The Iron Dome

You'll be hearing a lot over the next few days about the "Iron Dome" that Israel has. Apparently, The Gold Cartel has one, too.

As reported in the morning update to the previous thread, today we witnessed an extraordinary act of blatant manipulation in the gold pit. Over the course of about 5 minutes, one single order was filled. This massive dump of about 25,000 gold contracts managed to move the price of gold down by nearly $20. To give you an appreciation of the size and scale of this deliberately criminal act, 25,000 contracts is the paper equivalent of 2.5 million ounces of gold or, roughly, 77 metric tonnes. 77 tonnes is the paper equivalent to the alleged physical holdings of Australia or Indonesia.

Now, think about that for a moment. Indonesia is the 4th largest country in the world, in terms of population. Coming in at 250,000,000 people, there exists in Indonesia about 1/10th of an ounce of gold for every person. And some prick in New York was able to dump the entire thing in a matter of seconds. Amazing. And this is what passes for free and fair markets in the 21st century!

Anyway, back to the "Iron Dome" analogy....

Having been caught with their pants down (sort of like General Petraeus), once QE∞ was announced, The Cartels sprung into action to crush the momentum of the longs and flip the algos back into sell mode. By doing so, The Forces of Darkness were able to cover roughly 23% of their net short position over the four-week period from 10/4/12 to 11/2/12. Not eager to see a rebound as they are desperate to continue covering, The Evil Ones have been employing an Iron Dome of resistance at $1730-1740. Why, you ask? It's quite simple.

  1. Even Ronnie Milsap could see that a move back through $1740 and toward $1755 would show the clear end of the recent pullback/consolidation and indicate an imminent move back toward the critical Cartel line in the sand at $1800.
  2. The 20-day MA for the Dec12 gold is near $1714. The 5-day is near $1726 and the all-important 50-day is near $1744. Keeping gold below these key technical indicators is extremely important if you want to maintain the perception of "continued weakness".

So, here is a collection of gold charts, showing the Iron Dome at various stages as well as the disgusting, criminal actions that took place earlier today.

As you might expect, silver has been brutalized, too, and is subjected to its own Iron Dome. Fortunately(?) for silver, it is not quite yet at the same critical stage as gold and has therefore been able to hold in a bit more strongly. Expect a significant fight, though, once silver moves through $33.

Now, on the bright side, we have this:

  • Today's massive raid occurred before the London PM fix, which ended up coming in at $1710. This has resulted in some extremely large physical purchases and this will almost certainly have to be reflected in the paper price over the next few days.
  • Additionally, some of the 25,000 contracts will need to be covered before the next CoT cutoff on Tuesday. Remember, Tuesdays are often either Happy or Terrible based upon how The Cartels need to paint the survey.

So, hang in there, fart in their general direction and take out your anger by buying some physical today. I am hopeful that, one day soon, the paper manipulation game will be compromised and the perpetrators will be exposed for the lying, thieving, despicable creatures that they are. Until then, keep smiling and continue to accumulate your personal financial protection at these deeply discounted prices.

TF

p.s. I try to remember to post a notice to Twitter every time I make a new post. If you haven't already, you should consider "following" @TFMetals.

5:00 pm EST UPDATE:

The metals have continued to slowly improve this afternoon from the savage beating they took this morning. This is quite positive for us Good Guys. However, I feel obligated to draw your attention to something that has me concerned.

Did you see this ZH article earlier today? http://www.zerohedge.com/news/2012-11-15/gold-tumbles-same-dedicated-seller-reemerges. This "dedicated seller" thing set off some alarm bells for me as it reminded me of the period back in late September and early October when we were all similarly flummoxed by a Cartel "Iron Dome" near $1780 in gold and $35 in silver. I wrote about in several posts but summarized the problem on this post from Thursday, October 4: http://www.tfmetalsreport.com/blog/4239/deja-vuall-over-again

Here's the problem...That week of desperate, regular Cartel capping culminated with things breaking down on October 5 and the metals have been under consistent pressure ever since. Of course, past isn't always prologue and history doesn't always repeat, but I'm the one who is paid to recognize patterns and this is clearly one we must keep watching. The main level on which to concentrate would seem to be $1705 in gold. A break there and it will become likely that gold sees at least a re-test of the lows of 11/5, near $1670-1680.

This is no reason to be scared, just cautious. Let's see what happens tomorrow. Have a good night.

TF

245 Comments

Istack's picture

One day it will be

Time to dance in Turdville!!

Start practicing your best moves now.  Be prepared.  Keep stacking.

Big Buffalo's picture

Gold watch

This $1714.19 range is where I see things going one way or the other. It's the mid-range between the bollinger band top and bottom. If it falls below, we'll start the short term down trend. If we can stay above, then we should be okay to range up and between 1720-1743.

Also, if Gold fails $1714 we may have to be very careful with silver. Bollinger Bands: 31.11 low, 32.00 mid, 32.897 high. If gold goes into a short term down trend, I can only image silver approaches and drops below the 32.00 mid-point.

Just being careful here, not bearish.

Big Buffalo's picture

Dang It!

Darn you Istack!, you with the HH place holder instead of my 1g place holder.

Be Prepared's picture

The Fourth

The “debt-is-money” central-bank-driven economic system that we have in the West is fundamentally dependent upon periodic wipe-outs of the middle class (of people who borrow the money into existence in the first place). 

Growth, growth, growth, growth, growth, growth, TOTAL COLLAPSE.

Growth, growth, growth, growth, growth, growth, TOTAL COLLAPSE.

Again and again and again.

If bankers did not believe they would be able to collect assets during the (inevitable) deflationary wipe-out, they would never agree to extend credit during the growth (inflation) cycle.

So basically, we have a financial system that REQUIRES complete destruction of civilization once every 3 or 4 generations in order to exist. What is happening now should not be a surprise to anyone.

Owtovit's picture

i 4 real

i 4 real

Dr G's picture

I have no anger against the

I have no anger against the Cartel. I'm over it. Anger over something I have no control over--and something that doesn't alter my personal game plan (stacking) one bit-- is a complete waste of time.

Grublux's picture

7th?

Maybe???

First top ten!yes

ACM's picture

Iron Dome

   After the election results and slamming of  metal I feel we have the Iron Dumb.  Keep stacking.  You know this ends badly.

Stack'em High's picture

Wh,Wha,What? Silver for Diwali?

It is not just gold that caught the eye of Indian consumers celebrating Diwali. Brisk business in silver was also seen in select parts of the country.
 
Given the high price of gold and the Indian government’s new regulation on buying gold and tax deductions at source, the sale of silver items at jewellery shops soared to a new high.
 
Not bad for a simple "industrial metal"!
alert's picture

Okay I give up on paper game!

I had it with this paper game casino.  From now on, strictly physical silver for me.

GuerrillaCapitalist's picture

Re: Dr G's "I have no anger...

I concur, I'm over the anger and actually look at the manipulation as a gift of lower prices. It just means I can exchange more fiat for PM. I'm a patient man and know the cartel will eventually lose control of the markets and we'll come out way ahead.

Missiondweller's picture

Every time there is a gold raid..

China smiles and buys another ton of gold for delivery.

With paper at 100 to 1 to physical, one wonders how long this farce can continue.

The question is, where is the gold coming from that China is taking delivery of?

Turd Ferguson's picture

BTW, this is POMO

MODERATOR

$2B/day = the $40+B/month that was initially announced on 9/13

Soon to be $4B/day once Twist ends on 12/31.

BTFD.

News Headline Summary

NY Fed buys USD 1.852bln in the maturity range of Feb'36-Nov'42, submitted/accepted ratio 2.51 vs. Prev. 2.59

Nana's picture

So Let Me Ask You This- How Long Are YOU Going To ALLOW This To

Continue before YOU do something about it?

It's up to US to stop this madness.

http://www.infowars.com

Tune in and listen...the choice is yours, the time is NOW, the reason is clear.

Turd Ferguson's picture

Bravo!

MODERATOR

Unless you're part of The Army and trading with Andy, this is your only winning move.

Turd Ferguson's picture

Most likely the GLD.

MODERATOR

Most likely the GLD.

El Gordo's picture

Iron Dome

One of my exes had one of those iron dome things over her thingy.  It was impenetrable, but sometimes when she was really drunk she took it off.  She told me that she was cutting me back but the other two guys she cut off completely.

dgstage's picture

Bart Chilton

I wrote him these morning about the manipulation, here was his response.

Hi David
We are looking at the trades. Thx.

bigal60's picture

@NANA

I cant listen to Alex. The guy will give you massive ulcers if you tune in.  I heard him for a week a few years ago and while I know things are going to go to shit I don't need someone to yell it in my ear every single day. If he were to talk and not yell every 3 seconds and stop with the constant patting himself on the back for knowing things I could listen.

Bongo Jim's picture

Why do you think...

That there are all those giant casinos in Las Vegas ? Because the games are rigged for the house to win. See the analogy?

Colonel Angus's picture

Old Westerns....

in those old Westerns, the good guy was easy to spot. He was wearing the BIG YELLOW HAT. That remains true to this day. So Thunderlips and all you other regulators/referees out there, notice that Jamie and Blythe and the flying monkeys have hidden their black hats. They don't have big yellow hats. They are likely the bad guys.

OK, I'd better do some actual work now. 

SRSrocco's picture

ONLY MAKES SENSE....

High gold prices push many Indians to silver for Diwali

MUMBAI (MINEWEB) -

It is not just gold that caught the eye of Indian consumers celebrating Diwali. Brisk business in silver was also seen in select parts of the country.

Given the high price of gold and the Indian government’s new regulation on buying gold and tax deductions at source, the sale of silver items at jewellery shops soared to a new high.

"Silver has proved to be the preferred substitute with most retail buyers this Diwali,'' said Manish Mehta of bullion retailer, D P Zaveri and Sons. ``Customers came in asking for silver coins, corporate gifting products, small utensils to be used at home and for silver items to conduct puja (the ceremony for prayers),'' he added.

---------------------

I also have to agree with TURD that the best gold and silver to own is the PHYSICAL in ones hand.  I would probably include the miners as well into this equation.  That is, I would rather own bullion than the miners.  I am working on some interesting data on the TOP SILVER MINES and their REVENUE vs NET INCOME... you would be surprised how bad things are getting in the sector as a whole compared to last year.

Break Even now for mining silver is probably $29-30 an ounce.  An that does not include starting up a new mine.  It would be even higher than that.

iceman321_2k2's picture

HEDGE FUNDS Still Like GOLD!

All three major U.S. equity indices are currently on a losing streak, but the price of gold has been relatively strong. The precious metal recently logged one of its strongest quarters in years, thanks to another quantitative easing program being launched from the Federal Reserve. After finishing 2011 at $1,531 an ounce, the price of gold now trades near $1,700. Gold is on pace to climb higher for the twelfth consecutive year, and several well-known hedge funds still appear interested in the safe-haven asset...

http://wallstcheatsheet.com/stocks/are-hedge-funds-still-interested-in-gold.html/

Turd Ferguson's picture

So I flip on my TV to get

MODERATOR

So I flip on my TV to get some news about Israel/Gaza and I'm greeted by the idiot, Cramer. I must have left it on CNBS after watching the BLSBS coverage two weeks ago.

Anyway, The Clown says that "stocks are only under pressure because of the looming Fiscal Cliff". Maybe he's right. Frankly, I have no freaking idea. The point here, though, is to remind you of the relative performance of gold vs the S&P during the late summer of 2011, the last time we had to go through all of this nonsense. The charts below serve the purpose.

indosil's picture

Open Interest

@Turd

       the open interest you mentioned about in Silver had to do anything with the price decline today??

The Watchman's picture

My Philosophy

Funny Quote When life knocks you down

kn33bar's picture

CFTC may be forced to do their job

 

There is a slight chance that the CFTC may be forced to do their job. Probably not.

U.S. House panel suggests SEC-CFTC merger after MF Global

http://www.reuters.com/article/2012/11/15/us-mfglobal-report-idUSBRE8AE15520121115

hammerman's picture

physcial cliff

could peter schiff be right?  the R'S and the D'S are playing a big game of misdirection and are intent on going over the cliff?  it you look at it from that angle they could then reset the spend and tax game w/o either team taking the blame?  the federal debt would be cut in half and the  metals would get crushed back down to $1200 again?   any thoughts? please think outside the sheeple box....

avdhuman's picture

Seceding will turn the Iron Dome into a wet paper bag

Once all the states secede from the Union the iron dome will be shattered to oblivion. Will the cartel raise taxes on the states that don't withdraw? What would happen to the value of real money? http://thebasicsofliving.com/states-petition-to-secede-from-union/

ballyale's picture

So what's up with the Miner 18% beat down this week?

So what's up with the Miner 18% beat down this week?

1.) A mere $12. shake down on a paper naked short 25,000 contracts doesn't warrant a now 20% takedown of the Miners.

It looks like the EE is going all in now.

2.) Perhaps, it's because of the new Hong Kong futures trading that's going
to happen in the next few months. What a nice paper floor for a new competitive gold and silver futures market. It should be interesting how
each market resolves their different prices.

3.) The EE are using the general market to mask the naked shorts in the
mining sector. This is pure market manipulation. Between the paper dump and
the naked shorting in the market, the naked shorts must have increased by 20% or so in the last week or so. Naked shorts artificially increase the number of share outstanding, which is why is "theoretically" , because I haven't heard of one naked short entity ever being prosecuted in the last decade. This shit is easily found out and should be quite easily prosecuted and found guilty.  There hasn't even't been ONE. Bart Schilton, YOU are a f$$king fraud, plain and simply.

4.) Why hasn't Schilton investigated any naked short investment banker? Clearly, that is within his purview. Isn't it. And such "behavior" is easily
traceable. Isn't it? Answer: <<No Response>> Apparently, the rule of Naked Shorting is no longer a rule! It's not that hard to find naked shorting . It's that they don't want to find it or prosecute it. This, as much as the fiscal cliff is destroying the economy. It's as though, they want to destroy, and I think the EE Rothschild people actually do want to, so as to pick up the pieces for pennies on the dollar in a new form of a Nazi like state.

5.) Naked shorting, esp. massive and global naked shorting simply destroys any capital going to companies with great prospects and profits from developing. It destroys trust in the markets and hurts good profitable businesses from getting needed loans to expand, becaus their equity prices
are being destroyed.

6.) Essentially the 5 Big "Investment Bankers" have turned into Global Financial Piranahs sucking the financial life out of everything that can create growth and jobs. Is there any reason that they shouldn't be broken
and sold as separate entities like the monopolistist phone entities were
once done to the benefit of lower cost and competition. Remember when a single long distanc call cost a lot of money. Now, you can call anywhere as
part of your phone package.

7.) The job of real banks is to take small risks so that new or existing or exciting businees can be born, grow, create jobs, etc. The Investment Bankers have perverted this essentially benign and American values system into a Halloween nightmare of greed, illegal bad bets, and naked shorting in a futile desire to gain back some semblence of non BK by any and all legal or illegal means.

The Banks know they are insolvent. They will do any trick or illegal action in an attempt to get back some semblance of solvency in order to continue their bloated wages and bonuses.

8.) It takes more and more fiat, (funny, how we don't call it money anymore) to get less and less manipulated results. All that does is to press the spring tighter and tighter.

 

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