Silver Short Covering

I think it is funny via coincidence that every time three or four days go by with little movement for G & S either way, I will mention that fact then it takes off, lol....

Because it sat idle most all week, until about 3 A.M., and something went down in the Asian market, as gold went up from 50 bucks from then until about 2 this afternoon, and silver has followed right behind nicely....

This post Labor day history has me concerned, as apparently in recent years (esp 2008), the Dow took such a major nose dive after the extended holiday weekend, that it even pulled Pm's down with it, and likely will again this season....

We will see. If the market does take a major nose dive, an yet G & S keeps climbing or holds steady, I think that will be a real solid sign of its current strength and makes me think little will be able to slow it now, short of a total face lift of the economy and the politicians and big banks that dug this hole to begin with....

I don't think this fall season will be anything like previous ones. The Euro is just about trashed, the dollar is in the same boat. I suspect the Fed will lean on the banks to go to the window for free money and buy short term treasuries, thus creating QEIII without having to call it such. End result is the same---more money. Demand for PM's has not been decreasing, if anything its gone up since the CFTC has raised the margin requirements about 7 times in the last 4 months. All those small to medium size futures traders took their profits and got in the hard metals line. Dodd/Frank legislation is just kicking in and makes things worse for brokers & traders and I look for physical metal demands to overcome the short positions. nlp

Yep, you may be right Ed.

It might get crazy again on Monday. That is the day that Germany will decide publicly if it is going to help Greece out or kick it to the curb. All signs point to Greece going down that lonely road alone. If that happens, and it probably will, in my opinion it would mean that the Euro could gain strength due to less European Central Bank printing across the Atlantic, but it could also be viewed as one of the oldest civilizations in the world going under. It is going to be an interesting day to say the least. With US markets closed metals prices will be left to the Asians and Europe. $2000 gold and $48 silver may be two days away.

JE, I thought that was Wed the 7th that the German court was ruling.

I wrote the 7th down on my calender, but I've been wrong before.

Ok it is just for fun - my guess. Every time the President speaks the market appears to go down. PM's do better,

Thus they might open lower but will make a climb after his TV address on jobs or what ever he is speaking about. He does it so often I forget what he is talking about.

LOL, yeah well I've been so wrong that I was consistently right by doing the exact opposite of what I thought was right. I heard a name for that investment strategy the other day on CNBC, "the Costanza trade"... named of course for the Seinfeld episode where George does the opposite of normal to improve his life. Hi, my name is George, I'm unemployed and live with my parents.