After consolidating in early COMEX trading Monday above support at $20.60 and $1280, gold and silver have just once again been kicked down the proverbial mine shaft, with silver plunging to $20.25, and gold to $1272.  Is a $19 handle imminent for silver?
With only .25 of further downside to a $19 handle, which would likely trigger numerous sell stops, don’t be surprised for the cartel to push the issue and attempt to inflict maximum pain among paper silver longs:

Look for $1260-$1265  to hold as a bottom for gold if the pattern of higher lows is to continue:

 

Maples Sale(2)

  1. If you’re a buyer, these seem like bargain basement prices!  I suppose we’ll continue to see the prices get smashed until there is no physical gold and silver left to sell.  Then what?  I guess the question is “How long can this go on?”  It almost seems it can on as long as The Powers That Be still have a printing press.  Supply and demand don’t seem to matter anymore.

    • What do you think the price of bitcoin will be in 100 years? Isn’t bitcoin a necessary metal for computers? There is not much of it to go around. It sounds as if you want to change the atomic scale (number)?

      Remember, all this is to prop up the mighty dolla and expand more control in the world. + US citizens.

      How that control working for ya?

    • Or the power grid? Or a solar flare? Or a major exchange getting hacked and pirated for their bitcoins? Exactly the reasons I won’t touch it, as the saying goes around here, if you don’t hold it, you don’t own it! =)

  2. BigToke: It seems that you may be right, I read from some research that there will be one more smackdown.
     
    It would seem that this smackdown will need to be to a new lower spot price for silver, presumably to flush out as many weak hands as possible….Im wondering if it could go lower than $17.00  , and what the overall objective might be ?
     
    Maybe to cover short positions with paper buying ?

    • The cartel doesn’t even have to do much of the manipulating anymore, all they have to do is nudge it a bit to trip the paper longs and they do the rest… at some point we will see a major spike down in the paper metal price alongside a huge spike up in the US Dollar index. Why? Because that will be the point when the monetary plane hits the physical plane so to speak, and everyone will bail out of their phony paper instruments to bid for US dollars in order to buy REAL things like real estate, land, food, water, gold and silver. Things are certainly going to get interesting.

    • Some speculate there will be a panic to get out of the gold and silver “paper products” then the prices will crash very hard.  If this happens then gold could easily spiral down to $600 but don’t worry the bullion won’t be available at any of the retail outlets.  This is what Precious Metal Pete predicts will happen before the revaluation takes place.
      We should know shortly.  His initial prediction was before end of 2013 but this probably slips into 2014.  I believe we’ve still got another year or two at current prices before the SHTF when the bullion is finally no longer available in large quantities. 

    • @BayOfPigs,
       
      I don’t if I am allowed to post a link to PM Pete’s blog site. Be aware that PM Pete, FOFOA, are all about Free(d)gold. You can do internet search for those. If you really want to know, I will then post. This is a Silver site, after all, and I have no desire to upset other members here, unnecessarily.

    • If that happens I will take out all the equity in my house and stack.  Im old enough if price doesn’t recover Ill still live out my life comfortably but if it does, ill buy my own private island in the caribbean.

    • @jiggysmb, I really hope you are right because that will shut down the majority of the mines.  Very few miners can make money at $15 which really turns the tide on silver and gold availability.  Within a few months shortages will start showing up and then the excitement will begin.  That would effectively end the naked shorting as supply chains shut down due to price and availability. I hope it crashes to $8 as that might end the paper trading game on bullion when silver is no longer available except in rationed quantities.

    • @PowerBall I have heard that argument a couple times here, first time we were at low 30s, 2nd time we were at mid 20s, now again at 20. Don’t forget the multiple miners saying they would be profitable at $10. Whether that is a by product mine or one of the higher quality foreign mines makes no difference. I made a few unwelcomed calls here in the past 2-3 years, this will be one of them.

      End of paper trading?? You do know Citi just passed the derivative bill, expanding and bailing out the derivative market, correct? And you do know Congress is working with the Chinese to support the economy until at least 2020… I could leave this blog for 10 years, no matter what world affairs have occurred, members would still be spitting the same 2 arguments as they have been for the past 3 years.

      In 10 years, miners will be mining, and you will still be waiting for the dollar to collapse.

    • 80% of silver mining comes from base metals and gold mining, it’s a by product, it doesn’t matter if silver goes to $10 oz, it will still be coming out of the ground. 200 million ozs gets recycled every year, that’s not going to stop.
      Even the primary silver miners will keep most of their production going, PAAS, SSRI, HL, and CDE are not going to shut it down, maybe just a few high cost mines.
      Shortages will only occur when buyers for investment start increasing in numbers, buying will only increase when the fundamentals improve, or high inflation is in everyones face.

    • The problem you have is being able to surgically strike gold and silver without taking down copper, nickel, platinum, palladium, zinc, etc.  As these other mines start being unprofitable they get scaled back which will put a huge dent in silver as a by-product.  I did some work with a few of these mines and they were making a lot of money off silver and gold by-products which were effectively paying for everything.  As this high value by-product drops by 50% in value it really hurts their bottom line plus ability to lose or break even on the base metals because they were making so much on gold and silver.  As they start breaking even or losing money then production starts being scaled back.
      Most of the silver recycling started to disappear around $25 to $28.  Unfortunately or fortunately it takes a lot of nitric acid to process silver which has gone up significantly in price.  Very little silver is worth recycling at $10 which is probably only stuff 90% and above in purity.  So that 200 million ounces will drop significantly. 
       

  3. I previously stated some months back. That I would stop purchasing metals. Not that I don’t believe in the money for Silver and Gold. It’s the bullshit game that is being played. We shall see what happens in the future. I will purchase land and other things. We shall see what happens.

  4. IMO of many of my posts, we are still 18 – 24 months away from seeing the fruits of our investments in Gold and Silver. It really doesn’t matter what we pay for the metals at this time. Buy what you can and be patient.

    • the vast majority of folks who SHOULD be stocking up on silver are not doing so.  That, is the reason the price hasn’t taken off yet. But that day is soon coming.  In the meantime, a few of us (smart ones) will continue to add to the stack.   As for Bitcoins.  C’mon, puleeze.  There is a sure sign of pissing into the wind.

  5. Prices for old Porsches, Ferraris, artworks, other tangible assets are going through the stratosphere.  Won’t be long until the last bits of PM’s are snapped up by the super rich as they unload fiat.  BTFD and get it while you can.   

  6. If anyone stops buying into precious metals for a time, then buy  into the other important assets such as long term storable food and like things.
    Food inflation ranged betwee 7% and 15%   Buy now, eat later and lock in a lower cost of food than 1 or 2 years from how   Rotate to food into long term storage and eat your stores on the LIFO basis

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