one of the factors driving the price of shares still lower has been the forced liquidation by mutual funds. as investors redeem their shares, the funds have no choice but to sell mining stocks, depressing prices still further.

not all funds are selling, though. despite liquidations, the silver etf's are buying silver. they know a bargain when they see it.

this is from ed steer:

Secondly, in a couple of e-mails from Ted Butler, he advised me that "sometime in the past week, the Swiss silver ETF added close to 600,000 oz. and the London silver ETF added close to 400,000 oz." In the second e-mail he had this to say..."GLD dropped another 17 tonnes yesterday (542,000 ounces). That's 27 tonnes in last two days, 37 tonnes in last 6 days. 90 tonnes from the top in latter part of July, or 2.9 million ounces ($2.5 billion) and 12.75% of total holdings. There was no liquidation in SLV yesterday, but some liquidation might be reported today especially after yesterday's 18.4 million share volume." I await that SLV number with great interest, because despite the almost 50% haircut silver has had since March, the SLV inventory just keeps climbing higher.

http://caseyresearch.com/displayDrp....