Changing patterns.

One of the more interesting face of the PM market is the sequencing of events. Look at the first graph (the PM miners) and you see a downtrend in prices. This is supposedly due to shorting by hedge funds and will result in a shorts squeeze when the miners break out.

The second graph is that of silver. Silver has been heavily shorted and manipulated, but it has been in an ascending (but slow) pattern. Silver has closed above $42 today, which chartists believe will lead to a rapid rise in silver.

The third graph is that of gold prices. Gold has broken out of its normal trading channel and is beginning to rise at an accelerating pace (even more apparent with the MACD). Gold has wiped out a lot of shorts above 1,680, but is believed to be propelled now by the entrance of retail investors.

We can expect a sequence of breakouts: gold first, silver second and miners last.Experts expect silver to blast through fifty to set a new, all time record. Gold is expected to move past $2,000, but it is not clear what will happen then. Some forecasters see a government interference at $2,100, some at $2,300. Considering that we have a lawless President, who refuses to defend and enforce the Defence of Marriage Law or the Immigration Law, one hesitates to guess what this criminal will do to restrain the gold rally.