*Updated: 2nd wave of attack in progress, silver smashed under $33.70
Friday’s desperate attempts by the cartel to prevent a weekly close about $35 in silver and $1800 in gold were well documented on SD (and even Kitco’s weak attempt to erase the evidence of the massive raid).
This week’s silver COT report revealed that the cartel piled on another 31 million ounces to their net shorts, bringing the commercial net short position in silver to a mind-blowing 289 million ounces.

Thus, it should be no surprise to SD readers that the cartel has just initiated another water-fall decline smash in silver.
Silver had been trading in a tight range near $34.50 over the first 2 hours of Globex trading, prior to being sent down another mine shaft to $34.20.  The cartel made 3 or 4 attempts to initiate a 2nd wave of selling, and finally triggered the raid as silver again dropped vertically another .30 to $33.90, and a 3rd wave took silver under $33.70:

 

The cartel is also attempting once again to push gold under $1775, a level which has held repeatedly.

Clearly the cartel understands just how significant a break through $1800 gold and $35 ($35.50) would be for the gold and silver markets.
Rather than retreating to higher ground, they appear ready to throw everything but the kitchen sink at the precious metals market.

Either that, or a hedge fund just dumped about 20 million ounces of silver on the market in 5 minutes at 9pm on a Sunday evening to ensure they received the worst possible price for their position.

    • Your learning. But did you have the courage to sell earlier last week? I did. You can always reenter the market. Just pay attention to the price. When you see the cartel back off—buy!

    • Really? I’ll wait for the free fall. If you stacked on this so-called dip your average price per oz. would have increased if you first bought back when silver was $26-$27. The law of investing is to average down—NOT AVERAGE UP!

    • I don’t think it’s a good moment right now to stack the dips because I can still see silver’s price dropping on its chart. I’ll wait a little bit longer until I buy more silver.

  1. Really glad I held off on Friday. Not that it was by some big time strategy or anything, but serendipity or not, I’m glad. This is a joke. QE to infinity and 16 trillion in debt, 120 trillion in liabilities, and a lot more when one digs deeper into derivatives and CDS’s, and silver is a full third below its high in Spring 2011. 

    • And what are we told by the guys in the know? A collapse is imminent! It is almost over! Cartel has no more arrows! Do you know how long I have heard this song and dance. If they wanted to the cartel could push the price to $20 and they just may do it, but of course what do I know? Experience 45 years worth!

    • You must have missed the May 2011 ten minute nightmare in which silver dropped over $6.00 an oz. As I remember that was worse that brutal, it was a massacre on the scale of Little Big Horn without all of the blood and loss of life.

    • I remember that day! Silver went up to 37$ per ounce and then all in a sudden, BAM! Silver dropped to 31$ per ounce! I was kinda happy at that time because I was planning to buy some silver at 37$ but since it dropped, I bought some at the 28-34$ per ounce level afterward.
       

  2. I decided to post a 20 min silver chart considering what the scum banks are pulling this evening. I am a speculator that trades for a living. I expected a raid, but not this early. Most of the weak longs got flushed in the vertical down spiral 2-3 hours ago, so I think the worst is over unless the banks start another campaign in the wee hours. Since the weak longs are stopped out, it would take a lot pure shorting to do another takedown with few stops to start another waterfall, and that requires a lot of the bank ‘s firepower, so therefore, I think they will wait for another opportunity tomorrow. We’ll see what happens soon enough. http://screencast.com/t/sBtP48Z7
     

  3. It’s best to watch both silver and the euro to check for evidence of a raid. Open two tabs for netdania – one for euro, one for silver, set time frame to 10 minutes, and open view/volume for silver. It seems today’s silver decline pretty closely follows the dropping euro (ie rising dollar). It doesn’t look at all like a raid.
     
    Now set the time frame on the two tabs to weekly. The so called raid on 2 May 2011 looks quite closely tied to the euro, which also declined heavlly in that week. But not so on 19 September, where there’s no euro decline, but a massive silver drop – that’s what looks to me like a true raid.

  4. Since having my interest piqued by the articles on smashes and raids I’ve been doing some research of my own on the volume spikes and the affect to the price of Silver.
    Check this out – I downloaded the NetDania app for Android and have had a bit of a play with it to isolate the best indicator of volume movement and have determind that the 4hr period is the most cyclical over a long period of time (160 divisions).
    These are the statistics of that observation and you can all check it out – on the 4hr period, so 6 graduations per day there is a definite time of day the volumes increase as is evident in the chart however these volume spikes do not resinate with selling only.
    A break down of price action verses volume gives the following stats in correlation with the most volume, on any given day since the beginning of September there has been 10 spikes since then that have been in conjunction with price rises, there has been 8 spikes which are in coincidence with price drops and for 8 of the spikes since then there has been no effective price movement at all.
    In addition to the above observation, the 3 periods with the most volume coinside with the price of Silver going higher but not only this but the 2 largest price increases in Silver since the beginning of September also coinside with the highest volume.
    Odd. There’s actually nothing remarkable about these numbers except their symetry.
    My NetDania app doesn’t let me observe a lesser period than 4hrs, it would be interesting to see in minute time the effect of volume and an increase in price, that however is probably not in the interests of the pushers, you know, balance.
    If inferences can be drawn from this observation one could say, supported by the statistics that there is a concerted effort at least as large as that of depressing price as there is to actually trying to push price up. God forbid!
    In these transactions, who benefits ? – “Quid quo pro, Cui bono” ?
    I feel a rant coming on regarding control of media and metered release of selected news but alas I don’t have time for that now.
    Wake the flock up and keep stackin’ : )

  5. As was reported late last week and over the weekend [1][2][3], the White House is attempting to discourage layoffs.  This is in addition to the nearly impossible labor numbers that came out last week from the Bureau of Labor Statistics.  The numbers so strange that even the mainstream media is talking about them for once.[4]  The claims are so bad that Washington has actually responded[5] to deny that the numbers are cooked.
     
    The BLS is supposedly so “talented” at compiling number, but their history says a whole other story.  They haven’t been able to get anything even close to right for years.  The numbers are “seasonally adjusted” to ensure no major negative suprises and are ALWAYS revised significantly.  The situation here in the United States isn’t much different from other nations such as Argentina where there is no debate about how the official inflation rate is cooked.  The American populous has been so propogandized over the years that even though they feel there is something wrong, they can’t see it staring them right in the face.  They are being blatently lied to in so many ways by their “leaders” and the mainstream media who refuses to question the modus operandi.
     
    Well, as of today I just received confirmation on the stories about the White House asking companies not to lay off anyone.  This isn’t some distant journalist saying they heard a rumor or saw some memo, its my personal observance of the latest “conspiracy theory” becoming conspiracy fact.
     
    And the thing that scares me isn’t the reality of another theory being proven factual, its the fact that the lies cannot be so easily burried anymore.  Its the fact that nobody can address the real issues in a presidential debate.  Its the fact that the CFTC cannot end the multi-year silver investigation without being revealed to be part of the crime.  Its the fact that Goldman Sachs can’t hide how they laid the foundation to create the Euro crises and then instill unelected governant on the EU.  Its the fact that the United States government has ordered and stockpiled more bullets for domestic use than its ever had before.  Its the fact that on September 11, 2001 a third building fell down and could not be explained mathematically without validating the “conspiracy theory” of that day’s events.  The list could go on for pages … my point is that facts are PROVING the conspiracy “theories” correct on a scale never before seen.
     
    The deception is failing.  Truth is bubbling to the surface and cannot be kept down anymore.  And what typically happens in these situations is that the governments will take their citizens to war through false flags and staged events.  They ramp up the propaganda machine and they quickly turn the weak minds into their weapons.  They encourage domestic fear and spying on neighbors like the Red Scare or “see something, say something” programs.  There will be many enemies in this “war” and the enemy will change and “evolve” just like how the Taliban were morphed into Al-Qaeda and then Saddam’s Republican Guard.  This enemy will ultimately evolve to the point where I, just like all of you, will eventually fall within the definition of enemy combatent even if you never raise a finger against the nation.
     
    The country is about to be thrown over the fiscal cliff as if it were Niagra falls.  These queued up layoff numbers are so massive that they’ll make 2008 look like child’s play.
     
    The most important thing I think we can do is be mentally prepared.  What we’re about to see is the greatest collapse since Rome and while its onset will be counted in days, its duration will surely be years if not decades.  Be prepared to be labelled the enemy in some way or another.  Don’t think for a moment that when you have 10 gallons of emergency gasoline stashed in your garage and all the gas stations for miles around are dry that you won’t have a target on your back.  Anyone who is a “prepper” and has that one critical good that cannot be acquired anywhere else, you will be enemy.  History shows us that you’ll be the propaganda machine’s target and the weak mind’s allegience won’t be on your side any longer.
     
    My warning is simple: Be prepared.  Prepare your mind for whatever actions you have to take to survive and thrive.  Be ready to use that escape plan and make sure you get out of the burning theatre before the rush to the exits.  The theatre is already burning.
     
     
    [1] http://www.politico.com/news/stories/1012/81864.html
    [2] http://www.cbsnews.com/8301-505245_162-57525831/white-house-discourages-layoff-warnings/
    [3] http://www.washingtonpost.com/business/capitalbusiness/defense-contractors-back-off-layoff-notice-plans/2012/10/05/824b8008-0c00-11e2-bb5e-492c0d30bff6_story.html
    [4] http://www.nytimes.com/2012/10/06/opinion/nocera-jobs-report-cooked-or-correct.html?_r=0
    [5] http://mediamatters.org/video/2012/10/05/cnbcs-first-question-to-labor-secretary-solis-h/190384

  6. Clambake:
     
    Your’e right the 4 hour chart is very interesting.
     
    You can get netdania 1 minute on the web on your pc – but can only go back to 5 October (I scroll to the left within the chart on my apple trackpad – not sure how PC scrolls).

    • There’s still a few things I don’t understand about how this works, I wish I had more time but my guilty pleasure of surfing the prepper/PM sites extends past the bounds of time I can honestly justify to my family and myself regarding my personal chores about the farm and other commitments at hand.
      I understand the theory of margin calls, how does the cartel get away with holding these shorts ? do they expire or as in the stock market do they have to be bought back ? do they hold longs also ? suppress the market and just play the rise and fall as a money making game ? is it the purchase of phyzz which causes the rises ? effectively, is the purchase of phyzz causing the unbalanced game because it takes the leveraged effect of the paper out of the long side ?
      There’s probably a few more questions but these are the ones which are “swimming in the meat” (my brain) at the moment.
      If anyone would like to have a stab at any of these, I’m a keen study : )
      I’m waiting for the light bulb moment on how this all works, right now it’s very subjective.

  7. The fraud is deep and wide and still takes my breath away….it is amazing to see the extent of the takeover of so many aspects of our lives. These people are pulling out all the stops and no longer care to hide their actions.  It’s only going to get more brazen until it finally gets away from them (or they jump out as part of their plan to cash in).

  8. I am sure glad I SOLD Wednesday of last week. I have watched this for sooooooo many years I have learned it is better to make a little profit than to wait for the big ________ when silver will go to the __________ an it will be worth 1,000,000/oz and then we can all go buy a lamborghini. After 45 years of this you develop your own system that usually is a little behind the cartel, but you always end up with more than you started with.

  9. RE: Selling anticipating raids/price drops.

    How can you sell and buy back lower??? Over here in Europe, the spread is quite severe. If you sell at $35, where can you get back in and actually get back more ounces? Low 30′s would maybe open a chance to play even for me. It may be a bit easier when selling semi-numismatics that have gathered some premium and buying back generic rounds such as Philharmonikers. Still, there would be spread to deal with.

    thanks,

    J

  10. Everyone must realize in a economic collapse collectable silver coins are worth no more than junk silver. It will be the survival of the ones with the most ounces. In an economy where the stables are the most important, pretty coins will bring very little if any more of a premium. Rarity coins become more valuable in an economy where stability defines the environment. What good is the Mona Lisa if you are starving to death?

    • @snowrider Junk silver, copper pennies and nickel nickels for barter! When silver reached very high recently, I was buying a lot of junk silver than silver ounces because they are easy to use for barter and they were cheap compare to their melt value. I do coin roll hunting to get copper pennies and nickel nickels! :D
       

    • Absolutely Sumkid!! I even found a 1967 quarter by the cart path on our golf course last month. I showed my wife tonight the difference between a penny pre 1982 as to a penny after 1982. I cut them in half and the zinc was there coated with copper in the newer penny, but the 1978 penny was all copper or at least 97%. What amazes me here is the desire for “pretty coins.” Even Brotherjohnf is always pushing some numismatic coin that usually costs more than twice the spot price. To survive in a broken economy those pretty coins are going to be no more valuable than junk silver. So I just keep gathering all the junk I can.
      I have a question Sumkid, what would happen to the individual owner of silver if Congress outlawed the ownership of silver for the sake of insuring that industry would always have an ample supply for the industrial demand? The law could be passed on the basis that it would benefit the people, when in reality it would remove the biggest hindrance to the paper currency scheme.

  11. There are too many buyers coming out of the woodwork, and those numbers will only grow with the global economic direction. The upward pressure will resume in my opinion. I do not prescribe to the “back to $27 theory however I would like to see it so I could load the boat even further.

    • There are very few NEW individual buyers of silver, but individual buyers will not be the ones to move silver upward. The next group of buyers that will move the silver price will be the institutional buyers, and they are nowhere to be seen right now.

  12. Wow! That took a lot of attempt for the cartel to stop silver from reaching 35$ per ounce. They were able to crush silver by multiple 0.50$ raids when last year, they able to crush it by 2$ in one shot! I wish that silver would drop back to 27$ per ounce so that I can clean my local coin shops inventories very cheaply. :D

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