20% correction imminent, page-3

Not convined at all unsinkable,

The content of Benanke's speach to Congress the other day indicates steady as she goes as far as the Fed is concerned. That means no efforts to fix the problems and thereby strengthen the dollar and is the reason why the dollar continued to tank after his speach. The US dollar index is at a critical level and looks set to fall below that point at .72. Gold and silver rise against this weakness and that has been the (mirror image) case now since 2001. I see no evidence of change here.

On sentiment yes, in market corrections the US dollar has rallied in the past. There is evidence on a number of fronts that this is wearing thin and on recent down days for the Dow the dollar has gone with it. China have also indicated that they are converting US$ holdings to resources including gold and silver in recent times. They are trying not to make too much noise of course as they do not want to see their holdings diluted too much in value on the way. They are between a rock and a very hard place.

Though in a year or two, new silver mines will begin to comer on line, at the moment there is a critical shortage of physical silver, for both industry and investment purposes, so no pullback on this front either.

The daily chart indicates the current bull run from August last year is fully intact. A collapse would require a closing price on a daily basis of US$46.00, I cannot in the current circumstances see it.

DYOR