Wait no longer. $40 silver can now be viewed using a rear-view mirror! Silver has surged higher this morning, blasting through the $40 level like a machete through warm butter. We had been expecting the cartel to put up fierce resistance near $40, much like the fight they put up at $36, and $37.80. Alas, with gold also in the process of surging to $1500, last touching $1473, Blythe and friends decided not to even bother getting out of bed this morning. Probably a good decision on their part. The next Fibonacci level for silver is near $43.70, so we expect our friends to re-appear near this level, if not sooner.
Silver and gold's latest massive move appear to have been triggered by the sell off in the dollar which began last night. The dollar has broken support near 75.30, is now nearing the 75 level, and looks like it wants to test its lows near 72. Should the dollar decline start to gain steam, silver's action will make its gains over the past 9 months will look minuscule in comparison.
