Today's journal has two interesting stories.

1. Investors are flocking to treasuries, as an ultra safe place to stash wealth. There is acually a shortage of treasuries in the repo market.

Couple this with the bloomburg china story about a possible panic selling of treasuries, and what do we get?

If the rush to get into treasuries turns into a panic to get out - that's when we'll hear the "POP!" of the gold price. There is no where else to go.

2. The journal also reports that the CFTC is examining silver market charges (they call them rumors) of manipulation. They mention Jason Hommel's 'visit your coin dealer' challenge (congratulations Jason) and also the writings of Butler.

The flashing red light is that while it is difficult to buy silver coin (demand in high) the price of silver recently dropped almost 50%.

Yes, we live in interesting times!

BK