Silver Prices about to ‘Pop’

Team, We know it has been a rough couple of days, however, silver prices showed its true strength today as it bounced back to close in New York City at $26.93/oz, registering a gain of $1.30/oz or 5.07%. The recovery began in Sydney, three cheers for the Aussie gold bugs, carried through in Hong Kong and Singapore, three cheers there too, then onto London where they also managed to push silver prices higher. Well done to all the buyers out there. The stage is set for some fireworks either way you slice it. The shorters may give it one last thumping in the hope of getting their positions covered before silver rockets and also to satisfy their end of year bonus aspirations. The thirst of the Longs has not yet been slaked and appears to be building. The next few days could be electric as the possibility exists that that the shorters could capitulate and be forced to buy silver at the very same time as the Longs are buying. In a tiny market place where the physical supply is said to be rather tight, this could push prices to new record levels. And that is just what we will think will happen. Be warned though, we have been wrong before. Taking a quick peek at the above chart we can see that just prior to the COMEX options expiry date, 23rd November 2010, the shorters are doing their best to drive silver prices down. However, as the price neared $25.00/oz buyers came in and bagged a bargain. We are looking for the RSI to hit ’90′ as silver prices take off from here. The STO is forming a nice crossover here which we interpret as another positive sign. The table below is a snap shot of some of the silver producers and just how well they fared today, as we can see there are some jolly good gains being made.