"Ironically, our STALKER source called yesterday and re-affirmed that this brilliant London trader is still calling for $940 gold and hung in there on the brief dip. In addition he had some insight to some of the silver weakness besides the manipulation by JP Morgan & Co. You might recall that he told us some time ago that a large amount of silver was shipped from London to Dubai. The price at the time was about $17. Not good because after the oil price debacle, Dubai went into the tank and investors over there shied away from precious metals, including silver. Thus, these dealers were stuck with a huge amount of inventory which was doing them no good, so some of them have been dumping their silver and want some of sent back to London."

This may be partly the reason that silver (the metal) has seemed too underpriced lately. The person to person price of silver rounds is over $16 and silver eagles is near $20 US. This tells us that the silver market is very strong with the public. The depressed price of the CRIMEX is due to the obvious paper machinations of the immoral new your traders. Not so obvious has been the london market influence which trades in more outright physical transactions.

This has been puzzling to me for some time. The possible return of a huge amount of physical silver from Dubai would go a long way to explain the relative (and fundamental) weakness of silver lately.

Just as the seemingly huge overhang of ECU shares has created both a great buying opportunity and a severe stress for ECU stock holders, a huge supply of physical silver could have been the cause of the low silver prices of the past months. Both situations are temporary and may be or soon be over.

Indeed a silver lining to the dark clouds of the last quarter.