Does it really matter how far this correction goes? The last few corrections, selloffs, bear raids, manipulation/intervention events... whatever you wish to call them - have represented fantastic buying opps that were quickly retraced. I know, because I was there buying each time, and that is why I have been able to sell rallies calmly and with bonus shares. I doubt this time will be any different, and I am a buyer of many juniors yet again today. If ECU gets back down to $1.25 I will be right there buying that too.

This waterfall selling in the metals happens when shorts flood the market with paper. I know there is a buyer for every seller, but there is NOT an infinite supply of buyers at $30... or $29 as we have seen. However, the more the silver price is driven down the more buyers that will step forward. Meanwhile, this smackdown has triggered stop losses and prompted some specs to take profits and move to the sidelines.

The shorts are buying and closing contracts as the specs dump positions. New buyers will step up and run the price right back up. The media spin has focused on just how its all spec irrational gambling that has driven the silver spot market. I beg to differ. The very fact that the last manufactured correction was created by a margin increase, and yet the price recovered shortly thereafter is evidence that it is NOT specs that have been driving this market. It is real buyers that fully intend to take physical delivery of the bullion. And that has all of the shorts pissing in their pants since the bullion is not there to meet those demands. Hence, the violent raids that have been staged to try and shakeout longs.

Just look to the data on how much demand has been reported for silver eagles, and contact any bullion dealer to find out how busy they are today. Or how busy they have been for the last few weeks. These guys are not selling paper folks, but real metal. The demand is there. The selling 'weakness' that is implied by the spot market is phony, manipulated noise. Period.

cheers!

mike