So, what the heck is going on here? Silver is up over 30% year-to-date and it just plowed through what-should-have-been significant resistance without missing a beat. Why? How? Are we simply being set up for another takedown of epic proportions? On the flip side, is it safe to jump on board here? How much farther can this go?
I have a sense that we may be entering a completely new paradigm in silver. I'm not ready to make any bold proclamations...yet...but, by later this week, you may begin to get a sense as to why I am so optimistic. Could silver back off tomorrow or Thursday? Of course it could. Normally, you would expect it to. The $36 level is so important that, at any other time, I would be almost certain that a $36 test-as-support would be coming.
However, as we are seeing play out, this is not "any other time". If silver does pull back tomorrow or later this week, think if it as a gift. You should be buying all dips until further notice. Miners, etfs, phyzz...I don't care what you buy, just buy the dip (whenever there is one).
Last night Harvey Organ said: "This is the first time in quite a while that gold and silver rose big time a day before first day notice. The bankers try and influence our longs not to take delivery so they generally raid. Today was different." Well, Harvey spoke too soon; it really wasn't different. The metals rallied higher yesterday, and then were smacked down in a very calculated and violent bear raid today. I was expecting something like this, and here it is. These fellows have their backs to the wall in silver. I have seen reports that 225 million ounces of paper silver were dumped on the Comex in less than thirty minutes.