From David’s Desk
There are two articles in today’s daily that are exceptional. I hope you can find the time to read Chapman and NIA. If you want the truth on what is happening, then don’t miss what they have to say!
LeMetropole Café hit the nail on the head today. I have tried to be “neutral” regarding the manipulation of gold and silver. But try as I may, it is just plain hard to ignore the facts and the facts point to a market that does not trade like a free market should.
The constant “capping” of gold at exactly 1%, day after day, just couldn’t happen without a motivated seller, one whose motive was NOT profit. The raids on gold always take place at the opening of the market in London or at the opening in New York. Nine out of 10 times, gold is taken DOWN, even when there is no news that should call for it, or even if the dollar is not rising. The only market that trades in this unusual fashion, besides gold, is SILVER.
Silver, as we know, is controlled by JPMorgan who holds a majority of all of the Comex (short) contracts.
These are topics that are discussed daily on the Café. All one has to do is sit back and observe the way these (gold and silver) markets trade and it is impossible to ignore the simple truth that they do not trade freely.
Noted “experts” like Dennis Gartman, the World Gold Council, GFMS, CPM and Kitco’s head buffoon Jon Nadler try and convince you that the good folks at the Café wear tin hats and are nothing more than conspiracy nuts. Well, if they are, I don’t give a damn because by following their great advice I have made a great deal of money and so have most of my readers too. Following the advice of Nadler, Gartman and the gang would have resulted in a sore butt from sitting on the sidelines.
Haven’t you learned by now that the BEARS are either stupid or liars? It should be obvious that the people who have been the most right – Jim Sinclair, Richard Russell, Bill Murphy, Eric Sprott, John Embry, Martin Armstrong, John Williams, Doug Casey, Bob Chapman and of course Miles Franklin – have been BULLISH the entire way UP, for the past 10 years. Following our advice has resulted in gains in silver of 8.4 times and in gold of 5.6 times over the past decade. Meanwhile, the stock market has moved sideways, the real estate market has crashed and the bond market has been paying you interest that is LESS than the real, unadjusted rate of inflation. I say the results speak for themselves! Everyone I mentioned in this paragraph will tell you, without hesitation, that gold and silver will continue to rocket up for at least several more years, to levels that are at least two or three times today’s prices, and probably even higher!
I’m buying more silver on Thursday!!!
Today was one of the wildest trading days I can recall over the last 12 ½ years for the precious metals. Gold began to dip at its usual PLAN A time in London, but then soared going into the Comex opening, rising to $1430+. Then it collapsed during the early Comex trading hours … meaning it went straight down.
Then, it rallied back up only to collapse once again, making new lows for the day at $1411. No sooner were those lows made when gold turned right around and made like The Road Runner to the upside, eventually closing above the key $1420 level. Silver, which was much stronger than gold during the day, trading in similar fashion. It fell from $37.76 to $36.97 and then rallied back up. The good news is that silver, gap-filler that it is, did fill its opening gap for the day, making today’s advance even more constructive. At day’s end we have a new 31-year high close on the Comex. Yep, JPM is in the deepest of trouble and many have NO WAY OUT, but to pay UP and UP and UP.
Their only way out may be that the US Government is backing their position, meaning it will pay all losses or reimburse JP Morgan for their role in the precious metals price suppression scheme. Why else would Morgan remain so short? Are they that dumb? If there is anyone else who knows more about the real gold and silver markets than GATA, it is JP Morgan Chase.
You might say that is a lot of money for the US Government to back such a losing position. But relative to the US financial markets, it is a drop in the bucket. The real problem will surface when buyers stand for substantial amounts of silver for delivery and Morgan cannot produce. What does the US Government do then? You can’t print the stuff.
THERE IS NO TELLING WHAT THE PRICE OF SILVER CAN DO ON THE UPSIDE!!!
“Jim Rogers on CNBC this morning: “Don’t sell your Silver!”
What a beautiful silver chart:
You were waiting for this e-mail, right?
That Gartman fellow is quite the curious bird. Might he be prohibited by TPTB from being “long of gold, in dollar terms”? Being long gold in yen terms only seems a bit obtuse. Why the hell can’t he just be PLAIN long gold, period? And also long-term, period? Gartman is no different than the WGC, GFMS, CPM’s buffoon, and that Kitco moron. They are all motivated to lie, and any information they reveal must be viewed as support for the financial markets they prefer. Clearly all aforementioned parties prefer paper derivatives over physical. Motivated liars are always the most irritating.
I can’t imagine why anybody would own shares of mining companies that financially support the WGC. Their renewed anti-physical position is just appalling.
James read my mind on several counts. First on the 1% limit and then on Dennis Gartman going long gold in yen. This is what this clown said today (course CNBC had to invite him on their show):
“We have been quite “vocal”… if one can be vocal in print?… in hoping to buy gold on a break toward the $1395-$1404 range, and it does appear we’ll not be able to do so and that the lows made earlier this week at $1409 may well be the best we shall see to the downside.
“Perhaps most importantly, gold, as we write, is breaking out to the upside in Yen terms, trading ¥118,000. This then is the trade: to be long of gold in Yen terms and that then is the course of action we shall take.”“
Final thoughts by Ed Steer
Well, the U.S. bullion banks showed up yesterday early in the Comex trading session and put an end to the rallies in both gold and silver that were on their way to going vertical in price. It’s hard to tell or not whether the rallies were caused by them buying and covering shorts…and/or covering shorts when they pulled their bids shortly after 10:00 a.m. Eastern.
But one thing that should be obvious to all, is that if the bullion banks hadn’t shown up to halt both rallies right in their respective tracks around 8:45 a.m. Eastern, the prices of both would have been in outer space long before the trading day was over, as there were no free-market traders willing to take the short side of these long positions at these prices. JPMorgan et al are the shorts of last resort. They are the only ones that are standing in the way of monstrously higher prices.
And they don’t even have to make any attempt to cover their short positions. As Ted Butler says, all they have to do is put their hands in their pockets and do nothing…and the nuclear price explosion in both silver and gold would be on.