Wednesday, February 21, 2007

The Silver Bullet!

Having watched silver begin to wilt from its challenge to $14, the US Labor Department obligingly lends a hand by publishing higher than expected CPI inflation figures. Wall Street apparently expected 0.2% instead of the announced 0.3%. Hardly seems the kind of figure that would propel silver up 60 cents and gold $23 but there you have it.
The truth seems more to be based on opportunistic buying on a price dip. Hedge funds? No doubt they palyed their part, but the dips are being aggresively bought. Now we see silver poking its head above the $14 maginot line. We expect the silver tanks to roll on!

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