Before we get to the charts of interest, a little follow up on last night's post. Lots of interesting discussion regarding this article. If you haven't read it yet, I suggest you do it now:
Much of the discussion centered upon which central banks might actually have silver to lease. Luckily, the article's author is a closet Turdite and he contacted me this morning with some clarification. Below is a c&p of his comments. I hope this helps clear up some of the confusion.
Thanks for posting my article this morning on silver and leasing. I actually read your blog on a regular basis since I do very little TA and mostly fundamentals. Your info certainly helps get the complete picture.
I think there is some confusion about who is doing the leasing. I referenced "central banks" in the article but did not mean that term to be exclusive. For gold leasing, central banks are the primary culprit, but for silver it is most likely to be what I called "bullion banks", including the "caretaker" custodian of SLV itself. Rather than interchange the term I kept using "central bank" for what I thought would be easier to understand. Some of your commenters rightfully pointed out the inconsistency.
In any event, thanks again for the posting. Keep up the good work. I enjoy reading your thoughts. Jeff
OK, back to business. As we discussed earlier, the breakout in oil helped rescue the metals today. Around 11:00, oil sagged and took the metals with it. But then, when all seemed lost, it reversed again and actually stands now at $104.71/bbl, just 29 cents off its high of the day. Predictably, the metals are firming up, too.
Where crude trades from here will obviously impact the next 65 hours in the metals. Fortunately, the crude chart now looks friendly and a move toward $105.75 seems likely. That extra dollar in crude should help silver move toward 37.50 and provide the impetus for about $10 in gold, too.
Lastly, here's a followup from Patrick Heller on the various ways to purchase gold and silver. Some may find it helpful.
More later. Keep an eye on crude! TF
p.s. If you really want to have a few laughs, read this:
and then read this: