After being treated to the standard COMEX open waterfalls that saw gold smashed as low as $1684 and silver under $32.50, both metals made a vertical move to the upside around 10am EST. 
Gold cleared $1700 trading as high as $1704, and silver is back above $33, reaching $33.38.

The impetus for the move appears to be a massive physical gold buy order in the range of 10 metric tons.  

We can also confirm that SDBullion was in fact approached Wednesday by a UK hedge fund manger seeking the acquisition of 20 metric tons of gold in good delivery bar form, which had been physically tested for purity above .9995 within the past 5 years.
The fact that a London fund manager has resorted to contacting US retail bullion dealers in attempt to fill a 20 ton gold order speaks volumes to the availability of physical gold (or lack thereof) for delivery in London and the extreme tightness in the physical market.

Got PHYZZ??

 

The 1 oz .999 Silver Bullet Silver Shield Trivium Medallion is available now from SDBullion at only $2.99/oz over spot, ANY QUANTITY!

 

Silver’s strong move through $33:

 

 

Gold has regained the critical $1700 level, after seeing massive buying on the dip to $1684:

 

The worst of the 3 day sell-off appears to be over, as silver and gold appear to have at least temporarily bottomed at $32.50 and $1684. 
We won’t be out of the woods until Friday’s NFP has passed, as the NFP release has traditionally been one of the cartel’s favorite times to raid the metals. 

  1. Hi! Doc maybe the hedge fund manager can try ebay. Lots of oz’s there that he can corner. Lol and good luck with this Search;
    Which had been physically tested for purity above .9995 within the past 5 years. LMAO

  2. It seems like the market maker’s gold is just not trusted anymore.  This hedge fund could have bought some GLD shares, paid the freight and took delivery, right?  Stop laughing, they have some real gold in there!
    Don’t they?  (There’s your answer, nobody with any sense trusts them.)
    10 metric tonnes = 0.53 cubic meters.   A block of gold, 21 inches square and nobody gots.
    Nice!

    Reference: “Volume of Gold”
    The density of gold is 19.32 grams per cubic centimetre (gm/cc), so a cubic metre would weigh 19.2 tonnes.

  3. The fella is pulling your chain. 20 metric tonnes. I would call his bluff and put an order for him on GLD and say to him, its as good as the real stuff ain’t it, hand him the order and then do what GLD do by putting a clause in that you can “sub contract” to sub parties such as HSBC etc.

    The order is for over £37 Million. If I had £37 Million floating about I would be whacking it straight into property. Gold is okay for small amounts but its no way going to beat the steady income of rentals.

    As said, the fella is pulling your chain, but I would definably  take the order, get it contracted up nicely, add 3% handling charge and divert it to GLD with the proviso of sub contracting and no responsibility whatsoever with the delivery from third parties.

    • Who is going to be paying rent when nobody has a job? I can see buying farmland, people have to eat but rental units are a black hole for money unless you are a slum lord.

    • I agree, Mary.  What we have here is a classic case of “old thinking” vs “new thinking”.  In the coming financial environment, rentals are more likely to be stripped of anything and everything of any value whatever in the dead of night than they are to bring in a dependable stream of steady income.  If we get a severe depression or even an economic / financial collapse, all bets will be off as to what WAS once a good investment.  Gold and silver, farmland, tools, and skills will be what works then.

    • LOL! That’s a good idea and a funny way to put the order. You want some gold? Here, some GLD certificates in which are backed by “physical gold”. It’s like if the corrupt guys have tasted their own medicine!

  4. It is hard to say whether or not this gold order is real or someone just fooling around.  I fully expect the paper PMs to crash to Earth at some point, leaving no paper-pusher survivors.  This will not happen all at once, of course, but will come on as a steady unraveling of the current paper paradigm.  One of the signs that unraveling is occurring will be the inability of futures sellers to satisfy futures buyers who stand for physical PM delivery.  Previously, very few futures buyers actually wanted metal delivered to them.  What they wanted and received was a cash settlement based upon the increasing prices of PM contracts.  A few futures buyers, such as Gerald Celente, did want physical metal delivery, as did a number of other MF Global clients.  In fact, I have long wondered whether MFG’s collapse was done because they could not deliver to all of their clients who wanted physical metal.  They didn’t have it and couldn’t get it, so used the old poker player’s trick of shooting out the light, flipping over the table, grabbing all they could, and running like hell.  If this is what really happened, I would LOVE to know who ordered the MFG “collapse”.  JPM and / or the CME look like prime candidates to me.

    • I think that this gold order is real because it was the Doc himself who talked to the UK hedge fund manager on SD Bullion about the gold deliveries. I wonder if it is also similar with physical silver where hedge fund managers ask small dealers for physical silver.

  5. A UK hedge fund manager asking 20 tons of physical gold from a small US dealer like SD Bullion? This does prove that the managers are getting desperate to find some physical gold even if it is on the other side of the world from small dealers. It’s no wonder why gold’s sales are rare at my local coin shops.

Leave a Reply