A year ago, ‘twas the fateful Sunday night when the Cartel pulled off its most coordinated PM attack of ALL TIME, the infamous “SUNDAY NIGHT PAPER SILVER MASSACRE.” Just as silver was about to complete the “ULTIMATE TRIPLE TOP BREAKOUT” at the KEY ROUND NUMBER of $50.00/oz, it COLLAPSED in the early hours of trading.
The Chinese market was closed for a holiday, with not a cloud was in the sky regarding supply or demand. In fact, nearly all bullion dealers were SOLD OUT of silver rounds and bars, as I wrote in several RANTS at the time…
Ranting Andy: Alert! Alert! APMEX (and Likely Nearly All Mints) Out of Silver
Ranting Andy: Alert! APMEX, Overwhelmed by Physical Buying, Ran Out of Silver Eagles!
Just five months after “D-DAY,”, the Cartel clearly experienced MORTAL FEAR of its imminent demise, catalyzed in large part by an operative led by the PM community’s fearless leader, “ADMIRAL SPROTT” – i.e., the $575 million IPO if PSLV, the Sprott Physical Silver Trust. TPTB knows full well silver is the ACHILLES HEEL of their scheme to maintain confidence in fiat currency, and that an explosive surge above the widely watched 1980 highs could catalyze the inevitable PHYSICAL mania, ending their four decade reign of terror.
Silver is The Achilles’ Heel to the Entire Economic System
At first glance, I’d say the plan was perfectly crafted. That is, they selected the thinnest time of the trading week – Sunday night – made sure it was a Chinese holiday, and even pulled out their “ace in the hole” – the bin Laden execution – to use as cover. And cover it was, as the ENTIRE smash occurred within 13 minutes, well before the bin Laden news was released. I won’t even go into the silliness of attempting to connect his supposed death to declining silver prices, given my lack of time this morning. However, I did go over this topic in great detail five weeks ago, when I wrote the below RANT at the San Diego Airport, the EXACT spot I was on Sunday, May 1st 2011, when the whole, sordid episode commenced.
The Sunday Night Paper Silver Massacre – Revisited
Suffice to say, much of what I’m thinking now was stated in “REVISITED,” but I wanted to acknowledge this important day in real-time, even if I don’t have the time to add to these comments further.
The key takeaway of the “SUNDAY NIGHT PAPER SILVER MASSACRE” should be thus:
PHYSICAL silver demand WILL eventually swamp the Cartel, and the next time we push up to the KEY ROUND NUMBER of $50.00/oz, I doubt they will be so lucky. I cannot overemphasize the importance of breaking above this historical price, which in my view will yield the “ULTIMATE QUARUPLE TOP BREAKOUT,” the end of four decades of deleterious status quo, and the beginning of a terrifying period of social unrest, draconian government, and HYPERINFLATION.
PROTECT YOURSELF with PHYSICAL GOLD and SILVER, FOOD, ENERGY, and ITEMS of REAL VALUE, and do it NOW!
I’d like to ask: how will this hyperinflation play out?
The most popular hypothesis I hear is that the chinese will dump the US bonds they keep.
But the chinese-held US bonds only account for a fraction of US bond reserves. Most of the US bonds are being held by the FED (and the FED buys most of the new bonds also).
So how will inflation/hyperinflation occur, if the majority of us bonds aren’t affected (because the FED wont sell them, that is for sure)?
I asked the question at a february post earlier, then I figured it would be more fitting here.