Buying Opportunity

Pay no attention to the man behind the curtain. Especially now when that man is spouting off at the yap about a US economic recovery to come in the third quarter. Wanna bet? The is hype being propagated by the Street elite greedy for a stockmarket recovery and an administration desperate for any economic sings of hope. But the wanton increase of bail out spending dooms any recovery attempt and so is hoping against hope.

My hope is for another opportunity to buy silver bullion on eBay or anywhere under $20.00 per ounce, which may happen if the spot price falls much under $12 an ounce where it closed last night, April, 16.

Looking at the one year chart in the daily time frame you can see the wedge consolidation pattern above $12 the SLV has been trading in since February. The ETF has just violated the base of that wedge as well as it's 100 day moving average (dma). Now look at the bearish crossover in the stochastic and tell me which way you think it's going to break. The drop to $10 is an almost sure bet and that is where I go onto ebay or Jason Hommel and add to.

My gut says that the big bank shafters of the universe have once again been caught with their pants down and have vast short positions to cover and cover with physical gold and silver. So in concert the world's big holders will give it up to drop the price. You either believe that or you believe that the GLD dropped an 8 tonne rock on the market even as it's share holders hold tight.

The GLD gold ETF fell 2% yesterday and back to just shy of its April 6 low. Meanwhile, the ETF’s bullion holdings fell just over 8 tonnes to 1,119 tonnes - which is a fairly rare event. Let me explain.

Now, obviously a bear would view that ETF sale of bullion as only the beginning of the coming avalanche of GLD sales. However, the behavior of GLD shareholders thus far would argue for the opposite. Consider that unlike the “hot money” that's often said to own gold and the GLD, the ETF has rarely made a sale since we entered the heart of the financial crisis back in September.

The fact is that those that own the GLD have acted more like long-term investors; they've been remarkably steady in their willingness to not only hang on to their shares -- despite wild swings in price -- but also to add to them on dips.

Or you believe the ECB coincidentally dumped a mountain of the yellow flake just hours before Deutsch Bank would have defaulted on delivery of 870 ounces.

Well it has happened, there has been a major gold default by a short seller on the COMEX! The event is undeniable to all but the flattest earth theorists. The default was by Deutsch Bank on delivery of850,000 ounces of physical gold, but was covered up by the ECB which bailed out DB disguised as a sale of 35.5 tons of the yellow flaky stuff. Bailout in drag, that's a well worn ploy that just don't play like it used to. The elites, the shafters of the universe, are out of tricks and outed, but lets see how it plays.

It plays to our advantage if the spot drops to $10 per ounce as it allows us to add on a very nice dip.