After struggling to maintain $29 from the Globex open till 10pm EST, silver has gradually sold-off on the Asian market and is back below $29 at $28.80. We expect silver to test $28-50, and from a technical level, strong support does not emerge until $26, and even more so at silver’s long term uptrend line which is now near $23.
JPMorgan’s admission tonight that it has lost $2 billion (and according to Zerohedge the losses could rapidly spiral to $20 Billion) on bad derivatives trades could speed up the timing of the end game significantly.
As Eric Sprott stated so succinctly on CNBC Wednesday, the fact that gold continues to decline in the face of the escalating banking/ European debt crisis (and now you can add JPM’s derivatives trading crisis) is counter-intuitive.
We have yet to read a single coherent explanation for why gold and silver continually decline in the face of events that would seemingly be bullish for the metals. (See the Swiss Franc devaluation last November for example, when gold was raided $50 merely 5 minutes prior to the announcement.
Until gold and silver’s price movements are no longer counter-intuitive (and free market forces ensure that one day soon this WILL happen, CFTC or no CFTC), we will continue to recommend readers take advantage of their artificially lowered prices courtesy cartel manipulation, management, and price suppression.
Friday is shaping up to be another excellent opportunity to STACK THE SMACK!!!