Some big entity has come into the silver pit this afternoon and taken advantage of the low volume trading conditions to lever the fall in crude oil prices to go after the downside stops in silver. Based on what is now occuring, they have succeeded.
One other notable thing is now occuring - the backwardation structure in the front three silver month contracts is easing and while it is not yet at the usual contango, it is moving towards that direction. This is significant and bears watching.
Silver has now fallen towards the last level of chart support before $31. If it does not hold near $31.50, it is going to retrace down towards $31. Below that we are back to $30.50
"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
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