Sunday of Thanksgiving Week

In a stunning development, Ireland has decided to allow the EU to bail it out. NO!! REALLY??

How anyone can be surprised by this is beyond me. TPTB will always postpone their day of reckoning, of that you can be assured. Ireland was "bailed out" just like Greece before it. Soon Portugal, Italy and Spain will follow suit as will California, Illinois and New York. In the race to the bottom, never ever forget that all fiat currencies are traded and valued against each other. There will be periods of dollar strength and euro weakness like the past  two weeks just as there will be periods of euro strength and dollar weakness. In the end, it simply doesn't matter. All fiat are headed to lower and some are headed to virtual zero. I have no doubt that, one day soon, they will all be replaced by some sort of new global, partially asset-backed unit of exchange. It is no longer a question of if, it is simply a question of when. The end of the Great Keynesian Experiment is upon us. You must prepare accordingly.

OK, on to gold and silver. Predictably both are higher in early trading this evening. Dec10 gold stands at $1358 and Dec10 silver is around $27.75. Overnight, I'd expect additions to these gains. Gold may approach 1365 and silver 28.20. Tomorrow will be interesting as we have another 9bil or so in POMO coming our way. With Ireland "resolved" and 9bil in fresh greenback available, its hard to see the PMs and equities having a down day. There is one thing to watch, however. Tomorrow, the PMs will be almost certainly be subject to another 7:00-9:00 EST Evil Empire takedown. You can bet that Blythe and her monkeys can see the writing on the wall for an up day, too, so they will try to take $5-10 out of gold when no one is looking just to make it start from a lower level. Let's watch and see.

If you haven't read Harvey Organ's weekend update yet, you need to do it now. Go ahead, I'll wait...

http://harveyorgan.blogspot.com/

Glad to have you back. What did you think? Sounds like ole Harvey is getting pretty excited about the damage we're inflicting on the Death Star (Comex). With expiry on Tuesday, it is imperative that you check Harvey every evening this week. He usually updates around 8:00 EDT. Once again, if you are relying upon blogs, CNBC and the WSJ for your metals opinion and not reading Harvey, you simply are not receiving an accurate picture of the fundamentals behind gold and silver. For now, the only thing that matters is the physical squeeze on the Comex. Period. Do not be persuaded by top-callers and snake-oil salesmen like Prechter. If the silver Comex fails, either now or in the near future, there is virtually no limit to the extent that gold and silver could rise.

Lastly, this week promises to be equal parts volatile and drab. Tomorrow should be fun and Tuesday will be volatile but Wednesday and Friday should be quiet with an upside bias. Gold will initially trade to about 1365 or so before taking a breather. Its going to have a difficult time slogging through 1375-90 but once it gets through there, probably early next week, it should go back to the highs of 1424 in short order. $36B in POMO next week ought to do it. In silver, look for 28.20 first, maybe overnight tonight. Then a breather and pullback on expiry day to 27.50-75 but then, once it clears 28.20, there's nothing restraining it until 29.30 where you can bet your arse Blythe will be waiting to try to paint a double top.

Let's see how things open in NY tomorrow. Don't forget to watch for the monkey beatdown between 7 and 9 eastern. I'll try to update things by mid-morning.