The Alibaba IPO may shine, but gold is glistening

Scotland voted to remain part of the United Kingdom, Alibaba (BABA) is going to become the United States largest initial public offering (IPO), U.S. stock market indexes are up nearly 2% this week, Treasury yields are near lows, and gold and silver prices are getting bludgeoned in the paper market.

While U.S. financial prognosticators are raving over Alibaba and the IPO, the price action in precious metals and in the broader U.S. equity indexes showed signs of weakness about the time it was announced that Alibaba could start trading in the low to mid-$80s.

The gold(COMEX:GCV4) and silver(COMEX:SIV4) charts shown below demonstrates the strange price action in silver futures after the announcement regarding Alibaba's likely price increase at the open of trading in the stock today.

 

 

The chart below shows gold futures prices during the same time frame as the silver chart above.

 

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