As I put the finishing touches on this in the very wee hours of Wednesday morning, I see that silver and gold are once again trying to break out to the upside in European trading. The dichotomy between the physical market and the paper market is extreme beyond description. This must (and will) be resolved with a very major price adjustment to the upside. It's just a matter of how soon...and from that point...how high both the gold price and silver price will go. Don't forget, there are NO daily price limits on either gold or silver. In one Comex session, the 'powers that be' can have both gold and silver prices at whatever number they want...and it's all perfectly legal...according to the NYMEX/COMEX's own rule that they changed about 15 years ago. The only reason that I can think of, for why they changed that rule, is because they knew that at some point in the future they were going to have to use it. I believe that time is approaching fast.
Wednesday, October 8, 2008
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