Still Risk of Further Downside in Precious Metals and Miners - David Brady (May 29, 2020)

Jun 02 20:06 2020 Print This Article

May 29, 2020

PHYSICAL GOLD & SILVER

No major changes in premiums in the past

week from either a dollar or percentage basis relative to the paper spot price.

Inventory levels in coins remain unchanged, and bars of 10 oz. or greater still

remain virtually non-existent. Silver premiums remain significantly higher than

those for Gold.

The minimum premiums based on several major

dealers worldwide and their change from a week ago:

The original blowout in premiums, which

began in March, was triggered by a surge in demand the Friday before Powell had

his ‘whatever it takes’ moment, then two days later when he also slashed the

Fed Funds rate by 100 basis points on a Sunday. It was compounded by a shock on

the supply side, due to the temporary closure of several refineries and miners

because of the risk of COVID-19. Refineries have only partially reopened, and

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About Article Author

Sprott Money

Established in February 2008, Sprott Money Ltd. is a leading precious metals wholesale, institutional and retail dealer selling gold, silver and platinum bars, coins and wafers online and over the phone. Sprott Money's storage program gives clients the ability to store their precious metals in multiple storage facilities located in Canada, the United States and internationally. Sprott Money Blog, which covers world events, geopolitics and of course precious metals.

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