Team, We know it has been a rough couple of days, however, silver prices showed its true strength today as it bounced back to close in New York City at $26.93/oz, registering a gain of $1.30/oz or 5.07%. The recovery began in Sydney, three cheers for the Aussie gold bugs, carried through in Hong Kong and Singapore, three cheers there too, then onto London where they also managed to push silver prices higher. Well done to all the buyers out there.

The stage is set for some fireworks either way you slice it. The shorters may give it one last thumping in the hope of getting their positions covered before silver rockets and also to satisfy their end of year bonus aspirations. The thirst of the Longs has not yet been slaked and appears to be building. The next few days could be electric as the possibility exists that that the shorters could capitulate and be forced to buy silver at the very same time as the Longs are buying. In a tiny market place where the physical supply is said to be rather tight, this could push prices to new record levels. And that is just what we will think will happen. Be warned though, we have been wrong before.

Taking a quick peek at the above chart we can see that just prior to the COMEX options expiry date, 23rd November 2010, the shorters are doing their best to drive silver prices down. However, as the price neared $25.00/oz buyers came in and bagged a bargain. We are looking for the RSI to hit ‘90′ as silver prices take off from here. The STO is forming a nice crossover here which we interpret as another positive sign.

Our old favourite Silver Wheaton (SLW) is also playing a good game and doing wonders for our trading account.

Over in the options trading pit the team have just updated the progress chart to includes yesterdays closed trades, now 51 winners out of 53 trades, the latest two trades will be written up on gold-prices later today.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

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Bob Kirtley Archive

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