willieThey know they have an end-game coming- its already begun and these two events were signatures of that.
When silver breaks $18.50…it’s going to take out $50 and hit Eric Sprott’s number of $100+…

 

 

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Submitted by PM Fund Manager Dave Kranzler

When silver breaks $18.50…it will then take out $50 and hit Eric Sprott’s number of $100-plus because since the last time it hit $50 they’ve gone through all that physical supply…this time they won’t be able to go to the physical supply well. 

A “commercial signal failure” occurs in commodities futures trading when the open interest in futures contracts exceeds the amount of the underlying commodity that is available to deliver into those contracts should enough entities that are long decide to demand delivery per the terms of the contract.   It is a rare event because the futures open interest in most commodities rarely exceeds more than 10-20% of the amount of the underlying available.

Except in the gold and silver markets, when the open interest in any other commodity wanders beyond that 120% level the Commodities Futures Trading Commission puts a halt to the entities which are responsible for what has been determined to be “attempted market manipulation.”  This has occurred in the past in the energy markets.

Too be sure, allowing open interest of futures contracts which exceeds the underlying availability of the commodity enables a higher degree of liquidity in the futures market. However, currently on the Comex the ratio of futures open interest to available gold for delivery is 174:1 – this is for the “registered,” or gold designated available for delivery.  In the silver market the ratio is 29:1.  Given those absurd ratios, it’s safe to assume that the role of gold and silver futures trading is to enable the Fed and the U.S. Treasury, through their bullion bank emissaries (primarily JP Morgan, Scotia and HSBC) to use Comex futures as a tool for manipulating the market.

The Shadow of Truth hosted GATA/LeMetropole Cafe’s Bill “Midas” Murphy  to discuss some recent events which have led Bill to conclude that ability of the bullion banks to manipulate the precious metals has likely reached its end-game:  “eastern hemisphere demand for physical gold and silver is overwhelming the paper manipulators.”

MurphyHUI

The first event occurred the day that the HUI “gold bug” mining stock index was driven below 100 intra-day.  It closed over 100 that day and then proceeded on an 18-day tear through that took the index up 60%.  (click on image to enlarge)

The second event was the blatantly fraudulent LBMA silver fix which “fixed” the price at $13.58 despite the fact that external Comex futures were trading at $14.40.

They know they have an end-game coming, and it’s begun and those two events were signatures of that.  – Bill Murphy

Bill was particularly “fired up” today and we think you’ll find the discussion highly engaging and informative:

The longer they drag this out, the worse it will be when the market finally breaks beyond their ability to control the outcome. – Bill Murphy

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  1. I think some of these guys, need more tinfoil for their hat. What they fail to mention, is that in an economic crash, commodities, and that includes silver, will go through the floor. During the great depression this is exactly what happened. Industry stopped so they didn’t need silver, and people sold off their silver ware to eat. Gold did ok but they needed gold, to back the dollar, and they even had a dollar shortage, so they needed more of it. This is not the case anymore, we have fiat money backed by nothing.You could argue it will be needed, as we return to a gold standard, but that seems unlikely. Central banks and their criminal friends like current system, of print and pocket, and will never, tie their hands again.If the price goes to $100 or even $1000 its because the powers that be, want it so, and has nothing to do with market forces.

     

    • perkunas, you don’t understand the most important crash of all… the dollar crash.

       

      the dollar has been in a slow crash for 100 years. losing value consistently. a very fast crash is just around the corner (see canada, venezuela, etc).

       

      the notion that silver will go down to zero and inflation will be a thing of the past is just nonsense and smacks of trying to instill fear in silver investors. truth is, now is probably the best time to buy silver as there has ever been. you have a clear recent price of $50 in 2010 and 2011, and a historic price of $50 in 1980.. and yet in this day we have vastly more currency, credit, and debt everywhere as far as the eye can see. and now the chart of silver is breaking out to the upside. and all you all can do is come on here and say “don’t buy, they government is so very very strong, you will be sorry you did”.

       

      youre funny. real comedy.

       

    • the great depression was a result of there being too much silver  and the market was flooded – still silver was worth half as much as it was before, and the only reason people starved is because they could not get their silver out of the banks.  Silver has already crashed through the floor and into the basement.  Really the only thing that matters when there is no gold available, and when the petro dollar is worthless will of course be silver – silver will rise to the top as it has the most room for improvement in any thing we have that we consider money – it is a precious metal, and will be even when paper is not!

  2. If the US dollar dies, what will the currency?

    The Amero a new dollar that will be used in the US and Canada and Mexico?

    That is the $64,000 dollar question.

    Silver and Gold will used in the black market for trade and barter.

    I feel for the people about 98% who do not have pm’s. They will be desperate!

    Keep stacking and packing

  3. The manipulators are hardly at the end of their rope. Their grip is as firm as ever and they are controlling the price hikes and price drops of this paper gold & silver (and all metals) scam. Nothing about the price of gold and silver has anything to do with charts, graphs or any European bank becoming even more insolvent.  No one out there has any clue as to how to predict where the prices will go, how fast or if ever….unless you personally know the manipulators and they have chosen you as the lone serf to bring into their financial circle jerk and share all their deep dark secrets – not likely right? Only time will tell what these jokers have in mind for us next. There’s 7 billion of us….I say we just strong arm all of them! Karen Hudes has some interesting things to say about these folks. She sounds sincere, but so have all the other disinformation  agents I fell for previously. You decide for yourself.

  4. @Zigzag   Would you say the best way to deal with this paradigm is not be part of it?

    It’s like playing Monopoly.  The money is fake but the rules are real. Whether   playing Monopoly or this other paper game, it is just a game.  If it effects us adversely, we  can chose to play it or not.  I like games, Monopoly or others, but when the cheaters rule the game, it’s best to step away from the board.  That’s just venturing my opinion of the BS that we face daily in these markets

  5. @zagzig

    I could not have summarized the current situation any better.

    The scum that run the show are in Control.They manipulate with impunity.That includes precious metals.Every time the market takes a big dip the scum are there to inject whatever liquidity is needed to keep the system afloat.When the metals rise to quickly they are there to put out the fire of rising prices.

    look at the last couple of days.It is so obvious to even someone with limited financial education such as myself (a couple economics courses at university)that the game is 100% rigged.

    The good news is fundamental laws of economics   always wins in the long run.At one juncture in time the manipulating scum  will lose control.The big question is “when”. Nobody knows the answer to that question certainly not any of the analysts who are appear on the site.The best they can provide is conjecture coupled in some instances with hyperbole to the nth degree.

    The only parties that know when (since I believe this game is choreographed 100% as to timing) are the insider scum that oversee this game.

    • you seem beholden to government power. i for one do not believe they are omnipotent. i for one believe they’ve already lost control. and i for one am buying silver every single day and not “waiting” out of some kind awe-inspired paralysis over their “power”. i see the government as 1) scared and 2) weak. it is me, the one buying silver, who is powerful.

  6. In the UK, while the financial system isn’t too good and debt is high) the economy is almost miraculous.  The last quarters unemploment figures are in and show a further fall of 60,000.  Employment is high with shortages everywhere (apart from the North West which is starting to follow).  The economic inactivity rate for women fell to an all time low.

  7. Powell makes a good point @UglyDog  China trading tables were pretty much closed last week and voila, gold and silver jumped.  Come Monday, the prices were smacked down.  I’m not going out on a limb to say this price spike is correlated to China being shut down for New Year celebrations, but there  might be a connection.

    • i’ve always thought it makes a whole lot of sense that they would set up a “bad bank” and use that bad bank to create ever-more short gold / short silver positions in order to suppress the market and let them import on the cheap.

       

      then if the US says anything about their island agressions or exchange rate or virtually anything, they can just say “whoops” and let the bad bank default on its short position / go bankrupt.

    • well thats an interesting definition of pragmatism… my definition involves seeing the scared technocrats and socialists scramble around pushing and pulling what ineffective levers of power they still cling to AND DECIDING TO PURCHASE INSURANCE AGAINST THEM MAKING MISTAKES. THAT INSURANCE IS FROM JOHNSON MATHEY, SMITH, WESSON, AND CAMPBELLS.

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