Incredible as it may seem, at the low price of $20, speculation in silver is rampant. Market participants are trying to front-run a big price move. Due to rumors or gut feel or for whatever reason, they are expecting not only that silver will outperform gold, but that the silver price will rocket to a much higher price. Their frenetic buying of futures has pulled a lot of silver into carry trades.
Maybe hoarders will all of a sudden increase their appetite for silver metal that they will take off the market and bury. If so, the silver futures speculators will be proven right, and they will make a lot of dollars (money is a different story entirely).
I would not recommend that anyone bet his hard-earned money on a maybe. The data—both open interest and basis—show that the buying in the silver futures market is primarily speculators. They cannot sustain a higher price forever. They are merely trying to front run a higher price driven by hoarders. If hoarders don’t come in, the speculators will be forced to capitulate. If that happens, watch out below.
The neutral price of silver is in the $16’s today. If the price overshoots as far to the downside as it is now stretched to the upside, we could see silver with a 12 handle.
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.
Gold and silver have been smashed below support at $1250 and $19 this morning on a classic post-FOMC day raid.
Gold has been smashed $30 to $1237, and silver is down nearly $1 from Wednesday’s trading with a low of $18.93 before bouncing back above $19. [Read more...]
After consolidating near $1200 and $19.40 throughout the overnight Asian and London sessions, gold and silver have just been treated to another vertical waterfall smash, with gold plunging towards the June low of $1178 with a last of $1181, and silver plunging nearly $1 through $19 to $18.67!
*Update 10am: Whip-saw volatilaty continues as gold and silver are now spiking vertically, as silver retraces entire COMEX open smash with a last of $19.75, and gold is up $35 off its lows to $1215!
After consolidating in early COMEX trading Monday above support at $20.60 and $1280, gold and silver have just once again been kicked down the proverbial mine shaft, with silver plunging to $20.25, and gold to $1272. Is a $19 handle imminent for silver? [Read more...]
- NFP +175k on expectations of +165k
- Unemployment climbs to 7.6%
- Silver instantly smashed to $21.75 [Read more...]
Precisely as we warned listeners on this week’s SD Metals & Markets, silver was greeted with an epic waterfall smash on Sunday’s Globex, plunging 10% to just over $20/oz moments after the open. [Read more...]
After consolidating near $23.70 throughout this morning’s Asian trading, silver has again been hammered by the cartel, with the first wave of selling beginning shortly after the London open, and culminating in a classic vertical waterfall decline taking the metal nearly back to $23 on the COMEX open.
The move has broken silver out of its nearly 3 week long trading range of $23.30-$24.50 to the downside, meaning a re-test of the correction low at $22.005 is now entirely possible. [Read more...]
The bullion banks must not have gotten the memo that silver investors the world over had planned a co-ordinated silver buying strike for May 1st, as gold and silver have been slammed on the COMEX open, with silver down $1 to $23.37, and gold down $23 to $1454!
It appears that the bullion banks have decided to front run today’s FOMC statement and coinciding PM smash. [Read more...]
Gold and silver have been greeted to yet another waterfall plunge as the first trading since the CME hiked margins in both metals by 18% after today’s COMEX close. Silver has plunged nearly another dollar to $22.50, and gold another $25 to $1350.
*Update: Both metals have already retraced nearly all of their latest losses, as silver has quickly spiked back to $23.15, and gold to $1365
Gold and silver are rallying off overnight epic lows this morning, as gold was smashed another $100 into the $1300′s, and silver was crushed another $3 all the way to $23! In all, silver was smashed nearly $5 (18%) and gold $165 (11%) from Friday morning!
The strength of the rally in early COMEX trading is a good first sign that the worst is past, as the cartel raises to raise metals prices before the London fix. [Read more...]
Our friend Sean of SGTReport.com writes: The Mind War against the people continues. The banking cartel and the criminals who run the planet will give us no shelter from their crimes. Never mind the collapse of the Kennecott mine in Utah, never mind that the drain on Comex inventories has never been higher, never mind that the demand for PHYSICAL silver from the US Mint was at an ALL-TIME high in January and February and will be again in April… never mind the facts. We are in a MIND WAR as Satanist and U.S. Army Officer Michael Aquino coined it. And soon we are likely to find ourselves in a physical war for our very lives.
Full SGTBull Alert is below:
*Update: Full-fledged margin-call blood-bath in progress, silver nearing $23 handle, gold to $1420!!
After briefly popping back above $26 in early Globex trading tonight, silver has just been treated to another waterfall smash, gapping down another dollar, collapsing another $1.50 to a $24 handle with a last of $24.35!
Gold has plunged another $65 to $1420!
It appears that the cartel is not concerned whatsoever that 16% of annual US silver mine supply evaporated over the weekend, and will continue to press any remaining weak or leveraged longs. [Read more...]