The rebalancing of commodity indexes is most likely the cause of the wild swings in gold and silver today as well as other commodites.http://ftalphaville.ft.com/blog/2009/01/05/50769/beware-commodity-index-rebalancing-ahead/
Yes, and as I surveyed both indexes, Silverremained virtually unchanged for '09.
Here is Jim Sinclairs take on the article.http://jsmineset.com/index.php/2009/01/05/commodity-index-rebalancing/
Why a one billion dollar reduction in commodity holdings in gold makes a spit of difference to either gold or silver amazes me. Obviously, the tilt is in the direction of cheap oil.This nonsense is like two fleas arguing over who owns the dog. If that is what is causing the fifty dollar swing, 25 this Monday and Tuesday, and 25 coming, all I can say is thanks for the buying op.What drivel.