After hitting new high's overnight during the Asian trading session, gold and silver both corrected throughout the COMEX session today. Silver sold off from overnight high's near $42 down to $39.76, before regaining the $40 level. A close back above $40 after such a sell-off indicates this market has large buying support standing ready to take advantage of any significant discount the cartel is interested in providing. Tomorrow's action will be telling. If Blythe cannot get a continuation of today's sell-off, silver will be rapidly heading back north towards $45.
Technically we would expect the correction to continue down to silver's previous resistance levels near $37.80-$38. It appears we may have enough physical buying support to cut such a typical correction short, however, and may not see a correction past $38.50-$39. We recommend you respond to Blythe's discount the same way your grandmother responds to seniors day at the local grocery store: buy before the sale ends!
