Commercial Signal Failure in Silver or Gold?

The vaunted commercial signal failure refers to the market functions locking up in the Crimex - known in the ill-informed circles as the Comex. The commercials are heavily short and in serious pain while attempting to force their usual sell off. Some serious money is taking the other side of the bet, with the possibility of SWF's or Sovereign Wealth Funds from oil producing or surplus producing countries like the BRIC - Brazil, Russia, India, and China. Add to that Turkey and the middle-eastern countries and all the furnaces are stoked for more upside.

While they will eventually get a breather and some downside pullbacks, the momentum is so high and the light shining on the banks so intense that they will eventually have to clear out their shorts at higher prices. A small loss is better than a big one, while all loses hurt.

Speaking of loss - I have to confess to miss timing my options trade with Silver. I was right on about the call I purchased 270 or so days ago while Silver was at $13. A $15.75 call for November seemed a long shot and was priced accordingly. I bit. I held on and saw its time value go to nothing at the beginning of this month. Silver trades in the back rooms - not electronically. So getting quotes is taking a step back in time to making a phone call to Guido and getting the bid/ask spread for the option. Stinks to high heaven. Fortunately, I have made money with my options in the past and was willing to put up with the tiny silver market shennanigans.
This time I folded my tent to early, because I could have tripled my investment as silver has tapped my target and then some. The money lost was small. The lesson learned was large.

When you have taken most of your hit already on an investment, and their is an outside chance of riding a current favorable trend into profit - as there definitely was with Silver going higher weekly - be bold and risk the entire option for the potential profit.

I was not bold, I was defensive in trying to save the last remaining value in the option.

My only money losing option trade. Well, more profitable ones will follow.

Silver at $25 next year? I think so, as Ron Paul talks about silver and gold and ads appear everywhere. Then we are cooking with gas.