iShares Silver Trust (SLV)

[toronto416]

The question is what do you think would happen to silver (in the near term - within the next week) if a debt ceiling agreement is passed?

Would silver fall because it would appear that we are closer to "dealing with our debts"?

A debt ceiling agreement soon would lead to a fall in the USD with the context being that a QE3 or some stimlus would have to come in effect to buy the debt back...kinda of like when people pay off one credit card with another having a low intrest rate. the plan being that they do not want to increase the intrest rate to high or a spiral effect will follow.

IMHO SLV will close green for this week...but next week yes i have some uncertainity that silver might drop with "dealing with our debts" i don't fully understand the economics behind this but like yesterday that whole obama and politic speechs are in place to try to sustain a house of cards that will eventually fall.