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Monday, April 25, 2011

Trend for 25th of April 2011

Liquidity is very low in the markets today and there are practically no big moves. Exceptions are only silver and gold. These two commodities went higher today and silver nearly hit 50 bucks per ounce level (49.76) and is retracing now. It will be very interesting to watch these precious metals now. Are we going to see a reversal at these levels or not? I don’t know. Normally we do see them, but at such times as we live now and under such economic conditions as well as geopolitical situation it would be difficult to predict whether we are going to see what we normally see or not.

There are a lot of pretty powerful entities in play in these commodities and it is obvious that there is some manipulation in the markets. FED has been doing a lot of intervention through their huge intermediary banks to suppress the price of gold and silver. This is pretty obvious from the times when two brothers (Hunts) tried to corner silver market. Those guys lost everything and silver went into a lethargic sleep for a long time. It awoke a few years ago and now you see what is happening.

Time has yet to show how far the prices will go in these precious metals. I think it is pretty smart to own at least a little bit of silver. It still is an alternative currency (as well as gold) and in turbulent times it becomes the best place to invest. As anything else, these securities will collapse at some point, but as long as stability in global economy is absent I seriously doubt if it happens very soon. So, watch what happens in the market of precious metals and be ready to make wise decisions. See you tomorrow.

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