Dear Friends,

Something extraordinary is obviously occurring in silver as it continues to shrug off any selling pressure that has normally been tied to the “risk aversion” trade. This is the second day in a row in which it has moved sharply higher blowing through chart resistance levels with ease and forcing a huge deal of pain for the shorts.

I cannot say with certainty what is occurring but it appears that one or more big players is challenging the perma shorts in this pit and is evidently doing so with great success thus far.

Silver is actually pulling gold higher in spite of the obvious capping that is occurring by the bullion banks above the $1,240 level.

Click chart to enlarge in PDF format