With the summer unofficially over and the bankers and traders returning to their desks Tuesday morning, the paper futures gold and silver markets were greeted with a familiar scene: a massive paper take-down.
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.
After attempting to climb above $22 during overnight trading, silver drifted down throughout the London session, and has been hammered on the COMEX open, down over $1 to $21.01.
Gold has also been hit hard, down over $20 from overnight highs of $1345.
With the crisis in Ukraine escalating, the dollar has been catching a safe haven bid, and the Western Central banks have not missed their opportunity to reassert pressure on the paper metals markets.
Today’s gold and silver paper raid has accelerated into the Globex close, as silver closed at $21.73, just .06 off the days low of $21.66, and gold closed at $1321, just $1 off the days low of $1320.
Silver lost $1.50 on the day, its largest single day loss since May, and is now down 8% on the week.
*Intraday Alert for Cartel Smack-down*
This morning, the entire precious metals complex was racing to the upside. It’s now just past 1pm Eastern Standard Time. Gold and silver continue to hold their own, but the entire rally in the mining shares has evaporated. This speaks to only a few possible dynamics.
After watching cartel patterns for over a decade now, I can say without any doubt that the mining shares are often used as a signal for a raid on paper bullion trading over on the COMEX or in London within the following 24 hour period.
Are the signalling an imminent raid in gold and silver?
- Friday’s non-farm payroll data – and the paper bullion smash
- The Doc recaps wholesale physical market trends as seen by SD Bullion and the massive demand surge as silver broke below $22 Friday
- Cartel finally busts $22 silver; cartel may attempt to smash gold & silver below April lows of $1320 & $20 overnight Sun and into Monday as Chinese financial markets will be closed Monday through Wednesday
- India freaks-out – but gold quotas on imports & tax hikes will fail
- France attempting to block postal shipments of bullion & cash
- Are capital controls coming to a neighborhood near you?
Download the podcast or click play below, you won’t want to miss this week’s SD Weekly Metals & Markets!
Gold and silver were greeted with a classic COMEX open waterfall smash this morning, with gold smashed through support at $1550 and down a massive $35 to $1525, and silver down a full dollar to $26.64!
The smash has gold trading back at July 2011 levels, prior to the US downgrade, QE2, QE3, and QE4!
*Update: free-fall 2nd leg of smash in progress, silver breaks $26.50 to $26.14, gold breaks $1500 with a 14 handle at $1495!
TF from TFMetalsReport.com has released an update this afternoon warning gold & silver investors that a major wash-out decline in both metals is becoming increasingly likely, particularly as silver has breached support and dipped into the $26 level overnight and again Wednesday afternoon.
TF warns that the cartel appears to be attempting to induce a brief yet violent washout by smashing gold under significant long-term support at $1525 and into the $1400′s, and silver down through major long-term support at $26, triggering massive sell-stops and driving the metal into the low $20′s, at which point the cartel will be able to cover and the next major metals rally will begin.
Turd warns that: Everybody and their brother are looking at $26 silver as a final line of defense. What concerns me is JPM et al working collusively with the other commercials to pull their bids. This creates an air pocket into which the Large Specs sell even more and blow silver through $26. A drop through $26 would frighten nearly everyone but it would be The Bottom and the ultimate and best buying opportunity.
Good luck sourcing physical if this scenario plays out, as wholesale suppliers are already at 8 week delays on 90%, and 3-4 week delays on Silver Maples and Eagles.
Gold and silver were greeted to a familiar 2-stage waterfall smash on today’s COMEX open, with silver being smashed back under $28 to $27.39, and gold back under $1600 to $1579!
Friday’s strange algo patterns in the gold and silver charts apparently were tipping off the upcoming silver raid, as silver traded exactly down Monday morning to the $27.88 spike low seen on several silver feeds last Friday when global markets were closed.
The cartel appears intent on forcing a re-test of crucial support at $26 in silver- the question is at what cost in the physical market as a massive shortage of 90%, Silver Eagles, and Silver Maples grows? (and will undoubtedly intensify on any visits back towards $26)
After a brief 2 day reprieve Tuesday and Wednesday, your regularly scheduled COMEX gold and silver raid is back, with gold being smashed to $1576, and silver back towards $28.
After consolidating throughout the overnight Asian and London session, the latest COMEX open raid has finally achieved the cartel’s target in silver, with $30 broken to the downside as silver was smashed to $29.84.
Gold has also been hit on the COMEX open, down another $40 to $1596!
The legendary Jim Sinclair states that this is the last significant correction prior to gold’s move to $3,500.
*Update: 2nd wave of smash now in progress, with silver down to $29.67
Gold and silver were sold hard beginning with the 4am London open, and intensifying with this morning’s COMEX open.
Silver has been smashed back under $31 to $30.79, and gold has been hammered back under Sinclair’s $1650 to $1642!
Gold and silver have been hammered throughout COMEX trading today, with waterfall declines erasing the gains made yesterday on the large pops ahead of the FOMC statement on the GDP disappointment.
Silver is down over $1 from yesterday’s highs to $31.04, and gold is down $20 to $1656.