They’re Back. Manic Metals Report 12/10/2024

Just when you thought it might be safe to short the gold market the Chinese central bank is back. Back in a big way.
After months of retreating from buying gold for the Chinese central bank where that they resumed purchases gave gold a big balance along with expectations that we would see more stimulus from the Chinese government.  The People’s Bank of China said it bought 160,000 fine troy ounces last month ending a six month pause.
The news sent gold soaring, and we even saw a big spike up in metals such as silver and platinum. There’s a sense now that the correction in the precious metals has been long and hard could be over and we could resume our quest to take out record highs on gold once again and resume the quest on silver to try to catch up with gold.
Some buyers of risk aversion assets may have pulled back from their record purchases of Bitcoin and other cryptocurrencies because of the high volatility.
The record breaking moves and volatility in Bitcoin in recent weeks probably enhances the attraction of metals which looked calm in relationship to Bitcoin.
That’s not to say that Bitcoin can’t resume and make record highs as it probably will, but it does seem to suggest that precious metals may be a calmer place to invest against geopolitical risk aversion.
Because of this new surge it’s probably a terrific time to start looking at options strategies in both gold silver platinum and copper remember that they had the micro contracts as well if you want some exposure but do not want to take the risk of a full contract you can also do some pretty inventive strategies to take advantage of what we have seen as the potential for the gold and silver to make a big move to record highs.
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