Precious metals sell off and consolidate… After pushed off cliff.
Yes, Osama Bin Laden is dead. Taken out by the skillful Navy Seals. Kudos to them on a job well done and to those active in tracking him down and to President Barack Hussein Obama for making the decision to take this man out for his crimes. Of course now rumors are flying and the spin cycle in set to high. I don’t doubt that the spin machine will ramp up to a high pitch whine and launch into space creating its own gravitational pull as we go into election year 2012.
Meanwhile the universe is unhinged and few (ie, none) seem to comprehend it: Terrifying scientific discovery: Strange emissions by sun are suddenly mutating matter…
But all that is above my head. I will content myself with tracking gold and silver like I normally do day in and day out. Which, right now, ExactPrice is showing at $1,543.90 and $43.72. Certainly down off their highs but we shall see how long that lasts.
Outside of the getting of Bin Laden, and President Obama’s joking release of his long form birth certificate, the money news is certainly being overlooked. That of course is the CME’s raising of the silver margins for a third time in a week’s time. I don’t know about you but it sure looks like manipulation from my chair.
The CME has now raised margins on silver three times in the last five days for a cumulative increase of about 35%. I can only draw one conclusion: This unprecedented move, taken in context with the significant reclassification of delivery-eligible silver by several of the major bullion banks 10 days ago, leads me to believe that the silver Comex is/was indeed in grave danger of failing.
Another must read: Why Do You Need a Non-Leveraged Core Position in Precious Metals?
Before silver is finished margins will be raised to cash. Volatility, thy name is silver.
Also see Ed Steer’s Gold and Silver Daily: There Are No Markets Anymore…Only Interventions
Some other news of note:
Holding Our Leaders Accountable – Don’t we wish.
Finally, watch this video: