Two interesting charts this weekend, focusing on the Precious Metals ETF picture. It seems that optimism is returning to the precious metals sector, with investors starting to add to the GLD physical holdings.
Chart 1: With a price breakout, GLD physical liquidations have stopped
Source: Short Side of Long
Furthermore, CEF ETF is slowly trying to return back to premium, after about ten months trading in discount range. The discount reading as of Friday was 2.3%, but if the rally continues, we could see premium quite soon.
Gold and Silver mining companies had a huge week on the back of large volume, as majority of them attempted to break above their respective 200 day moving averages. The metals are in the process of doing the same.
Chart 2: Ten months of CEF discount slowly returning towards premium
Source: Short Side of Long
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