Fund Manager: LBMA Silver Fraud Fix Was Cartel’s ONE LAST SHOT to Grab Physical Silver!

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1559111On a Week Which Saw Gold Explode For its Largest Gain in 16 Years & the Global Financial Markets on the Brink of Complete Contagion, Dave Kranzler Joined the Show to Break Down All of the Action: 

A MUST LISTEN SD Weekly Metals and Markets is Below:

 

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Janet Yellen has spoken – well, sort of.  All she did was launch a trial balloon about negative interest rates coming to America, but that was all that was needed to send an earthquake throughout financial markets.  While there are no doubt many people still buying the notion that we are in an interest rate normalization cycle, now, a growing percentage of those people are second-guessing their assumptions. 

We’ve witnessing new precious metals buyers – both paper, and physical.  A very strong argument can be made that we are now in the third phase of this mega precious metals bull market.  Traditionally, bull markets tend to have three phases:  1) smart money entry;  2) institutional accumulation;  3) blow-off top, when the retail investors enter like mad, and the institutional investors are just as happy to drive things higher as well for the bulk of the move.  To see buyers cuing for physical in London so early in “phase three” is significant.  Dave Kranzler, Doc and I speculate a bit as to the possible significance of this surprising activity.

 

We recorded this show at around noon, Eastern.  The closing action in the precious metals space is very constructive.  Instead of suffering cartel attacks that generate meaningful corrections, so far all we have seen is pretty much “horizontal” action during the more quite days of this trading week.  We haven’t seen that sort of trading in —  quite literally — years. 

This is one of the signs of stepped-up accumulation, and while it’s not easy to determine just how much of this buying interest represents new money, new money is most certainly coming into the precious metals market. 

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We also saw very constructive mining share buying interest on Friday, moving right on up to close and into the afterhours.  For example, check out how nice and generally smooth that upward sloping of the intraday trading on GDXJ from about 12:30 Eastern, onward.  That’s impressive, nice, steady accumulation, with buyside volume popping along the way and accelerating into the close, and a close very near the high for the day.  The icing on the cake:  check out the large buying in the aftermarket.  Clearly, GDXJ is under serious, professional accumulation.  Retail investors don’t fling millions of shares around just before 5pm, EST.  Soros, are you starting to accumulate?  We know Soros loves using GDXJ, and rumors about his buying is making the rounds this week.

Earlier in the week there was a pretty decent amount of turnover in GDXJ, so we were no doubt getting rid of a small number of weaker hands.  Thursday and Friday’s GDXJ has the character of mostly pros working orders and accumulating.  Not only did miners and metals trade well, but they were able to move higher even while the traditional equity markets bounced to the upside.  The cartel prefers to strike when momentum slows a bit – bigger bang for their buck, as it were.  That we didn’t see this sort of action other than minor price management in the middle of the week (which I talked about back on Monday as something to look for – click here) is quite telling.  It confirms that we are seeing the beginnings of what Bill Murphy describes as a “managed retreat.” 

Odds are, we’ve got some room to run and test that $18.50 area on silver.   If the cartel is indeed in a managed retreat, they’re probably not going to be freaking out quite as aggressively until we start getting close to testing $18.50, because breaching $18.50 will send major momentum/confirmation signals to the sizable, conventional finance world that responds to technical analysis and momentum like Pavlov’s dogs.  Sometimes, paper traders are your allies.  Nevertheless, we will have to endure some nasty down drafts and corrections along the way, but many will be surprised by just how quickly we might see silver with a “$17 handle” and targeting $18.50.  That could happen as soon as next week.

As Dave points out during the show, silver has been able to buck downside pressure even when gold was modestly dipping on Friday, and we’ve seen silver trade like this a few times in February.  That’s impressive.  As fears of a deflationary spiral haunt more and more investors, silver frequently takes a back seat to gold, given concerns about falling industrial demand.  Tune into the show for Dave’s take on what this trading action might suggest.  Clearly, silver is giving the cartel heartburn.

Dave launched his Short Seller’s Journal at the perfect time.  If you’d like to check it out, click here to visit his website.

Weekend Links

Enjoy the weekend – Eric Dubin, Managing Editor, The News Doctors

 

CORRECTION: It has come to my attention that the story about bullion buyers cuing around the block in London has been blown out of proportion. ZeroHedge ran a story with a strong headline that was taken out of context. It was only deep in the story that we learn the context for the headline reference to “lines around the block.” ZH referenced an article in The Telegraph, where we see the following quote: “It’s been crazy – it’s been the best week since 2012. We’ve had people queuing round the block,” said Michael Cooper of ATS Bullion, a family run firm that trades online and also from an outlet in the West End.” It also reports: “London-based ATS Bullion added it had been inundated with orders for the past week. The firm has sold 4,000 gold bars and coins since February 1, a 40pc rise on the same period a year ago when it sold 1,500.” Well, that level of order flow at a “family run firm” that has “an outlet in the West End” isn’t the sort of establishment and experiences one can extrapolate against for the whole country, never mind just London. There was a big spike in buying – really big. But it looks like ZeroHedge may have inadvertently created a distortion in the way people interpreted their reporting, including me. It was a busy week and I made the mistake of thinking they were reporting on much larger bullion dealer in reference to that headline because the story quotes large bullion dealers too. Please accept my apology. My musing about lines forming at this early stage of the 3rd phase of the bull market needs a rethink! — Eric Dubin

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