Gold and silver rallied through $1780 and $35 in Wednesday’s Asian session on news of Japan’s announcement to increase outright asset purchases to ¥80 trillion, and was then relentlessly hammered down on the London session, with silver smashed .80 to $34.20, and gold knocked down $20 to $1761.
Both metals are now again rising early in COMEX trading.
Silver’s move to $35 overnight followed by weakness in London session:
Gold’s strong move to $1780:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
It’s pretty evident that these actions are little more than feeble, futile struggles by people and institutions becoming increasingly irrelevant in the big picture of gold and silver.
Just like when I was trading Pink Sheets! I could never imagine this in PM. WOW
I am about ready to go off the grid for a week or two, this world has become a roller coaster ride that is making me dizzy.
Can’t blame you a bit for that, Crissy. I feel like that myself sometimes. A week of camping and fishing would probably fix it. ;-)
The Cartel continues to manipulate oil prices down in an effort to drive down commodity prices in general, and to hide the inflation that QE has been creating. London is desperate to prop up fiat in collaboration with the ‘West’. Japan is subservient to the ‘West’, no wonder their debt is so massive; they are experts at QE (but the Fed is the Master, and Japan the disciple). The Cartel wants higher prices in stocks, bonds, real estate (things that they own a lot of), but higher commodity prices will cause unrest in the people on main street.
Japan fighting over the islands with China might be instigated by the ‘West’ to create unrest in China (and thus antagonize world-view towards China). China is in a precarious situation for holding so much U.S. debt denominated in U.S. Dollars. They are trying to shed those Dollars as fast and as surreptitiously as they can.
Hiding inflation does not make inflation go away. It is still there, even if the majority of the people do not perceive it. Inflation is a hidden tax that takes away the wealth of the people and transfers it to those who ‘print’ the money–the Cartel.
Good point on the China / Japan thing and I agree. Can’t waste a good crisis, now, can we?
Actually, inflation is not hidden, it has been pushed under the rug via changing the official method by which it is calculated. The Fed does this whenever inflation exceeds their desires. Inflation too high? No problem. We’ll simply stop counting the things that are up the most in price… food, fuel, medical care, insurance, tuition, etc. We will continue to count housing and computers, though, because they are not adding to inflation. OMG, how transparent can these fools get? :-/
Additionally, cheapening the US dollar causes inflation over-seas, whether or not it does here. Commodities are usually priced in US dollars, so as the dollar is devalued via QE, more dollars are needed to buy that barrel of oil, that bushel of wheat, corn, or rice, or anything else that is denominated in dollars. Since people in many foreign lands spend more of their income on food and fuel than we do, they feel the pain of this more acutely than we do. In their shoes, I would be pissed at the US too.
Am I missing something here? Silver is smashed when it loses 50 cents of value??? Are we beginning to overreact? SMASH means to me a level of lose greater than any single day gain. We were smashed back in May 2011 by $6.00 in a ten minute span, but 50 cents in hours…, I would hardly call that a smash down. More like a squat down.
Agreed, SR. You know what they say about a man with a hammer…
All commodities are volatile to both the up and down sides in price. Gold and silver are no different in that respect. Knowing the difference between typical commodity volatility and a “smash” is what differentiates those who understand these markets from those who do not, IMHO.
Being of means and of making preparations for the collapse of the current fiscal regime and also understanding technical and fundamental assessment of investment I feel deficient to a degree that I fail to understand, off simple investigation of the attached graph, how to draw the conclusion of a smackdown, not only in this instance but in most instances but those where the most obvious and instant drop in price are exhibited. Even where these movements are claimed to be smashes I wonder how that inference is derived and unfortunate as it is for me, showing my ingnorance and with the added possibility of being labelled a “gumint” shill, can someone – Doc – direct me to or instruct me in the verification by a source to volume data or something of the sort for the call of smash or smackdown other than a kind of feeling like it just is, similar to the belief in some benevolent and all powerful omnipotent super being who presides over us, namely God, of whom I believe. This is a real request for some direction in self education, can someone help out here ?
Don’t worry about being labeled, CB. As my former boss used to say, “If’n they cain’t take a joke, eff’em!”. ;-)
It is entirely possible that some of the folks who claim that a “smash” has occurred are made by those who do not know the difference between a real smash and the typical price volatility of commodities. In many cases, a smash will occur at a specific time of the day, usually just when it is most convenient for that market. These repeat at approximately the same time over a period of weeks or months. Normal volatility is much more random than this and is influenced by real world events, such as mining strikes, mines opening or closing, changes in interest rates, political problems, etc.
Also, when there is a big change in the paper silver longs and shorts, that can be a good sign that a silver smash is in progress. We saw a pretty good example of this last Feb. 29. Unfortunately for the manipulators, they are playing a losing game. Not only are gold and silver being moved from West to East via these shenanigans, but their efforts are taking more paper silver to achieve less price suppression than lasts a shorter time. By diminishing returns alone, this game IS ending. We can only imagine the levels that gold and silver will reach once this price suppression scheme ends and true price discovery is allowed to occur.
I was really expecting it to take off with QE from Japan especially with that size of QE
It may yet. Not all of these moves occur quickly. I concur that Japan’s QE announcement will have an effect on PM prices.
Over on ZeroHedge I read an article that talked about the latest round of QE, calling it QEternity. I rather like that (the term, not the concept obviously).
Qfinity is my term for it. Food prices are already rising so it won’t be to much longer before the average person starts to notice their pay isn’t going as far as it used to.
I remember about one year ago, where one cartel’s raid crushed silver’s price by 2$ and it was down for a few months with that lower price. Now, one cartel’s raid crushed silver’s price by 0.80$ and it was down for a few days with that lower price. I believe that the cartel’s raids are getting less and less useless every time they use it.