There is the possibility of a pandemic financial meltdown. To avoid such a catastrophe, the Greeks elected to stay in the Eurozone. Remember that the Federal Reserve are scheduled for a press conference today. Some form of quantitative easing or Operation Twist 2 may come riding to the rescue in order to buttress the Greek decision to stay in the Eurozone.
We believe that these decisions may become baked into the pie during this Federal Reserve Meeting. Gold and silver traders are betting big money on buying contracts expiring in July that become profitable if gold should reach $2000 by that date. Based on what we know is smart money expecting a golden or silver swan?
Silver (SLV) is also forming a descending triange for many months but has not violated 2011 lows. After QE2 we saw a massive move into silver when it outperformed gold…could QE3 or Operation Twist 2 be a catalyst to start something similar?
Stay tuned to my premium service for a breakdown of Bernanke’s statement.