Sunday, March 6, 2011

Silver at 35.91 at 6:30 pm on Sunday

It is Sunday March 6, 2011. Silver is at $35.91. March and even april could be volatile. Metals may go higher but when they fall again it will be fast and maybe with no notice. Do not hold margins on metals or even stocks or you run the risk of a margin call. We will see volatility in both stocks and metals until the situation with the revolutions and civil war is resolved. After that metals and oil will go down.  I believe holding positions on borrowed money is far more precarious for metals than stocks.  On November 2010 the Chicago Mercantile Exchange increased margin requirements from $5000 to $6500 for silver. On friday March 6, 2011 the margin requirements for paladium were raised 25%. At 4:39 pm sunday oil was $104.90 and gold was $1431.95.  It looks like the rebels in Lybia are pushing towards Tripoli. Quadaffy is telling everybody that he is winning but it sounds like he is lying.  Problems could break out in Saudia Arabia, the government there just put a prohibition on protests.   My earlier prediction may still be correct but if Saudia Arabia flaires up it could take more time. It almost looks like silver could hit $40 but anyone who would ride it that high either is holding it long term to insure their portfolio or they are very greedy and big risk takers. the US government is considering opening its strategic  oil  supply. Saudia Arabia is a big oil producer so we may see more of this high oil and high metals or at least volatility for a month or two.

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