Just touching base quickly. A huge air pocket has formed under the silver price today and many buyers are waiting for a bottom to form before coming back to snap up the bargains. Get in before them if you possibly can because there will be some ferocious buying when they all come back. We have now taken out the 200 day moving average, which might sound bad, but is actually less important than the 50dma.
(Remember, the closer you aim for the bottom the closer you will be to missing it.)
Spot is at USD $32.87 right now after falling from $36.26 earlier today. We might even reach the high twenties later tonight or by Monday if this continues - although I doubt that we will reach good ol' $27 again - thankfully. (That was an iceberg that NEVER seemed to go away!)
It's hard to predict what will happen next because we are operating in a highly rigged market right now. (Look a the tight channel the DOW has traced out in recent weeks since that last FOMC meeting) I strongly suspect we are going to see these 'outside forces' move the market more directly than fundamentals will for the next week or so. Moving the DOW up or down 5% in a night is quite easy for these good folk, so if the market is down you can be sure they want it down for a reason.
Ben's boring Twistie idea (and his remarks at last month's FOMC meeting) were intended to create this stampede in the global markets now. Watch out now as the assorted CBs rush to the rescue with more of their instant liquidity soup mixture - "Just add debt". The Fed, ECB and the BOE are all fairly itching to fire up their respective printing presses and become the fiscal heroes that they aren't.
The ECB now want to play leverage games with their new 'Euro Stability Fund' - and would dearly love to redo their Treaty so they can legally roll out their so-much-desired Euro Bonds. Will someone please give them a call and tell them that governments are 'expense' items that can never create wealth but only confiscate or redistribute it. They seem to keep forgetting that. (Use the phone in my cabin - it uses 3G and gets good reception out here in the water.)
Let's try not to smile too, as the G20 meets and unites their individual fiscal ignorance only to trot out few a well-worn globalist platitudes.
We should be thankful for their insights - just as we should thank 'The Age' for telling us yesterday that we are now in a bear market! I'm certain most of the SS crew here regularly say more intelligent things in their sleep.
Keep buying if you can!
If you are already fully stocked up be thankful and don't fret. When Ozama Un Leaden popped his head into my cabin early this morning to check the overnight action he took one look at the chart with the arrow pointing at the floor and exclaimed "Great! I'm off to get some more Scottsdale's!" A true stacker there!!
Great to see everyone on deck smiling and cheerful today! I guess you all know by now that this price action only hastens the end of the market manipulation - as more and more silver is transferred to very strong hands like Ozama's.
Errol 43, please ensure our sails are thoroughly checked over the coming weekend.
I feel a slight breeze getting up. We must be ready!
SPOT: USD $33.20.