Why now? Simple … and it was touched on here days ago. Normally, gold and silver tank badly when the specs get too long, the physical market dries up, and The Gold Cartel piles on the funds. After the moving averages turn down, many of the large funds are forced to sell and the cabal and other commercial shorts cover. The Gold Cartel made a fortune off of these folks for years.

However, this time, gold and silver were running up the past few weeks due to commercial short covering. Numerous specs were leaving the market way before the Paulson’s gang ordered prices down. So, this time there are not so many specs to flush out, thus this unusual, swift bounceback.

The gold open interest fell 8956 contracts to 452,193 … more commercial short covering. This is healthy as gold will soon have recovered half of its price loss of the correction, with the specs absent from the buying scene.

The silver technical picture is even better. The commercial silver shorts still around are trapped in a sense, should these Last of the Mohicans want out. The silver OI dropped 109 contracts to 148,918. When the large specs make their move on silver, they can easily drive the price to $25 per ounce.