PHYS and PSLV Update – 21 Mar

Gold gapped up today and was beaten back from the highs of the day buy the criminals on the Comex. Their days are coming to end soon enough. PHYS, the real gold fund that possesses actual bullion gapped up and through resistance at 12.80. This level now becomes support for tomorrow’s action. Resistance is the all time high at 13.13. Provided any pullback remains above 12.40, a new up trend will be in place with a higher high and a higher low. MACD is setting up for a bullish cross and RSI is moderate at 60.

Silver blasted higher today and closed very close to it’s high of the day. PSLV, the no shit real silver fund that actually possesses real silver bullion as opposed to silver IOUs is now trading at a 21% premium to its NAV (net asset value). NAV is defined as the spot price of silver times the number of ounces in the fund. This fund is telling us that the paper price is 21% too low, or that the real price of spot silver is today in excess of $43 per ounce. WOW! Two layers of support now lie below the price at 16.30 and 15.70. Resistance is the all time high of 17.29. As long as any pullback remains above 15.25, a new up trend is now in place with a higher high in hand and a higher low. RSI is looking to form another mountain range , with both MACD and stochastic generating bullish crosses. A short squeeze is in the works as March contracts holders on the Comex are standing tall for delivery of metal the exchange does not possess. Oops! When 17.29 gives way, the Bollinger band is the only thing left on the chart to provide resistance.

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