A lot of discussion regarding the explosion higher in gold and silver open interest (meaning the number of players in the futures casino.) Its important to remember that not more than 2 months ago many were writing obituaries for the futures markets, especially after the MF Global heist (which has yet to be resolved, by the way).
This rising open interest data says something different, though. It is a reminder that the paper system for pricing gold and silver is very much still in charge. Many of the die-hards on my side of the fence may not like to hear this. However, if these numbers keep increasing, I am willing to bet that we will, over time, continue to see an explosive move higher in the metals.
Of course I am saying this after silver, for one, has jumped over 20% in less than two months. The metals are due for a breather. And yet the zero percent interest rates, unconventional global liquidity programs, and a determined FED who claims that there isn’t ENOUGH inflation out there could all do their part to send these two metals deep into orbit.
There is still plenty of room on board the gold and silver train, in case you have yet to buy any. Nothing is changing fundamentally. For me, two years from now (or sooner) we could be talking about 100 dollar silver.