Shorts in Trouble? Gold & Silver Spiking Again on COMEX Open

beach ballOn this weekend’s Metals & Markets, The Doc & Eric Dubin informed listeners that silver’s strong trading Friday in breaking through the cartel cap at $20.50 in the access market could result in a big move to the upside in silver this week.
Just as predicted, both silver and gold gapped up on the Monday Asian open tonight, with silver blasting nearly $1 higher to $21.30, and gold moving $20 to the upside through $1330.  After a consolidation back under $21 during London trading, gold & silver are again going vertical on the COMEX open.
Is the long anticipated short covering rally in the metals underway?

AG 47 ad(2)

Silver gapped up on the open, and quickly tested $21 twice before bursting through it to $21.30.   Look for a retest of the $21 level breakout throughout the overnight session.  A strong move back up after retesting the $21 level could easily propel a short covering spike to $22.50 early this week:

 

Gold launched immediately through $1330, consolidated around the number throughout early Asian market trading, and has once again gone vertical early in COMEX trading, spiking through $1345:

Comments

  1. I can’t remember seeing a time when gold and silver prices moved up this strongly in Asia during the US Sunday afternoon opening.  In many cases, the moves are often a dollar or so for gold and maybe 5-10 cents for silver.  If these numbers hold through the US Monday morning opening, it could indicate a strong move for PM prices.  Whether they can spike and hold is another matter, though.  As usual, I am torn between PM prices rising so my hoard has more “value” in currency terms and PM prices falling so I can continue to buy cheaply.  This is not an even thing, though… maybe 30-70, with continuing to buy cheaply winning 2:1 over prices rising.  :-D

    • I am right with you Ed, I was surprised as well. If the CME and sister Comex open to the positive sides then the shorts are getting hammered and or converted to long. Silver broke the trend line of $20.50 and from what I have read when it breaks $20.50, then $22.50, $25.00 and beyond.The clue will be in the morning when the Comex goes live. There is possibly some truth that the Comex and LMBA inventories along with Scotia are having problems. Nevertheless there are more positives working than negatives. If all goes to the long side I think we will see Silver bust $30.00 sometime this fall, maybe more. 
       
      Keeping fingers and toes crossed at this point.
      Regards,
      Ranger
       

    • As it turned out, both gold and silver made strong upside moves in the US shortly after the strong Asian open.  It will, indeed, be interesting to see how this plays out in the coming days and weeks.  Anyone interested in selling?  ”Oh, HELL NO!”, they chorused.  ;-)

  2. M45 is an up and coming GURU at this point.

    • Yep…Good Job   M45—Charlie called it!
      I’m still looking for Silver to be between $40 – $44 by Christmas….

    • As (in my view) M45′s avatar always makes me think James Turk, his rising GURU status is well positioned :)

    • I’m no Guru, I’m a Stacker getting ready for WTSHTF  by the way I’m sorry I can’t tell you my sources as they as they have held me to my word of honor. Lol
      Seriously though I see Silver heading up and the next big test FOR ME will be $35.50 after that the game is on. Keep Stacking

    • “I’m no Guru…”
       
      Nope, sorry, Charlie.  You have been duly elected as the official SD web site silver guru.  Now you’ve done it, boy!  lol
       

  3. The ‘curtain’ occluding view of the ‘remaining chairs’, if any at all to be claimed, is the invisible frenzy of activity in the OTC arena. Everything else in the glaringly touted paper markets is so much ‘psy-ops’. The evidence ‘spilling over’ from the OTC into the paper reporting is persistently  indicating that a huge amount of bullion is increasingly draining out from ready circulation. As always, of more captivating focus is the condition of gold volumes, but more invisibly crucial is that of silver. When large defaults on silver delivery reach such a level that they can’t be hidden in the OTC any longer, THAT’S when the REAL ‘fireworks’ will be lit off.

    JPM and their cohort CBs can make countless haiku headlines and trigger dozens of ‘useful’ analytical studies by ‘going long gold’, but all that hoop-la intentionally serves to distract concentration of targeting accumulation efforts from the bullion banks’ real Achilles Heel … silver! The ‘collateral damage’ wrecked in silver mining capacities to produce ore, by the mere staging of their Kabuki Play to defend the banknote scheme’s phony image of viability, only buffs the brilliance of silver’s ever more blinding white radiance, leaving gold’s mellow luster in dim juxtaposition.

    As usual, the ‘play’ is to ‘cost average’ both up and down until the OTC curtain falls, to reveal a stark, empty floor.

    • Great observations Pat.
      Consider: RECORD 2013 Silver Eagle sales will amount to  less than 1/5 an ounce of silver per capita distributed within the USA, corresponding to nearly DOUBLE its annual mine production, LOL>>>
      Consider: RECORD silver imports to India and China amounting to less than 1/10 an ounce of silver per capita ‘implied’ physical demand. 
      there is insufficient physical silver for a SINGLE OUNCE per capita in any of the developing countries.  We hardly need a blip in investment demand to overwhelm the bullion banks and ignite a massive short squeeze.
      How will this ‘blip’ manifest? Simply review ALL charts over the last decade, in the broadest possible sense. Slowly, common folks are realizing these massive undamped swings in prices are a fiat expression of an unstable monetary regime, infested with overlevered derivates trading via unregulated HFT off balance sheet paper manipulations.  They are seeing serial broken promises surrounding their pension funds, sovereign level defaults, etc…
      We have long known how this story ends, as anyone whom does even a summary accounting arrives here:
      It is only going to take a point one percent physical allocation towards silver round the world to send the fractionally backed and overlevered bullion banks to their graves.

  4. And just as quickly as the shit rises, we hear that all-too-familiar sound of the toilet plunger doing what it does best!

  5. Silver is being smashed down hard against the uptrend which should of been at 21.40 by now. I have been watching the ticker and several instant huge push downs for 3 cents a pop, forcing it well below the trend line. Someone is trying to slowly reverse the trend by muscling the market. You will notice on the chart when the maret opened it was up leg, up leg, down leg, flat and then again up leg, up leg, down leg flat. Then it went up leg and instead going back up to the trend line it fell off a cliff.

  6. Silver will need to jump hard again buy 40 cents or more in the next hour to stay in the trend line or we could see a reversal by the time the market opens.

    Here it is 3 hours later and the trend has reversed. Unless the NY market opens up with a vertical move to 2.40+ expect to see a downward trend for the next few days.

  7. Charlie is my new guru!

  8. Nice looks like it hit the trend line and as soon as the NY exchange opened it did what I thought it would, it went vertical hard. You will see it hit the 21.40 area in the next hour then start to slide again.

  9. Cover your shorts!

  10. Hey SilverSlicker  where the hell did you get this pic from lol.

  11. This is called “Manipulation Breakdown” even the MOPE can’t even cover their shorts.

    But don’t worry, reset button will commence in September.

    Keep Stacking!

  12. luciferians  crew cut ,very short

  13. One wonders at this point, why the cartel can’t sell a billion ounces, as they’ve done before. I truly hop we’re coming to the end of the road now and that these guys have finally shot themselves in the face, foot, balls, abdomen, and knee.
     
    The mining sector is toast, and perversely will only get worse in the short term, as apparently miners have started hedging again, at the worst possible time.
     
    My sense is that as we bandied around a few months ago, this effort was done to extricate them from a short position, and to keep metals down in advance of a market crash. Bring it on. It’s baked into the cake. I expect it will be breath taking and may all of you be prepared on a personal level to care for your families as this goes down.

  14. Please tell me this ain’t you DL?
     

  15. Oops, screwed that up.

    • LOL @Jccjktj
      You’re COOL, Need you over here in the “Colonies”  :D
       
      Silly old Limey B@$t@rd! JK, JC   ;)

    • @undeRGRround
      Hey RGR :)
      I’d be over like a shot man, I love it your side of the pond.
      Well when I was last there!!! About 8 years ago.
      I get the feeling everything has changed somewhat!!!
      Good to be back on SD, haven’t posted much for a while.
      How you doing you old sod ;) Prepping your ass off!

    • Now THAT is a hilarious photo and caption.  Well done!  :-D
       

  16. The price suppression and manipulation of silver and gold prices may have run, or be in the end run of its cycles and for several reasons.  The lesst of which is classic reversion to means and the absolute mathematical certainty that scarcity increases the value of certain goods.  Giffin goods come to mind.
    JPM is  being hammered  by billions in legal fees and regulatory fines.  They may just think that no matter how close they are to the USG and treasury, their own survival and safety (think jail) may be the best strategy now.  If they’ve run to the end of their PM rigging string and are desperate for more trading profits, seeing the London Whale cronies likely to do jail time, $16 billion in legal fees, it might be time to get on the long side. Bankers could care less about countries; profits come first.  Governments are just convenient foils to their actions, providing funds and legal high cover for their activities.
     There’s plenty of money to be made with 85,000 long gold contracts in their JPM bank.  I’m not saying they are on the side of the angels but the handwriting is on the wall.   JPM is also exiting one of Blythe’s favority money makers, the physical storage side of the equation just like GS and others  who are running from that copper and aluminum storage scam that has been outted recently. 
    The USG may  be thrown under the bus.   If the longs  are  in the east,  with some very powerful GDPs making the world’s  physical  precious metals market in the form of India, China and others, if I was Dimon I’d be on the bus and maybe even driving it.
    The US gov, Fed and Treasury have been thrown under the bus by these banksters before. Dimon peers out of the side window and smiles.

    The Dollar and UST notes are reaching their ‘USE BY’ date. 

    If enough of the world’s GDPs, including the bigs mentioned, along with who and what represent 2/3s of the world population and 50% of the worldwide GDP, says the dollar is no longer the reserve currency, banksters are going to run to the new money.  They may even be a very close part of the rotation to another currency, possibly in the form of a BRIC based Gold backed FIAT, making some coinn along the way.
    The banks are over, above, and beyond the normal and secular realm of a sovereign, its territory, its lands and political influence.  That political influence via the US, the dumbasses in the White House and even the military is  reaching its tipping point with billions of people and hundreds of leaders saying NO MAS to the FIAT US dollar, our hegemony and bluster.
    There are 315,000,000 people in a world of 7,000,000,000 people, all of whom was a decent shake at life, liberty and pursuit of happiness.  A 20 to 1 ratio might not work to well in our favor, too boot. As fast as our Dear Leaders are repudiating our Constitution and Bill of Rights, this throwing out of our birthright has not gone unnoticed.
    There are plenty of hands reaching out to grab that Golden Ring and run with it.  If we are so incredibly foolish to lose this, there are billions who would love to take up the baton.  And that baton is going to be supported hopefully by the will of the people, gold, silver, oil and the vital commodities that will put someone in this world ahead of us in this game. 

    There should not be a “I win, you lose” situation but we have gobbled up resources that kings of old would have never imagined in their wildest dreams. We have power, the cudgel of the military and computer mechanisms that can do great harm to others. We are using it in a most heavy handed manner.
     But others are seeing how they must and will protect themselves from a dying empire.  That tree which falls in this forest will be heard loud and clear.

    • “They may even be a very close part of the rotation to another currency, possibly in the form of a BRIC based Gold backed FIAT, making some coinn along the way.”
       
      Hmmm… is it possible that we have a different definition of what constitutes a “fiat currency”?  IMHO, any currency that is backed by real goods, such as gold, silver, oil, wheat, etc. is not a fiat currency.  Fiat currencies have no backing, other than the “full faith and credit” of the governments that print them.  Or have I misunderstood what the word “fiat” means in the context of currency?  If so, please straighten me out ASAP.  Thanks!  :-)
       

  17. Jeez I geteal serious n’ stuff with a post and missed the “Best of Walmartians”   That is weird and funny in way to many ways.  I think I’ll trade the pork futures market today. The shorts are doing down.

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