By Eric McWhinnie
June 15 2011
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The Dow (NYSE:DIA) showed some fight on Tuesday by gaining 123 points. ?The S&P 500 (NYSE:SPY) and Nasdaq (NASDAQ:QQQ) also closed higher. ?Oil (NYSE:USO) gained back $2 on the day and closed above $99 per barrel. ?After getting to some scary technical levels, ?silver (NYSE:SLV) and gold (NYSE:GLD) both closed higher on the day.
At the beginning of June, we discussed how the physical supply of silver at the Comex (NASDAQ:CME) was taking a beating. ?We pointed out how?Scotia Mocatta and?HSBC (NYSE:HBC) continue to reclassify their silver holdings from Registered to Eligible status. ?This fuels the fire for silver bugs that one day, you will have a difficult (or expensive) time trying to buy physical silver, due to the lack of supply. ?For the time being, the silver bugs are still going strong. ?Even though the Comex had 41 million ounces of registered just two months ago, the number has been declining ever since. The most recent Metal Depository Report now shows that the Comex has about 27.9 million ounces of physical (registered) silver remaining. ?This represents about a 32% decrease in registered silver holdings since April.
The latest physical silver drain comes courtesy of Brink?s Inc, which had a net change of -2.1 million ounces of silver. This ongoing situation will be interesting for both silver bugs and potential silver investors to monitor.
ETFs such as the EFTS Physical Silver Shares (NYSE:SIVR), iShares Silver Trust (NYSE:SLV), and ProShares Ultra Silver (NYSE:AGQ) all headed higher on Tuesday. ?Miners (NYSE:SIL) such as First Majestic Silver (NYSE:AG), Endeavour Silver (AMEX:EXK), Goldcorp (NYSE:GG), and Barrick Gold (NYSE:ABX) also shined bright on Tuesday.
For more analysis on our support levels and ranges for gold and silver, consider a free 14-day trial to our acclaimed Gold & Silver Investment Newsletter.
Disclosure: Long AGQ.
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