russellclark

Looking for bear porn? The spread between the KDP High Yield Daily and the 30 Year JGB has never been lower.

Is it time to lighten up on the precious metal trade? Very tricky question. The gold rally has been relatively orderly - but silver and platinum have been anything but. Oddly, shares outstanding in silver ETFs have not grown rapidly, suggesting that price movement is not as retail driven as I suspected. The other option is that central banks have decided to diversify from gold into "cheaper" options. Is possible, and if this is the case - then platinum still looks way to cheap. Historical platinum has traded at premium to gold, which leaves room for it to double again.

Never been a huge fan of silver - its a relatively illiquid market, making it prone to sharp rallies and sharp falls. But the good thing about its rally this year is that it makes gold look reasonable value again. I would be a bigger fan of silver if I knew central banks were buying it instead of US treasuries - but I do not "know" that is the case.