It is indeed. I bought as much as I could afford (albeit, not much) when prices dipped below $33aud initially.
^^Nope. The Euros just made a deal that prolongs the "extend and pretend" paradigm...and spot is falling sharply. Maybe the big knockdown is comming after all.
Actually, this means risk appetite is up, so in the short term, aud will go up and silver will go up, no idea about gold.
Hmm... yeah it's looking like the USD will have some troubles staying up, given that it seems like it's now Europe's turn to "kick the can down the road". Asia could do well out of this circumstance, and in the broader context maybe even Australasia, provided the RBA doesn't do anything monumentally stupid. (Why am I nervous about that? )
Ok, I have been sitting here reading all this stuff, but have not yet figured out how to actually post a message. Would someone please be kind enough to enlighten me on the process?
The silver price rally was caused by the EU writing off 50% of Greeces debt and decision to create a trillion sized emergency fund. This caused alot to buy euros and thus euro got stronger and dollar weaker, which in turn drove commodities including silvers prices up. But something new entered the EU scene, on friday the Italian State bonds intrest rate went above 6% which is a new record. If Italy follows Greeces story then this may trigger a financial catastrophic discovery, Italy is the third big eurozone country and has an over 6 times bigger economy than Greece. It's the reason why the commodity uptrends stalled friday. This will make the dollar again appear stronger. On the other hand, there might be a compensating factor at the US side. The monetary base of the dollar that showed a downtrend since QE2's last dollars were lent out, sees now a steep uptrend, it bounced nearly back to its peak, which means that the banks are unable to pay their monthly chunk of the debt back to the FED. If this last trend proceeds the current rising rate then the QE2 level will be visited back over 1-2 months, and it becomes either QEx either banks starting to default. Also, Operation Twist initially caused downtrends in the 30 year bond/10 year note but that downtrend recently broke, and this just a month later. If this continues then Operation Twist will fail its goal much sooner than they expected. Depending on how above two stories occur in time, we may see some crazy fluctuations. I'd say its now surely a moment to NOT buy. If that needs to be said considering the time the silver price needed to increase $5. Stack dollars and buy the dips but without too much greed (aka do not wait for even lower prices) may be the advised strategy for the coming months. My 50 cents from Belgium.
