Well, there was a little more activity in the precious metals yesterday, but gold and silver really didn’t get started until after the London traders went to work.

Silver hit its peak the moment London closed for the day, and gold topped out a couple of hours later. Both have flat-lined since. Volume was decent.

Open interest on Wednesday showed another divergence between gold and silver…with gold o.i. up 1,896 contracts. However silver was down again…but only a handful of contracts…82 to be precise. Wednesday was another light volume day.

I’ve got another couple of stories today. The most important is an article in the Financial Times from London. The IMF is obviously worried that commodities may not be in a bubble. The headline reads “IMF Warns on Global Inflation”. It’s worth the read, and it’s linked here.

It’s been a while since we’ve heard from Ambrose Evans-Pritchard at the Telegraph in London, but here’s a story of real interest. It’s entitled “Global free market for food and energy faces biggest threat in decades”. The link is here.

We shall grind the bourgeoisie between the millstones of inflation and taxation. – Vladimir I. Lenin

California is staring a $20 billion dollar deficit in the face. Corn and oil hit new highs again yesterday…and the historic disconnect between stocks and fundamental reality continues…thanks to the President’s Working Group. Fridays are always educational. This one should be as well.