Make Kitco Your Homepage

Phoenix's Grady: ETF Flows Show Long-Term Investors Favor Silver

Kitco News

Investors were buying into the iShares Silver Trust (NYSE Arca: SLV) exchange-traded fund even as futures speculators were selling or exiting bullish trades, points out Kevin Grady, president of Phoenix Futures and Options. This suggests that those who take a longer-term view of the market are favorable toward the metal, he says. Comex March silver slid from a mid-November high of $17.485 an ounce to a low of $15.365 on Tuesday. “The last two weeks, we’ve seen a lot of shorts [bearish traders] coming into the futures side, and a lot of longs [bullish traders] were exiting,” he said.  “The interesting thing is we’ve had a lot of inflows into the SLV silver ETF. Since Dec. 4, we’re up over 7 million ounces. That’s more investment-grade. Those are longer-term people, and a lot of the people in the futures market are more short-term technical traders…. Silver has really gotten beaten up. Down around those levels, we saw longer-term investors coming into SLV and doing some buying. It’s really significant.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Commerzbank: Strong European Car Sales Help Palladium More Than Platinum

Friday December 15, 2017 11:13

Palladium appears to have benefited more than platinum from stronger European auto sales amid a shift to gasoline-powered engines that use palladium, says Commerzbank. Diesel-powered cars, popular in Europe, require platinum for catalytic converters. Palladium Thursday climbed to a new 17-year high just shy of $1,040 per troy ounce. “It was lent buoyancy by robust car sales figures in Europe,” Commerzbank says, citing data from the European Automobile Manufacturers’ Association showing that 5.9% more new cars were registered in the European Union in November than during the same period last year. “The ACEA attributes this primarily to a calendar effect,” Commerzbank says. “More new cars were registered in all key sales countries, with the exception of the U.K. After 11 months, new car registrations are 4.1% up year-on-year.” Still, platinum did not appear to benefit, remaining roughly $150 lower than the palladium price, the bank says. “This is because only a good 40% of new cars sold in Western Europe are now diesel-powered. The proportion was still around 50% a year ago. This alone is likely to have seen sales of diesel cars drop 9% below the previous year’s level in November, even though car sales as a whole have continued to rise.”

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.