Gold & Silver Raided on COMEX Open

Surprise, surprise.

On the heels of the worsening news out of Europe and strength in the dollar, the cartel took the opportunity to raid gold and silver precisely on the COMEX open this morning.
Gold was smashed as low as $1562, and silver to $26.59, and was knocked down .20 instantly on the COMEX open.
Both have since recovered at least their COMEX raid losses, with silver trading back to $27, and gold to $1573.

Silver had been consolidating its Asian market losses throughout the London session, prior to the hammer being dropped in NY:
Live 24 hours silver chart [ Kitco Inc. ]

 

Gold dumped $8 on the COMEX open after working lower throughout the Asian and London sessions:

Live 24 hours gold chart [Kitco Inc.]

The strength in silver near $26.50 particularly is encouraging, as this now marks the 6th time the $26-$26.50 zone has held as support and silver has moved up convincingly off the level.
Professionals continue to accumulate silver into price weakness here.

Comments

  1. I seriously believe the reason for not implementing ‘QE’ openly on a global basis is the fear of hyperinflation of the fiat debt currency system.  Once set into motion, hyperinflationary forces are unstoppable.  Paradoxically, it is in an environment of deflation coupled with money-printing that hyperinflation sets in, especially when people come to see and realize that all that they can do henceforth is to print more ‘free’ money.
     
    Right know, everyone in the world is on the edge about the value of the paper currencies that they are holding.  They know something is terribly wrong, but they are going along with paper money and do not want to ‘rock the boat’ (so to speak), for fear for instigating hyperinflation.  It seems that is the only policy left to the central bankers (‘don’t rock the boat’), because the system is at criticality stage, and any major announcement of ‘money printing’ as a solution can set in hyperinflation.  Not everywhere at once, but it only needs to start in one country before the whole world will follow suit.  At that point, the rush into physical assets will be unstoppable.

  2. As raids these are pretty pathetic.  Nice gifts  to  buyers as shorts bleed off their positions.

  3. Plebian.  Your points are well taken.  Inflation muddles along for years at 2-3% then ramps to 8-9%, like now, due to commodity cost increases and printing.  Hyperinflation takes off like a rocket.  The QE crisis is not in  really full swing but England is printing like crazy and has a debt to GDP of 900% with some serious inflation from what I have heard.  The Spanish and Italian slow motion failures are demanding full-on printing to stopgap their dead banks.  The last $1.5 trillion bought just a few months earlier this year but added fuel to the inflation fires .  The funds from QE and LTRO are being held by the banks or shipped to the US to prevent fund depletion due to the bank runs.  This kites our stock market and depresses yields on 10 yr UST to 1.42%, an insane level that is a full 50% lower than the BLSBS inflation. The Fed offers negative interest rates for the alleged safety of the Dollar.  Wait until that ends:  Dow 6,000.   Thinking that the USD will be the safe harbor will not last long when our economy takes another hit or two.  Tax hikes and food/commodity prices for example, will rotate to people’s budget as these trillions flood  to the world.  Food inflation in the third world will be horrible.   China’s downward crunch will accelerate as Europe’s depression puckers demand for Chinese goods.. Ditto for our imports of Chinese goods.  The cash held by our major  banks, cash that the Fed demands they hold in their vaults, will have to be spent sooner or later. When those trillions flood into our economy, along with the ECB printing to save Europe, the days of 5-10% annual inflation will look like the good times. People will lose confidence in their currency, whether USD or Euro, and the flight to hard assets is on.  The 1970-1980 time period is repeating itself.  Gold and silver climbed by 1,600 to 2,000 % in 10 years.  The silver price of $48 and gold price of $800 were not abnormal in light of 10% plus inflation per year.  Adjust those peak prices by 500-700% for the inflation of the last 30 years and we might see silver into triple digits. As for gold.  Some say $5,000 or more and that would be no surprise to any student of the precious metals.

  4. Just stack. I pray the the Ag manipulation (subsidy) continues till the finacial melt down happens, so that everyone will have as much time to stack as much as possible on the cheap, while also storing up on all the other needfull things!

  5. AGXIIK– If silver is being sold @ a paper v phiz ratio of 100 to 400 an oz, then the true current price is at least 3000 to 12000 per oz in todays dollars! Hyperinflation will only add to that figure.  But, what will truly drive the price I think is when the other 98% of humanity realizes that fiat money is worthless and that they must have “real money” to eat, or for anything else! wow!

  6. RRG  That is true   The GTSR is off base by 3 to 1.    It should be 16 to 1.  The paper price to physical is nothing but a joke.    That will be eliminated with shortages and even a chance that CFTC will push for transparency in the PM markets.  Accumulations at these price are just good policy 

     Hyperinflation I think,  defined at 10% PER MONTH, would scare the living crap out of everyone and destroy any confidence left in the USD. I don’t wish for that but something tells me we are in for a bout of that within 3 years.  I’m kind of like that vulture sitting on the rail waiting for carrion.  Patience? Heck no!  I’m gonna kill something to eat.    But patience is the only thing that will see us through this PM soft patch.  In a year or two we will be vindicated and in ways we can scarcely imaging.  IMO

  7. With the above ground phiz Au to Ag ratio of 5 to 1 how can Au COMMAND a market ratio of 50-60 to 1 against Ag? Scratching my wooden head and laughing as I walk ALL THE WAY AWAY from the banks

  8. I think I’ve said this before  If you can scrounge up some gold jewelry, necklackes, stuff you can get in Craiglist or if you are lucky like the gold meister, 2OZ, gold coins for half price  and convert the junk gold to cash or the gold coins to silver, that will be a great trade. I did it whent he GTSR was 55 to 1 and did not regret a second giving up some gold for silver.

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