Hedge funds and family offices are continuing to show their confidence in gold and silver producers, despite recent weakness in the precious metals market. According to a recent report from UBS, these investors are buying on weakness in gold miners, even as long-only investors trim their positions. This trend is particularly evident in copper miners, which have seen a brief rally before being met with selling pressure.

The continued interest in gold and silver producers from hedge funds and family offices suggests that these investors believe the recent weakness in the precious metals market is overdone. While physical demand for gold and silver may be softening, geopolitical tensions and central bank actions continue to support the prices of these metals. Additionally, the ongoing supply chain disruptions and global economic uncertainty are likely to keep investors looking for safe-haven assets like gold and silver.

It’s worth noting that the recent weakness in gold miners is not necessarily a bad thing for investors. As the UBS report points out, the correction in gold miners has created buying opportunities for hedge funds and family offices. With many of these companies trading at historically low valuations, there may be significant upside potential for investors who are willing to take on the risk.

Of course, it’s important to keep an eye on the broader market trends and economic conditions that could impact the precious metals space. Geopolitical tensions, central bank actions, and supply chain disruptions will all continue to play a role in shaping the future of gold and silver producers. However, for now, it appears that hedge funds and family offices are confident in their ability to weather any short-term volatility and are positioning themselves for potential long-term gains.