Turkish Gold Futures Volume Explodes As Silver Slammed To Lowest Since April 2009

Update: While it seems American (dollar) investors see no value in the barbarous relic, Bloomberg reports that Gold futures volumes have surged on the Borsa Istanbul as the volatile currency attracts speculation and after the lira’s plunge boosted the local price of metal.

The 90-day average daily volume more than doubled to 40,000 contracts, from about 17,000 in March. During the same time, the value of an ounce of gold in lira rocketed more than 30 percent.

“It definitely would make sense to own gold now in Turkey given the depreciation of the lira,” Jonathan Butler, precious metals strategist at Mitsubishi Corp U.K. Plc, said by phone.

“This is consistent with gold’s status as a safe haven and will likely be mirrored on the physical market with demand increasing for jewelry and gold bars.”

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As the dollar surges, precious metals are under notable pressure, but silver is dramatically underperforming gold as its industrial-usage weighs it down to its lowest price since April 2009...

Gold is back at its lowest since Dec 2016 in USDollars...

And has broken down out of its recent tight range in Yuan...

But silver is getting monkeyhammered in USDollars...

 

Smashing silver to its weakest relative to gold since Feb 2016...

For now, Kudlow is winning...