In an attempt to flash-smash silver and prevent a weekly close above the critical $35 level, the cartel dumped an estimated 51 MILLION OUNCES of paper silver on the futures market in only 5 minutes on this morning’s non-farm payrolls release between 8:30 and 8:35 AM EST.

Net Dania’s spot silver chart, which is not a precise futures volume measure but approximates the volume, indicates nearly 10,500 contracts were dumped in a span of merely 5 minutes, and half of those were dumped in a span of 2 minutes between 8:30 and 8:32am EST.

 

Apparently the t 1/2 of silver market intervention of a year and a half’s worth of paper supply is now approximately 30 minutes as silver has retraced the entire smash, and is trading back at $35/oz!

Silver is a runaway train waiting to happen as the pent-up physical demand is simply breath-taking!

We continue to recommend our readers STACK THE SMACK on any significant cartel take-downs, as silver looks like it wants to head MUCH HIGHER in the near future as QE∞ is now a reality.

  1. The Asian ‘smart money’ is all over physical silver.  For evidence, just look at the US Dollar value of silver held in Hong Kong vs gold held in Hong Kong over at GoldMoney.com:
     
    $272 Million in silver vs $120 Million in gold (as of 28 Sept 2012).
     
    That is a factor of more than 2 to 1, yet silver is priced at a factor of less than 1 to 50 vs gold.

    • Yes, all you need to do is to click on the little blue right arrow next to the number of customers they’re holding metal for (22,493) on their home page, and it will take you to a summary page of their holdings in oz and US Dollars.  It’s available for all to see.
       
      GoldMoney is storing over $2.25 Billion in physical precious metals for their 22,493 customers.  Seems like a lot, but it works out to just US $99,450 per customer on avg.

    • I used to think so, but with the silver market so small, it seems it would be difficult for them to get into a huge position in silver. And if they cannot hold a very large position in silver, then it makes sense that they would continue to drive it down. However, the day they acquire the necessary amount of silver they deem necessary to profit from the price rise, silver will then soar into the 100s of dollars per oz.

  2. Nit picking…   But, a large portion of the rebound happened during that same five minutes.  So, in a rough sense, half of the volume was up-ticks.   Its actually more complicated than this because momentum plays a big role.  It could be that 1/3 of the volume caused the down draft and 2/3 appeared to cause the rebound, or versa-vice.
    Don’t get me wrong, I believe there is manipulation and I think this down draft was very well anticipated and lots of buy orders were probably sitting on the books just waiting for this.  I would guess that the majority of the volume caused the down draft and then after the cartel capitulated, low amounts of volume were able to cause the rebound.
    Ugh… I think about this stuff too much… 

    •                                                                Ugh… I think about this stuff too much…

      It’s Friday.  Two shots of Clase Azul Tequila savored in sterling silver shot glasses for all!  Send the tab to Blythe Masters.  :-)

  3. legerde- that’s why I only count the volumes on the down legs.  It doesn’t matter all that much anyway, since there is no real-time chart of how many orders were pulled or how many shorts were covered by the same entity that offered all those cheap contracts.  What we do take away from it, is that there was a powerful attempt to smash it from someone with the deepest pockets on earth, someone who doesn’t seem concerned about losing millions on the deal.  It sure wasn’t mom and pop selling their Morgans, that’s for sure.

  4.  
    The only way to end this manipulation is by one entity going long and having also 20+% of the market,, when the jerks at JPM object to this,, they can argue that they also gold 20+% short of the market!
     
    Then and only then we might end this nonsense,  
     
    I wonder why still no one like the hunt brothers came to this market until now!
     

  5. Not until the powers in charge will ALLOW for the price to go up , will anything happen to the price of PM’s . They are fully in control and most of our thoughts are only a wishful  thinking . Most news are just to give a false hope , but in reality , they are just that , HOPE no substance ( hoping for Bart Chilton , hoping for new China, backed by phys, exchange , hopes for silver shortages and problems with deliveries , Hopes in LIBOR scandal , hopes for MORGAN STANLEY going bankrupt , hopes for JPM having HUGE problems and being caught and much more ) Seems like every day there is a new hope after the old one gets to old , but in reality , NOTHING WILL HAPPEN until the Elite makes the choice for it to happen . Their plan is working and there is ZERO we can do about it . 
    p.s.  Silver is Not going through $35 anytime soon ! 

    • “silver is not going thru $35 anytime soon…”

      1) its already breached that barrier on more than one occasion this weak despite the obvious efforts of the bullion banks to cap it each time….
      2) the phony paper price is irrelevant as it in no way is a reflection of the “real” value of Silver based on its singular fundamentals versus the fundamentals of the debt coupon dollar and all its paper derivatives….
      3)If have accumulated Silver over the past years it has done exactly what REAL MONEY is supposed to- protect ur wealth by acting as a preserver of purchasing power…..

      ur pessimism smells of one either doesnt own 1 of the only 2 forms of real money – Gold and Silver, or one who does not understand that they have been money for 5000 years and will remain as such throughout the continuing destruction of the debt coupon dollar paradigm…….  

    • This is the kind of thinking that the Cartel works hard at to instill in the majority of people.  Fear makes people shy away from holding precious metals, especially the physical kind.
       
      But, it is flawed thinking.  If the Cartel were ‘all-powerful’, they would have kept gold at $20/oz, and silver less than $1/oz.  However, they must print ‘money’ to keep their debt based fiat ‘money’ system afloat.  Ergo, physical commodity prices respond to the money printing, and silver and gold especially, because they are real money, go up in price exponentially.  The fact and reality that silver and gold are physical tangible elements (that people desire as money) means the Cartel can never stop the price ascent over the course of time.  Silver is even more unique being that is it BOTH money and an essential industrial, commercial, and medicinal metal.

  6. Kaise Sousa , Plebian 
    Yes , I do own about 5000 oz of silver bullion , and I do understand and know the history of PM’s and silver specifics . And  am not a pessimist , I am a realist . All  I am saying is , the elite has full control and if they decide to take it down , back to $20 on paper , they will . You will not be able to get any phys at that price , but in today’s system , it does not matter , since over 99% of traded silver is in paper and if you will try to get currency(dollars) for it , you will only be paid the paper price ($20) . The only reason they let the paper price rise a little bit at the time is , that the public will at this speed NEVER take a notice , and start buying , and the public would be the only one to disrupt the supply . So all this talk about this huge demand from those so called “sources” is again just a HOPE , since OBVIOUSLY there is enough phys to deliver at the current levels . Nobody provided any concrete proof of any shortages in the last 12 years , just talk . So again , I am not saying it will not go up , all I am saying is , it will not go , until the Elite is ready and ALLOWS it to move higher . 

    • 1) the public is buying…just not the american public which from entrance into society has been led to believe that Federal Reserve Notes backed by Nothing is in fact money….look at the Chinese and how they have openly encouraged their citizens to accumulate physical Gold and Silver while their govt. is buying all the Gold & Silver they can on the open market and have cancelled all exports of the like which they now r stockpiling internally….

      2) Central bankers, being the duplicitous sociopaths they r, r accumulating unprecedented tons of Gold in preparation for what they know is going to be a currency crisis brought about by the mathematically inevitable destruction of the debt coupon dollar which will be replaced as the worlds reserve currency in our lifetime…    

      3) THE PAPER PRICE IS IRRELEVANT….when wealth is being destroyed due to accelerating currency debasement what matters is the possession of that which preserves savings and wealth….what Gold and silver bought u 100 years ago they will still buy u now…the future will b the same because of their undeniable role as “real money” throughout history…

      remember, Jesus was betrayed for thirty pieces of Silver…not thirty pieces of paper with a dead guys picture on them…

      “gold is money…nothing else…”
      J P Morgan
       

    • Tre you appear to be suffering from normalcy bias.Americans were stopped…Hunt and Bufet.This is a currency war and the race to debase is on .The world wants silver and the ussa cant fight the world.They are runnin out of enough hollow points for DHS and SSA as well as trying to maintain petro status.As Bob dylan said changes are acommin.You sound defeated…sit tight and be right and be grateful you got 5k oz.peace

    • If suppressing PM prices was their goal, the 4 year moves in ag from $10 to today’s $35, and au’s run-up from $700 to $1780, together prove that any absolute price suppression has failed.  I think their recurrent, temporary, suppressions are a sign that they worry about the metals being recognized as both an indicator of impending fiat money collapse as well as the vehicles to flee our doomed currency: keeping the ongoing currency debasement hidden in plain sight requires them to prevent public perception of the debasement, as well as the means to escape it. If au and ag continue to double and triple in the next 4 years to $3600 and $100, on a controlled, gradual basis, without contributing to, or precipating, public awareness, panic and currency flight, I think the cartel will consider their raids along the way as a success.

      What they were thinking during the 2010-11 6 month ag run-up from $16 to $50 might be revealing. There were weeks and months during that spike when retail coin dealers were out-of-stock, deliveries were delayed for over 3 weeks, retail coin demand was surging and blanks were unavailable: I think those conditions were an incipient currency-flight in the making and that the cartel was then failing in their disguise mission, probably very worried, and lucky to get out of it when QEs and other bailout corruptions served to dispel the rising public awareness and facilitate the $25 ag knockdown. For them it may have been a near-miss.

      They may have then fooled many of us once, but if under the current Euro-Amero business decline and the worldwide sovereign debt-collapse the cartel manages to fool us twice, I will be surprised.

  7. It’s getting pretty obvious folks! Whenever anyone wants to buy Gold or Silver just wait till the first Friday of the month (NFP released) and buy at about 12:10pm. you should save on average $1 per ounce.

  8. On an intra-day basis we can see longer-term money sentiment was actually buying precious metals equities AFTER the morning COMEX paper raid.  Look at the chart of the Dec. COMEX silver contract vis-a-vis the GDX and GDXJ below for an expression of that dynamic.    
     

     

     
     
    More and more people are coming to understand what the cartel is doing and these people are buying the dips.  You don’t see it on the COMEX as easily as expressed in the comparison above.  But the buying is here, and it’s not going away.
     
    In early September when silver first challenged $35 there was quite a bit of discussion in the precious metals community about the cartel having the ability to crash the price back down to the $32 and change area — if not a full retest of $30.  I noted at the time it was unlikely given the qualitative shift that had happened with physical market demand.  Indeed, that case proved out — and will continue.  For all the monumental capping efforts the cartel has executed, they’ve only been able to get silver to just a bit below $34 on a spot basis for mere hours.  I don’t give a rat’s arse about their rising short position nor hyperventilating about the scary picture painted by the commitment of traders data.  There comes a time when those signals fail to operate and being able to know when and when not to let that data trump decision making is a qualitative art.  The past two months have proven to be a cartel failure and the smart money knows it.   Rising shorts in the face of higher silver prices is to be expected and exactly what we’ve seen historically. 
     
    Frequently, silver worrywarts claim the cartel can ultimately control the price of silver, and that no advance will come beyond levels the cartel deems appropriate.  This logic fails in the face of the 12 year old bull market.  More to the point, the argument fails to factor the importance the powers that be assign to keeping the rigged game going.  Sure, the cartel cheats.  It’s like they play poker with 15 extra decks of cards under the table, able to pull needed cards at will just as easily as manufacturing naked short sales.  But they sure as heck don’t want to flip the entire poker table over and end the game forever.  It’s critical that you understand this analogy.  On an incremental basis, as the cartel’s manufacture of naked shorting becomes increasingly brazen and ever more separated from the realities of the true physical market, they run the risk of flipping over the poker table.  They lose all power to control paper prices when the game is seen by all as over — when the poker table is flipped over.
     
    The poker table analogy isn’t perfect.  But it might be helpful to some struggling to understand the link between the physical market and its ability to limit the power of the paper market.  Yes, we are ruled over by gods that play in the paper market.  But by definition, the paper market only has power because market participants give it legitimacy through participation.  If there’s anything that scares the cartel more than the rising price of silver it’s the scenario of the cartel overplaying its hand and thereby delegitimizing the very paper markets that give them power to manage (not fully control) prices. 
     
    Friends, you’re witness to history.  You’re watching the delegitimizing process of the paper precious metals markets unfold before your very eyes and there isn’t a damn thing the cartel can do about it other than manage the slow burn because they want to avoid flipping over the poker table at all costs.
     

    • ADDENDUM:  I thought of an addition to the poker table analogy worth mentioning.  The points were implied, but I’ll spell them out explicitly. 

      There will come a day when the cartel will be forced to flip the poker table over and end the game.  That day (or, over a period of days), one or more paper markets will be closed and contracts will settle for cash, without the possibility of physical silver delivery.  Obviously, the longer that day of reckoning is pushed into the future, the longer the cartel can play their paper king of the hill charade.  But it’s also important to realize that the cartel is paranoid about being caught cheating because that delegitimizes the poker game and erodes their power.  They face a catch-22 situation.  They MUST cheat at an ever increasing ferocity given rising demand for physical, which ultimately  inspires more card players to exit the game and opt for physical.

      When Blythe Masters feels the need to go on CNBC to explain JPM’s silver trading, public relations management speaks to JPM’s concern about more people discovering the game is rigged.  When Kitco feels the need to scrub data without explanation simply because cheating yesterday was so obvious, we see an actor outside the core of the cartel following its perceived self interest.  The latter style of behavior becomes one of the prime transmission mechanisms creating an overall collective silence about the cheating.  The same dynamic shapes the mainstream media’s denials and dismissals of cheating.  There is indeed a conspiracy at the poker table — and JPM is at core.  But the media (bartender), Kitco (bookie) and analysts like John Nadler (the monkey handing out packs of cigarettes for the cigarette sales girl) all hover around the poker table trying to hide their embarrassment by simply following their self interest and keeping quiet about cheating.  All these other actors need not act directly in conspiratorial ways.  All they have to do is be good little monkeys and follow their own self interest.

  9. I think it’s important to keep in mind that the Cartel is not concerned with depressing the price of silver so much as preserving the value of the dollar. 

    The rocket launch in silver and gold everyone is waiting for will likely happen once the Petro Dollar collapses and countries don’t need US Dollars anymore to buy oil.  As support for the Petro Dollar continues to deteriorate we will soon be at war in even more countries in the middle east to prevent that from happening.

    That is until the banksters have set up a new reserve currency for which they control the printing press that they can shift energy purchases to, at which point they will be happy to crash the dollar. 

  10. FW- Great points and it’s a fine analogy-  Thanks!
    From Harvey Organ yesterday : “The OI for December rose by a tiny 92 contracts resting tonight at a very lofty 87,407″
    If half of those December longs would actually stand for delivery we would be partying down for New Year’s.  I don’t think they can round up 217 million ounces in a month.
    Of course the rest of the situation might not be so good. Can’t help that, we didn’t do it.

  11. Big deal. At these prices they are practically giving gold and silver away. Without manipulations none of us would be able to accumulate. It actually even wouldn’t matter to accumulate because gold and silver wolud be already priced correctly thus not very much interesting. The gold must come from somewhere when Chinese buy cheaply physical… Where does it come from, might one ask…

    • Maybe they are buying them from western countries that are dumping their physical gold for paper currencies, there are so many gold filled with tungsten bars that gold’s price is now cheap or the physical gold that are bought by the Chinese are all fakes.

  12. Somebody please tell me, because I am a dumb-ass when it comes to the financial markets:

    When the cartel dumps all these paper silver contracts onto the market – who buys them? My limited understanding is that for every contract dumped (sold?) there has to be an opposite party, called a buyer! So who would that be?  

  13. I remember about six months when it took the cartel a little bit of paper silver to just crush silver’s price by about 2$ in one raid. Now, it took them a lot of paper silver to just crush silver’s price by about 0.50$ in one raid. Does anyone see the trend? The physical silver supply is getting more rare because of the cheap prices.

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