Silver Set To Run
The following is another great tidbit from the most recent Delaire Report.

"When one considers the recent price action of gold, the moves in the price of silver are perhaps somewhat disappointing. However, let me assure you that as the price of this precious metal consolidates between $38 an ounce and $42 an ounce, it is only a matter of time before we see a fresh break to the upside that will take the price of silver through the $50 an ounce level.

As at August 04, physical COMEX inventories of silver were down to 27 million ounces. That's more than a 35% decrease since April — and down 48% in the last twelve months. With so little inventory, it's likely that nine out of ten COMEX traders do not have their silver contracts backed by stockpiles of the physical metal, something we have known about for years. Even though the chance of a of default (unable to deliver) is very slim, if there is a sudden rush for the physical, there will be a scramble to close these short positions leading to much higher prices. So, the potential for a short squeeze still exists in the silver market.

If this happens this would lead to explosion in silver prices straight through the previous all-time high of $50 an ounce into triple-digit territory —possibly past $120 an ounce. Ultimately, it may even test the $200/oz level."