First of all, I greatly apologize for the site being down yet again. I enrolled yesterday in the site "Alexa" with surveys the site and measures the traffic. Perhaps the overload of traffic that is crashing the site is due to an initial Alexa survey? Maybe. Of course, when the crash of the site coincides perfectly with a crash in gold and silver, it sure makes me wonder.
The reason given for the smash of gold and silver is the testimony of The Bernank. Hmmmm. Of course, stocks aren't down very much. Hmmmm. Look, Santa has warned us repeatedly that there is extreme volatility coming. Today's action is certainly a part of that trend. If you can't stomach the volatility, I suggest you completely avoid trading and only use the big dips like today for adding to your stack.
That said, I guess we now know what the EE has been planning to do with all of their leased silver. Lost in the madness of yesterday was a drop in the 1-month rate to -0.48%. Since we've been discussing this possible "raid" indicator here for weeks, today's drop should really come as no surprise. Let's see now if $34-34.50 can hold. I suspect that it might not. $33 will be a possible floor as that is a significant level and it would represent a roughly 10% drop from the highs of yetserday. Even $31 is not out of the question, though.
Gold is getting punished, too, but should find a solid floor between 1680 and 1705.
Please be patient and try to keep your wits about you. Silver is going much, much higher from here. Later this week, we will discuss some extraordinary, new fundamentals that will drive prices. I know it's tough but try to hang in there and enjoy the ride. TF