“Who” would do this? Who would sell gold and silver going into this weekend? Who would have such a need to sell silver down 50 cents on the open? The stock market is up right? So silver isn’t down because there is fear that its industrial usage will shrink. They’re not down because Cyprus is “fixed.” They are not down because the dollar is stronger this morning. They are not down because of physical supply as we are in the midst of a record 1st quarter off take of metal. Well, they are down because they are down?
But step back and think about it all for a moment. Lines and protests in Cyprus finally emerged Wednesday afternoon and yesterday. If a deal doesn’t get done in Cyprus they will be forced to leave the EU which means that others will follow the precedent. If a deal does get done, are balances stolen? If the banks do open how bad will be the capital flight? What about depositors in Spain, Italy and Portugal? They know that their banks are ready to blow so flight capital risk exists here which is obviously systemic.
So, who in the world would be selling gold and silver going into a weekend with so many potential negatives and so many questions about the fate and future of the global finance and banking systems? Ah, that’s right, next week is an “options expiration” for gold so the price must be held AT $1,600 so that the options expire worthless! This makes all the sense in the world now, short more paper to “win” short term bets that pay you… wait for it… MORE PAPER! Brilliant.
Never mind that within a week or two the “lines” in Cyprus could get a bit longer and stretch into other Eurozone countries, jump the channel and both ponds, SELL your metals! Never mind that the IMF (the West) is caught in a no win situation where it’s been embarrassed (not to mention that even Christine LaGarde’s flat raided) Wednesday… sell your metals! Today’s action tells me only one thing, a force majeure is the only thing that can occur. The “paper” metals will be settled with more paper. Some weekend (it’s always a weekend) the music will surely stop as it mathematically has to and you will “have what you have” and that’s all you’ll have. “Price” going into the weekend will be meaningless, it will also be meaningless Monday morning when the markets, banks and everything else doesn’t open… the only thing that will matter is whether you HAVE wealth or NOT. Ounces count… Dollars, Euros, Yen, Pounds and Zimbabwe Dollars don’t and won’t.