Thursday, February 18, 2010

A look at Silver $SLV





Silver is definitely lagging Gold on this break out.  One of them is giving a false signal.  In light of the Fed raising the discount rate and China reducing its demand for our debt.  We have an ugly 2nd half of 2010 setting up.  Fed anticipates withdrawing all of its stimulus by October 3rd 2010.  All of these things will reduce paper currency in the system and reintroduce deflationary forces.

If Silver can take out the high  it will probably run for miles...and to me that would signal the end of our currency.

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