beach ball

Gold & silver are spiking again this morning, continuing their week long rallies that began on the March FOMC statement when the market realized the Fed has no intentions of seriously raising interest rates. 
While silver has already cleared initial resistance at $17, Gold is preparing for a battle at $1200…

Harvey Organ

Several months ago the COMEX had 303 tonnes of total gold.  Today the total inventory rests at 250.04 tonnes for a loss of 53 tonnes over that period.  Lately the removals  have been rising!
Following is a brief outline on gold and silver comex figures for today:

Harvey Organ

We now have our first foreign casualty in the meltdown on Austrian Hypo.
The German bank DuesselHyp, with a tiny writedown of 348 million euros has gone belly up. 

Is this foreshadowing a future nightmare when a tiny write off  of 1.5% of assets creates  a total meltdown of a bank?

Harvey Organ

In silver, the open interest rose Friday by another astonishing 2,745 contracts even though Thursday’s silver price was up by only 8 cents. The total silver OI continues to remain relatively high with today’s reading at 174,702 contracts. The front month of March rose by 4 contracts.
We are now within a whisker of multi year high in the OI near a multi year low price. 
This dichotomy has been happening now for quite a while and defies logic.

warning

The largest source of exported physical goods is China. Demand from other countries for China’s goods is declining, confirmed by the Baltic Dry Index* which is plumbing new lows. This slow-down in economic activity could easily burst the bubble of bank credit, which is in danger of collapsing under the massive burden of bad debts.
The signals are clear: the world has already entered a downturn in economic activity.
Therefore we can expect accelerated money-printing and the imposition of more negative interest rates in a forlorn attempt to avert economic reality.

Both gold and silver are now below their 50 MA as well as their 9 EMA; short and medium term bearish.
Gold needs a close above that 9 EMA as a first step to ending the downtrend.  If gold drops below $1166 (the previous low) it would be quite bearish– that would mark the end of the bullish 4-month “higher lows higher highs” pattern, and that would mark the end of the current medium-term uptrend.

In this excellent interview with Finance & Liberty’s Elijah Johnson, Silver Guru David Morgan provides an updated outlook on gold and silver, & discusses how the global currency war will impact gold and silver.
David Morgan’s full interview is below: 

Jim Sinclair

With respect to the Greek economy, the ECB decided to increase the ELA to 68 billion euros or an additional 3 billion will be granted to the banks due to the huge amount of bank runs in Greece this past week.
However  sovereign Greece announced that it has only one week’s worth of cash left which would put her out of money on Feb 24, 2015. Headaches mount for our big underwriting banks who bet huge amounts of money on Greece’s survival.
A Grexit will cause massive losses for the ECB bank and other official EU centres and the IMF.  A lot of these losses must be transferred to other members of the EMU.  Countries like Italy, Spain and France will not be available to absorb those losses.

Parabolic_Rise_in_2015
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PM Fund Manager Dave Kranzler joins the show as a Guest Host this week discussing:

  • Fund manager Dave Kranzler sees physical demand pushing silver higher; Silver has carved out a cyclical bottom formation and appears to in a solid uptrend  
  • Pullback from Jan 21st peak is blessing in disguise as silver starting to go parabolic
  • Consumer sentiment starting to turn down even as S&P 500 hits new all time high
  • Kranzler explains why Silver Will Be the Best Performing Asset of 2015!
  • Ukraine conflict will not end until U.S. changes policy
  • Greece and EU will likely come to some sort of agreement given “follow the money” (and resulting pain) analysis

    The SD Weekly Metals & Markets With Eric Dubin & Dave Kranzler is Below: