COMEX was closed yesterday for the MLK Holiday. It was an impressive gap higher for silver prices today, but we never managed to get above the early morning pop. After a round of consolidation, the price of silver began to sink late in the day. Yet silver closed COMEX at $30.106, up $0.613 per ounce, or 2.0%. This reverses the 2% dip we saw on Friday of last week. Electronic trading briefly took silver down below $30 and then returned the price to $30.06 by its close late in the afternoon.
For the current silver update, visit PMBull’s Current Silver Price page.
Three days of gyrations and we are right back to where we were on Thursday, which must have silver shorts in a bit of a tizzy. Are we watching a major battle brewing around the psychologically even $30 price level? Periods of consolidating prices are always frustrating (shall we say boring?), but they are indeed necessary.
Why is silver going up? Perhaps buyers are encouraged by the prospects of a ginormous 10 Trillion Euro LTRO. We never pretend to know how much or in what form Quantitative Easing might occur as Central Banks try to dig out of their hole. The numbers are too large for us to comprehend. If you are watching spot silver because you are trading, you might consider holding some physical silver as well.