There was a massive silver withdrawal out of the Comex on Friday.  Over the past week, there has been a steady increase in the total amount of silver in the Comex warehouses.

However, in one huge withdrawal, 3.6 MILLION OUNCES, a whopping 17% of Brinks total REGISTERED silver inventory was removed on Friday.  I have not seen such a large withdrawal from the registered category for quite some time.

Furthermore, this single withdrawal from the Brinks registered category was nearly 10% of all the total registered silver in the Comex warehouses.


Gold saw quick price falls at the open in Asia overnight and hit a two and a half week low, continuing the drop from the prior trading session.  Stop loss selling was triggered that counteracted the news of China’s inflation data which hinted at a need for further QE.  The yellow metal had its largest daily drop in over two months on Friday. More speculative players may have taken profits and closed long positions after US consumer sentiment climbed to a five year high.
October is one of gold’s weaker months and a correction after recent gains was possible and has materialised. Further weakness is possible and indeed likely although physical demand from Asia has picked up and that should support gold at the $1,700/oz level.

UBS said this morning that it is important to point out that “volumes exiting are not overwhelming, the liquidation action is patchy rather than consistent, while outright shorts are in limited numbers.”  US gold futures and options net length climbed to 198,194 contracts for the week ended October 9th, the highest in nearly fourteen months.  This correction should be used to further accumulate physical bullion in anticipation for a rally in gold after the election in November.

The cartel wasted no time on light Globex trading Sunday night, attacking both gold and silver.  Both metals were treated to waterfall declines on the open, with silver smashed UNDER $33 in seconds, smashed from $33.58 to $32.98.
Gold was knocked down $12 in seconds from $1755 to $1738.

Submitted by DeepCaster:

“Can’t debate, so they changed the job numbers.” -Jack Welch, former General Electric CEO

Jack Welch’s Intuition – that the Official Numbers from the Bureau of Labor Statistics are Bogus — is correct. The Real U.S. Unemployment Rate is 22.8%.  But of equal importance is Welch’s focus on the importance of having reliable numbers as the basis for making sound Business Decisions (and Investment Decisions, we add) in order to protect Wealth and Profit.   So we lay out here certain critically important Numbers, and indicate resultant Profit Potential.

Consider, for example, Key Numbers which will help determine the future Gold Price.  In the first two months of Last Year, Chinese Gold Imports from Hong Kong were about 11,000 kilograms. This year, for the same period Imports were 72,000 kilograms for the same period, about a 650% Increase.
Yet China is now the largest Gold producer on the Earth.
onclusion: China is Hoarding Gold.

Submitted by D. Sherman Okst

What do White-Winged Doves have to do with economics?


This short, nonfiction, tragicomedy personifies what is wrong with our country, our economy and our totally inept and very dysfunctional legal system that has become a leech to taxpayers and a threat to humanity.

The Great Depression of the 1930s was brought upon by lawlessness. Documented, historical proof that a functioning economy is dependent on a basic legal framework. One that we no longer have.

It has been dismantled to allow a few megalomaniac psychopaths on Wall Street to become even richer.

The gold chart indicates that the gold price has quite a ways to go the upside, before the next serious correction occurs.  The RSI indicator has not reached the red danger zone that I’ve highlighted.  Strong bullish moves often occur right before the price goes into that overbought area, above 70.
QE1 & QE2 had a profound effect on the price of gold. During the euro crisis, QE2 may have stopped the dollar from rallying significantly.
The current round of QE has just started, so this rally in gold may be equated to the age of a newborn baby. Over the next 12 months, I expect QE3 to increase the size and velocity of the US dollar “snowball”, and create the strongest leg of the gold bull market.   My intermediate trend targets are $1850 & $2015.
From $2015, I expect a more significant price retracement, and then a move up to my primary trend targets, which are $2300 and $2850Gold should reach all these prices, within twelve months.

No, this is not another bears video, but rather a highly technical explanation by a German Chief Financial Engineer specializing in pattern recognition of charts proving systematic interventions occur in the gold market.

Dimitri Speck is a founding partner and Chief Financial Engineer of Staedel Hanseatic, an investment managing fund based in Frankfurt, Luxembourg and Riga. The investment process is based on computer models that were developed through years of empirical research. Speck specializes in pattern recognition of charts. As part of these activity, he came across an anomaly in the gold price, with which he was able to demonstrate systematic interventions in the gold market.

It’s one thing to simply know when a cartel intervention is occurring the gold or silver market due to years of experience, but it’s another to see it mathematically explained by a German engineer.


B. writes:

Doc- I saw an article about DRescapes discussing leaving the US for the Dominican Republic. It might actually sound good, but here is the question. My stack of phyzz is a little over 12,000 ounces WITH AN AVERAGE cost of $30.93. So it is currently worth about$415,000.  Lets say silver goes to $150 per ounce in 2015. My stack then would be worth about $1.8 million- but that would be in 2012 dollars.
They say silver holds your purchasing power. So wouldn’t it still have the purchasing power of $415,000 in today’s terms? If the Dominican Republic does not inflate their currency like the US wouldn’t the silver be worth over there the same as it is here now? Even if I stay in the US wont my purchasing power in 2015 still be the same as it is now no matter what the dollar value is 3 years from now?
I seem to be very confused. Help. Thanks again in advance.   B.

With Friday afternoon’s sell-off, silver has now retraced it’s entire post QE∞ gains, retesting the gap in the chart on Bernanke’s QE∞ announcement.
While Bernanke, Blythe and friends are likely smugly congratulating themselves at their accomplishment, this is clearly unsustainable over the long term, and silver’s downside momentum and RSI indicators appear to be bottoming.

SD reader Ashley reminds stackers of the importance of preparing mentally and spiritually for an economic collapse as well preparing with guns, gold, and food:

While the United States and other countries strain to pull themselves out of a troubled economy, “We The People” will be the ones on the business end of the situation left with trying to piece together in chaos things that were once taken for granted in the wake of a currency collapse when the brown stuff hits the fan.  As the dollar plummets, interest rates soar, gas pumps dry up and grocers shelves go empty, individuals all over the world will be scrambling to obtain the necessities required provide for themselves and their families.  Those who prepare themselves with food, clean water, guns and silver will be much better at blocking this economic tackle; however, if you haven’t prepared yourself mentally for what is to come, all of your physical preparation efforts may be in vainThose who have not prepared themselves are in for a world of horror beyond their conscious limits as they find themselves in the midst of martial law and riots, unable to provide for their families and surrounded by depression in every corner of their universe.

Submitted by SD Contributor Marshall Swing:

Silver COT Report 10/12/12

Commercial coffers increased a mere 396 longs on the week and covered a minor -440 shorts to end the week with 46.06% of all open interest, a decrease of -0.45% in their share since last week, and now stand as a group at 285,020,000 ounces net short, which is a decrease of just over 4,000,000 net short ounces from the previous week. 

Paul Mylchreest has released the October Thunder Road Report, titled Is Gold a Giffen Good?
For those unfamiliar with the term, a Giffen good is one which violates the normal laws of supply and demand, i.e. instead of falling, demand rises as the price increases.
This certainly appears to be the case with not only gold, but particularly with the investment silver market.  Mylchreest takes an excellent in-depth look at gold and it’s supply/demand fundamentals.  Is the HUI gold bug’s index signaling a bottom in the gold price?

The creative minds that explained quantitative easing to millions with talking bears are back, this time explaining how the rich get richer.
The talking bears aren’t alone this time, but are joined by cartoon figures of Bernanke & Buffett discussing exactly why such a disparity exists between such elite as themselves and the rest of the poor Americans, and WHO EXACTLY BENEFITS FROM QE∞.