After the news that the House Bank of the US Government, its now former proxy, House bank of John Pierpont Morgan, will no longer do the dollar's dirty laundry, silver and her sister precious metals began a large scale breakout in Asia and through to Europe. Once the metals got to New York the breakout had been epic.
There may have been a call from the Federal Reserve Bank this morning from Blackhawk Ben S. Bernanke to Jamie Dimon. He would have told him to get Blythe on the job. Jamie surely responded by letting Ben know Blythe was retiring soon to the Bahamas where she was to live her life smoking camel pinks and snogging the help; soon JPM and all Majors will no longer be shorting silver. It will be the dollar, and Ben Bernanke, that are to be handed their walking papers. Maybe Ben will join Blythe in the sun. Maybe he will feel the cold concrete of a jail cell instead.
NY's move has been epic! It is a classic double bottom, that is highly bullish. This is because the second move down was not as low as the first. Blythe couldn't get that price twice today. The other thing to note is the classic W formation. This allows for maximum opportunity on both sides of the trade by way of selling, shorting, and rebuying low. All paper is done this way, and sometimes there is leverage. Finally, the finish is a near hyperbolic move up. Today was extremely bull'ish.
And I expect gold to now move to $1400, before it finishes its NYC minute at $1405. I expect the same movement during Asia and Europe, but the question is, 'How much longer will Dimon let Blythe out of her cage?' Not too much longer, and we are talking months and weeks, not years.
There will be a breakout to around $1500 during the next week, and then a following move to around $1650, by the solstice. Silver will see a greater breakout, and as far as Platinum, the sky is the limit, as it has not broken past its recent ('07) high.