As we approach the end of this current consolidation and capping effort, the efforts of The Bullion Banks to keep price capped are getting increasingly desperate. Again, as Turd's Old Man says: Let om! They're going to lose.
What The Cartel doesn't seem to grasp is this basic rule: "When you find yourself in a hole, the first thing you do is stop digging". The stupid, arrogant jerks just won't give up. QE∞ has long been predicted by The Turd, Santa et al, it was formally announced by The Bernank three weeks ago and it was confirmed beyond a shadow of a doubt just yesterday by Fed Goon Evans. Nevertheless, they just keep issuing paper metal at a frantic pace in a desperate attempt to cap price and contain it below $1780 and, ultimately, $1800. Why are these levels worth defending, you ask? Here's a reminder:
And so, for the third consecutive day, we have seen aggressive capping of price at, or just above, $1780. Again I'll use the word "desperate". No doubt about it. There is some serious panic setting in. Paper price is extremely vulnerable to a quick, $100+ move but the banks can't jack the price lower because of the continuing, robust demand for physical in London. What to do, what to do? Desperation, indeed.
And so then you get a day like today. The metals were unusually strong in the pre-open and looked poised to catapult higher once the Comex was up and running. Paper metal was thus gathered and dumped right at the 8:25 silver Comex open. Note all of the big, blue candles on the charts below indicative of direct attempts to keep the pressure on and rein in price.
But here's the thing: They are almost of of time. The window is closing. You can clearly see it in the charts below. The trend is higher and once their little defense line runs into it (by Friday?), price will almost assuredly burst higher. Perhaps the BLSBS data on Friday will provide the impetus? Who knows? All I know is that this 3-week effort to cap price is about to blow up in their faces.
And The Pig may be ready to provide a spark, too. The rally set off by the announcement of QE∞ appears to have run its course. Though there is still a chance that the POSX will extend toward 82 in order to create a head-and-shoulder top, it is far more likely that the "Calvin" bounce is already over. Watch the 79.65 level (cash) very closely as a decisive drop through there will signal 79.40 and points south.
Just a couple of news items for you. First, "Squeaky" over at PIMCO has released his latest newsletter. I'm posting a link for you simply because it seems so surreal to have the manager of the world's largest mutual fund sound so much like a Turdite: http://www.pimco.com/EN/Insights/Pages/Damages.aspx#
Here's an interesting link that shows bullion sales year-to-date: http://goldandsilverblog.com/gold-bullion-coin-sales-soar-in-september-silver-sales-up-0413/
And, somehow, I have a hunch that these three stories should be linked together: http://www.reuters.com/article/2012/10/02/us-iran-currency-ahmadinejad-idUSBRE8910K220121002 & http://www.debka.com/article/22398/More-Al-Qaeda-pre-US-election-attacks-forecast-Americans-quietly-lifted-out & http://www.theatlanticwire.com/global/2012/10/us-pulls-all-its-staff-out-benghazi/57491/
Finally, there's still time to register at TTM and participate in the webinar tomorrow with James Turk of GoldMoney. The site is great fun (maybe a member can comment on the intensity of yesterday's podcast ) and we'll be hosting events like this on a regular basis going forward. http://www.turdtalksmetals.com/webinar-sign-up/
Have a great day and get ready for an increasingly volatile remainder of the week.
Thank you for supporting TF Metals Report. Your voluntary subscriptions and donations help keep this site alive!