Updated Gold and Silver Charts
A busy morning combined with another brief outage has left me behind the eight-ball again.
Therefore, here are some charts. Maybe another post later today with extra analysis of all that's going on. One quick thing, though...How is it possible to institute capital controls when your banks are all closed and, it doesn't matter anyway because they don't have any money regardless? http://www.zerohedge.com/news/2013-03-27/cyprus-capital-control-details-revealed
OK, first here's an updated look at gold. After another failed beatdown earlier today, price has rebounded through $1600. This is, of course, good. That said, these daily charts kind of bug me. One thing for certain I don't like: A spike high that is then followed by a rounded, failing double-top. This is rarely a good sign but that's exactly what we have (for the moment) on these charts. Does this imply all hell breaking loose? Of course not and as long as price stays above $1585, all is well. But we must remain cognizant of the risk of a drop back toward the $1550-1560 low of the 18-month range.
The Forces of Darkness were finally able to break silver down through $28.60 overnight after successfully raiding price at about 2:00 am NY time. Stops were triggered and price fell all the way to near $28.20 before recovering and I have $28.62 as I type. Clearly, this recovery needs to hold. At a minimum, silver needs to stay above $28.40 because if it falls again and The Bad Guys are able to take out the March 1 lows of $27.92, we'll then see a drop all the way to the bottom of its 18-month range, near $27. Yikes!
So....how about some good news? Would you like some of that for a change?? On the bright side, I spent some time this morning speaking with our friend, AndyM. He informed me that today saw the largest London allocation of physical gold year-to-date. He also saw an extremely large, tonnage allocation for silver. If you're wondering why price reversed and headed higher today...well, there's your answer. You know, it's odd. It used to be that The Cartel was mainly concerned with long-term management and suppression of price. Recently, though, it seems that they are in a near-panic, managing things not only daily but intra-day. Desperation? Almost certainly. Are we very near the end? Perhaps. All I know is that global physical demand is unrelenting and growing, regardless of the wishes of the BIS and the Bullion Banks. Panic and capitulate if you want but I ain't selling anything.
Further good news emanates from the crude pit. Well...not so good news if you're a consumer who needs $3.xx gas to affordably get to and fro. We watched crude roll over at $98 back in February. When $96 was broken, we looked for $93 and then $89 and it all came to fruition. Now on the way back UP, we've surpassed $93 and have our sites on $96 again. If crude can one again best $96, it will then move on to challenge $98-100 again and, this time, the chances would be very high that it would break through. Why does this matter if you're not trading crude? Because $100+ crude will definitely be supportive of higher metals prices. No doubt about it.
One last thing, I want very badly to begin getting interested in the miners here but I just can't quite pull the trigger yet. GOLD, EXK, AUY, TRX and several others all look interesting here but until the HUI gets back above 375 at a minimum, I'm staying on the sidelines.
Finally, a few days ago I received another "care package" from Ron that included all the stuff that has been sent via snail mail to his office in Texas. There were Christmas cards and letters plus an assortment of silver coins and half-dollars. All of this is very much appreciated so I just wanted to thank those who took the time to send everything along. It means a lot.
Have a great rest of your day!