Our STALKER source checked in with the following:

*In the 35 years he has been in the silver dealing business, he has never seen such a physical shortage as there is RIGHT NOW!

*The London trader for the STALKER has been UNCANNY. He got his group out of gold at 1016 and back in at 862.

Here is the good stuff. This London fellow has been buying gold this week and looks for gold to go back to 1016, correct back to the $940 to $950 area, and THEN SOAR TO $1500 THIS FALL!

*More good stuff. As you may recall, about a year ago the STALKER group stopped buying physical silver due to some storage problems. They are now moving back on and are buying, as the London trader has been knocking 'em dead ... having exited the market at $21 per ounce for other clients and bought back in at $16.50.

Our STALKER source belives this new buying will be SIGNIFICANT because the market is SO TIGHT.

The gold open interest went up 4412 contracts to 445,642, while the silver open interest only gained 8 contracts to 122,140.

The gold Committment of Traders Report showed:

*The large specs increased longs by 5,090 contracts and increased shorts by 8,119 contracts.

*The commercials increased longs by 7,051 contracts and increased shorts by 1,920 contracts.

*The small specs reduced longs by 907 contracts and increased shorts by 1,195 contracts.

Platinum rose $47 an ounce to $2148, which is where gold ought to be trading.

Crude oil made an all-time high close of $126.29, up $2.17 per barrel. Tell me this was discounted by the US stock market the past four months.

The dollar fell .52 to 72.80. This one gets me. SO MANY on Planet Wall Street are dollar bullish and I can't see one reason why. What we have seen so far has been nothing more than a dinky rally, correcting an oversold condition.

The euro took off, rising .0133 to 1.5590.

The yield on the 10 yr T note was last at 3.85%.