Market Report: Firmer Tone in Precious Metals

 macleodFollowing on from last week when Iraq hit the headlines and the price of oil firmed up, gold was steady for the first three trading days.   It seemed the shorts just held their breath and hoped Iraq would go away. But with oil prices up yet again Thursday a vicious bear squeeze followed after someone bought over 3,500 gold contracts, driving the price up to just under $1300. Once this level broke at 13.40 New York time, gold jumped a further $15 as stops were triggered.
Silver also responded dramatically, rising through the $20 level to $20.90 for a gain Thursday of 5%.
The price action and open interest this so far month is shown in the following charts and illustrates how record bear positions are being squeezed in both metals.
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THE GOLD & SILVER ‘WASHOUT’ BEGINS! A Moon Shot to $2000 before Year END!

Polny2The Gold & Silver ‘Washout’ began with a Short Squeeze.  
Continue to expect a higher price target this month as the short squeeze is not over just yet!
After the coming Summer Low, the ‘Washout’ ends with a Moon Shot to $2000 before Year End! [Read more...]

Is The Silver And Gold Bull Market Over, Or is the Real Move Just Beginning?

Is the precious metals bull market over?” This may be the single most important investing question that we can ask ourselves. Why?
If the bull market in silver and gold is not over, then the current setup would likely be an extremely big buying opportunity.  [Read more...]

Chart of the Day: Silver Breakout?

5 year silverAs the MUST SEE 5 year silver US dollar chart below reveals, it appears the year plus sideways trading action in silver with minimal volatility is about to end.  [Read more...]

PRECIOUS METALS & The Death Of The Business Cycle

Collapse Of Roman Silver Monetary SystemThe precious metals will offer one of the best safe havens as the world enters into the next paradigm… “The Death of the Business Cycle.”
Unfortunately, very few analysts, economists or investors realize the darkness that lies ahead.
Gold and silver are more than insurance…. they will be the wave of the future, and the future is now here.
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Why Gold’s Base Price Should Be North Of $2,000

Gold vs Oil Price & Ratio 2000-2014Currently, the price of Brent Crude is trading at $113.35, while gold is at $1,275.   This is an embarrassing 11.2 to 1 ratio…. thanks to the manipulation by the Fed and member banks.
Based on the historical gold/oil ratio, The BASE PRICE of gold should be over $2,000 an ounce.
I say base price because this just brings the value of gold back inline with its ratio to oil.  This DOES NOT INCLUDE the huge invrease in monetary printing, debt and derivatives which have funneled a great deal of value away from the King Monetary Metal.
Once we include these factors, that base price of $2,000 should be higher by several orders of magnitude.
We can plainly see that the price of gold should already be north of $2,000… if it wasn’t for the continued manipulation by the Fed and Central Banks. 

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Alasdair Macleod: Market Volatility Grinds to a Halt

stormThere is uneasiness across a number of markets with moment-to-moment volatility grinding almost to a halt.
It contributes to a feeling that this is the calm before a storm.
It is not unusual for there to be a summer lull, or for one market to suffer disinterest relative to another, but the current situation across the whole range of capital markets should be a major concern.
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Alasdair Macleod’s Market Report: Bottoming Out?

gold bottomThe signs are good. With record short positions in gold and silver, hedge funds and algorithmic traders should be worried at the lack of price confirmation: gold is holding well above its bear-market lows and silver is refusing to weaken into new low ground.
The sudden increase in shorts in both metals amounted to a dramatic bear raid. With gold rising every day this week the squeeze is now on, suggesting in the absence of any new and material factor the current rally should have enough legs to take gold to the $1300 level. The situation in silver is likely to have a more dramatic outcome.

 

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Is Silver Set Up For A Huge Short Squeeze?

launch rocket verticalHistorically, a high open interest in silver is associated with short term market tops because the hedge funds have gotten negligently long silver futures and the market manipulating big banks have taken the other side with extreme-sized short positions.
This time around the situation is the exact the opposite.
The hedge funds are now historically short silver futures and the banks and silver producers (mining companies who hedge production using futures) are either net long silver or are sitting with historically low hedge positions.
Silver is now set up for a short squeeze of historic proportions. 

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Will The Silver Price Rally Again On This Technical Signal?

silver rallyThe silver COT data (yes, I know, manipulated…) is, as I read it, as bullish for silver as it was at the silver bottom last June. This suggests another good buy zone either just passed or will arrive very soon.
Many technical indicators for both silver and gold markets are deeply over-extended on the down-side and flashing “buy signals.”
Silver has dropped back to levels seen in 2008 and 2010, before the run-up in late 2010 – April 2011.
Is another big rally about to happen?
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Silver Update: Failed Economies

muppetsBrotherJohnF is back in his latest Silver Update:
Failed Economies [Read more...]

BrotherJohnF Silver Update: Big Smash Coming in Silver!

freefallBrotherJohnF is back, predicting an imminent BIG SMASH in silver, in his latest silver update:
Billionaires Busted! [Read more...]

Eric Sprott Asks: Did I Lose $10 Million From the Barclays Gold Take-Down?

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gold-nanex-feb2014_Dec-6-2013-NFP_smash

Source: Nanex

In this EXCLUSIVE, MUST LISTEN interview with The Doc, Eric Sprott dissects the fundamentals in the gold and silver markets, coverage of manipulation finally reaching the mainstream, and reveals his updated outlook on gold & silver.
Eric discusses why the precious metals options markets always expire at MAX PAIN for the customers, and why he urges all PM investors to STAY OUT of the futures options markets, and simply accumulate physical metal.
Sprott explains how PM manipulation shifted from being conducted solely by the Central banks to the dealers active daily participation that we see now, and discusses how much he personally lost when a Barclays trader manipulated gold down into the London fix.  

Regarding his price outlook for the metals, with silver trading under $20 and gold trading near $1250, is Eric still looking for new highs in 2014?
His answer might shock you.

The Doc’s full Exclusive interview with Eric Sprott of Sprott Asset Management is below: [Read more...]

Alasdair Macleod: Gold in Near-Death Experience on Comex!

gunWell, it’s a bit of an exaggeration, but for the first three days of this week daily turnover in the gold future fell to about 80,000 contracts, compared with a more normal level of 120,000.
At the same time volatility fell to as close to zero as you can get.
Silver is now set up for a major bear squeeze, but for the fact that both silver and gold have a recent history of weakness into quarter ends. Gold bottomed a year ago on 26th June at under $1200, and again at the same level on 30 December. It also sold off into the end of the March quarter.

No doubt this predictable price behavior has encouraged silver’s bears into a technically dangerous position. [Read more...]

Clarifying The Picture For June: Time to Raise a Mountain of Dry Powder!

dry powder silverSo, here’s the deal. DO NOT get itchy to buy or get long…YET.  Let this play out.
Raise a mountain of dry powder and wait. Lay in the weeds with full knowledge of what is coming and then pounce later this month. Don’t be fooled by the first time GOFO slips negative. Recall that it did so on 12/9/13 only to move back positive on 12/12/13 before moving decisively negative on 12/19/13 ahead of the 12/31/13 Double Bottom.
Of course, in the long term, it matters little whether you add to your stack at $1240 or $1200.
   I get that. And anyone simply stacking should be sure to add on a consistent basis.  For traders of metal and/or miners, however, the main opportunity awaits.

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