The 'gut check' in metals was very short-lived, as the precious metals
rallied with the melt up in financial assets on the debt monetization plans
out of Europe to save their banks. It was 'risk on.'
What next? We may have some follow on, but continued upside depends on
additional QE3 from the Fed, as well as the actions by all the world's
central banks to monetize the private banking debt and inflate their
The metals will do well in this kind of an environment. But the sailing is
not yet clear. There will likely be more upside after corrections, but if
this works, then the major test will come with the
December option expiration.