The Premier Silver Resource Website

Live Spot Silver
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes

Bull Run – Gold & Silver Accumulation Ramps Up

By: Todd Stein & Steven McIntyre, Texas Hedge Report

-- Posted 22 June, 2006 | |

Courtesy of



Gold started the year at $515 per ounce.  Gold peaked at $725/oz on May 12th.  The gold ETF (GLD) started the year with 8.5 million ounces in its vaults.  On the day of gold’s peak, GLD had 11.4 million ounces.  Gold has since tumbled $145/oz in 6 weeks, but curiously the assets of GLD have been rising as of late.  In fact, GLD yesterday reached a new record high of ounces in the trust with over 11.7 million ounces.


The same trend of “a declining metal price, but increased ETF assets” can be seen in the silver ETF (SLV).  Silver started the year at $8.85/oz.  It subsequently rose 70% to $15/oz, before correcting by $5.50 to near $9.50 an ounce.  The silver ETF began life on April 28th with silver at $12.55/oz.  The silver ETF reached a peak of 73 million ounces in its vaults around the time physical prices peaked.  With the aforementioned sell-off, silver ETF assets declined to 67 million ounces, but have since begun heading back upwards to a near peak level of 72-73 million ounces in the trust.


The continued accumulation of gold and silver ounces in the ETFs likely means that savvy individual and institutional investors (who are driven by fundamentals) are eagerly accumulating the metals after their sharp pull back – a bullish sign.  At the same time, the price has been weak in all likelihood because leveraged black-box technical types at CTAs and hedge funds are liquidating.  One could argue that gold and silver prices declining in spite of the ETFs building up ounces is a bearish sign; we, however, believe that ETF asset accumulation is evidence that long-term fundamental investors are flocking back to the metals in anticipation of a continuation of their multi-year bull market resuming.  When the black-box precious metal selling by funds is over, we should again see gold and silver moving higher as the U.S. Dollar is shunned by global investors who realize the Fed has exhausted its ability to raise rates given that the residential real estate market in the U.S. is rolling over.  Our June 2006 issue goes into detail about the housing market falling apart, so be sure to subscribe for more insight.



Texas Hedge Report


Todd Stein & Steven McIntyre are internationally known analysts and editors of The Texas Hedge Report, a market newsletter that highlights under and overvalued securities in the equity, bond, currency, and commodity markets


For more information, go to


-- Posted 22 June, 2006 | |

Article Archives is presented to you by:

© 2003 - 2011, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.


The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.