Honestly, if gold does not correct more, with the one that is coming down right now, its a very bullish sign. Gold is still up a lot from a year ago. Its normal to have a correction.

Also, I have not seen mentioned tha the gold and silver margins were rised 21% (http://www.tradingnrg.com/gold-silver-prices-cme-margin-hike-by-21-september-24-2011/) forcing a lot of people to recapitalize or remove some positions. 21% is  a lot! Its very "curious" that they have choosen to do so just as the next deflationary mini-crash was starting. With the know history of the USA gov to try to keep the price of gold (and silver) down to help the survival of the dollar, it is "like" if they want to create a psicological effect to try to beat down gold and silver prices.

Mid and long term Im bullish on gold.

I'm still waiting for my fills.

Repo offers will offer marginally better return and are coming from the same guaranteed backer as the interest on reserves. That will allow for a rotating flow of credit from banks to Fed; the Fed gets access to massive amounts of funding that has heretofore been held in a bubble, while the banks continue to garner risk-free return.

At every level, leverage is increasing and will provide necessary liquidity from the existing pool of funds; the debt from debt we discussed. It isn't a direct QE in the manner we've become familiar with, but a magnification of the amount already out - it just hasn't hit the real economy yet. When the problem grows further and the existing reserves have been leveraged to the hilt, more conventional QE will have to be accepted as it will be the only alternative to the final crushing deflation we're still waiting for.

It's all like an uncontrolled thermonuclear chain reaction.

Everything is in place to flood dollars through the world. What's needed this time? Something like $2-3 trillion? More?

The solution is not possible with the proceeds from current Fed asset holdings. That flow can barely keep the US itself going for a little while longer, let alone Europe. So either release the bank reserves which is as inflationary as printing money (more so because the banks will eventually have to be recapitalized yet again), or just print more using a base built from bank lending (circulating bank reserves instead of depleting them in one shot) - essentially the Repo market method.

I'm hoping silver hits $27.34 soon.  I've had my eye on a particular purchase for a while now, and now that it is on sale for 25% off (not really, I know, but still), I'm just waiting for a couple bucks lower to hit the next big round number.

Now for one more dip below $1,600 to deploy the last of the orders that didn't get filled...