[This article originally appeared on HardAssetsInvestor.com
and is republished here with permission.]
Neither gold nor silver prices moved last week as the duo
remained stuck in their well-established ranges. However, investors
steadily accumulated positions in the metals, signaling confidence
that prices will eventually break higher.
Recent SEC filings showed that billionaire George Soros' company
doubled its stake in the SPDR Gold Trust (NYSE Arca:GLD) in the
second quarter to 884,000 shares. Fellow billionaire John Paulson
increased his holdings by a quarter to 21.8 million shares.
Total gold exchange-traded fund holdings reached 77.7 million troy
ounces this week, up 2 million from the start of the year and a new
Thus, the current increase in investment appetite for the gray
metal bodes well for bulls.
We maintain our view that both gold and silver will eventually move
decisively higher, but that silver is likely to outperform.
Gold ETF holdings last stood at 77.7 million, up 410K, or 0.53
percent, on the week. Silver holdings rose by 0.2 million, or 0.04
percent, to 582 million. Platinum holdings were unchanged at 1.35
million. Palladium holdings rose by 2K, or 0.82 percent, to 1.94
The gold/silver ratio rose to 57.7; the gold/platinum was flat at
1.14; the gold/palladium rose to at 2.77; and the
platinum/palladium ratio rose to 2.42.
The U.S. Dollar Index was little changed at 82.5, while the EUR/USD
was likewise little changed at 1.2329.
Consumer prices in the U.K. rose by 2.6 percent year-over-year in
July, up from June's 2.4 percent rate. Core prices grew by 2.3
percent, up from 2.1 percent.
China's consumer price index grew by only 1.8 percent
year-over-year in July, down from 2.2 percent in June and the
slowest rate since January 2010.
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