In an attempt to flash-smash silver and prevent a weekly close above the critical $35 level, the cartel dumped an estimated 51 MILLION OUNCES of paper silver on the futures market in only 5 minutes on this morning’s non-farm payrolls release between 8:30 and 8:35 AM EST.

Net Dania’s spot silver chart, which is not a precise futures volume measure but approximates the volume, indicates nearly 10,500 contracts were dumped in a span of merely 5 minutes, and half of those were dumped in a span of 2 minutes between 8:30 and 8:32am EST.

In the wake of last week’s report of tungsten filled gold bars discovered in Manhatan’s jewelry district, and our subsequent discovery of this Chinese firm openly advertising tungsten filled gold products, an SD reader has contacted the Chinese firm to see just how easy it is to acquire tungsten filled gold coins.

Full details below:

In his latest MUST WATCH update, Greg Mannarino states that we are only months away from the BURSTING of the US Treasury bond bubble.

As SD has pointed out repeatedly, Mannarino states out that the nations who have funded the US deficit over the past 10-20 years such as China and Japan are backing away from US debt, and the Federal Reserve has become the lender of last resort.
Greg compares the chart of the DJIA during the equities bubble with the current chart of the 30 year bond.  The 30 year has been rising in an unsustainable uptrend as the Federal Reserve is buying US debt like its going out of style.  Greg states that the free market will take over the manipulation of the bond market by the Fed, and the FREE MARKET WILL inevitably pop the bond market bubble blown by the Fed.

Mannarino states that when the bond bubble bursts (he believes this is only months away), faith will be lost in the entire fiat monetary system and we will see the MOTHER OF ALL COLLAPSESGreg states that all of the fiat monetary system cash will flow like a tsunami into the only safe haven assets remaining; gold, silver, and oil
Gold and silver prices will be absolutely staggering due to the collapse in the bond bubble, which will be the final nail in the coffin of the US dollar.
You must become your own central bank today by exchanging your fiat Federal Reserve notes into physical gold and silver.

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“The labour market needs to improve for QE3 to end and, if it does not improve as the Fed wants, other [monetary policy] measures will be introduced,” reckons Standard Bank strategist Steven Barrow.

“If the third round of quantitative easing leads to further weakness of the US Dollar, [other] central banks may be prompted to switch more cash reserves into gold,” says Evy Hambro, co-manager of the UK’s giant Blackrock Gold & General mining-stock fund.
The chart of Dollar gold prices, says a new report from Hambro’s team, “has turned decidedly bullish with the 50-day moving average rising above the 200-day moving average.
The last time this happened was in February 2009…shortly after the implementation of QE1. Then, gold was $900 and never looked back. Should we witness a similar rally, prices would be taken to $2,400 by midsummer next year.

The cartel has just flashed smashed gold and silver on the NFP release, with silver dropping down a vertical mine-shaft to $34.15, and gold down $20 to $1770.

In an unbelievable turn of events and what likely has just induced a collective myocardial infarction among the cartel, rather than triggering long liquidation and a massive sell-off, the $1 cartel raid has been met with MASSIVE BUYING as virtually the entire move has been retraced with silver back above $34.90!!

*Epic cartel fail as silver has retraced the entire flash-smash in under 30 minutes, trading back to $35!!

Precious metals have all run up with the recent loose money policies enacted by various governments.  Clearly the market darling of late is silver which is now gaining favour in Asia for its value appeal.  Spot silver traded in New York has risen by 27% since the end of June, while the price of spot gold has increased by a meek 12%. Analysts say future Indian demand is key for silver’s price to climb. Futures contracts for silver at India’s largest commodity exchange, the Multi Commodity Exchange, rocketed 30% in September compared with July, while volumes fell by 10% for gold futures contracts over the same period. Indian rupee weakness sent gold prices in rupees to an all time high this year, while silver never exceeded the record it hit last April. Rupee-denominated silver is currently being quoted around 20% below the record. Indian investors have ceased purchasing because the 2 weeks ending Oct. 15th is regarded as inauspicious.  The buying will commence and peak during the week ahead of the Hindu festival of Diwali on November 13th. In China, on the Shanghai Futures Exchange silver futures were up 29% at the end of September verses the end of June, while gold climbed 13%, according to data from the exchange’s website.

  • Unemployment rate drops to 7.8% as those receiving unemployment benefits continue to fall off the 2 year benefit cliff
  • NFP + 114k on expectations of + 115k

    Who do you suppose took the phone call at the BLS after Romney embarrassed Obama the other night with that uncomfortable little fact about the number of months the unemployment rate has remained above 8% under Obama?   Perhaps Romney should have focused on the REAL unemployment rate, which remains over 20%!

On today’s Keiser report, Max & Stacy bring a bankster rat onto set to discuss the civil suit against JP Morgan’s mortgage fraud. We revisit episode 97 of the Keiser Report on which journalist Teri Buhl had first warned you about the residential mortgage back security fraud issue on JP Morgan’s balance sheet – thanks to their purchase of Bear Stearns. In the second half of the show, Max Keiser talks to Dr. Michael Hudson, author of The Bubble and Beyond: Fictitious Capital, Debt Deflation and Global Crisis, about Timothy Geithner’s role in facilitating the takeover of the banking system by the Wall Street mafia and about the oligarchic counter revolution against democracy in Europe.

Image: G.L. Kohuth

A group of Michigan State scientists claim to have discovered a bacteria able to convert liquid gold chloride into solid 24-karat gold nuggets.

Before Blythe wets herself, the process is massively cost prohibitive and would not be feasible for commercial production.  Tungsten remains a much better option for our bankster friends.

All joking aside, we recommend our readers stick to financial alchemy of converting digital 1’s and 0’s and fiat Federal Reserve debt notes into 24-karat gold and .999 silver bullion.

 

EAST LANSING, Mich. — At a time when the value of gold has reached an all-time high, Michigan State University researchers have discovered a bacterium’s ability to withstand incredible amounts of toxicity is key to creating 24-karat gold.

By SD Contributor SRSrocco:

THE US ENERGY POLICY IS COMPLETELY F.O.S.! – We are SERIOUSLY SCREWED!

The reason why I have been writing a great deal about energy is due to the fact that energy is money.  Gold and Silver are only a physical accounting of energy.  Without ample energy supplies, gold and silver cannot be mined commercially.

The U.S. energy policy promoting LNG because they believe we have 100 years of natural gas reserves is plain insanity.  Oil is even worse.
Break-even for the average well in the Bakken is probably $100 a barrel
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PEAK GOLD & SILVER will come sooner than later…

The full FOMC Fed minutes from the QE∞ have just been released.

  • Nothing new of major substance (everyone has digested QE∞)
  • Fed sees bond buying risks as ‘manageable’
  • Gold and silver dropping on no overt hints at QE4
  • Must.  Keep. Gold. Under. $1800. &. Silver. Under $35.

The bots have already digested the report and algos are tripping accordingly.
For those humans wishing to actually READ the minutes, Full minutes below:

Greg Mannarino has released a special update discussing the collapse of the Iranian currency the Rial, brought on by stifling economic sanctions placed on the nation by the US and its allies.
Mannarino states that exactly as occurred in Iraq and Lybia, Iran is being attacked over it’s audacity to attack the Petro-dollar by accepting alternative currencies such as physical gold in exchange for oil.
Mannarino states that the riots in the Iranian streets due to the collapse in the Rial and the unavailability of basic goods and necessities are a preview of the events COMING TO A CITY NEAR YOU in the US, as the US Treasury bond bubble bursts and the dollar collapses.

When currency collapse and hyperinflation arrives it is too late to make preparations and protect your financial assets.
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Speaking in a video presented at a Brink’s Canada’s event in Toronto on September 28, GoldMoney’s James Turk outlines the reasons why “everyone should have a precious metals portfolio.”
Turk outlines the stark fiscal facts about government debt problems across the developed world, and why central banks’ determination to devalue the currencies they issue is causing a bull market in precious metals. He demonstrates why gold remains undervalued, despite the great gains seen in its price over the last 11 years, and a means of assessing whether or not the yellow metal is fairly valued or not.

James argues that we are living in “fiat currency bubble”, similar though many magnitudes greater than the recent housing bubbles seen in America, Ireland, Spain and other countries, or the “Tech bubble” in NASDAQ stocks in the late 1990s. The USA is racing towards hyperinflation, courtesy of the Federal Reserve’s monetisation of US government deficits.

Alan Wheatley, Global Economics Correspondent for Reuters has written a very interesting article, ‘Analysis: China’s currency foray augurs geopolitical strains’ where he emphasizes China’s desire to wean out the US dollar’s currency reserve status.  China is actively taking steps to phase out the US dollar which will decrease volatility in oil and commodity prices and deride the ‘exorbitant privilege’ the USA commands as the issuer of the reserve currency at the centre of a post-war international financial architecture which is now failing.

In 1971, U.S. Treasury Secretary John Connally said, “It’s our currency and your problem”.  China is frustrated with what it sees as the US government’s mismanagement of the dollar, and is now actively promoting the cross-border use of its own currency, the yuan, or also called the renminbi, in trade and investment. China’s goal is to decrease transactions costs for Chinese importers and exporters.

Not only the East but their financial ministry colleagues in the West are also questioning the current monetary order.  Change is certainly around the corner.   If the US continues its trillion dollar deficits and does lose its reserve currency status what will a world without a reserve currency look like? 

Gold and silver are spiking on Thursday’s COMEX open, with silver finally taking out the cartel cap at $35, spiking through the level to $35.20.
Gold cleared the $1780 cartel cap early in Thursday’s Asian session, and consolidated between $1785 and $1790 throughout the duration of the Asian and London sessions, prior to spiking towards $1800 on the COMEX open and setting a new 2012 high of $1796.

We have repeatedly discussed the importance of silver closing above $35 on consecutive sessions, and gold above $1800, and the fact that the cartel has been capping both metals over the past 2 weeks on every approach of $1780 and $35. 

We are not out of the woods just as as tomorrow is the September BLS non-farms payroll report, which has historically been one of the cartel’s favorite times to initiate a substantial raid in the metals.  Combine the timing of the BLS release with gold and silver’s potential break-out through clear resistance levels, and we will be shocked if the cartel does not attempt to initiate a major take down over the next 24 hours.

*Update: Well, that didn’t take long as Blythe and her monkeys immediately sprang into action, smashing silver back under $35 and gold back towards $1780

By SD Contributor SRSrocco:

As we can see from the action in Sept 2011, right before gold went vertical, the commercial net short positions were at a peak.  But, when the price moved up it caused a HUGE SHORT SQUEEZE,  forcing the commercials to cover. 

Here we can see that the BULLS won the battle.  Presently, the gold price could go either way as we are seeing extreme high levels in the commercial net short positions.  However, if we do see large buying coming in from the Hedge Funds and etc, it could cause a huge short squeeze, similar to what took place back in Sept 2011.