Last week was one for the books. After seeing a continuation of a parabolic blow off for the price of silver, the price came crashing back down. It may have found support on Friday, but oil was extremely volatile, and because the two are correlated, silver's support has not been proven. Gold remained strong through out the week, even though it traded slightly lower. Platinum fell to the middle of a range it has been stuck in for months upon months.
Volatility was the only winner this week, and it is best to always remember that volatility is the main driver for finance today. Equities saw a slight decline on the back of a rising dollar. Europe saw rumors swirl again about a splintering of its monetary system. Certainty was anything but this week.
A pullback in any asset class should always be expected, but silver's was unreal. The coordination between the exchanges, private money, and government was so inter locked and precise that it really goes to show that more than anything the power hungry only care about continuing the fiat ponzi as long as possible. China is happy to continue to buy precious metals at low prices, the US is happy to sell expensive bonds with no interest, and the private rich and House banks are happy to run both sides of all trades. The concerns of the unemployed and hungry matter not. What matters is keeping the status quo intact as long as possible.
Yet this weeks moves scream of desperation. Not only was the Bin Laden play such a desperate act, considering that the best intelligence in the world says he was dead long ago, but so was the silver manipulation. The exchange raises were unprecedented and it allowed major shorts, presumably naked, to take advantage of rising expenses. But when physical demand exceeds the paper, the fiat ponzi will come crashing down, and the status quo with it.