swingWhat just happened to the metals’ price? 
It went up and absolutely killed those speculator shorts that I talked about last week.   
But GUESS what the commercials did as price went HIGH?
You got it, my faithful readers, THOSE COMMERCIALS picked up 11,890 short positions at higher prices. 
Guess what is about to GO DOWN? 
Silver price. 
As price comes DOWN, BUY BUY BUY BUY physical from The Doc and once the dust clears on the world wide financial collapse next year you will sell your physical at astronomical prices and reap a great harvest.
They are solidly in control of the monetary system of the world but have over invested in the greedy derivatives game and those bets are going to go down next year in a HOUSE OF FLAMES.  

freefallThe oppressive and illegal manipulation of the gold market is starting to show unintended consequences again.  At the beginning of April the LBMA (London) gold forward rate (GOFO) turned negative again.  It’s been getting more negative every day this month.
From January 1, 1989 – July 7, 2013, there were only seven days in which a negative GOFO was observed.   But since 7/7/2103, GOFO has been negative more than 55% of the time.  In other words, the market for physical gold that can be delivered into the custody of the buyer has never been tighter.

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.

silver smashThere 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.

ComexHitThe primary reason the U.S. Government and Federal Reserve intervene actively in the gold market is to keep to keep the price from moving higher in order the protect the reserve status of the U.S. dollar. Given that we know Russia and China are actively disabusing their foreign reserve holdings of Treasuries – quietly and now apparently more quickly – the dollar was in danger of breaching key technical levels to the downside and drop like a rock into the mid-70′s (USDX basis). Janet Yellen saved the day with her non-transparent post-FOMC statement that suggested the possibility of higher rates in six months, which all know is total nonsense. However, mission accomplished as her words managed to spike the dollar index back over 80 and now the Fed via its agent bullion banks are trying smash the price of gold lower to “reinforce” the move in the dollar.
This is what Monday’s manipulated hit on the gold market looked like:

silver crashExtremely interesting developments in the open interest in both gold and silver this week!!
In silver, we see the commercials going FAR more short and the large specs going far more long.  Really interesting is the price rise, yet the speculators, on the surface, are not buying up long contracts by the bucket  – but they covered so MANY short contracts that their net long position went skyrocketing upwards.  For the commercials part, both the producer merchant and the swap dealers added huge on the short side to the tune of over 12,000 new contracts total.
Notice the silver commercials added over 50 MILLION ounces net short!!
So, in my numbers world, with price rising, that tells me the commercials led the way and FORCED the speculators out of short positions.  Notice a very modest pickup of short contracts by the small specs.  Those guys know the top is near and they are getting ready to ride the rocket downhill as the commercials crash price in the coming days.
silver smashIn silver, it would appear to the casual observer that the commercials played their old games and started buying longs at the bottom, selling them at the top, then buying shorts as the speculators bought a few longs at the top.  First glance says the speculators were forced out of their shorts.
However, the real story is in gold as silver just reacted to what gold was doing.
This sustained rally might get smashed with a short covering as the banks cannot allow this speculator long buying to get out of hand.

Jim Willie collapseEven Dennis Gartman, not known to be a Gold Partisan, can recognize Investment-Significant Market Realities when he sees them:
1)   Gold is now launching into a Bull Trend, but a
2)   “material seller” has been “stopping its advances each day”
While he has not been so candid in identifying that “Material Seller” as The Cartel as Deepcaster and others have long ago, he does usefully make the point that:
3)   Gold, even though launching into a Bull Trend is still vulnerable to Take-down by that “Material Seller”
But the Takeaway Market Reality from all this is that it provides an Opportunity – we know Gold is going higher, so use the Take-downs as a Buying Opportunity.

mali goldThe Golden Jackass Jim Willie sat down with The Doc for a MUST LISTEN interview regarding the markets, gold & silver, and a coming European banking collapse.

Willie made explosive allegations regarding the banking cartel, stating that the US & France launched an invasion of Mali in order to utilize Mali’s gold production to meet the Bundesbank’s 300 ton gold repatriation request.
Wille states that there is a huge shortage of the metal, and that a massive gold rush will soon be ignited, resulting in an epic short covering rally and a 50% explosion in the price of gold.

Jim Willie’s full MUST LISTEN interview with The Doc is below:

5000 goldLegendary gold trader Jim Sinclair released a truly EPIC alert to subscribers Sunday night, in which Sinclair states that gold will trade to $4,990 in the coming bull run prior to settling into a role as currency for the beginning of the greatest economic expansion in history.
Sinclair states that the coming volatility in gold (& silver) will be unprecedented, with $1500 swings in the price of gold prior to full valuation being achieved, and gold’s new status as global currency beginning.

For the first time, Sinclair gives his target for full valuation of gold of $4990/oz, and states that the return of gold to a global monetary role will usher in the greatest economic expansion the world has ever seen.

Jim Sinclair’s ultimate economic and gold prediction is below:

Submitted by Bill Holter

I have always believed that a hard shakedown would precede the “banking powers” positioning themselves long, very long and LONGER yet before an official markup in prices occurred.  I think that this is exactly what is happening.  Even the most hardcore “longs” are questioning their logic and downright scared.  It has not been so much that the prices have gotten killed, it is the “time” that this correction has taken (now a 5 full months).  Sentiment has been destroyed and those “polled” are bearish yet physical sales are strong.

When this thing finally blows, Gold and Silver will become more scarce and prices will move in multiples of what we’ve recently seen in the arms market.  “Paper” money will come out of the woodwork looking for a place to hide and “real money” will be so far into hiding that you’ll see NONE on the street.  Now that’s what “supply and demand” is all about in a real world!

sprottLegendary precious metals expert Eric Sprott sat down with The Doc for an exclusive interview to discuss the Bundesbank’s gold repatriation request last month, and the correlation with massive physical gold buying in Asia. 

Eric pointed out that the US government exported 30% of US annual gold production to Hong Kong in December alone, and stated that as there is no excess gold available in the US, all of his analysis suggests that the US gov’t may be exporting the German, Dutch, & Austrian gold reserves held at the NY Fed to China in an attempt to kick the can and forestall the inevitable financial collapse a little longer.

Eric Sprott’s Shocking interview with The Doc is below:

Jim SinclairJim Sinclair has issued a call for precious metals investors to stand together as a Band of Brothers and fight a battle royal here and now against the beasts of paper in a war being for both both gold’s and our freedom.
Sinclair urges precious metals investors to take an oath of allegiance to the good fight:
“I swear those that have caused the wreckage of all things once held dear to us shall not have my gold or gold share position. Fear is no part of me, and I will face the enemy, confident in our success.”

Sinclair urges investors to hold the faith, and not to fear because $3,500/oz gold is the next stop once the beasts of paper are frustrated in their current battle.

Sinclair’s call to arms among gold and silver Band of Brothers is below:

gold cartel shakes the treeJim Sinclair has sent email subscribers an email alert regarding the latest take-down of the gold market by the bullion bank cartel. 
Sinclair states that the latest actions are not motivated by paper profits, but are an attempt by the cartel to shake free real physical gold bullion from weak hands in the cash market.    Gold is going to and through $3500 in the reasonably near future. The point of this entire operation was to shake the tree to accumulate not in the paper market for gold, but real free gold in the cash market.

The gold banks are short the real Mccoy, and are desperate for precious metal investors to liquidate their physical holdings in a panic.
Sinclair states that all that is necessary to win the battle is to do nothing, ie hold on to your gold.

Sinclair’s full update is below:

imagesBill Murphy Founder of GATA sat down with Bridgitte Anderson during the Cambridge House Vancouver Resource Investment Conference.

Murphy stated that the waterfall gold and silver smashes on the COMEX open that SD readers are familiar with are terrorist attacks on the price of gold and silver!   Murphy states that the cartel’s financial market terrorism causes people to be right on a fundamental trade one moment, and the next moment to lose a fortune!

Murphy also stated that JP Morgan is hitting the wall with regards to silver supplies, and that gold and silver prices are set to explode, with silver setting all-time highs in 2013, and streaking towards $100 by the end of the year!

Murphy’s full MUST WATCH interview is below: