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.  

my-shorts-on-fireDuring this past COT period we see in silver that price flat lined during the first part of the period then on Thursday evening after hours there was an explosion upwards. 
This is what I call a speculator short shakeout on the part of the commercials because price had been deteriorating more than they desired.   Thus, we see in the COT the large speculators covered 4,526 shorts.
Simple, dear Watson…
Both the producer merchant and the swap dealers picked up similar amounts of shorts at higher prices after the short shakeout. 

In gold, we see a very similar short shakeout...

A storm approaches like no other financial storm ever seen on the face of the earth.
A derivatives contagion capable of wiping out the entire financial system in an hour, is coming. 

JP MorganTo all of you who are on the fence about buying physical, NOW IS THE TIME TO BUY while there is physical on the shelves.  In the coming months, I truly expect metal prices to continue to depress, but at some point there will be a HUGE gap to the downside where major players (the bullion banks) cash in on their shorts very very quickly, reaping the cash, then repositioning in LONG positions as silver and gold GO TO THE MOON.
During that VERY BRIEF WINDOW, it may not be possible to purchase silver and gold at rock bottom prices and the only options left are fiat futures, index fiat futures, or fiat metal mining stocks.  You do not want to be in any of those, IN MY HUMBLE OPINION.
I firmly believe what is coming is going to confiscate all metal in mines from personal stock holdings and it is my expectation just as we see the veiled robbing of 401Ks, retirement investments, and all such fiat vehicles to “cover” the coming collapse, that all investments in paper shares will be lost.
If we have a MAJOR crash next year, a financial crisis like the world has never seen, do you really think they are going to allow the small speculator holders of paper physical metal in futures or mines to hold those vehicles when silver is $500 an ounce and gold is $10,000 an ounce?
Stay thirsty for physical, my friends…

Jamie DimonTed Butler recently theorized that JP Morgan is the entity that is the buying 1 oz. silver eagle coins in record quantities this year.
Think about this:  bullion banks and large buyers of gold/silver deal in bars and tonnes. Think about how many silver eagles it would take to piece together enough to re-melt and fabricate into a meaningful quantity of marketable bars. Not-withstanding the expense of doing this, it is an absurd notion that they would even bother with it.  Especially when the Comex and SLV have plenty of bars that are available for hypothecation.  
The enormous quantity of silver eagle sales are going to the growing legion of individuals in this country and Canada who understand that the dollar is going to collapse sooner or later. It is poor man’s gold.   It is more fungible as currency than 1 oz gold coins. Ultimately, it is a possible signal that eventually the people will rise up and overthrow a completely corrupt system of Government and banking.
I believe Butler turned his ability to analyze the silver market – and the fact that he was one of the few people doing it for a long time – into a newsletter selling juggernaut.   Now the only evidence he looks at and evaluates is the evidence that supports and promotes subscriptions to his newsletter.   I stopped “absorbing” his analysis about 5 years ago.
His COT and open interest analysis relies on the all of the data being honestly and accurately reported.  But from where is the data sourced? It’s provided by the big banks who run the Comex.

DosEquisbeerguyFailure to be able to see what’s coming in these perilous times will result in being left with nothing. 
So, buy physical my friends, whoever you are, if you are seeking to protect yourselves against the economic collapse just around the corner.  
I raised the buy flag last week.  I do not mean these are the lowest prices that will be seen, however, ANYTHING below $20 is a great bargain and the time is quickly coming when I will raise the buy flag to an alarm level because the collapse is about 1 year away.
Stay thirsty my friends” AND start building your dry powder (physical precious metals) from your paper investments cause they ain’t going to be around much longer

JP MorganIn gold, the latest COT report indicates that swap dealers are reaffirming their intent that gold will crash and they will reap an ABSOLUTELY HUGE windfall from paper delights (soon to be currency of the past). 
The commercials both increased their total net short ounces and those swap dealers are now OVER 8,000,000 gold short ounces! 
They see the kill in the not too distant future, they taste the blood that is not yet extracted from their victims.  They are a bloodthirsty lot, indeed.

Jamie DimonThis 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.

silver smashThe disaggregated COT numbers reveal all the action last week was in the producer merchant, the evil bullion banks as we know them and “love” them (loathe them actually), and they added 5,960 longs and 7,018 shorts. 
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!

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.

cartel shortsIn silver, we see the large specs latching onto a huge number of shorts.  So, price is going down and the specs are buying shorts?  What is up with that? 
Remember that I mentioned this last week as well and on the surface we see almost 9,500 shorts they have scarfed up in the last two reporting periods.  My guess, from hindsight of years of course, is those shorts are not going to be allowed to stand so there will probably be a rally in the metals price to dislodge those shorts before resumption of the downward price target by the commercials. 

Massive shortsWow, what a COT week!
In gold, we have MASSIVE short buying on the part of the producer merchant to the tune of almost 15,000 contracts short picked up. 

Notice the total commercials up almost 21,000 contracts short.  That means they are getting VERY READY to do something big! 

freefallWell, SD readers, we have gotten a mild price attack on the metals but nothing as severe as what I think is to come.
Notice, despite the commercials discarding large open interest contracts in both shorts and longs they even deepened their total open interest net short position and are very close to 200,000,000 net ounces short.
My calculations say they can crash silver price to $15 if that is their target.

silver smashThe real story is in gold this past reporting period as the commercials added a MAMMOTH 21,432 short contracts to their overwhelming “ILLEGAL CORRUPT” short position and are now positioned to smash this market to oblivion.
In silver, we see the combined commercials approaching 200 MILLION short ounces now.  It would be nothing for them to start the high frequency trading casino wheels rolling and pound silver to below $18.
Again, in silver, we see an almost perfectly even distribution in the dis-aggregated numbers.  COLLUSION my friends, COLLUSION at its finest.