He explained that the gold price move that started about three months ago lit a fire under silver, which tends to lag behind its yellow counterpart before outperforming. That scenario is currently playing out. <\/p>\n
Aside from that, Krauth believes futures exchanges and exchange-traded funds are being drained of silver.<\/p>\n
\u2018I think that the market\u2019s come to grips with the fact that that\u2019s where the silver is coming from \u2014 that is what has allowed these large consumers of silver to tap silver supply without pushing the silver price up,\u2019 he said. <\/p>\n
Krauth continued, \u2018We\u2019re potentially somewhere around 12 to 24 months of this continuing before we\u2019re going to run out of these secondary supplies. And then all bets are off \u2014 someone\u2019s going to try to get silver (and) won\u2019t be able to \u2026 That combined with a considerably higher gold price is helping to really, really move silver these days.\u2019<\/p>\n
The interview took place before silver\u2019s fall below US$30 on Monday (June 4), but Krauth explained why he wouldn\u2019t be concerned to see that happen. In his view, the metal could test US$28 or even US$26, but is putting in a floor at US$30. <\/p>\n
\u2018I think we could see a little bit more weakness potentially in the next weeks, perhaps the next month or two even as we go through the summer \u2014 I\u2019m not saying this will happen, I\u2019m saying it could happen,\u2019 he noted during the conversation. <\/p>\n
\u2018Maybe we\u2019ll see a test of US$28, maybe even sort of a washout test as low as US$26. But I don\u2019t see much weaker than that \u2026 (and) if we do drop below, ultimately we will regain US$30 and that will become a new floor.\u2019 <\/p>\n
Silver was back above US$30 by Wednesday (June 5), closing the day at US$30.05.<\/p>\n
Watch the interview above for more from Krauth on silver supply, demand and stocks. <\/p>\n
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n He explained that the gold price move that started about three months ago lit a fire under silver, which tends to lag behind its yellow counterpart before outperforming. That scenario is currently playing out. Aside from that, Krauth believes futures exchanges and exchange-traded funds are being drained of silver. \u2018I think that the market\u2019s come […]<\/p>\n","protected":false},"author":0,"featured_media":5243,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-5242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=5242"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/5242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/5243"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=5242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=5242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=5242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}