Warning: These Charts Contain Images That Have Been Rated “R” For Violence By The MPAA

SD Friday Wrap: Gold & silver have been slashed and hacked all week and now they’re a bloody mess…

Silver was hit every single day starting right as the market opened on Monday:

When the white metal was looking to gap-up into Tuesday, the hammer was brought down even harder.

Were it not for a one penny close above yesterday’s price, silver would have been down every day this week:

But the ugliness really shows up on the weekly chart:

That is one nasty bearish trend to the downside. There are three lower-highs and now three lower-lows.

So it is pertinent to talk about perception management. This is part of the cartel’s money maker. They have succeeded in painting the weekly chart in a manner that shows incredible weakness for the near term. Any technical trader would take one look at that chart and want nothing to do with it. That’s the perception.

You see, not only is the trend bearish over the last three months, but silver is now pretty much the last thing on anyone’s mind.

The volume over the week was not insignificant, which shows the amount of paper that is flying around the COMEX in order to keep the price effectively smashed.

If there is going to be a complete and total washout of open interest, 2015 style, shocks like the charges against Flynn are not going to help the cartel with that.

Here’s some more potential shocks before we get to the end of the year:

  • Tax cut policy error
  • Debt ceiling policy error
  • Fed interest rate policy error
  • Heightened geo-political risk including North Korea and the Middle East
  • Impeachment proceedings started against President Trump
  • A melt-up in Bitcoin so much that it becomes a black swan and affects other markets
  • An official US government stance or policy on Bitcoin
  • A crash in Bitcoin
  • A spike in volatility
  • The dollar weakening even more

Recall that during the washout of open interest in 2015, major market moving events were not within the United States but outside of the United States.

There was the Greece bailout debacle, the Volkswagen scandal, terrorist attacks abroad and the European refugee crisis.

All of the potential market shocks listed above are just a sampling of mainly domestic events or events that tie into the US economy in one way or another. That adds an interesting dynamic because eyes are not focused so much on the rest of the world as they are on the insanity within the Washington, D.C.

That could spell disaster for markets that are already overstretched.

Even the GSR is getting severely out of whack again:

If somehow next week it takes more than 80 ounces of silver to buy one single ounce of gold, well, let’s just say that silver makes a good Christmas gift (that keeps on giving) and yard sales and piggy banks are nice ways to scrape together funds.

Gold held up over the first two days of the week, but eventually was beaten into submission:

No, that’s not the elusive “Chinese Year Of The Dragon” bullish chart pattern. That’s the “somebody in the cartel was caught sleeping at the keyboard” chart pattern..

Gold looks weak on the weekly:

Over the course of the year, gold had four advances higher. All things considered (record stock market, Bitcoin taking the luster, etc), golds advances were even strong advances on the chart.

But now?

If gold is going to surge into the end of the year, it better get to moving, and fast, because the last two attempts since September have fizzled out.

So as we start out the month of December, how do things look over the next month?

If one of those fundamental risks comes raging into the markets like it did today, then the open interest flush could unfold due to a rare decision by the bullion banks to engage in short covering of their short positions.

But they could just as well supply even more paper to flush out the specs, especially since they managed to get open interest down somewhat over the course of the week. However, if they just issue paper to handle any market shocks, they will be stuck going into 2018 with record high open interest or near record high open interest.

Here’s a thought: If the markets are over-stretched to the upside, which they are, and if Bitcoin is overstretched to the upside, which I would say it is, then conversely gold and silver are way overstretched to the downside, which they most definitely are.

Bottom line: There is very little room for error on the part of the cartel, and plenty of opportunities for error from either the Fed or Washington.

Speaking of the Fed and Washington, they nearly managed to walk the Dow back to another record high today:

And while we are on the subject, check out the cheerleading every single day:

That’s not even all of President Trump’s cheerleading.

That’s just a sample showing the cheerleading required on the daily.

Who still believes this crap?

Not even the dollar is buying it:

In fact, the dollar hasn’t been buying it all year long:

Which goes to show how most of the people in the markets are wrong most of the time. Recall that earlier in the year, the “trade of the year” was “long USD”.

And since everybody hates gold & silver right now, that’s how we know we are right, because most of the people are wrong and most people right now believe gold & silver are dead in the water.

There is some “fear” creeping back into the markets. As should be, especially with the war drums beating louder over North Korea’s ICBM launch.

So VIX is perking up after last week’s flash crash to a new record low:

Not only is the VIX now back above both the 50-day and 200-day moving averages, but the MACD looks like it’s signaling a move to the upside and the RSI is signaling it’s not yet in extreme territory.

The yield on the 10-year note just doesn’t know what it wants to do:


We did manage to close above 2.4% on Thursday, but today we have closed right back in the middle of the sideways channel.

Speaking of channels, copper is now trading in a sideways channel of it’s own:

Copper is consolidating in a channel that goes from $3.05 to to $3.15. It’s also riding the 50-day moving average and today managed to close above it.

This consolidation has been going on for over a month. The last two weeks show that copper is trying to form a trend change from bearish to bullish.

Speaking of trends:

That’s a textbook bullish trend.

If the price of crude oil keeps on its current trend, we’ll be above $60 in no time.

Platinum is showing some signs of life:

Even if in the slightest sense of “life”.

But palladium put in another high just this week:

This just goes to show how much the cartel is in all-out desperation mode against gold & silver.

In other words, two of the four precious metals are looking like there is more upside price action, yet gold and silver look terrible on nearly all of their charts.

That’s what we call Precious Metals Price Suppression

Finally, here’s everyone’s favorite crypto currency store-of-value:

Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.