Silver was taken down hard by the banksters overnight in a coordinated raid. The government leaked news of UBL's death and they all piled in. Weak holders were spooked and ran for the hills, volume was low and will be low today due to holiday in the UK. Silver hit a low of 44 over night and is now barely hanging on to the 45 level. Holding 45 is critical or we will go to 43. The STP (secular trends portfolio) will be down double digits at the open.
The reasons why people were buying gold and silver haven't changed (just because Usama is dead). On a day when I am down this big I have to go back to the checklist and stay the course. I have to remind myself, our problems haven't gone away. Nothing has changed (economically).
Is the government still spending borrowed money or printed money. We have to deal with real issues at hand which are leading to inflation and the debasement of the dollar, Usama's death is merely symbolic and we all know there are a lot more bad guys out there since 911.
Our economy didn't change overnight, the global inflation didn't go away, our troops aren't going to come home, military spending isn't going to go down, and labor markets will not recover because of this event.
Cartels are raiding on a low volume day and thats it. Stay the course!
We Don't Get Fooled Again!
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