Expect Major Silver Price Spike As COMEX Inventories Decline
August 17, 2012
Today Greg Weldon told King World News, “The silver inventories are declining in the exchange warehouse. This is deliverable silver from futures contracts.” Weldon, Head of Weldon Financial, also warned “… changes in warehouse inventories have been a good indicator of changes in price.”
Weldon has a global following of some of the wealthiest investors in the world including individuals, institutions and financial firms. He now believes gold and silver are poised for major upside moves: “It’s interesting that we can finally start to look with some more favorable eyes at the gold and silver markets. Every time gold has dropped below $1,575, there have been ‘tails.’ We noticed this in the candlestick charts with long ‘tail-like’ reversals. Meaning there is demand being uncovered in that $50 band between $1,525 and $1,575.”
Greg Weldon continues:
“This was particularly evident in May and June. We had said that central banks were on the buy side, supporting the metals markets, in order to diversify. The World Gold Council just reported that gold demand we just saw the largest single quarter of gold buying by central banks.
I would also point out some very interesting facts about the silver market. The silver inventories are declining in the exchange warehouse. This is deliverable silver from futures contracts. So we have seen a reverse in the buildup in COMEX warehouse stocks.
Silver inventories are now below the six month average and the six month average has turned to the downside….