Silver's 'Earthquake' Shakes Investors, But Fund Data Reveals Position Adjustments

• Recent sharp decline in silver prices caused fear, but fund flow data (Jan 29-Feb 4) shows investors made position adjustments, not full withdrawal.
• Biggest fear was end of global commodity rally and de-dollarization trade reversal, but data indicates this is not a major trend reversal.
• Global emerging market funds saw strong inflow of $5 billion, following a record $11 billion, showing investors haven't exited the theme.
• Silver became the center of correction due to being over-stretched; however, latest week saw $1.5 billion inflow back into silver funds.
• Energy sector is strongest with $4 billion inflow, largest since Sept 2008, indicating interest in cyclical and inflation-related assets.