Monday, September 26, 2011

Can Chinese buying halt the slide?

Just watching the market action in Gold and Silver, it seems that someone has taken a large long position (buying) in Gold and Silver (or maybe in just one market, causing similar price movements in the other, thinking silver not gold as the market is tiny and easier to move).

It this the China Put finally kicking in? Only time will tell. Although in silver the US$26 level was an extremely sweet price compared the $40+ levels of only last week. That $26 level was approx. a 40% decline from the $43 level hit at the start of September. It was so sweet that it briefly knocked the price of my favourite silver bar, the 1kg PAMP, to below AUD$1,000 (damn it I should be buying not blogging!).

Now lets see how the 'players' in London and New York react to this counter move, will they roll over and play dead or hit it with their spandex gold and silver shorts :-)

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