Play

dynamite“The Whole System Can Blow!” 
In This Week’s Metals and Markets, Doc & Dubin Break Down the Golden Sombrero, & The Mechanics of a Major Gold and Silver Price Raid-
Is the Trading Action Signalling a Small Correction Followed By Another BIG MOVE Higher, Or Are We Witnessing the Early Stages of a MASSIVE Raid That is Just Getting Underway?

 

Buy Silver Coins and rounds at SD Bullion

 

There’s never a dull moment in the precious metals market.  After last week’s show, we saw a flash raid on Monday, with silver taking the brunt of the assault, by design.  But the snap-back that followed was truly impressive, and a continuation of this same, ongoing pattern of both paper and physical buyers remaining in an accumulation mode, buying the dips.  Meanwhile, take a look at what oil and the S&P 500 were doing over the course of this past trading week:

SPX

 

wtic
wtic
The cartel loves to play with silver:

gold

 

 

Silver

While it’s not wise to draw too fine a point here based on just a single week of trading data, it is nevertheless interesting to point out that when silver led precious metals down on Monday with help from our friends, oil and the S&P 500, US benchmark for large capitalization equities, were both pushed higher in an attempt to recapture their respective 50 day moving averages and stem the previous week’s blood letting.  By Tuesday, it was back to the bleeding, and precious metals responded accordingly. 

Doc mentioned the correlation we have seen with the Japanese yen and gold (hat tip to Craig Hemke at the TFMetalsReport.com for doing more than anyone to unearth this relationship).  Well, this week, for whatever it’s worth, oil and the S&P 500 were moving in converse fashion to precious metals, and that is partly a reflection of both the deflationary forces coming out of financial markets and the responses that policy makers are launching to manage markets. 

I can’t prove that assertion (yet), but that appears to be part of what was going on this week, and the pattern visible early in the week carried throughout the rest of the trading week.  Oil trading was particularly suspect, with outsized moves to the upside, attributed to a weaker than expected US inventory build.  Tune into the show for more about this and the global macro context.

Next Week and Beyond

Doc and I started recording before the Friday market close.  As I write, we are deep into the after-hours session and we see a predominately sideways pattern in gold and silver.  That’s respectable, but nothing to get too excited about.  Cartel bastards are going to make an appearance early next week and attempt to capitalize on the modest fade in momentum. 

Despite that irritating nonsense, there is something to be said for silver having been able to muster flat trading after the attack, and gold having managed to turn in a tiny uptrend too for at least part of the post-attack trading day.  There even was accumulation still going on in Jr. miners as can be seen between the 12:30pm – 4:45pm EST time window. 

But of course — no surprise — the last fifteen minutes of trading has a higher concentration of institutional players executing trades, and it looks like some of the paper boys that were riding the momentum as a short-term trade cashed out some positions ahead of the weekend, and given an interpretation that the cartel is about to attack or, simply, that they also see momentum fading a little, the failure to see gold do anything to the upside after breaching $1250, etc, motivated some selling.  That they are exiting “hot” mining share positions is a good thing as it diminishes frothy sentiment and sets-up the next move higher.

gdxj-feb-26-2016

Given these trends and other factors, we are very likely going to see further pressure next week.  But the same snap back pattern we’ve seen play out many times in the past five weeks should manifest once again.  It will just take a little bit more time to assert itself given the ferocity of the precious metals take-down during the latter part of this past trading week.

On a totally different note, we should also start to see the zombified mainstream media forced to start covering news indicating that the Syrian “peace agreement” is nothing of the sort.  It might take longer than next week for that understanding to start to sink into the minds of the conventional financial trading world, but it will happen because American foreign policy is anything but what American officials claim it is – at least, those officials that are at the top and actually calling the shots.  At some point in the next two months, we’re going to start to see turmoil in the Middle East elevate in importance as far as direct impacts to the financial markets are concerned.  More on that during future podcasts.

Weekend Links

Enjoy the weekend!  — Eric Dubin, independent financial and geopolitical/global macro analyst.

Buy Silver Eagles SD Bullion

 

 

  1. REMEMBER MR TRUMP is here to save us. As far as your analist goes  I bet your wrong considering 99% what you say is just the opposite if I had down the inverse of what most of you analist have said I could have retired  by now. The cabal will try but the other fractions wont let it happen that is the sheeple

    • Why are you even here? Every post of yours provides no constructive input.  Your like a homophobe attending a gay parade.

      I’d hump your leg… but you’d likely enjoy it.

      The fact that you fear Trump makes you more the systemic-socialist schmuck!  Go peddle fiat while you can. All you fence riding chickensh*ts are the same. You’ll trash independent thinking until it becomes safe to join in. The world is full of spineless cowards, at least you have company.

  2. I cannot underscore the point that the dollar/ yen vs. gold /silver correlations are only one of many impacts on the markets and that this correlation is not going to continue to have the impact it has had before  because the physical markets influence is becoming much stronger as the world economy weakens further and the influence of the negative interest rate policies in over one quarter of all financial markets is another major driver away from paper market hegemony on the price of the pms.  You can see the ‘control’ of markets ebbing in this latest wash rinse cycle which is not gaining the traction that prior wash rinse cycles have gotten to the downside while the upside is turning to a pm bull market. Since the oversold nature of the pm’s rise has for the most part been almost ‘worked off’ the banks don’t have much of a window to gain further downside traction.  Also, with the rally in financial markets fizzling and the next leg in the downtrend likely to begin soon, we could see limited further downside potential for the pms.  To me, as to the Doc, that gold is so far above its 200 day that attempts to break it down would generate so much more actual pm buying as to make that move down inconceivable.  Hence, the paper markets control is in effect broken.    As Andy Hoffman says: ‘economic mother nature always wins’ and so it is now.

  3. I’ve heard the same things over and over again for years.  Go back and listen to these shows from 2012, 13, 14, 15… they all sound the same.

    You guys don’t know what is really going on, and you don’t know where prices are headed… nobody does.  Stop pretending.

    • It’s true we’ve been told the Comex is close to failure, there is no gold left and prices will shoot to the moon for years now. Frustration and cynicism are entirely justifiable and understandable as this article is more of the same under a slightly different guise – so criticism should be expected. Nobody knows when this situation will change; there is more hysteria and anticipation now than ever before but whether this is borne out of realism or desperation is impossible to say. Nobody knows when the current paradigm will change – and that’s a fact!

    • We don’t know what’s going on? Okay, please explain why the SEC and CFTC allow 800,000 contracts to be dumped all at once with with no regard to the price of the underlying physical commodity? It’s just “hedging” right? LOL. I don’t know, maybe some other SD experts can weigh in on this issue and tell us how this kind of price action is fine, normal and good for the gold and silver markets? On the other hand, and more importantly, maybe someone can explain what “regulatory capture” is to this dimwit?

    • @Fiat Agnostic – Your absolutely right.  I read letters here and outside, and digest the data with a “Hmm” thought process.  I absorb information and decide to buy or sell, generally however adding to my stack.

      funny thing about posting, as a rule of thumb, if “some” people would prefer NOT to see me post, all you simply have to do is keep your pessimistic & groundless narcissism to yourselves, and you’ll never see me hit back.  If you “constructively” post negative feedback, I will intellectually digest what you have to say as well.

      Stupid is as Stupid does – post something stupid, and you’ll get 4-star stupid back – …. from me. 🙂

    • @Bay of Pigs  Hey Bay! Nice to see you posting more often.  I wondered where you went for a while there & spotted ya on Zero Hedge!  I’ve been holding your torch while you’ve been away. (LOL)  You can have it back if you like?  It gets heavy at times. 😀

    • Shamus my man…I have been in Maui for a month and just returned to the NW again this past week. I am off for Vietnam and Thailand in a few weeks and will gone through April. I will try to stay in touch when I can. Keep holding that torch high!

      Peace and Aloha my friend…

    • @Bay of Pigs – You miss my point, of course we all know what’s going on but what we don’t know is when it will end. Many so called experts have been assuring us the end is just around the corner for 4 years and these predictions are more feverish now – they’ve been wrong so far and could continue being wrong. That’s my point.

    • More personal insults from bop followed by an ” I’m such a nice guy post(to those who agree with me)”.  A funny pattern.  You’re all class buddy.  Congrats on having the world all figured out.

    • @Fiat agnostic,  I was not talking to you bro. Of course you are correct on the timing, which is unknown. I was talking to NoGreenRectangles, who obviously isn’t interested in debating the facts on manipulation efforts, of which I provided facts on. Others on this thread provided more info as to how “we do know what is going on”, and how PM’s are getting slammed down. That was my point above.

       

  4. If Americans would just use a portion of there tax return refund to buy just 1 oz of silver, it would collapse supply. To the moon in terms of a price increase.

    What business courses are teaching the value of pms?

    The lack of education, lack of common sense, will do in the common man.

    Keep stacking and keep packing while your stacking.

     

     

    • I don’t know if that will work CentralTexan. On the COMEX there are rat size amounts of silver already but giant elephant size future contracts somehow related to silver. People like Andrew McGuire think it’s possible for that relationship to erode eventually with a physical only exchange. Maybe if they changed the name COMEX which I think stands for Commodities and Metals Exchange to Federal Reserve Notes Exchange that could help. Do people like the Doc who sell precious metals use the COMEX to guarantee the price of the metal they sell? Why are they and the miners supporting the disease that confuses the market?

      How many China men work for the same piece of silver as one person from the United States? The ones that still work for silver that is. That is the real market imbalance at play and it is not discussed much at all that I can see except by the Donald. Paul Craig Roberts mentioned the discussion topic of a future of 50 percent unemployment in his recent interview up from 23% today.

  5. MONDAY – Markets goin’ 2 tank !

    Read up on the G-20 meeting posted on ZeroHedge.  If the article summary doesn’t do it for ya, the look on Janet Yellen’s mug says “Were in Deep Doggie-doo-doo”

    In which case… I’d probably eat some…. but thats not the point!  Likely – PM’s UP – Stocks DOWN.

    (subscribe to doggy-think markets for only .99/ year! We post market updates once annually!) LOL

    • In general, I would agree with you but Monday is the last day of February and I think the Cartel has some chart painting to do.   I’m looking forward to a stacking smash on Monday.

    • “Shamefull” @shamus001

      Dont know if my Huskie could whip your German…but she could outrun him!

      Anyway, we are gonna go thru 14 Im afraid by 2nd week of March due to HUGE, HUGE short positions by the Commercials. I used to scoff at the COTS until I charted for last 4years the extremes and corresponding action. 100%, 100% correlation at the “tops”. Maybe this times different, but got some PUTS on that will differ with that.

      Also, the good ‘ole CME increased Margin Why the big deal? This only crush the Specs (no deep pockets), so Au <1160 also. http://www.kitco.com/news/2016-02-26/CME-Group-Hiking-Margins-For-Gold-Platinum-Futures.html.

      Everyone WAY TOO GIDDY….gonna get smoked. I can say this ’cause my physical stack has been stacked for some time and now just trading swings with my Benjamin’s.

      Not trying to go Blow Poclair or Billy “No Holster” Holter, but….

      Reporting from the Hills of Southern Florida,

      Au83xAg

       

       

    • @Au15xAg you caught that a few days back eh? Lol! I kinda like it! “Shamefull” has a nice nasty-doggy ring to it! ???? given to me by the witts-master farangy, or fidgey, or ferret….you know, the BC tinfoil historian from Thailand.

      14 you say? Hell, as ling as there isnt any shortages, Ill hold onto my cash and see what happens. If your wrong tho, I want a subscription refund! Lol

  6. Does the allocation actions that the US mint are performing, which can be interpreted as strong physical silver demand, explain the weakness silver is exhibiting in the paper markets? Are there forces trying to quell demand by trying to keep the “snowball of physical silver demand” from rolling down the hill?

  7. This is a followup on my purchase order of roughly 800 ounces of silver through Goldmoney in the Malca Amit vault in Singapore. After placing the order on 2/12/2016 , the order was finally filled on 2/25/2016.

    Again , I have been with them for about 3-4 years , and bought at this point over 21000 ounces, took some delivery in Zurich and in Singapore. Never had any issues and ALL the previous orders were ALWAYS executed and filled within 24-48 hours.

    After contacting the rep for Goldmoney, I was told, that there is a lot of orders coming in for this vault in Singapore and basically , they are waiting for the Silver to arrive at the vault. Those are LBMA 1000 oz bars.

    Also Goldmoney’s client assets went from 1.2 billion to about 1.5 billion in the last few months.

    It looks like we might finally get a shortage on the wholesale level.

    keep stacking and good luck to everybody here

    • Congratulations! Nice to hear stories like that.  Growing stack and confirmed delivery.

      It would be cool if Doc included a weekly total of ounces or dollars sold at SDBULLION.

  8. Wow over on KCN they are working themselves up into a frenzy, Total Collapse, Nuclear War, another GFC, Dire Warnings… Just to name a few, I use them as a gauge the more outrageous the claims / warnings then the less likely the STHF, lol I think we are safe for a few more weeks… lol

  9. I was 42  4 years ago  That’s dog years.  BTW, with morons running the show it’s enough to age any canine, 2 or 4 legged.  Photoshopping helps

    Unless we get a change in  duh regime I’ll be 78 by the time we have another presidential election—if we get there.

    Donald Donald, uber alles   Not.

  10. “Popeye and Olive Oil.” Someone “popped” YHW’s right eye with a stake. It is seen on the “Narmer Palette” of Indian King Sudra aka “Narmer” putting his mercenary military governors (10 bad kings) in their place: castrated and beheaded…except for YHW…he wore his “Mark of Qian” in a little box around his neck. The “Hyksos” were mercenary SIKHS. I wanted to show you his “Bagoas” images…but Wikipedia has removed them. I have them, but would need to be allowed to post as article. “Yuya’s” mummy has a “thick coating of resin on his groin area…” “Khufu” and “Narmer” are both depicted driving stake into his forehead/right eye.

    I am far from finished…this is Ily/Ulu/Elilu “El Yaa”…YHW.  The Yue that stole the Moon Goddess name “Iah” and called himself “YUYA.” Farher of “Daesh.” Tushratta/Aye.  In the Sumerian version he is “Hallu-Tush-Inshushinak”…Allah Daesh the Naga Shishak. LOOK AT YUYA’S Hands….THAT is the Islamic prayer posture.

    • Hiran…the yellow-haired devil. “Odd” how his neck seems to have “shrunk” eh? Plenty tales about this Enock….I mean Eunuch….he is Antigonas I…Bagoas…or is that more “Ilu-Sion?”

  11. “I am YHWH”…Hiran…Hiram Abif. Wikipedia had to remove the Bagoas images because he is this guy….”The Blind Pharoah.” The Long-Necked king…. an Ananaki. He is Mes Aynak….the long-necked Smithie.

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