silver smash

Today we again had some short covering in the silver comex with the silver OI falling by 464 contracts.  Gold OI fell by a whopping 14,006 contracts.  Both gold and silver rose nicely today. Again we had 1,028.80 oz of gold leave the comex vaults.  
Gold was knocked down this afternoon to $1195, options expiry is tomorrow so the crooks are already whacking:

For the last couple of decades those in charge have been building up huge bubbles, one after another, by merely kicking the can down the road.
They went from the Asian financial crisis, to the Long-Term Capital Management bailout, to the NASDAQ bubble, to the real estate bubble, to the banking bubble, to the sovereign debt bubble, and now to this central banking bubble where balance sheets of major central banks have just exploded in recent years…
Every time there’s a little problem, a recession or some banking failure, they try to take shortcuts. Doing anything they can to avoid taking the pain and to look like they’re proactively doing something about the problem.
They slash interest rates to zero, they conjure an extraordinary amount of money, and pave the way for trillions of dollars, euros, and yen to be mis-allocated in the system.
And when it all starts to collapse, they try to take yet another shortcut.
But all it does is lead to another crisis. To exactly the same place where they were before—total gridlock.


This market is completely detached from reality – it’s completely manipulated…It’s insanity what’s going on. I don’t know how anybody in their right mind can be in this market. You’d have to be crazy…when you first see the manipulation, it turns out to be the thin edge of a wedge and it’s only going to get worse and cover up goes on and on and on. Every price in every market is manipulated.

beach ball

Gold & silver are spiking again this morning, continuing their week long rallies that began on the March FOMC statement when the market realized the Fed has no intentions of seriously raising interest rates. 
While silver has already cleared initial resistance at $17, Gold is preparing for a battle at $1200…


On March 20, 2015, global gold price discovery changed. Transparency was introduced to the London gold market, as the new “LBMA Gold Price” was launched.
Now, the Eastern love trade is starting to overwhelm the Western fear trade. It’s a theme that will probably accelerate very dramatically in the second half of this year.

Without the Eastern love trade, gold probably would trade in the $700 – $1000 area, if another financial crisis didn’t occur.  That’s because Western fear traders simply don’t buy enough tonnage to overwhelm mine and scrap supply, except in the most extreme and temporary situations.
In contrast, the Eastern love trade should produce consistent 5% – 15% annual gold price appreciation, with very limited volatility, for decades to come.
I expect to see gold stocks make a “stealth” change over the next 1 -2 years, from being the most hated asset class in the world, to one of the most respected. 


In silver, the open interest today fell by 1527 contracts, due to short covering, as Monday’s silver price was unchanged. The total silver OI continues to remain extremely high with today’s reading at 174,123 contracts.
The front month of March rose by 63 contracts to 604 contracts. We are still close to multi year high in the total OI complex despite a record low price. This dichotomy has been happening now for quite a while and defies logic.
There is no doubt that the silver situation is scaring our bankers to no end.

The move to a cashless society won’t happen overnight.  Instead, it is being implemented very slowly and systematically in a series of incremental steps.
All over the planet, governments are starting to place restrictions on the use of cash for security reasons.
As citizens, we are being told that this is being done to thwart criminals, terrorists, drug runners, money launderers and tax evaders.
Other forms of payment are much easier for governments to track, and so they very much prefer them.  But we are rapidly getting to the point where the use of cash is considered to be a “suspicious activity” all by itself.
These days, if you pay a hotel bill with cash or if you pay for several hundred dollars worth of goods at a store with cash you are probably going to get looked at funny.
You see, the truth is that we have already been trained to regard the use of large amounts of cash to be unusual.
The next step will be to formally ban large cash transactions…