It's absolutelty amazing how the price-action in the May Silver contract (SIK11) has been ridiculously volatile on the back of the options market.

There must have been some mind blowing positions at the 47.5 nd 50 strike for the May options because that market was pushed down HARD on Tuesday to peg the delivery of May options at the 45 strike. That sell off was so violent and so is the subsequent recovery.

Now the question here is whether we blow right through the 50s as the front month now becomes the July contract (SIN11).

One of the main themes that people were talking about for years was the exceptionally high ratio spread between gold and silver. Clearly the ratio spread has come in.

Here is a link to historical charts: http://www.gold-eagle.com/charts/gegsr.html

Here is where we are in the July Silver (SIN11) vs. June Gold (GCM11):