Sunday, December 18, 2011
Silver Unable to Clear $30, Dropping Again on Asian Open
We are not yet seeing the severe tightness in the physical market that was seen during the September smash, as Eagles and Maples can still be readily found for under a $3 premium. Look for physical premiums to skyrocket and supplies to dry up if/when silver again nears $26. If support at $26 fails, silver could drop all the way to long-term trend support at $21-$22, which would provide strong long term support. Should the paper futures price come anywhere near $21-$22, look for Eagle/Maple premiums to rise to the $5-$6 range.
Posted by The Doc at 9:01 PM