this was from bill murphy's discussion of today's trading:

There was another SUPER positive this morning. Silver lead the way, advancing three times more than gold. The past few weeks I have commented on the change in the way silver has been trading … that the new longs have been much more steadfast than in the past … suggesting they were in there for fundamental reasons and were not the same funds trading off of technical systems, thereby getting stopped out on price corrections. This could be the reason the silver open interest has not contracted as much as gold’s.

We know from the silver COT reports, the silver price managers have been digging in. We also know the concentrated short position (as in JP Morgan Chase) is greater in silver than gold. If the Fed is to be audited this fall and there are gold/silver revelations which are damaging to the Fed's credibility, much less their honesty over the years, we could get some kind of shortcovering panic. In that case exiting from silver short positions will be much more difficult than covering gold shorts. Who will JP Morgan Chase and HSBC buy from?

The gold open interest went UP 1277 contracts to 375,221, not the liquidation I thought we might get. The silver open interest fell 191 contracts to 100,357.

Both gold and silver managed to uptick going into their closes as local traders covered when both precious metals didn't do their usual late fade. For a Friday close, and with the Gold Cartel so omnipresent, this was impressive and sets up the potential for a BREAKOUT on Monday. Silver was particularly impressive, closing pennies off its early high. Time and time again we have seen silver sell off dramatically after an early explosive run. Not this time.