After regaining nearly all the losses sustained in Wednesday’s big COMEX open raid overnight and finally clawing its way back above $34 early in Thursday’s COMEX session, silver has just gone vertical popping .50 to $34.50.
As ever, it is very difficult to pinpoint exactly why gold and all precious metals fell in price. Interestingly, oil fell by even more – NYMEX crude was down by 1% and was down by more than 1.7% at one stage. The CME Group, which operates the U.S. COMEX gold futures market, said Wednesday’s plunge in gold was not the consequence of a “fat finger” or a human error. The trading wasn’t even fast enough to trigger a pause on Globex, said CME. One thing that we can say for certain was that there was massive, concentrated selling as the New York stock markets opened with some 35,000 lots sold which is equivalent to 3.5 million ounces and saw the price fall from $1,735/oz to $1,711/oz between 0825 and 0830 EST. One sell order alone was believed to be 24 tonnes or 770,000 troy ounces. Incredibly there was 35% daily volume in just 60 seconds. The selling, like all peculiar, counter intuitive, sharp sell offs in recent months, was COMEX driven with COMEX contracts slammed leading to further stop loss selling. The selling may have been by speculative players on the COMEX. It may have been algo or computer trading driven or tech selling – although this is less likely. Informed commentators questioned the nature of the selling as a large institutional COMEX trading entity would normally gradually sell a position of this size in order to maximize profit.
Submitted by Rob Kirby:
Back in 2009, the Royal Canadian Mint [RCM] claimed that it had lost $15 million worth of gold bullion. What ensued from the time the loss was made “public” can best be described as a ‘fumbling exercise’ where – initially – different accounts were put forward as to the reason for the loss. Finally, public catcalls regarding this loss at one of the world’s most renowned Mints led to an official investigation by the Royal Canadian Mounted Police [RCMP].
In the end, we were all told that this loss was due to honest miscalculations and blunders, or in other words – LAX CONTROLS.
Lax Internal Controls at the ISO 9001 accredited Royal Canadian Mint?
Here’s where we deduce why the Royal Canadian Mint circulated a “false, incredulous story” about how they lost $15 million worth of gold bullion:
“In the face of unprecedented demand for gold maple coins and with physical supplies of gold being tight in 2009 – it makes sense that the RCM would have “borrowed” gold bullion from one of their customers whom they store bullion for. I have been told by industry insiders that the RCM does not assay gold bars when they take them in for storage. When the RCM tried to melt these bars, they were revealed to be tungsten – which melts at a much higher temperature than gold. This created a very awkward situation for the RCM – having to tell one of their customers that they had stored salted [tungsten] bricks of gold.
By SD Contributor SRSrocco:
BIG SILVER TAKE DOWN THE DAY AFTER 2.4 M OZ TAKE DOWN OF COMEX SILVER STOCKS
How interesting that silver was treated to a $1 waterfall takedown today, the DAY AFTER 2.4 million physical ounces of silver were withdrawn from COMEX vaults!
Our friends at Visual Capitalist have released the 2nd in a series of 3 MUST SEE infographics on silver. Part 1 focused on The History of Silver .
The just released Part 2 focuses on Silver’s Supply and Demand.
Full infographic below:
Has anyone heard a word of this mentioned in the MSM financial media over the past week? The dollar’s death by a thousand cuts sustained a severe flesh wound last Tuesday.
Post-US world born in Phnom Penh
It is symptomatic of the national condition of the United States that the worst humiliation ever suffered by it as a nation, and by a US president personally, passed almost without comment last week. I refer to the November 20 announcement at a summit meeting in Phnom Penh that 15 Asian nations, comprising half the world’s population, would form a Regional Comprehensive Economic Partnership excluding the United States.
In a PBS interview with Charlie Rose Monday, Warren Buffett made the case for JP Morgan Chase CEO Jamie Dimon to become the next Secretary of the Treasury when Timothy Geithner steps down. Buffett stated, ”If we did run into problems in markets, I think he would actually be the best person you could have in the job”.
If Howard Buffett were alive today rather than turning 5,000 RPM in his grave, we suspect he might recommend Ron Paul as the best person you could have in the job.
Highlights of the Buffett interview below:
The cartel has just launched a major raid on gold and silver the morning after gold’s December options expiration, with gold smashed to $1710, and silver down nearly a dollar to $33.13.
*Update: 2nd wave in progress, silver smashed to $32.83, gold to $1704
Currency wars are set to intensify as the US Senate is considering new sanctions against Iran that would prevent Iran getting paid for its natural resource exports in gold bullion. The new sanctions aimed at reducing global trade with Iran in the energy, shipping and precious metals sectors may soon be considered by the U.S. Senate as part of an annual defense policy bill, senators and aides said on Tuesday, according to Reuters. The sanctions would end “Turkey’s game of gold for natural gas,” Reuters reported a senior Senate aide as saying, referring to reports that Turkey has been paying for natural gas with gold due to sanctions rules. The legislation “would bring economic sanctions on Iran near de facto trade embargo levels with the hope of speeding up the date by which Iran’s economy will collapse,” the aide said. Last week Turkish Deputy Prime Minister Ali Babacan has revealed a critical detail about a widely discussed Turkey-Iran gold trade boom, disclosing that the Islamic republic was exporting gas to Turkey in exchange for payment in gold bullion. It is also reported that Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases, the deputy prime minister said at midnight Nov. 22 during a parliamentary session. Iran cannot transfer monetary payments to Iran in U.S. dollars due to U.S sanctions against the country’s alleged nuclear weapons program. Iran has been forced to shun the international financial system and the petrodollar as means of payment and turn to the international gold market to ensure it gets paid for its natural resources in order to prevent absolute economic collapse.
By Stewart Thomson:
Fundamentally, I believe here are 4 major reasons that the long term silver chart looks “ultra-bullish”.
First, the market is probably anticipating a substantial recovery in the Chinese economy, and perhaps additional government stimulus.
Second, the US fiscal cliff is likely to be resolved in a manner that encourages “risk on” institutional investors to take action on the buy-side.
Third, I expect the European Central Bank will announce measures that calm worries about not just Greece, but Spain and Italy, too.
Fourth, while the fiscal cliff will likely be resolved, I think the US Federal Reserve will expand the current level of stimulus being provided by QE3, probably in January, and this action could cause a near-vertical spike in all risk-on markets.
Silver is likely to be the greatest beneficiary of these 4 key events, even if they play out only partially. If they play out as I’m predicting, I would expect silver to blast through the highs at $50, by early in the new year. Silver at $80 is realistic, if these “fab four” events play out well.
BrotherJohnF’s discusses silver’s technicals, gold’s breakout in numerous currencies, the popping of the student loan bubble, and Antel Fekete’s documentary of 140 years of bankster suppression of silver in Silver Saga in his latest Silver Update.
In the latest Keiser Report, we discuss the water and fire signalling the arrival of the paper apocalypse as ever more analysts warn of the debt and credit bubble as governments put their faith in share traders who, a new study shows, are more manipulative than psychopaths. In the second half, Max Keiser talks to professor and economist, Steve Keen, about the fiscal cliff and private sector deleveraging. They also discuss the possibility of a currency collapse in Japan.
We know that US public debt has been growing, but where is the dollar collapse Peter Schiff has publically predicted? The US dollar index, instead of collapsing, has gained value since 2011, so where is the hyperinflation? It’s true that base money has increased over the past four years, and that the Fed’s balance sheet has more than tripled in size since the onset of the financial crisis, but rather than seeing interest rates spike, we have seen US treasury yields collapse by over 60% since the collapse of Lehman Brothers. Could it be that Peter Schiff and others who have been calling for high or hyperinflation are underestimating the role of the financial system in affecting the money supply through loan growth and other forms of financial engineering? We ask Peter Schiff, CEO of Euro Pacific Capital, what happened to his calls for hyperinflation. Peter admitted to us that hyperinflation may not happen after all, but still maintains that inflation will reach very high levels, perhaps as high as 30%.
By SD Contributor Marshall Swing:
Silver COT Report 11/26/12
Commercials added a huge 1,622 longs on the week and increased a massive 5,847 shorts to end the week with 47.24% of all open interest, a large increase of +0.70% in their share since last week, and now stand as a group at 275,930,000 ounces net short, which is an increase of over 21,000,000 net short ounces from the previous week.
SGT’s latest micro-doc (the original Madness of a Lost Society has received nearly 1 million view on youtube!) examines the madness of a lost society with a financial collapse staring them in the face.
Another ‘Black Friday’ has come and gone. And it has left us with further evidence of the complete madness of the populace of our nation. America has been dealt a fatal blow by corporate greed, Bankster malfeasance and the insidious nature of collectivism — and it’s all been done to us by design.
The once proud and independent people of the United States have, in large part, been reduced to servants of the State.
Featuring Mike Krieger, Rob Kirby, Chris Duane, Gerald Celente, The Doc, Bill Murphy and many others, ‘Madness 3′ offers one last ‘fair warning’ for those with the eyes to see and the ears to hear.