Friday Open Thread
I'm going to be out and unavailable for most of the day. Here's an open thread for you but, as usual, please try to keep the conversation civil and productive.
Just a couple of things...
In case you missed it, here's a reprint of the "update" I posted to the previous thread. Nothing earth-shattering and certainly not meant to scare you, just a heads up:
5:00 pm EST 11/15/12 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.
And you have missed this, too. I certainly did. The Comex has decided to lower initial gold and silver margins again, effective at the close next Tuesday. It's a pretty significant drop, too, with the gold initial margin declining from $9,113 to $7,425 or 18.5%. The silver initial margin was reset to $12,100 from $16,875 for a drop of over 28%. Very interesting move given the recent volatility and high open interest, especially in silver. Here are the rest of the details: http://www.reuters.com/article/2012/11/15/cme-margins-idUSL3E8MF6LY20121115
OK, that's all the time I have for now. I'll type up and post a full weekly recap tomorrow morning so please be sure to check back over the weekend. As for today, hang in there, keep the faith and buy some physical.