Another horrible Tuesday. Don’t be surprised. Per what James Mc (on LeMetropole Café) pointed out:
Since that Tuesday back on April 15th 5 out of the subsequent 6 Tuesdays have been lower. The only gainer was by a measly 80 cents. The cumulative losses of those 6 Tuesdays stand at $37.20. During this time ALL of the losses for gold have occurred courtesy of Tuesdays, with the remaining trading days essentially being a wash. (+$1.80) The updated cumulative losses for Tuesdays since the first of the year now stand at -$118.50, with all other trading days showing a cumulative gain of $240.20. The data for the Dow on Tuesdays, while slightly moderating, still shows the same trend of being mirror reverse to gold. The Dow has gained on 4 out of the past 6 Tuesdays, at least slowing its torrid pace of EVERY Tuesday being a winner. So many areas to look into trading “anomalies”, so little interest in doing so by regulators or MSM.
–Le Metropole Cafe, May 28, 2014
I like to check with my friend Trader David R and get his take on gold and silver. I asked him when “he” thought they would start to move up and whether he thought $1000 gold was possible. He told me:
How long can this manufactured economy last for? When will the game be up, post election? I’m not sure but we will have an accident soon, somewhere in Fixed Income….. Too much consumer and corporate debt out there. I don’t think we will see $1,000 gold, but I can only hope so….. But I highly doubt it. I think silver could fall further than gold! I would love to see $16 there. $16 silver and $1000 gold is not a bad thing, it is the opportunity of the decade laid out before you.
As you can see, he is not upset with the possibility of $1000 gold and $16 silver. He would love to see those prices. And why not? What a gift! What a spectacular buying opportunity – getting your gold and silver for a 20% discount. But as he says, he doubts that will happen it would be the buying opportunity of the decade.
Bill Murphy (LeMetropole Café) says:
The high silver open interest has been the bugaboo for some time now, as it has been for years. Its elevated level has been a consistent red flag that the precious metals were not going to be allowed to maintain a bullish course. Clearly JP Morgan, with its direct line to the Fed, has been the orchestra conductor on this one.
–Le Metropole Cafe, May 28, 2014
You can get more of his thoughts on the manipulation in the LeMetropole Cafe portion of the Featured Articles section.
If you believe that the markets are manipulated, especially gold and silver, you should subscribe to Ted Butler’s outstanding newsletter. The cost is $34.95 per month and it is a bargain at that price.
His position on JPMorgan and the silver (and gold) manipulation goes something like this:
Silver’s concentrated short position (317 million oz) is so large currently to rule out any legitimate explanation for its existence. Any additional short selling can only be for the purpose of containing the price. In this case, containing is the same as manipulating.
As repetitive and uncomforting as it may sound, this sell-off greatly improves the market structure in both silver and gold, but to a spectacular degree in silver. The commercials are buying every COMEX gold and silver contract that they can induce the technical funds to sell. That both explains why we’ve gone down in price and why will turn up and, most likely, very sharply in silver when the turn is made.
–Ted Butler, May 28, 2014
This is typically the slow time for precious metals – rising prices rarely occur over the summer, but once the bottom is in the bull market should rebound very quickly. I think Larry Edelson would agree.