The saying that the cure for high price is high price. I suppose the same logic can apply to low price i.e. the cure for low price is low price!!
Lower gold price can attract more contracts and more draining of physical gold. If this continues, sooner or later a squeeze on gold will happen.
However the data trend(as for registered silver in Comex) is showing silver squeeze will happen much much sooner than gold and this is in term of a few months time if the drainage rate applies to the registered silver.
Should be noted that the bullion banks are now long (only the second time. First time was 2018) in silver futures to cover for their shorts in the spot price. They are short on silver spot to try to squeeze out physical silver from silver ETF holding (from those panicky investors) to cover for the physical delivery, while going long to cover their behinds!
Interesting time.
DCN Price at posting:
8.6¢ Sentiment: Hold Disclosure: Held
