Where once “gold enthusiasts” (to quote a particularly annoying gold/gold stock pumper) once drove the premium on CEF to the 15-20 range, it has been steadily pinned in discount territory throughout the majority of the bear market.
Now, I am not sure if part of this has to do with competing vehicles out there or the Sprott acquisition, or if maybe this is just representative of the bleak mindset of so many former “enthusiasts” after the pain was inflicted, but since the low in Q4 2015 the discount to assets held has remained nicely negative. In other words, “gold enthusiasts” are not buying despite a mark down on these vaulted gold and silver bars.
CEF just happens to be at a trend line that, along with the lateral resistance of the 2018 highs would be a key level to overcome. Weekly MACD and RSI are positive (with RSI getting a little peppy, i.e. overbought).
For reference, here is a longer-term view showing how brisk the enthusiasm was once upon a time even as the negative divergence in the premium actually provided a nice and bearish indicator (could today’s extended positive divergence be doing the same going the other way?).
Subscribe to NFTRH Premium (monthly at USD $33.50 or a 14% discounted yearly at USD $345.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas.
You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Follow via Twitter @BiiwiiNFTRH, StockTwits or RSS.