*Update: Full-fledged margin-call blood-bath in progress, silver nearing $23 handle, gold to $1420!!

After briefly popping back above $26 in early Globex trading tonight, silver has just been treated to another waterfall smash, gapping down another dollar, collapsing another $1.50 to a $24 handle with a last of $24.35!
Gold has plunged another $65 to $1420!
It appears that the cartel is not concerned whatsoever that 16% of annual US silver mine supply evaporated over the weekend
, and will continue to press any remaining weak or leveraged longs.

Earlier we predicted that if silver support at $25 broke overnight, we could be looking at a spike low to $22, and a rebound to $25-$26 prior to Monday morning’s London fix.  Support did indeed break at $25, with silver plunging to $24, prior to rebounding (for now) to $24.75.

Silver’s gap down as silver approached a $23 handle:


Gold plunging to $1420:



As The Doc warned Friday in the SD Weekly Metals & Markets, a capitulation spike-low tonight to $22 and $1400 tonight is now entirely possible.

  1. Some investor out there has to already have done some analysis to figure out the price point the Cartel & SQUID must reach in order to cash out the mass amount of their Blind Naked Short hoard. My question is What Is That Amount? They are now determined by a Kamikaze action to reach that point in order to shift out of this problematic paper asset. 
    Remember the last time this type of Kamikaze action happened was just before QE3 so you can rest assured that something like a downgrade, QE4 or similar action is beginning to near the surface. 

    • Damn! its rebounding! Break already! im ready to get this game on! take it down to a flat buck, so we can call your damn bluff you paper schmucks…. Ill clean out the vaults by myself then.  Nough playin, take it all the way down and lets see what you got? when the 4th quarter bell rings ill be stacked like a prince, and a forest fire will burn your confetti wealth to its true i.trinsic value: Fertilizer.

    • @PowerBall:  Do you mean JPM, not the Squid (Goldman)?  JPM is the big short.  
      Well, if we do manage to see a spike testing of $22, by that level all existing shorts should be profitable and that would make for a perfectly rational level to see very large short covering.  That’s part of what would be driving what The Doc is talking about above (e.g., “…we could be looking at a spike low to $22, and a rebound to $25-$26 prior to Monday morning’s London fix.”).  That’s as good a call as any.
      May Gold Options contracts close April 25.  Odds are very high that the cartel would want to cover a big chunk of gold shorts by that close.  To what extent it will be a wash/rinse/repeat cycle thereafter, starting another attack round anew from a higher level is hard to predict.  A similar set-up can be seen with silver, but this time around given the gold buying in Asia, the probability for gold to act first, leading the bounce back, is higher than silver leading.

    • Chiltons “Good Cop” routine has worn very thin over the years. He obviously has no authority or power to do a thing about this or he would have a long time ago.

    • @SilverHawk,
      I emailed Bart yesterday and had a quick reply from him (I was astounded, by the way!) Bart replied that they are looking into the trading from the last two days. Bart had been on the side of investors regardless of what is said against him. I truly believe at this point on the ass kicking that Gold and Silver are getting, that terms will follow and shortly.
      Too many people and class action lawsuits (2) that have been thrown out by Judge Patterson because of lack of proof. Now is the time for The CFTC to take action following the proof of trades going on. It is obvious that JPM unloaded their guns of shorts and that is recorded. I found out scouting CDS’s that Bythe Masters was the architect of those derivatives in 1994. The House will come down around JPM’s head sooner that they expect. Morgan has over 90 Trillion in world derivatives and that paper will soon collapse.

    • Ranger – I wouldn’t hold my breath.  Look at what they tried to do to Andrew McGuire.  These people (if you can call them that) will off you, if you get in their way.  If he’s really serious this time, I hope his team takes the stairs instead of the elevator when they go to visit JPM.
      I just read JPM had a “mysterious” $357M first quarter loss…
      Something ain’t right.

    • I feel better now.  Just saw Joel Osteen.  He was preaching about not feeling pity upon yourself.  He used the story of Job as an example.  How Job’s life was going great ($48.00).  Then things started falling apart.  Losing his family, his house, his land.  Things couldn’t have been worse ($24.41).  But Job kept his faith and love in God.  And God rewarded him with twice of what he once had ($96.00).  Keep the faith, because the best is yet to come.  And more!  The sun is soon to shine again 🙂

  2. IMO, Do not worry. There will soon be a massive, massive turn around to at least minimum of 27-28. Keep the faith, CFTC
    is looking into the trading of the last few days. Keep your fingers double crossed. It will happen. The physical market is gaining a lot of power over paper shorts.

  3. Man this is dropping faster than Newtons Apple, hope it slows down a little and hell this is the Asian Market. What will happen when the London exchange opens? Guess I’m gonna get some cheap silver tomorrow if I can find any.

  4. I paid $28/oz this past Friday.  If the new lower prices materialize at the retail level tomorrow then I’ll buy some more.  We are in the twilight zone with record demand for Silver worldwide and falling prices.   Go with the flow and get some more.  

  5. Wow this is amazing! I have never seen the price of silver that low because most of the time, it went to 26$ per ounce at its lows. Now, it is at 24.70$ per ounce. I really wonder what is happening in the market since the price is going down too fast.

  6. For What it’s worth, a friend of mind called MONEX Friday to place a substantial order for several Monster Boxes and wanted 3k in quarters. He was advised ..NO GOTS..PERIOD…NOTHING…sold out of just about everything! WILL CHECKED BACK THIS WEEK!  let it go to $5.00, fine with me. My father told me some 15yrs ago, when Ted Butler was starting to really fight the system,  he said son, “One day you will see full page ads in the newspaper from Industry wanting to buy your silver for production, then it will be… GAME OVER” he has since pasted, and was a wise old man. I don’t look at anymore charts, or listen to the hype of the gurus ( even though there heart is in the right place) Supply and Demand has to rule, and it will and I personally feel it’s right around the corner. And YES, there WILL BE A GREAT TRANSFER OF WEALTH!!… LORD, Please grant me Patience, Amen

    • Jerrymatt
      Your post to me represents the true heart of a stacker.
      Silver will have its epiphany but for now we travel on the silver road. Some travel well, some feel the bumps and others get travel sick. Fare weather follows the storm.
      But for now we just need to do what the price beccons us to do if you can otherwise hit the popcorn.

  7. Under 25!  Haven’t seen this price since like 2009. I still can’t understand how the shorts get out of a short position by selling short even more. Driving down the price to this level will only attract buyers that have been wating for a price crash such as this resulting in a price rebound. When the bounce back happens the spread would be even larger than before one would think. I suppose I’m missing something in the equation. I guess I shouldn’t quit the day job and try trading! 

    • @RocketsRedGlare:  the typical wash/rinse/repeat involves only partial short covering.  They work the ups and downs in an averaging process such that they don’t have to cover everything all at once nor sell all the way down but only sell at strategic points in time when they feel the coming decline will allow management of the average net exposure desired can be achieved. 
      This time around, the hedge funds started joining the selling fiesta at around $32 and lower, getting all the more aggressive as prices declined.  Even retail large net worth clients started directly shorting last week, especially around the Goldman “go short” call and both of groups are going to be shorting as the cartel covers this week.  Just how much of a rotation and its impact on price remains to be seen, but again, that $22 level on silver, for example, would result in pretty much all cartel short positions being profitable and ripe for closing, which should put a floor on the market and give us a bounce.  What happens after that as we approach May is an open question.  
      The precious metals sector blasted to the upside the last time the US was going through budget talks and the debt downgrade.  May/June might bring some of the same conditions.  We’ll see.

    • Perhaps instead of pontificating about Freegold – you should have actually read and understood it. This was all predicted.
      As for Bloomberg – why would the rest of the world care that you are losing your shirt going all-in on Silver?

    • And for your information they are reporting it now, just a bit slow. Saying that IMF are going to report on the US economy being a big stupid lie. This will be BIG news, means that the Fed has lied.

  8. Well, I just made 40% profit with market arbitrage on Chinese numismatic silver, whilst silver spot got its ass kicked.
    I learned my lesson once before, bullion is too volatile and manipulated. The Silver Bullet convinced me to buy bullion at $43 before it fell to $30, never again.
    Go for an investment with dual fundamentals of numismatics and pm content.

    • @BullRun, you don’t need more servers, just better technology, you need to install some NOSQL databases instead of mySQL and scrap the PHP, it can’t handle big traffic. Either that or you need to start thinking about Cache servers.

  9. This is like 2008, only this time the transformation from electronic paper market to physical market will be irreversible.  This is the unwinding of the paper markets in Gold and Silver.  Simultaneously, this is signifying the death of the realm of paper fiat money.
    “Buy Gold, buy Silver, Have Faith”
    –Darryl R Schoon

  10. The Russians and the Chinks are having a party. It won’t last long. Wonder what Blythe will do at The Comex open? Let’s see, weak retail sales, economy is not improving, Oreo wants to pass a budget that neither Democrats or Republicans agree on and to boot raise taxes, spend more money! Really makes a lot of sense? The Fed printing 85 Billion a month to buy debt that will never be repaid. Gold and Silver getting the Shit kicked out of it even though shortages prevail. North Korea’s shoe can drop at any moment, our troops trading shots with the Chinese in Africa, Draghi wants all of the Cyprus Gold. Syria still a fuse for war in the middle East and we are worried about where Gold and Silver will wind up? Sheesh, stock market being propped up by The Fed and keeps a declining value of the dollar strong. Holy Jesus if Silver goes down to $20.00, I am buying two more monster boxes. Gold and Silver will boomer rang so fast to the up side that the speed of light can’t catch either!
    Just have a look at what’s going on worldwide and here in the States, Gold and Silver will take care of themselves!

  11. I used to get depressed and uptight about these interventions by the money powers with the help of their paid for friends in government. Now days I am just amused and I will not give up a single ounce of my gold or silver to them. I am sure that sometime in the future, they will demonize those wise people who laid up the true wealth of gold and silver and try to make owning it and hoarding it a felony.
    They are breaking many commandments and in the end, when the gold and silver they lust for becomes worthless as asphalt at the second coming of the master and owner of this world, they will own every crime they have committed against their fellow man. It will bite and devour them in the end.

    • mayeeden: I agree. I have become hardened by almost two years of this. And more recently the manipulation has become so obvious, while the fundamentals so positive that I almost welcome the SPOT price drops. I fear none of it, and see each drop(?) as an opportunity. I know what the physical side looks like and as long as physical demand remains robust I have confidence and conviction in my long term strategy. We are all seeing first hand why markets cannot be controlled indefinitely. And the longer they try the more severe the adjustment.

  12. If the US Mint is rationing their ASEs now, and the dealer I spoke with at the show today was really pissed he could not get ANY ASEs from his regular sources with nothing on the horizon. He was practically shouting in the phone, expressing his displeasure at the lack of supply.
      The loss of the Rio Tinto mine’s loss, representing 16% of US silver production, will severely crimp the US Mint’s silver availability.
      Yes, some of the silver planchets  comes from Canada and Australia, or so I’ve heard, but I don’t think that any of  the ‘friends’ we are making, that  anyone will backfill the Mint’s silver shortages.
    It would not surprise me to see the Mint shut down frequently, for days or even weeks at a time, with rationing a regular feature of their progress.

  13. http://www.theglobeandmail.com/globe-investor/inside-the-market/eric-sprott-sells-big-chunk-of-silver-trust-units/article11157109/
    Eric Sprott has been busy offloading units in his Sprott Physical Silver Trust over the last few weeks.
    It may be fortunate timing; the fund hit a record low today amid the vicious 5 per cent plunge in silver prices.
    INK Research, which monitors insider buying and selling activity, points out to us that regulatory filings show Mr. Sprott sold $46,258,984 (Canadian) over the past 30 days in the trust. The sales to the public occurred almost daily in several transactions. (You can click here to see his last 10 transactions.)
    Sprott didn’t become a billionaire for nothing. Like I previously stated on numerous occasions. These businessmen and or women have companies to run and the need these metals sold to keep their businesses lucrative. Now I am not bashing them at all. However, someone knew something was coming when you sell $46 million (Canadian). You can see sliver continue to plunge downward. Just keep the faith and stack the smack. After all this is the paper shuffle and no one is selling physical at these prices.

    • If nothing else, this gives a bad taste in mouth. So is this to be seen that Sprott is one of “them” or just a very experienced trader. Well, in any case none of these silver bulls tend to instruct their customers to watch out and buy back later. 
      Anyway, I hope it goes to dollar so we the silverdoctor readers can buy a large junk of the total world supply among ourselves and not release it any any price (almost any).
      Sick of these totally lawless and rigged market actions.

    • Everyone is tired of the corruption and manipulation Silverdude. However, when you have LCD not selling @ the paper price and there is a physical shortage. Still you can’t tell me that Sprott did not know something was coming. Birds of a feather flock together..Business is business.

    • Damn skippy nobody is selling at the spot prices.  I fully expect that if I hit up the LCS tomorrow, one of two things happens:
      1) they tell me for the 3rd time in 3 weeks that they are all out on ASEs of ANY year (and these guys regularly had an entire shelf in their big vault on-site loaded with boxes FULL of random 1oz rounds along with boxes of random ASEs that folks sold back or they had on hand, along with a number of “current year” ASEs
      2) they still have some silver of any kind ,but wow, wouldn’t you be shocked, premiums have got to go up and are now 7-8$ per oz.  Whocouldanode?  (I could, after the last 2 premium bumps to 4.00 and 6.00 respectively, keeping the total cost per oz hovering in the 31-32$ range)
      90% has been a better “deal” of late, tho dimes seem especially hard to get.  I’ve gone in on a bunch of quarters, and even picked up a small number of Franklins and Walking Liberty (beatiful coin design FWIW) since the premiums on those are still small (since there is not current manufacture cost or whatver, they’re old and already made – so can be gotten cheaper).  Silver is silver at the end of the day, so I’ll keep mixing and matching between my ASEs and 90%, but I don’t think I would expect to see anyone acutally selling anywhere close to spot at this point….

  14. APMEX has only a few bags of 90% ($500 worth) and from the looks of their Monster Box page, a dozen or so of them.  Can’t help but think they’ll be out tomorrow with the prices where they are.  Looks like on Friday, they raised the monster box premium up .49.  $4.49 over being the cheapest for the 2013.  And as high as $5.99 for a 2011 box.

  15. Well I got an order in this morning with my refiners for a morning fix. Lets see what happens. All I can say is, I got an order, which is better than I thought it was going to be, I thought it would a closed shop.
    Ordered 2 Kilos silver hopefully @ £16 Spot plus refiner spread.

  16. Thought I’d check in with the weak hands that might be on this thread. I already posted this but, hey, gotta get the word out 🙂

      All I can offer from north of 49 is an excellent investment opportunity. For all of you who plan on letting your phyz slide through your weak hands today. I have some trinkets and toys for sale. 

    Hmm , what should you buy? A ridiculously expensive mountain bike that I don’t have time to ride? a classic old guitar that I don’t play very often? You’ll love my old 1936 evinrude outboard motor in mint shape…with original owners manual and pull cord?
    seriously now……………Stick to your guns people. You only lose wealth if you actually sell into this sillyness.

    If you can’t stomach the roller coaster ride that is Pms and decide to capitulate, let me know and I’ll get the sheeple shears out. But before you start running up the price on my shiny old outboard, Think long and hard about how strong your convictions are and remember why you got into this game. While you’re doing that I think I’ll go take one last ride on my bike.

    • lol….   open your minds door to Jsnip4….
      I really enjoy this guy. He’s just one of us, and I’m really glad too…..do wish he’d get names right and better pronounced some of his words….but just the same—the guy ROCKS!

    • No worries silverdog.
      I only wish I’d held off buying another day instead of buying another 100 ounces this morning.
      After seeing the story about the mine collapse in Utah I thought there was a good chance that the price would spike up, until I saw that story my plan was to wait and see what happened through Mondays trading sessions in all markets.
      Now I’ve got no more dry powder. 🙁

  17. are we all goi0ng to scream manipulation even though the charts showed this.. even though we were overbought and needed to work off the energy… This isnt manipulation it was a margin call because japan is blowing up. We are still going to 20 get use to it… Doc, are you going to delete this post as you did to my other one.

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