Silver Explodes As DJIA Closes Above 13,000, As Understood By A Dog

From Zero Hedge.  I'm trying to self educate on economic theory, but today, it Does Not Compute..  I imagine myself as a dog listening to someone speaking, straining to understand anything, comprehending nothing but all but the simplest sentences.  And my name, of course..  In my Fido Mind, the article reads..

"Blahblahblahblah blahblahblahblah, blah-blah, blah blah blah blah, b-blah..  Silver was the massive winner, now up an impressive 4.3% since Friday and 30% YTD..  blahblahblahblah, blah blah blah.."

I understand The Best Part.  Now give me Pupperoni!  And some more silver!

Silver: Wait For It.. Wait For It..

This isn't advice for you to act upon, but personally, I'm still a firm buy/hold.  Silver will prevail.  So pop some popcorn and get comfortable before the movie starts..


Commodity prices rise with global issues in flux  Second week of April.


Investors poured money into oil, metals and agricultural products despite the uncertainty of what may lie ahead for the United States, Europe's financial problems and uprisings in Libya and neighboring countries.



An added incentive was a weaker dollar. Commodities are priced in dollars so a weaker dollar makes them more appealing to investors using other currencies.


Gold Settles Above $1,557, Silver Off Lows After Bin Laden  CNBC.  Excerpts:


Silver [XAG=  42.16    0.52  (+1.25%)   ] was down 2 percent at $46.86 an ounce, having fallen as much as $5 to a two-week low of $42.58.


Silver's sell-off began last week when U.S. futures margin requirements were raised twice, and as the metal's failure to extend record highs above $50 an ounce triggered technical selling. Trade data also showed speculators had scaled back their bullish bets recently.


Silver tumbled as much as 11 percent, its steepest fall since late 2008, hit by increased margins for futures trading and a technical overhang after a 170 percent rally over the last 12 months to a record high last week.


"News about Osama and the 13 percent margin increase — the second in a week (Read:  Moving the Goalposts..) — hit the market at the worst possible time," said Ole Hansen, senior manager at Saxo Bank. "Also,(there was) news Friday evening that professionals scaled back silver exposure by 26 percent as of last Tuesday.


"We are seeing volatility at an unprecedented level here," he said.

Kitco chart from Urban Survival.

Silver's Shine Is Fading Fast  CNBC.

Silver's shine is fading fast, and the market for the precious metal may have reached a top in a speculative, mad dash by ETF investors.

"The last move higher over the last month or so has really been driven by the strength of the retail investment demand, so the levels up here are not supported," said Suki Cooper, precious metals analyst with Barclays Capital.

"At levels above $40, we've seen some concern rising on the industrial demand side. The last leg higher has been investment-driven, rather than fundamentally supported. In that respect, the correction was due. I would say from a demand support point of view, we have levels that have been tested in other metals, but we haven't had a chance to test that in silver," said Cooper.  "I think now prices are going to test where physical support comes in." 

All of which presumes the Dollar will remain at least stable or gain in strength.  So when the Dollar inevitably seizes, precious metals will spike with the rapidity the word "spike" infers.  Again, not advice, but I'm not going anywhere..

Silver's Ascent Has Begun.. Maybe..

1:06 a.m. Central, April 25:  $48.84  Kitco chart via Urban Survival.

China Proposes To Cut Two Thirds Of Its $3 Trillion In USD Holdings  The ripple effect of even reporting this will cause all commodities to surge, gold included, but especially silver.  Excerpts:

All those who were hoping global stock markets would surge tomorrow based on a ridiculous rumor that China would revalue the CNY by 10% will have to wait. Instead, China has decided to serve the world another surprise. Following last week's announcement by PBoC Governor Zhou (Where's Waldo) Xiaochuan that the country's excessive stockpile of USD reserves has to be urgently diversified, today we get a sense of just how big the upcoming Chinese defection from the "buy US debt" Nash equilibrium will be. Not surprisingly, China appears to be getting ready to cut its USD reserves by roughly the amount of dollars that was recently printed by the Fed, or $2 trilion or so. And to think that this comes just as news that the Japanese pension fund will soon be dumping who knows what. So, once again, how about that "end of QE" again?
..
While China is certainly tired of recycling US Dollars, it still has no viable alternative, especially as long as its own currency is relegated to the C-grade of not even SDR-backing currencies. But that will all change very soon. Once the push for broad Chinese currency acceptance is in play, the CNY and the USD will be unpegged, promptly followed by China dumping the bulk of its USD exposure, and also sending the world a message that US debt is no longer a viable investment opportunity.

And from there, for the Dollar, it's nowhere but down.  And metals will be where? 

2011 had been more turbulent in January/February, silver making significant gains, then giving most of them up.  April has been consistently upward, prices gaining momentum, no end in sight.  Economically, this could be an historic week.  Is this "The Week It All Goes Down?"  Pay attention now..  Things could start moving a lot faster..