Silver and Gold Update

Both Silver and Gold were raided yesterday (unsuccessfully) mercifully there was less volatility than the day before but the volume was huge. Gold Hit over 1500 a couple of times and was pelted down each time settled at 1497. As for Silver, WOW. When I said we'd see 45 this week I didnt think it would be Wednesday. One more WOW!

This has just been incredible. We desperately need a pullback but the way things look there is just too much upward pressure. Too many shorts and physical demand (and fundamentals). Its just too perfect. So what is the plan. I have a half position in AGQ left, the closer the PM gets to 45 I will reduce to 25% and let the rest ride. Try to buy back at 43. 

I'm not trading the GLD or DGP, so no comment on that, I have my hands full with the AGQ blasting off to the stars.

Comex action, from Harvey Organ's Blog:

The estimated volume today at the silver comex was a monstrous 107,782 with minor switches.
Now ladies and gentlemen: please pay note of this next piece of data...the confirmed volume at the silver comex yesterday came in at 185,250. In ounces, this is represented by 925 million oz or 132% of annual silver production. And the comex is not the biggest silver bourse which belongs to London England (LBMA).

Gold had a strong day so some of the weaker banks threw in the towel. The front delivery month of April saw the OI rise by 13 contracts even though we had 7 deliveries. Thus we have gained some gold ounces standing and we had zero cash settlements today. The next delivery month of June which is the second biggest delivery month of the year for gold saw its OI rise from 363,700 to 368,030. It seems that this is where many investors piled into these past two days. The estimated volume at the gold comex today was a rather subdued 118,735. I guess we came into a conflict as the many buyers were coming in contact with a number of short covering (additional buying) and thus we had a lack of sellers. 

This is becoming very ominous for our banking cartel. Yesterday, the confirmed volume at the gold comex was an astounding 215,412 when you consider that we had no switches. The banking cartel had orchestrated a raid yesterday and much to their surprise they were greeted with the S and P, USA debt downgrade. As I stated yesterday, the bankers supplied the unbacked paper which was readily gobbled up by eager investors wishing to enter the gold market. Today was not a good day for the gold bears.