Some physical silver products such as small rounds, U.S. silver eagles, and all bar silver smaller than the very large 1,000 ounce heavies remain difficult to locate in quantity at anything close to a reasonable premium with silver trading in the $16.40s. That is probably one reason that we are seeing significant positive money flow into the U.S. silver ETF. More buying than selling pressure required iShares Silver Trust to increase its trading float and add over 150 tonnes of new silver for the week. Thatís obvious dip buying in a pretty convincing measure. Read more about that, including suggestions for lower premium alternatives in the Silver ETF and Silver COT sections below.
The bottom line for this report is that as both gold and silver are approaching their popular moving averages from above, with this gold correction already the second largest of the Great Gold Bull in percentage terms (although only 7 weeks old), with the most popular physical silver still in short supply in the U.S., positive money flow into the silver ETF, negative money flow from the gold ETFs slowing, mining stocks acting more firmly than they have been and small resource companies now outperforming their larger cousins, there is reason for optimism for those who are still holding positions or are now scaling in. If the indications this report follows closely are correct, both gold and silver are within 6% to 10% of their potential 2008 lows and it would not be at all surprising to see both find overwhelming support near their Friday lows.