Gold and silver were smashed on today’s COMEX open, with silver dropping $1 down a mine shaft (a $1 drop in a single tick on the hourly chart) to $27, and gold smashed through $1600 to $1593.
While we expected a raid today on the August FOMC statement, the fact that this massive raid was unleashed on the COMEX open was unexpected, and likely means 1 of 2 things:
1. The Fed is going to announce new asset purchases (QE3) with this afternoon’s FOMC statement release.
If this is the case, the cartel would be expected to hammer gold and silver leading up to the announcement to mitigate the damage from gold and silver’s response to the new money printing. If this was the case however, we would have expected gold and silver to have been hammered all week, not just on this morning’s open.
2. The Fed has leaked to the bullion dealers and big banks that they will disappoint today, and everyone rushed to front run the announcement.
This appears the more likely of the scenarios, as gold and silver were allowed to run over the past 2 sessions, drawing in new spec longs which could be immediately fleeced upon today’s raid.
We’ll find out for sure at 2:15.
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I do not think this has anything to do w/ QE, although it’s timed to coincide w/ FMOC as usual. If it were QE, the similar action would occur across all of the markets.
This is plain ‘in-your-face’ manipulation, pure and simple. The story of gold and silver price manipulation is becoming mainstream information. They do not want to disappoint the audience. They do this to scare off anyone from jumping on to the bandwagon of silver and gold, and to show that their fiat debt ‘money’ is still ‘king’. But unfortunately for them, more and more people know the truth. This is an act of desperation, as fiat debt money is in it death throes. Many learned people have come to realize this. The knowledge of the truth will lead to action, and will impact world politics and economics for generations to come.
Amazing how transparent their shenanigans really are now. We all literally saw this coming from 5 miles away.
And in a month or two we will have Bart Chilton tell us that after careful review they believe the precious metals markets are behaving as they should and are not manipulated.
My call: There will be a small change in the language of the minutes released today, which the media will make a big deal about. It will be in keeping with the drift towards the implementation of the Fed’s next easing move. Later this month, at Jackson Hole, B.S. Ben will make very strong statements in support of further easing, which will likely include a decision to no longer offer 25 basis points interest payments to banks with reserves on deposit in the Federal Reserve system (the interest rate will either move to zero or the Fed will get super aggressive and charge banks 25 basis points).
Bottom-line: The Fed can’t keep up the jawboning game for much longer. They have to act, as does the ECB and Germany given all the things that are coming in the next two months, including Greek repayment of loans for which they don’t have the money to fully cover.
Bart’s palms will get greased so dont expect anything out of this 4 year “investigation”. If they were going to make a move they would have already.
The real damage was done over 25 minutes from 8:15 to 8:40 AM EDT.
Over 8000 contracts ( over 40,000,000 oz) were dumped. One year’s production of silver for the entire US. Not that it matters, it’s all processed wood pulp anyway.
I coined all your comments, you guys are good.
Once again, we are raided. Where is that raid can DOC?
Aloha and Good Morning, I can say, I am very glad when I bought Silver this past Sunday. I only bought 5 oz. It was at 16.70 a half oz Dragons. So this was very nice. Now, I will be able to purchase 30 dragons at the end of today or may wait until tonight to see what happens in the Asian Markets. As Gomer Pyle would Say? We all knew it was coming and yet? CTFC and SEC still are investigating?
I look forward to the day when a similar chart describes banksters jumping out of windows of tall buildings.
Ugly, you have inspired me to change my avatar.
So it either means they will do QE or they won’t do QE. Therefore, it tells us nothing.
So it either means they will do QE or they won’t do QE. Therefore, it tells us nothing.
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LOL. I know, I know. Same crud every time. I have heavy duty shock absorbers on my stack. Got to.
Oh, the Waiting Game. It better be 35 by Friday, or my prediction percentage goes down even more… LOL
“They do this to scare off anyone from jumping on to the bandwagon of silver and gold, and to show that their fiat debt ‘money’ is still ‘king’.”