The bullion banks must not have gotten the memo that silver investors the world over had planned a co-ordinated silver buying strike for May 1st, as gold and silver have been slammed on the COMEX open, with silver down $1 to $23.37, and gold down $23 to $1454!
It appears that the bullion banks have decided to front run today’s FOMC statement and coinciding PM smash.


Silver sent down the waterfall on the COMEX open, smashed under support at both $24 and $23.50 to $23.37.



Gold smashed back towards $1450:



Stackers are apparently thanking Blythe for the discount on the May 1st Buy Silver Day, as we are seeing absolutely unprecedented sales this morning at SDBullion…and its barely 9am!



  1. It’s almost as if they want to create a physical shortage. I guess when MSM starts talking up PM’s we’ll know for sure.
    Wish I had some dry powder. I guess I’ll just have to be content with my 3400oz stack.

  2. Let’s see- Mayday driveby anniversary- check!
    Chinese are out to lunch- check!
    Pagan holiday- check!
    Silver stackers acting cocky- check!
    Perfect opportunity to shake out those longs- check! 
    Folks, they don’t care about retail sales, they let the dealers (they are screwing up) worry about that.  
    They have Benny’s presses to keep it going for them, until it all blows up.  Hopefully real soon.

    • Conax
      Don’t forget Hug a Commie day  Workers of the World unite
      Whatever the reason for May 1 break the cartel, the $1 price drop was sweet no matter what reason is came about  Sometimes we just get lucky

    • “Don’t forget Hug a Commie day  Workers of the World unite”
      Indeed so, AG.  Speaking of the Russkies… I just love their dry / dark sense of humor.  Here is a Russian joke:
      Commie #1:  “Hey, comrade, what is the difference between communism and capitalism?”
      Commie #2: “Oh, that’s easy.  Under capitalism, man exploits man.  Under communism, it is just the opposite!”

  3. I don’t really see the point of one-day concentrated buying. Demand doesn’t effect price to begin with, only premium.
    It’s a great discount today though, but if you’re too all-in like myself, it’s a day for a bit of selling. I know exactly what I’d buy if I had cash to burn, but this is it, I’m as all in as I can be.

    • Yeah, Im all in too, so I probably wont be buying today.
      But have 1000 oz of NTR bars on the way from the Doc, so that will have to suffice as my contribution for the May day “buy silver” initiative.
      Keep stacking !

    • @XC Skater, agree 100% with the comment on premiums.  Everyone runs to buy on one day, dealers sell out, premiums skyrocket again for a week, then everything resets to normal as more rounds are produced.  Ho-hum
      That said, kudos to Doc for selling some silver at great premiums.  Nothing wrong with owning silver flat price if you need to, buying dips is great, just don’t see the value in a mass coordinated buy of small denominations.
      Mass buying of futures and standing for delivery, now that would be a story!

    • “Mass buying of futures and standing for delivery, now that would be a story!”
      Yes, it would… and it was.  Just ask a former MF Global client.

    • That is a good reminder about why we hold the physical.  
      It is worth pointing out that MF Global clients now have 91% of their $ back and may actually see the rest… I think Peregrine accounts are SOL.
      CFTC is talking about completely segregated customer funds, as in held in a separate bank from the FCM (MF Global or equivalent).  Adds some cost, but definitely adds a better layer of protection.

  4. I too stacked this morning, right at the morning’s low…..
    Thanks Benny Boo!
    I was told it was a 3 to 5 week wait….no one has eagles in size to buy at all.
    I’m only happy to back up the just-in-time system even more.
    What happens when/if silver delays for products reach 6 months, 9 months, or longer?
    Keep up the great work, Doc!

  5. Hmmm… just thinking out of the box…
    What if Gold and Silver WILL only sky rocket 10 years or 15 years from now? Are we wasting 10 years of our lives just to wait for the move if one are to ALL IN their wealth into metals? Especially if you are in your 50s or 60s?
    If you are a professional trader, you will understand what I mean…
    Have a safe trading.

    • The “WHAT IF” game can be played with near-infinite variety.  So… given that, what if the fiat game blows up the DAY BEFORE you are ready to buy a bunch of PMs?  lol

  6. One more thing,
    I can safely say the so called Cartel will test this year both bottom prices again. Why? Coz they are the whales! And they are professionals!
    Have a safe trading.

  7. I wonder how much longer I will have to keep averaging down until I see something to the upside. If it iisn’t FOMC, it’s the jobs report, If it isn’t that, then its options expiry, if not it’s 100 other things.
    Days like today serve to further convince me that a move to the upside is most likely to occur in a disorderly fashion surrounding some sort of fiasco.

  8. I am not convinced (yet) that this is an actual attack. The selling coming out of NY is pretty much in line with what we have seen the last couple of weeks. There’s just no other market open to take the other side. But… after the FOMC meeting we’ll know. Either way it is a great day for buying with these “low” premium specials, so go on and load up 🙂

  9. @widget
    From Harvey last night: 
     “Late last night a rather large 1506 contracts were served upon or 7.530 million oz.  At 1:30 this afternoon we learned that 2,972 contracts are standing first for 14.86 million oz. No doubt JPMorgan will be busy handing out fiat to encourage these longs not to take possession of the physical metal” 


    • @Conax Man.. that’s 500 tons. If these “paper payoffs” made it back into the spot price we would perhaps have actual price discovery in the paper markets. Whatever they pay to not having to deliver should be added to the short contract price. We really live in la-la land

    • Deliveries tonight were heavily out of Merrill Lynch, not JPMo.  Also, it was not Merrill Lynch house, but a customer who clears with ML.  Stoppers scattered across many different houses, but again, mostly customers.  Only houses playing were Merrill and JP (issuers) and Scotia and Credit Suisse (stoppers).  Jefferies stopped one measly contract.  “Customers” (individuals or corporations clearing with the banks) made up ~80% of the deliveries, and made up ~80% of the stops.  Nothing really fantastic here unless someone else sees it differently than I do?  
      Even more, no registered stocks were withdrawn meaning those who took delivery did not actually take it out of the warehouse.  From my experience that means those who took delivery did so by accident, or were mistaken in their assumptions about their position and will resell their physical ownership through the comex (in the form of deliveries).
      It is possible, however, that the stoppers did have their ducks in a row and will arrange to withdraw registered stocks at a later date.
      Just to put it in perspective, as of last night there were ~46 Mln registered ounces in warehouses, there were an additional 120mln ounces that were eligible (i.e. had assays performed and could be registered with a few minutes notice).  Total of 166mln ounces. 

    • “Total of 166mln ounces.”
      Or, in a different perspective, that’s just over 1/2 oz, for every man, woman, and child in the USA.  Whoopie!

    • Ed, just the stocks in warehouses, not all physical silver, but also a good point.  As long as there is faith in the USD only a very few will feel the need to have real money in hand.

  10. I’ll be stopping by the local coin shop towards the end of the day to get a report on sales today and to buy some more rounds.  Today is Wed, therefore the action today will not be reflected in the COT report this week, not unusual.  I would not be surprised to learn in the next COT report (to be released on 5/10) that the Specs are now short and the commercials are long silver.  I believe the bottom is in; stay strong, don’t get shaken out and keep stacking. 

  11. I bought in the mid 40’s 2 years ago, and i’m very unlucky in everything i do, which means i’ll be surprised if silver is’nt around $15/ounce in the very near future and then takes 5 years to get back to 30 which would put me at $15 an ounce still below what i paid. I wish these pricks would stop messen with my future, and wheres this “explosion to the upside thats iminent” all these pumpers were telling me about 2 years ago, i guess i’m a gullible beast and deserve what i get which will be fuck all.

    • I’ve seen a few posts that are similar to yours as of late here.  I was buying in while Silver was priced in the mid 40’s as well.  I’ve been buying while the price has been declining also.  Bush Rockefeller Rothschild don’t want you to save anything.  Not only that they don’t want you to have anything.   That’s what I think about them.   We can all hang together or we can hang separately.  Do yourself a favor.  Keep stacking.  

    • @Whodareswins:
      Like many members on this website I like the fundamentals of PM’s very much. But like in any other investment vehicle the timing of the purchases could make it a win or a loss.  My advice to you is to stop putting more money in metals until a confirmed reversal is in place. Gold and Silver are in a down trend for 2 years. In an uptrend you buy the dips, in a downtrend you sell rallies – these are the most basic trading rules. While in a downtrend, buying dips, averaging down or trying to pick a bottom is a very risky move that can end up with a significant loss. Wait for a confirmed reversal, before you add more metals to you portfolio.
      Higher prices will come eventually, I hope sooner than later.

    • @Silverholic
      This is great advice.  Only thing I would add is that you can’t make yourself liquidity poor.
      Make silver one investment choice.  Don’t rely on it for fast gains unless you are willing to trade in and out quickly.  If the price of silver really goes to $15 and stays there, that is probably good for the economy in general (unless industrial use just drops off the charts, not a high likelihood in my mind, but not to be ruled out).  
      If you have only a portion of your investments in silver, a strong economy should be a good thing for you and the other portion of your investments (land, property, fiat vehicles, etc).

    • Well… I’m a buy and hold.  Hopefully for another 30-40 years (if my ticker keeps going that long).  This seems a gift to me.  Last run to $49 I should have sold, but I did trade most of my junk silver I had at that point for premium coins and did so at a wash thanks to premiums being in the proverbial toilet and some friends who wanted the cash but didn’t want to see the beautiful coins head to the melting pot. I took proof Franklin halves and proof Roosevelt dimes mostly. I also traded for some proof 40% Ike’s, and while I don’t regret it as they’re beautiful coins and good for a collection, I don’t think they’ll have great utility as silver to use in trade if it ever came to a complete fiat collapse… which I hope does not happen.
      With high premiums I have been selling some of my junk silver I’ve acquired at estate sales and auctions since the $49 highs… my barber halves are going for $18-25 each.  This works for me as I see it as sell two halves of junk and buy a silver eagle with some left over or buy two private mint rounds.  
      I’m buying some now, will be a bigger buyer at $18, and all I can afford and stay liquid at $15.

    • You mean nothing to back it up other than the 160mln oz sitting ready to be delivered if necessary.
      Total open interest in Comex silver tonight is 143,477 contracts, meaning a total leverage of physical * 4.5 = paper.  Doesn’t seem out of line to me but I’m open to another opinion.

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