Silver is printing 47.75 and Eagles are offered at $51.05 on Nucleo. I'm not sure how long this move is going to continue. For certain there will be a pullback but every time you hedge or trade against this type of market you're going to be wrong. Silver is up $1.00 per day. Sprott talks about physical shortages. The big four or five short positions must be getting killed adding to the squeeze. Fundamentals and monetary events are in support but at what point does the hot money blink and get out? Seems there is a lot of cash on the sidelines waiting for a pullback. Sure it's anecdotal internet chatter but for certain a lot of traders haven't jumped on the bus yet.
When does gold kick in to high gear? I think that's entirely dependent on how the fed handles QE3. When QE2 ends they will have to keep purchasing treasuries to keep rates from going up. All this stress in the commodity market is pointing to a big dislocating event in which case correlations go out the window. Let me know what you think and good luck!
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