Strong Inflows into Gold and Silver

Strong inflows from connected money continue to dominate the gold and silver market. These strong inflows are matched by aggressive outflows from specs (trading funds) and retail money. Aggressive selling by retail traders, notoriously bad market timers, only enhances the strength of the bullish setup.

Unlike previous bullish setups, this has been evolving during a price advance rather than decline. This is extremely unusual for the tightly controlled gold and silver paper markets. A similar setup occurred during the strong advance of 2005-2006.

The setup in the S&P 500 also warrants consideration. The 100%, 100%, 100% reading reflects strength of inflows into equities from connected players. This statistically significant reading reveals the invisible hand repositioning capital amid the noise and confusion of media-driven rhetoric.

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