In whatever a normal environment would be, silver would test support at $39 this week. The thing is, finance is going haywire. Gross is shorting US debt, inflation is raging like a bull on parade, and, as usual, the US government is making a lot of noise, but acting not. Add to this world wars, a false economic paradigm (discussed yesterday), and "First World" cultures that overall are asleep at the proverbial wheel, and it could very well be that the end of the neo Keynesian experiment is nigh.
If that be the case, then silver could continue its meteoric rise. Yet I can not ignore the charts, and nor can I ignore the persistence of the oilgarchs and financiers to keep kicking the can down the road. The X-factors are, i) will the rest of the world help roll the fiat ponzi with the POMO (permanent open market operations) that has been monetizing the US debt and ii) will the bankster financiers do the same.
The kickers are i) does the world banks think that they have enough gold to finance their respective currencie after the dollar is replaced in the basket of the SDR (special drawing rights) like Apple in the NASDAQ basket and ii) do the bankster financiers think the corporations have the strength, after all these bailouts, to take the financial system by the throat.
If not, silver will test support. If so, the new world will welcome all countries onto an even playing field best called the second world. Many entities have prepared for this second world already. They have done so by the mentioned above.