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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;


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.”

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