With everything else getting the snot kicked out of it this week, silver just keeps rising from the mat. Like a spring, all attempts to suppress it only cause it to rebound as soon as the pressure is lifted. This strong, fundamental demand certainly bodes well for the remainder of this month and my theory that the price action will resemble the action from February. Were it not for Tungstenman's attempts to talk down the entire commodity complex and O'bottom's attempt to talk down the debt, can you imagine where silver would be trading right now?? As it is, it moved back above 41 overnight only to be pushed back by some unusually timed $ strength. The POSX is now rolling over on economic news (big surprise!) and the metals are rebounding. But silver is the champ. It just looks great.
So here's a 30-minute silver chart. Note the higher lows from the bottom on Tuesday, the breakout overnight and then the pullback that stopped right where it should, around 40.60.
Finally, we saw some lousy "claims" numbers this morning. Makes the "QE ending" argument a little tougher to swallow. Also, for the braindead money managers that sold the metals yesterday when they heard that O'bottom was going to propose $4T in debt reduction, I give you this:
Now granted, its from the WSJ but I have to say that I agree with the article. The president's speech/plan was an absolute farce. The U.S.A. does not have a tax/revenue problem. The U.S.A. has a spending problem. The deficit and debt cannot be controlled by "eliminating waste and abuse" and raising taxes on millionaires. This is nothing but class warfare politics and SPIN. The only hope for the U.S. is that serious leaders will emerge with serious proposals. They then act on their proposals, re-election hopes be damned. Let's just say I'm not expecting this anytime soon.
As I type, we're back to 41 and 1461! Gold and silver are the only green on my board. Again, can you imagine where they'll be by next week when sentiment inevitably shifts again??? TF
p.s. I just noticed that Jim Willie sent this to me overnight. Thought you'd like to see it:
3:14 AM (5 hours ago)
silver is ready to pursue 50
it should come before June 15th easily
my smartest, most connected, most experienced, most successful, most diverse source
sent me an email unsolicited yesterday
in it he said he expects silver to move past $200 in the next two to three years
by the way, he has not been wrong about any really big paradigm shift issue in his career
you can publish this on your weblog if you wish
I read your dailys all the time
someday I hope to move up to Jackass Turd