Legendary gold trader Jim Sinclair sent out an email alert to subscribers Monday night regarding the manipulative dump of $1.3 billion in paper gold on the week’s COMEX open.
Sinclair, who called the top in the last gold bull market to the day, stated that Monday’s gold take-down was to allow the bullion banks to cover their shorts, and to initiate and expand long positions in advance of gold’s coming bull rally.
Sinclair, who has long stated that the entities that will make the most during gold & silver’s massive secular bull markets are the very bullion banks who have been naked short throughout the duration, warns that the bullion banks are GOING LONG HERE AND NOW!
Sinclair states that long term cycles in gold are turning positive and that this was likely “the last take down before gold trades at new highs“.
Sinclair’s full MUST READ alert is below: [Read more...]
This past reporting period we saw a very rapid decline followed by an equally impressive “rally”. It is my firm belief that the decline was due to serious shorting by the speculators and it is not yet the time-frame the bullion banks desire for an all out price smash, so they quickly manipulated the strings, let go of some lower priced contracts and price popped up again to exactly where they wanted it. They appear to me to be interested in a very slow decline producing depression in the metals, not the schizophrenia of price instability.
If the metals crashed too quickly, it would spoil the long range plans of the elite and cause a panic before its planned time.
In gold, we have three solid weeks of long buying by the overall commercials with short selloffs on 4/8 and 4/15 and heavy purchases of longs and shorts on 4/22. On 4/15 we see phenomenal short positions taken by the large specs and the small specs. That is exactly what the bullion banks want. This is a setup.
The distinguished analysts from Goldman Sachs have reiterated their 2014 forecast for gold to hit $1,050 by the end of the year.
Goldman has a serious motivation for throwing the paper price of gold under the bus. You see… Goldman is by far the weakest and most vulnerable bank when it comes to its Assets to Derivatives ratio. Not only does Goldman rank DEAD LAST compared to the other banks in this ratio, it does so with flying colors. [Read more...]
The bullion banks are reaffirming their intention to massacre the metals price and they do this for no other reason than to encourage the speculators to purchase more shorts. This is resulting in more and more commitment to the downside by the speculators who will be blamed for the crash to come! [Read more...]
Unlike gold, where Comex volume is moderate, silver volume is high indicating very strong support at current levels. The obvious conclusion is that bullion banks trying to balance their silver books cannot do so at current prices.
Yet higher prices are likely to trigger a vicious bear squeeze, so it appears the bullion banks with short silver positions will remain trapped either way. [Read more...]
There was a definite attempt last week by the cartel to dislodge the speculator shorts and cheat the people out of the notion of profiting from their intended plunge in metal prices.
In Silver we did not see much dramatic action.
BUT, what is not so dramatic in silver IS dramatic in gold.
In gold we saw a reduction in total open interest of almost 35,000 contracts! That is almost 7,000,000 (yes you read it right) 7 MILLION ounces!
Notice the commercials have the lion’s share of open interest reduction, because if we add up the speculators reductions and additions, we see they are not quite a wash but absolutely MASSIVE open interest reductions on the part of the commercials. To what end? Just to drop the gold price a little? I don’t think so.
Based on a short analysis of bank forecasts, we can conclude they are clueless about the direction of the gold price.
This year, the difference between the average gold price and the predicted gold price for 2014 is already $75 per troy ounce, as you can see from the chart below. It seems like bank analysts tend to extrapolate past returns. They were too optimistic in early 2013 and they seem to be too pessimistic on gold right now.
In gold we see that what all the headliner commentators thought were the bullion banks taking a big long position prior to the supposed blast off to the moon – in reality those bullion banks (producer merchant) have been packing on shorts right and left the last five weeks and have gone from just about 1.2 million ounces net long to a mere 311,000 ounces net long as of last Tuesday. Those swap dealers are packing on the shorts this past reporting period as well adding just over 641,000 short ounces.
What does all this mean?
For the first time in a long time we have both houses of the commercials moving congruently to significantly larger short positions. People, they are not taking those positions so they can report a loss…
Get ready for a price drop and back up the truck soon! [Read more...]
Much confusion persists regarding the method, or mechanics, of how the big banks are able to push the price of precious metals around at will for so long.
The confusion comes from declarations that on price drops, the bullion banks are selling. This then triggers the frequent and violent down-drafts we have witnessed over the last 2 years and counting. However, the trading data indicates the contrary. Commitment of Traders (COT) data shows that the big banks always buy on these dips and they always sell on rallies. Always. (This is clear evidence of manipulation in and of itself.)
So how do they get the price moving in one direction or another, usually to the downside?
The mechanism is made clear by the forensic analysts at NANEX, which provides documented real time price action down to the microsecond:
Stacking the Bid with Fill or Kill. [Read more...]
Analysts at investment banks are a bit like amateur meteorologists. Whatever is the latest trend usually informs the tone of their research reports. Last week TND and Silver Doctors detailed examples of capping efforts by the cartel leading up to and following the “no taper” announcement. With the precious metals complex under wraps, it should come as no surprise that investment bank analysts are now coming out of the woodwork to declare bearish views.
While we believe the Fed will eventually perform a tapering to save face and attempt to maintain credibility, it will likely be a short-term performance, and nothing more than Kabuki theater. Any notion that QE can be meaningfully tapered over the next two years runs smack against the object reality of a weak economy sensitive to another downturn in housing and asset prices in general, which rising interest rates can easily cause. Then there is the problem of weak demand for US bonds requiring the Fed to act as the buyer of last resort.
Click here for more from TND on how the banks are using the Fed’s taper threat to bash gold:
The trillion dollar question is what is really going on with metals? No one is selling, everyone is buying, drying up supplies and sending premiums through the roof. I will tell you and make it as clear as I can. I will detail for you the exact reasons behind the scenes from the board room strategies to the public market.
We are witnessing a grand chess game being played out right before us. [Read more...]
In the wake of his epic $50,000/oz gold call Friday, Jim Sinclair sent an email alert to subscribers over the weekend calling for paper longs to stand for physical delivery of gold, and stating that the current physical demand for gold threatens to completely destroy the fractional gold system.
Sinclair states that the recent $200 take-down in the gold price will ultimately result in damage to the gold banks, and not to gold bullion itself.
Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. “Stand and Deliver or Go Home” should be the rallying cry of the gold longs to the paper gold shorts.
Sinclair’s full alert is below: [Read more...]
The Doc sat down with gold and silver expert and billionaire fund manager Eric Sprott Wednesday for the first of a series of interviews regarding the markets.
Eric warned The Doc prior to the interview that the KWN and USAWatchdog sites were maliciously attacked the day they published interviews with Sprott. There appear to be powerful interests that would prefer to keep Eric’s thoughts on precious metals out of the public at the present, as SD also sustained a confirmed co-ordinated Apache flood DOS attack during the recording of the interview.
With gold smashed nearly to $1550 and silver nearly to $28 Wednesday, Eric discussed the latest paper raid in the face of epic physical demand, and stated that the demand for coins has been stunning!
Sprott also stated that there is an absolute shortage in platinum and palladium, and although he still believes silver is the investment of the decade, there is no telling how high platinum and palladium could go.
With silver trading back under $30, Eric states that silver should be $100 today, that he expects it to massively outperform gold, and that he conservatively expects the metal to reach $200/oz. Eric states that $200 shouldn’t be considered the top however, and that All we know is that the price should be up massively. Anyone who’s been a student of the market sees these ridiculous trades, but some day these guys will be brought to their knees by people just taking delivery.
The first of Eric Sprott’s MUST READ interviews with The Doc is below: [Read more...]
Treasury Releases Results of NY Fed Gold Audit, Inadvertantly Reveals US Gold Stores at NY Fed Are Only 466 Tons!
The Treasury Department has released the results of a gold audit on the Treasury’s gold holdings stored at the NY Fed which began in 2010. Not surprisingly, the Treasury report claims that the audit found no issues with the quality of the gold held at the NY Fed, or in any policies or procedures by the NY Fed.
The audit reportedly claims that in 3 of 367 tests of the gold’s purity, the gold was more pure than Treasury records had previously indicated, and as a result has increased the book value of the US’ gold holdings by 27 ounces.
The most newsworthy revelation in the report however was that the US (which is supposed to hold the vast majority of its gold reserves at the NY Fed) holds a total of 32,021 good delivery bars on deposit at the NY Fed:
As part of the audit, the Treasury tested a sample of the government’s 34,021 gold bars in the New York Fed’s vault five stories below Manhattan’s financial district.
Why is this so significant? As anyone with a simple calculator can discover, the Treasury department has just inadvertently admitted that rather than the official 8,133.5 tons the Treasury reports as the US’ official gold reserves, the Treasury’s actual physical gold stores at the NY Fed are a measly 466.57 tons! While the Treasury does reportedly also hold gold at Fort Knox, several reports have claimed that up to half of the US Gold is held at the NY Fed!
No wonder it will take the Bundesbank 7 years to repatriate 300 tons!