Although he is extremely bullish over the long and intermediate term, ‘Turd Ferguson’ of TFMetalsReport tonight issued a ‘Cartel Raid Watch’ for gold and silver, as TF believes a cartel raid in the metals over the next week is likely.
Recent big moves in both metals, combined with big rises in the commercial’s short positions as well as next week’s big FOMC meeting mean the conditions are ripe for a cartel raid, but will one materialize?
If stackers should be so lucky, be ready to STACK THE SMACK!!
Here in the U.S., we have a government agency that creates the official weather forecast. When severe weather threatens, the National Weather Service issues two types of alerts: A “watch” or a “warning”. In this theme, I hereby issue a Cartel Raid Watch, effective through next Friday, September 14.
My primary concern here is the continued deterioration in the Comex open interest numbers. You’ll recall that the last two weeks of CoTs have been lousy as specs are buying and The Cartels are rapidly creating paper gold and dumping silver longs in order to satisfy the spec demand. I believe that this trend has continued this week and we’ll likely see confirmation on Friday.
One more stout push higher in the gold price will draw in enough new spec money that the ratios will likely reach the levels last seen on 2/28/12…and we all know what happened next. The price of gold fell $77 on 2/29/12 and it kept falling, reaching a bottom of $1614 five weeks later and $1528 five weeks after that.
For silver, things aren’t quite as straightforward.