Wednesday, May 11, 2011

Silver Take-Down Part Deux in Progress

*UPDATE  Silver has now sold off 9% down to $34.95 before finding support.  No word yet on any new CME margin hikes.

We have stated that the cartel would be most unhappy with silver's rebound to the $40 level and would vigorously defend this level, as a convincing break back above $40 would set silver back on pace for a quick return to the the highs near $50, negating all the "bubble" propaganda.
Blythe reappeared back at work today, right on schedule.  As silver neared $40 overnight, a new take-down commenced, and silver has been driven $4 lower to under $36.

For now, silver has found support near last Friday's close around $35.43.  It appears the cartel will push silver down to retest Friday morning's lows near $33.  Should $33 fail, silver will likely test the $28-$30 range, where SIGNIFICANT support should be found.  We recommend substantial physical purchases should we see the $28-$30 support come into play.

We'll provide greater analysis later.  For now, BTFD!