continue to be reduced during the life of the Trust due to the sales of gold necessary to pay the Trust's expenses irrespective of whether the trading price of the Shares rises or falls in response to changes in the price of gold....Gold held in the Trust's unallocated gold account and any Authorized Participant's unallocated gold account will not be segregated from the Custodian's assets. If the Custodian becomes insolvent, its assets may not be adequate to satisfy a claim by the Trust or any Authorized Participant."
So if the custodian- in this case HSBC- runs into trouble, it may not be able to make good on your claim."
Here is a graph showing the long and short positions in silver futures.