Silver is getting caught up in the crosswinds impacting the commodity sector this morning as the hedgies are throwing away risk trades dumping nearly everything in sight with the exception of the energies.
I find it particularly amusing to note that the world is now going to give up eating because of the unrest in Libya and elsewhere around the middle East. That means corn needs to be sold, as does soybeans and wheat since no one is going to eat any longer because they are too busy watching TV for the next news report out of that region. That means bushel after bushel of corn, beans and wheat are now going to pile up on wharves, docks, ports and grain elevators and will undoubtedly rot. Corn priced at $7.00 could not ration demand so let's take it down to $6.80 and see if that will do the trick!
If you cannot understand this "logic", good for you, because you are still sane. End users in the grains are giddy with delight however as they have been hoping that the hedgies would start throwing away grain so that they could obtain coverage.
Gold and Silver are holding well considering the barrage of selling being generated by these mindless algorithms across the commodity complex.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
Trader Dan's free work will soon be available at www.traderdan.biz