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Gold, Silver Could Separate At These Levels

Commentaries & Views

(Kitco News) - The metals have been under pressure since the end of November and have basically broken some very key levels from a technical perspective. The competition for alternative dollars has become fierce, especially now since major exchanges now have Bitcoin products, which is legitimizing the cryptocurrency.

With Coinbase.com opening over 100,000 new accounts in the last few weeks and the exchanges, coupled with the equity markets at all-time highs, there isn’t a lot left over for the metals. However, out of nowhere there are some interesting developments from the commercial world of investing.

Commercial banks notoriously known for holding massive shorts in gold and silver have suddenly started buying silver. This action may free up silver and bring new money into the market, indicating that the bottoms may be in. One thing is certain -- the risk versus reward favors owning silver at these levels 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
1 oz Gold Krugerrand