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The good news is that the fundamentals in the gold and silver markets are more bullish now than at any time I can remember, which means The Gold Cartel has their work cut out for them. I asked Dave from Denver for his thoughts…

Well, now that you ask. When I looked at the o/i report earlier it actually is very bullish in silver. O/I dropped in July by 4,047 but increased in almost every other month, including 4,741 in September, the next front-month. Obviously the cliff-drop in gold/silver exactly the second the Comex opened yesterday tells us that yesterday was pure paper smash. But instead of the cartel being able to run to stops into something bigger, the sellers rolled forward. This is incredibly bullish. Today I noticed that the Kitco-derived spot price of silver has been trading 2 cents above the July future price all morning. Not only are the funds challenging the cartel by rolling their July positions forward at a greater rate than they are getting out of July - and this also occurred almost everyday last week - but the price action in spot/futures tells me that everything we are hearing about a very tight wholesale physical market is true. The real risk here is to the upside.