|Did Someone Announce QE3,|
Or Are You Just Happy to See Me?
Silver has also shot up nearly a dollar on the move, and after 4 days of cartel efforts to stuff it back under $40, silver has solidly regained the level, trading near $40.50.
We hope you bought the numerous dips offered by Blythe and friends this week.
Again, we would like to see silver close above $41 to ignite the breakout to the mid $40's we have discussed here. Once it becomes clear that $40 will hold as the new bottom for silver, numerous traders and momentum based funds currently on the sideline will pile back into silver.
The potential is there for a late April like spike in silver when these momentum traders all rush back in. Throw in QE3 expectations suddenly reappearing with today's GDP miss, and silver is sitting pretty at the moment.
Short term, anything could happen with debt ceiling negotiations, so be prepared to buy any significant sell-off triggered by a US downgrade or failure to agree to a debt ceiling hike.
Barring a complete collapse triggered by a US default (we still say not gonna happen), our $70 silver call is looking more likely by the day. We shall see, but long term, the current battle for the $40 silver level (as well as whether silver hits $70 in 2011) is meaningless, as the metal is headed ORDERS OF MAGNITUDE higher.