Tuesday, September 27, 2011

Activity on the Euro was the best medicine for gold and silver

As we mentioned within the past few days, the fall in gold and silver (paper) prices was tied primarily to a selloff by hedge funds, investment houses, and anyone who still had stocks due to the need for cash (primarily dollars).  Coupled with a 20 and 21% margin rate increase by the Hong Kong and CME exchanges respectively, and it is a no-brainer we got a short-term crushing of the metals.

And accordingly, all it took was for Europe to do ANYTHING that smelled of bailouts, easing, or flat-out money printing, and that rumor just so happened to begin last night.

Subsequently, gold is not up $80 from yesterdays low, and silver a WHOPPING $6 more, crossing $33.00 an ounce at the start of US trading.

Silver




Gold

Charts courtest of Zerohedge

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