*Update: 2nd wave of smash in progress, silver to $31.25

Last week, we wondered aloud whether the recent chart glitches in gold and silver were in fact the cartel telegraphing upcoming gold and silver raid targets to their friends. 
At the time, gold had already subsequently achieved the raid target of $1699, but silver was still nearly a dollar north of the glitch raid target of $31.80.

After trading in a tight range with minimal volatility throughout the overnight session and early in Tuesday’s COMEX session, gold & silver have just been sent over the HFT Niagra Falls, with gold smashed to $1675, and silver smashed nearly $1 to $31.50.  Nearly 3 weeks later, the cartel has achieved and surpassed it’s chart glitch telegraphed silver target of $31.80. 


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Naturally, today’s gold and silver raids occurred just after the afternoon London fix was set, preventing any physical buyers in London from taking advantage of the manipulative smash.

Silver’s flash crash to $31.25:

*Update: 2nd wave of smash in progress:


And the Nov 26th chart glitch foretelling the upcoming cartel actions:


Gold hammered to $1675:


While they still have a ways to go, it is conceivable that the cartel is attempting to paint a 2nd consecutive negative annual close in silver, and the first negative annual return for gold in the entire bull market.  While it must currently be considered unlikely the cartel achieves these lofty goals, we wouldn’t put it past them to attempt the feat, particularly with minimal volume over the next 2 holiday weeks.

    • Notice how they waited until the London PM fix was made before banging it, so they wouldnt have to sell physical at that price. Meanwhile Commisioners Bart Chilton shucks and jives, Blythe Masters and Scott OMalia do whatever the banks tell them, Mark Wetjen is happy to give nice speeches to bankers as they destroy the world with derivatives and no one knows what Gary Gensler’s thinking.

    • Local coin shop had 4 2012 Silver Eagles left.  I bought 3, leaving one for someone’s last minute Christmas shopping (what a guy!)

      This manipulation is like little kids finding out there are no boundaries! 

  1. Nothing to see here, please move along.  Ban guns.

    In all seriousness, my state just set a new weekend record for number of NICS background checks …. topping out Black Friday weekend big time (which always sets records each year).

    Lock and load guys, silver is about to come into its own…. this is all desperation, take the physical and put it into your sinking boats!

  2. we must be as ‘stupid’ as we seem to them ‘cartel  or they the ‘cartel” don’t really  know  or care how smart we are? just shut up ,pay your taxes keep watching TV  hopefully you will find something to buy and some critical advise,drink up ..merry x-mas

  3. The dollar keeps sinking and so does Silver and Gold. Anyone have anything to say about when the Gold and Silver
    turnaround will happen or all we all going down with the dollar?

    Can’t say that I am not scared with my stack.


  4. Funny, funny funny! LMAO twice over. Somehow I don’t think I lost a single ounce with this raid. How about the rest of you??? Lose anything?

    Great idea Dirtlump. Today is the perfect day to head to the LCD. More silver for the dollar.

  5. Nothing to see here Bart.
     Fiscal Cliff deal looks close……….Good For Gold
    Fiscal Cliff deal looks like its falling apart …….. Good For Gold
    What will it be tomorrow boys (JP, GS and the rest of you crooked bankers)
    Good day to buy some phyzz, thanks for the smash boys.
    Do you really think us ants are going to sell and go away, do you really think we will cave and give into the big scary bankers who are now nearly 300 million ozs short and silver is at $32………NOT!!
    Buy all you can people, the clock is ticking.The big boys will flip the switch and we will ride with them.

  6. Bix opined that the AE Silver shutdown was ordered by Geithner so as to ration what little supply they had.  Silver shortages?  Nah.  Just another Federal official dealing with the typical rationing of a valuable commodity to meet the standard marketing model of government.  When something is in short supply, shut it off completely. Problem solved 

  7. Gold and silver prices have been taken to the cleaners in December for three of the last five years and one of the other years was flat. Why would you expect anything different this time? Thank you JPM for the Christmas sale.
    Thanks doc for spotting this as I’ve had my buy order for paper silver sitting at around $31.70 ever since you mentioned this on November 26th.

    I am guessing they don’t want silver to close above 15% increase y/y. they will smash the price in the range of -5% to 10%. If they reach the -5% mark that means $28.44  silver price,    just as last year when the price of silver closed in the negative range y/y. I am guessing they want to do that this year. but I am not sure if we will make it,, how come the price is now lower when QE3 was announce and yet we had QE3 + QE4 and the price is still lower than when QE3 was announced!
    They will also try to smash the price on the coming weeks on the holidays with low volume.. and no one to notice..
    With the start of next year when the ADP Non-Farm Employment on the first week of Jan, things from now till then looks black,,, but I am also guessing after that, the spring that been under pressure for one year will bounce and we much reach a new record by Feb 2013.

  9. So ah, someone explain to me why all of the smackdowns? The dollar isn’t worth the smackdowns, the only
    side is the industrial production usage side to hold prices down for electronics production. Don’t see anyone
    country thinking about converting their currencies to Gold or Silver, just maybe a few states here in the U. S.
    accept it as currency…don’t know for a fact if the values that are accepted are face value or spot? So what if
    the dollar goes to the shithouse, are public and private entities going to accept Gold and Silver and or what
    currency if backed by Gold or Silver will we trade in? The U.S. Gold reserves are a farce, there is no Gold
    reserves that are higher than any other country. No Gold in Fort Knox at all like we are led to believe, that’s
    a charade. The New York Fed Bank, most likely Tungsten filled or they would let Germany examine theirs.
    I think that we all will be holding a bunch of metal that no one really knows what it’s worth in the long run.
    Someone fill in the void that is missing here.

  10. Funny reading the responses to the raids and the moves up in the metals.  The spectrum is all over the board.  Ranges from being pissed off to people who just brush it off because they see it as a opportunity to buy more metal.  We all have biases  and predictions of where we think and believe what will happen to the metals and the global economy.  I was the person who got pissed off and got mad as hell when these type of moves happened.  Not any more.  It’s just more verification or proof that the markets are rigged.  It’s more proof that we are on the right side of this trade.  I simply can’t be shaken out of my position unless I get fired at my job and I need the money to survive.  Then I will be forced to sell my metal.  Until that moment comes that I can’t support myself on my income, none of these moves mean shit to me.  The metals are not for this current economical structure.  It’s for safety, protection of wealth, and to prepare for what could be coming.  Kyle Bass talked about this theory or psychology called optimism bias.  We as people usually think that events will effect others more then ourselves.  
    The optimism bias (also known as unrealistic or comparative optimism) is a bias that causes a person to believe that they are less at risk of experiencing a negative event compared to others. There are 4 factors that cause a person to be optimistically biased: their desired end state, their cognitive mechanisms, the information they have about themselves versus others, and overall mood.[1] The optimistic bias is seen in a number of situations. For example: people believing that they are less at risk of being a crime victim,[2] smokers believing that they are less likely to contract lung cancer or disease than other smokers, first-time bungee jumpers believing that they are less at risk of an injury than other jumpers,[3] or traders who think they are less exposed to losses in the markets.[4]
    Although the optimism bias occurs for both positive events, such as believing oneself to be more financially successful than others and negative events, such as being less likely to have a drinking problem, there is more research and evidence suggesting that the bias is stronger for negative events.[1][5] However, different consequences result from these two types of events: positive events often lead to feelings of well being and self-esteem, while negative events lead to consequences involving more risk, such as engaging in risky behaviors and not taking precautionary measures for safety.[1]
     Since we think that we own precious metals  that we can’t be exposed to being wrong about this type of movement in the markets.  Logically, all the fundamentals and indicators point to the fact that the metals should be screaming up in price.  This type of movements should happen but it’s not.  I believe anyone on this site or reads about these issues have come to some verification that the system is in serious trouble.  It has help me not to look at the price or movement of the metals as much because it’s psychological in nature and not logical. I have a built in bias towards the movement and it usually doesn’t meet my expectations.  I think you can avoid this optimism bias if you get to the point that price doesn’t indicate value.  Also, if I can try to eliminate my emotional factor of these blatant moves, then it just makes it easy to see the truth.

    • Yes, does make sense, that has been the case for the past few weeks. Just wait until next week! You will again see a “Raid” no doubt, it doesnt have anything to do with all the limit orders to jump out as price drops. Dont worry though as long as you keep stacking it all works out somehow.

  11. Just been waiting on them to keep slamming the silver price. I will continue to wait it out. I recall David Morgan stated that the Silver Price will not go below $30.00 and although the price will rise. There will be a “Correction” (Manipulation) in the future in 2012. He was so right. I actually sold some Silver to buy Christmas presents. So why they slam the price of silver, I will just wait patiently and then purchase what, I know is to be a great deal. Now if the price of silver goes below $30.00 then I will continue to wait. Gold, Silver and The Dollar  going down all at once. Bullsh*t!

  12. Well hell the government has to lower the price so that their debtors can load up on the physical at a cheap price. It also looks like my prediction off $40-$50 by the end of the year is going to be tough. Lol
    It also looks like time to buy some more Phyzz, maybe I can afford some gold now. Lol Keep Stacking

  13. I read that the Cartel is planning to smash silver big-time soon, and then go long on silver. Thats when the price will rise explosively.
    While I dont have a crystal ball, Ive prepared  for a kickdown to the lower 20 dollar range, by minimizing my margin positions the previous month. In retrospect, Im glad I did . Safety first !

    I think that the cartel is in a terrible bind, and will resort to extreme measures.

  14. Good timing for a price smash?  Well, yesterday after work, I visited a friend who had finally talked his elderly father-in-law into lending him his massive stash of ‘Junk Silver’ so that we could look at it.  And what a hoard this turned out to be!

    We counted a total of 158 Silver Dollars – 96 Morgans and the rest Peace.  The rarest ones were a 1901-S & 1935-S, but nearly all of these Silver Dollars appeared to be in very nice condition.  It was amazing!  Then there were zip-lock bags filled with Kennedy Halves; there must have been at least 40 of the 1964’s, and between 20 and 50 in each bag of the 40% 1965’s to 1969’s, which had been separated into individual years.

    There was also a bag with a dozen mixed Franklin & Walking Liberty Halves and a box filled with at least six rolls’ worth of quarters; I pulled out a few quarters at random and found a 1934 that was in pretty good shape.  No ‘smoothies’ in that box!  And then there was another box filled with Roosevelt dimes and a smaller one with Mercury Dimes inside.  Probably about 5 rolls of Roosevelts and half a roll of the Mercurys there.

    Well I’ve advised against buying PM’s on credit but I think that I will ignore my own advice and make an offer on the lot; my friend thinks his FIL will sell for 90% of Spot because that is typically what the local coin shops will pay. So I may just strike while the iron is hot, the seller wants fiat and prices have been smashed.

    But man, who needs porn when it is just the coolest thing in the world to go through and look at all these coins! 

  15. “Gold, Silver Fall On Hopes Fiscal Cliff May Be Avoided”
    With headlines like this one, you can be sure that what is happening to gold and silver ‘prices’ is purely a propaganda stunt.  Remember most of all, it is not fiat paper currencies that give gold and silver value.  Gold and silver are valuable because they represent sound money.  1 oz of physical silver remains 1 oz of physical silver, and your unit of account has not changed… And 1 oz of physical silver in hand is still worth more than 100 oz of paper silver in a computer.
    Didn’t anyone read that the US Mint Sold Out of Silver Eagle Bullion Coins Until January 7, 2013?  They are purposely withholding physical silver from the market, because they know the physical demand is tremendous, and the physical supply is dwindling fast.  Recently it has been reported that both gold and silver have gone into backwardation in the futures markets.  People would rather have their gold and silver now instead of hanging on to cash in the hopes of being able to buy silver and gold at cheaper prices in the future.

    • I just went to the U.S. Mint and they want upwards of $50.95 per silver eagle.  The proof coins are $59.95 which are sold out.
      Actual spot price is $31.60.  So the U.S. Mint now has a spot plus 61% premium for individual silver eagles. Wow!
      It’s been stated over and over again.  Physical silver will start separating more and more from the paper price. 
      Houston, we have a problem!!

  16. The fact that Barky in Da City is setting up a vault to store people’s new PM collectibles hobby, India started a thing with small denomination metals so their crew can take it home only you can’t get a loan to buy it, China is encouraging that middle class they cultivated to go shiny, our Switzerland-visiting overlords are changing all the rules, Argentina says gold is no longer a financial comestible, countries all over the world are making noises about repatriation and/or adding huge bricks to their own stashes, what does it all mean? I see metals being bubblefied to fleece anyone left who has money, be they deeper pockets or the masses with their coin purses, then after that the whole pile will be forcibly bought back for pennies on the dollar and metals-backed bitcoins will be instituted. Those snarky fuckers.

  17. We almost pulled the trigger again today.  What exciting times to get shine.
    The Cartel are doing what they please & we could care less. 
    Everyone here is long (naturally); so be patient my friends.
    Whether it is a couple of ounces or a couple hundred ounces, Bring It.
    It is an early Christmas.

  18. My take on this takedown…..  They (Commercials) are taking down the silver and gold markets in order to cover much of their short position this and next week.  With no one paying attention to the COT report this and next Friday, they are hoping only a few will notice the change in short position.  I will be one of the few following these reports, hope you do the same.  Prepare for a big rally the first quarter of 2013. 

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