Precious Metals Alarmists Proven Wrong Again

According to alarmist media reports, last week’s rebalancing of the Bloomberg Commodity Index was supposed to sink precious metals, but the exact opposite happened, just as I expected.

Over the past two years, the powerful bull market in precious metals has been met with countless alarmist predictions of an imminent collapse. Yet each time, those warnings proved wrong and were quickly forgotten as gold and silver continued to soar.

Another such prediction, which received significant media attention in recent weeks, claimed that the annual rebalancing of the Bloomberg Commodity Index, which entails the heavy selling of gold and silver futures, could be the death knell of the precious metals bull market.

I wrote about this at the time, taking a contrarian stance and pointing out that it was already widely reported by the media and therefore largely priced in. I also theorized that gold and silver could actually rise during the rebalancing period from Thursday, January 8th to Thursday, January 15th, and that is exactly what happened. I'm now sharing this quick update to show what transpired.