Sunday 2 December 2012
Okay, we all know there is blatant manipulation going on by central bankers in desperation to cover their
untenable fiat printing, and now, even more worrisome is their lack of physical metal to cover demands for
repatriation of gold from a growing number of countries who are beginning to realize…eh! That is their
problem. Live by the fiat sword and fractional reserve banking legerdemain, die by your own consequences.
Shades of Pat Benatar…Hit Me with Your Best Shot! What else you got, bankers? You all still left quite a lot
on the table. Let us take a look at the results. We already know that gold is going higher. History remains on
the side of gold against any and all fiats. When, no one knows. High high? No one knows, but the lack of
knowing will not be of much concern for anyone wisely holding [literally] physical gold, and silver.
What took place is now past tense, and our concern is always present tense and moving forward. Point “A”
held a 50% retracement, and maybe more importantly, also held the lows of 8 November, 5th bar of the
month, because that was the 2nd recent highest volume and price held that selling effort.
Point “B” is the highest selling effort that did not penetrate “A,” and the close off the low shows there was
buying going on. Was it enough? too soon to tell. A second assault on Friday, “C,” tested the mettle of the
metal, for the near term, and it hold, marginally, and sometimes, marginally can be a big deal.
What could be key is the extremely high volume. It could well be exhaustion volume. A slightly lower low could
occur and price reverse upwards, but how activity will develop starting Sunday evening and going into Monday’s
trade is unknown, at this point.
This is a great opportunity to buy the physical, and it may become an opportunity to go long the futures,
but that depends upon Monday’s developing market activity. A clue may be gleaned from how silver held
the sell-off assault.
[For a discussion on what standout volume days can mean, see our article, “10 Year Notes And Wheat – How To
Find A Trade,” click on http://bit.ly/VdKKd3]
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For the rest of the article and silver chart, click on http://bit.ly/SqewNe
