8 May 2006

Commercial capitulation in Silver

KultaKeskus.com: "It's been 4 weeks since I wrote my last article Big moves ahead in silver. Silver was trading then around $12. After that we have seen a climb up to almost $15, a plunge of more than $3 in less than 24hrs and a recovery up to levels above $14. These have been quite big moves IMO, but we are bound to see much bigger.
The good news is that based on this weeks COT data the moves are likely to be to the upside. All the long term fundamentals favor silver. The launch of the Silver ETF with good trading volume has put the commercials with their backs against the wall and now we can see their capitulation in the COT numbers. We have very interesting times ahead of us. This kind of commercial short covering to higher silver prices has never happened before."

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