The Sunday Night Massacre, One Year Later

What we you doing one year ago this instant? I, for one, was preparing to leave for another one of LT#2's soccer games and a relaxing, birthday dinner with MrsF. Little did I know, or even suspect, that this was coming around the bend:

paper_5-1silv1.jpg

I set out today to write a retrospective. Too full of brim and bluster for a Sunday, I thought a thorough recapping of last year's events was in order. A funny thing happened along the way, though. As I read through the archives, not only of The Watchtower but of sites like ZH and others, I lost my enthusiasm. The more I read about the past, the more I thought about the present and the near future. So, instead of rehashing the single greatest manipulative theft I'd ever seen, I decided instead to move on.

Look, we all know what happened. The chart above tells the story and what's done is done. All we can do now is use the events of last year as a learning tool. What happened in silver in the days and weeks leading up to Sunday night, April 30, 2011? Are any of the same market conditions prevalent today? Has anything changed? Where do we go from here?

I have always and will always contend that the dramatic price gains made by silver in April 2011 were not the result of a speculative bubble. A simple review of the CoT structure from that time bears this out.

CoT date 4/5/11

Price: $38.50

Large Specs: 48,890 long and 12,105 short. Net long ratio of 4.04:1

Small Specs: 35,002 long and 15,373 short. Net long ratio of 2.28:1

The Silver Cartel: 89,827 short and 33,413 long. Net short ratio of 2.69:1

CoT date 4/26/11

Price: $49.50 (up 28%)

Large Specs: 43,078 long and 18,083 short. Net long ratio of 2.38:1 (a drop of 54%)

Small Specs: 36,144 long and 18605 short. Net long ratio of 1.94:1 (a drop of 25%)

The Silver Cartel: 78,297 short and 35,763 long. Net short ratio of 2.19:1 (a drop of 29%)

If a speculative bubble had occurred, we should have seen an opposite CoT reaction. Spec long ratios should have been exploding, not contracting, and the net short ratio of The Evil Empire should have expanded.

Instead, price rose dramatically throughout April. "Speculators" were covering positions and adding shorts into the rise that was being induced by the Cartel's covering of 11,530 contracts while simultaneously buying 2,35o new longs.

Why was The Silver Cartel panicking last April? Much of the concern seems to have centered around physical delivery. There was much talk that month about an impending silver Comex default. Was it all hype and mindless speculation or were the bullion banks fully aware of the situation and trying to extricate themselves as quickly as possible? Well, go back and read this:

http://www.zerohedge.com/article/45-scotia-mocattas-registered-silver-transferred-eligible-status

and this:

http://www.zerohedge.com/article/how-comex-lost-20-its-registered-silver-one-week-or-where-theres-smoke-run-theres-probably-r

From the 4/27/11 link directly above, here's the "money paragraph":

"To our (lack of) surprise, a quick glance at today's silver holdings at the Comex confirms that the trend of reclassification is continuing unabated, and total "physical" silver across the entire Comex universe has now plunged by almost 20%, or from 41 million ounces to 33 million ounces, in the span of one week! And while last week it was Scotia Mocatta, today it is HSBC and the Delaware Depository, and the reason given: "Adjustments include reporting classifications of t oz that were moved from Registered to Eligible.  Please see Special Executive Report reference 5736 for additional information.  http://www.cmegroup.com/tools-information/advisorySearch.html#." And a further drill down reveals the following link. Many have speculated that there could well be a run on physical silver. But for those looking for a smoking gun, this is probably as close as you will get to one, short of JPM actually declaring "force majeure."

By late April, the banks had successfully decreased their net position by 14,000 contracts but had driven price UP by 28% in the process and now all indications were that physical silver for delivery was being hoarded. Then, on Monday, April 25, the CME raised margin requirements for silver by over 10%. Was this move an attempt to coerce May11 contract holders away from taking delivery? By Thursday, April 28, price had not fallen materially and open interest in the May11 was still at 10,963, one day before first notice day. Is this why the CME raised margins again (another 15%) that evening, effective at the close on Friday, the 29th? Regardless, one year ago tonight it was obvious to The Cartel that they couldn't continue on their present course and it was time for dramatic action, consequences be damned.

It's now one year later. Silver has seen additional wild price swings and other dramatic beatdowns but where is price currently? In the days immediately following The Sunday Night Massacre, silver traded as low at $32.60 before rebounding. When trading reopens this evening, silver is at $31.30. (Interestingly, gold over the same time period bottomed at $1471 yet stands tonight at $1665.) Since the paper price of silver hasn't changed much since from those panic lows of early May last year, maybe we should look at the market internals again.

CoT date 4/24/12

Price: $30.75

Large Specs: 28,913 long and 12,442 short. Net long ratio of 2.32:1

Small Specs: 19,247 long and 13,365 short. Net long ratio of 1.44:1

The Silver Cartel: 70,697 short and 48,344 long. Net short ratio of 1.46:1

From the peak of The Great Cartel Panic of 2011, paper price has fallen almost 40%. Over the same time period, large spec longs have cut their positions by 32% while maintaining a nearly identical net long ratio near 2.3:1. The small specs have trimmed their long exposure nearly in half while decreasing their net long ratio by 25%. The real change in The Cartel position. The total short position has declined from nearly 90,000 in early April 2011, to 78,000 by late April to just 70,697 today. This is a drop of over 20%. Conversely, The Cartel long position has grown from nearly 33,000 in early April last year to 48,344 today for a growth of almost 50%! And the Cartel net short position, which peaked at 2.7:1 last year has been cut nearly in half. WOW! From the perspective of The Silver Bullion Banking Cartel, the past 12 months have been a smashing success!

So, now, let's try to sum this up. I believe that in the spring of 2011, The Silver Cartel began to fear a run on physical silver as evidenced by their moves to reclassify silver in April 2011. Their hasty attempts to cover their long-standing futures positions were causing a spike in price and actually increasing the likelihood of physical stock depletion and a "run" on the Comex. Faced with no other alternative, The Cartel conspired with the Comex-owning CME to rig prices lower through margin hikes (5 in 9 days) and massive price manipulation (The Sunday Night Massacre). The resulting and subsequent paper price declines have allowed The Cartel the time needed to decrease their net paper silver exposure by over 70%.

The question becomes: Are they done? Will price be allowed to rise next time without Cartel interference? Is their ultimate goal to have a 1:1 net short ratio? Time will tell. What's interesting, however, is how the physical delivery picture has not changed. First, this article from Jesse last week showing the dealer inventory changes over time. Note that, last year at this time, in the midst of The Panic, the registered inventory was around 35,000,000 ounces. By late last week, the total registered inventory was under 30,000,000.

http://jessescrossroadscafe.blogspot.com/2012/04/comex-silver-inventory-watch-heading.html

Now, as of Thursday, we still have 9,026 open contracts in the May12. Though it's unlikely that more than 2000 or so of these will stand for delivery, what are we to make of this:

http://www.silverdoctors.com/jp-morgan-increases-registered-silver-inventories-500-overnight/

Notice that this is silver moving in the opposite direction of last year. Instead of dealers pulling and reducing the stock of registered (used for delivery) silver, here's JPM adding 5,000,000 ounces. That's enough silver to settle 1,000 contracts and the move has left JPM with just under 9,000,000 eligible ounces. What the heck? Why would they do that? Did JPM get wind late last week that someone or something is intent upon taking delivery next month, above and beyond the usual amount? Maybe. Regardless, with only 9,000,000 eligible ounces left to switch to registered if necessary, JPM can only settle another 1,900 contracts with the supply they allegedly have on hand. If Ted Butler is correct in claiming that JPM alone is short at least 18,000 silver contracts, Blythe and Jamie are currently left with only three options:

  1. Stage another massive raid. However, I believe that the very strong physical demand at $30 precludes this option and even lower paper prices will only serve to increase physical demand.
  2. Get their hands on millions of ounces of new silver to replenish their inventory. Also unlikely as this would only add to the ongoing "problem" of excess demand.
  3. Cover. This, really, is the only viable option. They must continue to cover and exit their short position. But can they do this in an orderly manner?

Last April, an 14,000 contract flip moved price 30%. At today's price levels, a similar surge would simply take price back to $40. To me, this is their only viable option. Once flat, they can allow silver to trade freely. The next time it goes back to $50, they will be financially indifferent.

CONCLUSION: It appears to me that the current demand for silver is strong and that the current supply is tight. Even tighter than last year at this time. Equally important, price has fallen 40% while The Silver Cartel has effectively trimmed their net short position by 70%. The only sensible, business option for The Cartel is to continue to cover their short position, regardless of price action going forward. Given the ongoing possibility and continuing concern for delivery default, The Cartel must utilize this final dip in price to flatten their books. If they do, silver will rise through this process and then accelerate, once Cartel price interference has been removed. If The Cartel fails to get flat here (or if they are not allowed to), they ultimately risk a default and collapse that will not only bring down their individual firms but, also, bring about a financial calamity the size and scope of which has not been seen since 2008.

TF

261 Comments

johnboatcat's picture

Anyone, Who Knows Anything, About Anything, Concerning....

Well, just to say that the Russian squads are not over here being trained.  They are training US.

Lanikai's picture

Ranting Andy

For those who missed the podcast of Turd and Andy Hoffman, it's highly worth a listen; and may revolutionize the conversations as we move back toward history where silver is money.  Get ready.

tyberious's picture

F@#K

I am not trying to be an alarmist but I think we all need to be aware of this, if not already!

Fukushima: Hanging by a Thread

MOX Plutonium Fuel

"The mixed oxide fuel (MOX) reactor[2], which burns with plutonium/uranium, is more deadly than those burning on uranium-enriched fuel, according to nuclear experts. The half-life of plutonium-239 in MOX is 24,000 years and just a few milligrams of P-239 escaping in a smoke plume will contaminate soil for tens of thousands of years.

A single milligram (mg) of MOX is as deadly as 2,000,000 mg of normal enriched uranium meaning that one mg of MOX is basically two million times more powerful than one mg of uranium.

If even a small amount of this potent substance escapes from the plant in a smoke plume, the particles will travel with the wind and contaminate soil for tens of thousands of years.

Ray Guilmette of the National Council on Radiation Protection and Measurements said that plutonium “is thousands of times more radioactive than uranium,” if absorbed into the body.

Donald Olander, professor emeritus of nuclear engineering at the University of California, Berkeley, said that because plutonium decays quickly, it produces radiation that can kill cells in the body more quickly. But the plutonium itself would pose a severe threat only if it was involved in a violent reaction that turned it into dust particles that could be inhaled. No one knows the exact number but plenty of the fuel rods at risk are MOX, thus containing deadly plutonium. If that blows up then we might end up wishing we had had a nuclear war instead."

http://theintelhub.com/2012/04/27/fukushima-hanging-by-a-thread/

tyberious's picture

Quote of the Day

The Dalai Lama summaries the situation saying, “We have degenerated into an insane society, unconsciously committing mass suicide by ecocide. Unrestrained corporate capitalism coercively and insidiously exploits vulnerable people and myopically plunders, depletes and corrupts finite planetary resources that sustain life.

Billions of people suffer needless poverty, starvation and avoidable disease, while obscenely privileged corporate, political and religious plutocrats greedily acquire power and excessive material wealth far beyond their conceivable needs.”

Hammer's picture

http://www.bbc.co.uk/news/bus

¤'s picture

tyberious

I hear you on the Fukushima situation. 

It's only a matter of time before that issue is front in center in a bigger way. Can you imagine what it will be like when a huge debris field starts landing across the entire west coast of North America? At some point I would think seafood would be questioned from that area or that entire region. 

How could 2-3 nuclear facilities explode on the edge of the ocean and there not be a negative outcome at some point? I wonder what happened to those workers from a year ago?

I think it's an avoidance issue that we just don't discuss any longer. sad

johnboatcat's picture

tyberious -I know you are not trying to be an "Alarmist"!

But what exactly do you suggest we do besides go to a yoga class tomorrow so that we will be limber enough to "kiss our own ass goodbye"?  At least give us some direction!

OK, I'll start.  Stack nickels. At least you can hide behind them because you will never be able to afford enough gold and silver to build a wall!

Your turn.

tyberious's picture

IndigoStar7

I live in Seattle and have sadly geive up on Pacific seafood, about 6 months ago. I can say that I trust the Gulf much either, with the eyeless shrimp and all.

 johnboatcat

Don't be fatalistic, just be aware that we have this huge, possibly Earth change event looming. My only suggestion is to do not bury your head in the sand!

Though I like the nickels idea :) 

Bsong's picture

S Roche

Heck of a thread you recommended last night.  Having now completed it am still unable to draw any conclusions.  It seems to me the naysayers use a tired style of making a point by being uncivil towards the messengers.  I'm having a hard time believing JC is not playing a role to distract as he projects others to be doing.  Very similar style to those of the hacks representing many of the soros funded web Blogs.  Appreciated your input and thoughtfulness

vonburpenstein's picture

One year ago....

...I had just joyfully purchased a monster box for $25,000.05.  Imagine the fun I had (waiting, watching the price fall)  when I actually received it on May 10th.  LOL.  I think price was 35 or something.  And you know what...? I'm glad.  I'd still have it if I hadn't gone rafting, and when things evolve the way we know they are going to at some point - then I'll be the genius.  Just hope I can get another one soon and spend slightly less.

BTW, found a mercury dime in my change this week, awesome! AND watched 4 normal peace dollars go for $212 at an auction.  Got that buyer's number for future reference.

Really and truly I find it all quite fascinating.  The psychology of it all.  We were all jonesen ' for silver as it lurched higher and I higher, hell - every last bit of powderage I had was going that direction.  Now, that shits at 31-2 and we hesitate waiting for the big beatdown.  Tptb are pretty good at the mind game - but the circumstancial evidence tells the tale.  Good week to all coming up.

Vonburp

El Gordo's picture

Let's face it

When your number is up, it's up.  I still figure the odds of me being run over and killed by a beer truck are greater than being poisoned by seafood or irradiated by the Japanese.

Kcap's picture

Thoughts on the spike tonight

The spike consisted of:

Silver, Gold and the Dollar, all spiking up momentarily.

My thought is the algos are all being re-synched to drive G/S/USD up together now.  I now this seems counter-intuitive to how the 3 work, but if you recall, we have had this movement before until suddenly the USD drops out of the rise, stagnates and then drifts lower.  The Algos get re-calibrated again and then its dollar down, G&S way up.  This is when the parabolic part of the move happens in the up wave.

Watch for traction to slowly build here.  Then pick up in intensity.  And a double-digit standard deviation move out of the blue cannot be ruled out based on my last post and Sinclair's vacuum.

Best,

Kcap

ReachWest's picture

Vegas on AMEX

Re: Fukushima

I read that article yesterday - and frankly - had a difficult time sleeping last night - but - I have to second what Johnboatcat said.. what the heck can we do? [Yoga class makes about as much sense as anything else].

In the article, it says "This may be the most important thing you ever pay attention to for the sake of your family, friends, your neighbors, every one you know and meet, all of humanity." My gut reaction is .. what?  I mean, what the f#%* can anyone do? If the disaster that this article outlines is about to take place and the Northern Hemisphere is to be wiped out, then hell - I might as well head to Vegas tomorrow and book a really expensive hotel with my AMEX. eat, drink and be merry with what little time is left.

Don't get me wrong - I'm bloody concerned - but - for me, sticking to the weird goings-on in the World Financial Markets is enough stress.

El Gordo's picture

Goldfinger

Wasn't Goldfinger going to irradiate all the gold in Fort Knox to make his holdings more valuable?  That movie may have been too long ago for many of you Johnny Come Lately's, but I think we have seen this script before.  Along those same lines, have you ever gone back and watched some of those old 1950's sci-fi flicks and compared their scary story lines with the lines being espoused today by the likes of Algore et al?  You'd be amazed at the similarities.  Some things never seem to change.

Patriot Family's picture

Peace dollars at $40+ each?

Vonburpenstein - I went to an auction this weekend and got a 8 oz box full of 90% silver dimes and quarters for about 35% of current spot value (should be far more favorable since I've found plenty of mercury dimes in the batch from 1918-1920s and those sell for up to $10 each).  All other silver that day was purchased at or just slightly above spot value (for the ASE proofs in cases).

Local pawn shop had Peace and Morgan dollars in VF to AU condition for $25 so I bought most of them.   If somebody's buying for $40+, pass their number along to me.  I wouldn't mind a 60% profit in under a week on those dollars.

bbacq's picture

annual analysis...

Interesting analysis, but- who was it that wanted to be reincarnated as the bond market? - isn't the silver market tiny for JPM et al, compared to bonds/CDS/etc, in which case they just paper-down "forever", damn the (small) cost?  Why not just keep playing the range-bound game?  Not sure I see how physical plays into into it since (please correct me) the CRIMEX doesn't actually guarantee physical delivery in the fine print, one is still obliged to accept fiat as a last back-stop on contract delivery.  Am I wrong?  I had thought this was why PAGE was so interesting, that it would re-couple spot and physical.  I mean, if we had rule of law and such, it would be different... Wish it were less bleak, and I'll be happy to be surprised... enthusiasm that JPM can be easily trashed has waned... despite belief that markets always win long-term.

So: If by law the COMEX doesn't in fact guarantee physical delivery, then is the analysis still valid, or is there an option 4) paper forever?  And can anyone settle that point for me, eg vs PAGE?

I can't remember exactly what I was doing at the instant, but I know I was losing paper gains that I had made...  so be it with fiat...

S Roche's picture

Goldfinger

@El Gordo

Great book, great movie. "Once is happenstance. Twice is coincidence. The third time it's enemy action"; "Do you expect me to talk, Goldfinger?" "No Mr Bond, I expect you to die!".

There was a real person called Goldfinger, a neighbor of Ian Fleming's and they despised each other. Be careful whom you offend, you could go down in history as an arch-villain. 

Magpie's picture

@ReachWest

My gut reaction is .. what?  I mean, what the f#%* can anyone do?

You must not have read to the last paragraph.  The answer is there.

Having lots of sulfur on hand as well as sodium bicarbonate, iodine, clay and magnesium is a good start for a radiation survival home pharmacy.

I could put up a hundred links, but won't.  It's easy to slip into ostrich mode, but by the time you know you should have paid attention, it will be too late.  At the very least buy enough potassium iodide tablets for you and your family.  If our government is kind enough to tell us all to line up for the tablets when unit 4 collapses, there won't be enough tablets to go around. 

And, you might want to look up what cesium does to heart muscles.  Children in Japan already have holes in their hearts.  Thyroid cancer cases up from none to several in a very small town here in the U.S. during the last six months. 

Another thing we could all do is never buy another product manufactured in Japan, or from a company based in Japan.  Bring them to their knees financially so they're forced to accept outside help to manage Fukushima.  TEPCO and the Japanese government should all be taken to the World Court, tried, and convicted of crimes against humanity.

ClinkinKY's picture

@ El Gordo

Let's face it

When your number is up, it's up.  I still figure the odds of me being run over and killed by a beer truck are greater than being poisoned by seafood or irradiated by the Japanese.

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

I've already been hit  by a semi hauling 48,000 pounds of scrap metal. Not killed (obviously) but seriously f*#ked up. I'm thinking the odds of that happening again are pretty low. Something about "lightning striking twice". Oh crap, I've never been struck by lightning...yet.

¤'s picture

Goldfinger / Fort Knox

In This Scene: James Bond (Sean Connery) gets handcuffed to a bomb and is lowered into the vault of Fort Knox. One of Goldfinger's henchmen is thrown off a balcony by Oddjob and Bond retrieves the man's keys to unlock his handcuffs. Before Bond can disarm the bomb, Oddjob races down the stairs and attacks. Bond retrieves Oddjob's lethal hat and throws it at him, but misses. Oddjob tries to recover it, but Bond picks up a severed cable and brushes the exposed wiring to the metal bars, electrocuting Oddjob through the metal in his own hat.

Fun Facts: The recreation of the Fort Knox repository was incredibly accurate considering no one involved in the film had been allowed inside the real location. Sean Connery hurt his back during this fight sequence with Oddjob and the incident delayed filming. Harold Sakata (Oddjob) severely burned his hand while reaching for his hat when filming his death scene, but he was determined to do it right and held on until director Guy Hamilton yelled: "Cut!"

You may need to turn up the volume to improve your viewing experience.
 

ReachWest's picture

Fukushima Mess

@Magpie: Yes, thanks, I actually did see that recommendation - but frankly - if "Billions"of folks in the Northern Hemisphere are to die in a cloud of radiation from the Fukushima fuel rods all vaporizing (as the article suggests) - then I, for one, would probably prefer to just go in the "first wave", then hang out, alone in a toxic highly radioactive wasteland.

Regardless of what I have done so far in the way of prepping - energy, food storage, spare parts, metal stacking, etc, etc [We actually do have some iodine and Sodium Bicarb for mild Radiation] - the scenario outlined in that article is not one that I am going to bother preparing for. That scenario is the "worst case of the worst".

JMHO.

ClinkinKY's picture

Politicians Are The Same Everywhere

Urban Roman's picture

Fukushima and MOX

I keep seeing articles expressing alarm over the MOX fuel in one of the stricken reactors there in Fukushima.

The issue of MOX is tangential to the danger that lurks in the spent fuel pools. The real issue is fuel that has been inside the reactor vs. fuel that is newly manufactured from U and/or Pu. Because there are neutrons flying around inside the reactor, any fuel elements that have been inside it for any length of time will contain some Plutonium, which 'breeds' as the non-fissionable isotope U238 absorbs neutrons. So everything in the spent fuel pools is "MOX". All of the spent fuel pools are extremely dangerous, because they also contain enough unreacted U and Pu to make hundreds of critical masses (if they were configured as weapons).

But more important than that, the spent fuel contains maybe ten percent fission products -- those elements with atomic weights around 1/3 - 2/3 of the weight of Uranium. Because the fission event produces a random assortment of isotopes, most of the fission products are unstable, with short half lives, and are more than 1000 times as radioactive as the original Uranium or Plutonium. That is why people and robots and remote cameras and everything else simply die when they get too close to the spent fuel in the ruined buildings. Dozens (maybe hundreds) of tons of fission products.

The decay heat from the fission products is the reason that they need to cool the spent fuel with water. Otherwise it can overheat and burn the fuel assemblies and become a 'Rio Syndrome' blob of corium melting its way to the core of the earth.

dropout's picture

Japan Earthquake Flotsom Hits Coast

HOT OFF THE PRESS!

A box van body, off of a small truck has floated ashore on the Prince Rupert Islands on Canada's west coast.

The box van is heavily foam insulated, which most likely aided floatation, washed ashore on a remote beach. Reached only by ATV or cross country motor cycle, the box van contained a Harley Davidson motor cycle with a Japanese license plate, a set of golf clubs and assorted sports gear.

Reports are sketchy at this point, but it looks like the Japan earthquake and tsunami junk is arriving earlier than was forecasted. 

Thought most Turdites would be interested ~ sorry for the off topic interjection.   

Hang10-Hawaii's picture

last year and lessons learned

OK, this time LY I was at the same trade confernce I'm at now, and remember the sinking feeling I had knowing my AGQ holdings were going to vaporize on Monday AM when trading in the US opened. That hurt.

Over the past year, with the beat downs on the metals and miners, I've begun to lean toward Ranting Andy's view of holding no paper PM positions. I'm not entirely paperless yet, but getting there. I still believe there will be life after the beat down in the miners and am holding some of those, but largely have paid my "tuition" and exited them.

Now Turd, here's the thing about your projection of option 3 playing out where the cartel squirms out of their short position and becomes agnostic to the price of silver - I can only halfway agree - you're looking at just the JPM angle. That would make JPM whole financially, but there is NO WAY the Feds allow the PMs to rise, even if JPM worms off the hook. Here's why:

* The Feds can't allow the PM's to become the canary in the coal mine regardless of whether Blythe wriggles out of her current financial predicament.
* Rapidly rising PM's are a signal that illuminate money printing and inflation and run counter to the manipulated CPI and employment data, which O'bummer needs for his reelection run.
* There is no way the Fed allows PM's to signal anything scary leading into this election in November
* When I say that price is a "signal", I mean the paper price.
* Prudence suggests stacking the physical

Bottom line is that I feel the action in the PM's has a number of dimensions. One is to let JPM out of the box on their short position, but more importantly leading into this election, is that the PMs will absolutely NOT BE ALLOWED to signal anything that jeopardizes O'bummer's chances of reelection.

After November, I expect the PM's to initially jump, followed by the usual vilification of "speculators who seek to profit" from them, and other more draconian taxation and ownership reporting requirements, along with margin hikes to keep things from getting out of hand.

Again, the key point is that all of this drama is largely a paper exercise - - - if you pay cash (while it's still allowed) and hold the phyzz, you can hedge against the soap opera.

That's what I've taken away from the last year....

And, I've also learned that the "regulators" who are supposedly on the lookout for all of the shenanigans in this are tone deaf to our email appeals and/or too busy surfing porn on our nickel to care about it. We're on our own here, folks

SilverLeaf's picture

Where were you?

I was online watching the waterfall decline and reading the comments on this site in real-time.  It was a pretty surreal experience to sense the panic and confusion among the silver investors in our little community. The one post that's seared in to my memory as the price collapsed in Sunday night trading is Turd admitting "I have no f'n idea what's happening." Nice to see the humility of that admission again in tonight's post. This stuff is really not so easy that a Turd could do it.

Have to admit the Cartel made a masterful move, letting the price run from $32 to $50 in the weeks prior to the smashdown. I remember the excitement and tenor of the posts here in the weeks leading up to the smashdown, with people happy about their silver gains while fearing for the imminent end of our way of life. The cartel must have been laughing their asses of, both during the run up and subsequent smash down.

I don't know about you guys, but I've learned a lot over the past year. The cartel might let up for a while once they've reduced their net short position further, but I don't think they're going to be indifferent once they're net neutral. The dirty tricks and brutal corrections are going to continue for as long as they can get away with it, because capping the rise in gold and silver prices is essential to keeping the ponzi paper money illusion alive.  I intend to be long at levels like we're at now, and going net short after the next bull run, knowing the next cartel beatdown is coming, sure as day turns into night.  And once the dust settles after the inevitable beatdowns, I'm continuing to add more physical to my pile, and going long again. Screw them - bastards - they might have won the battles over the past year, but they're eventually going to lose the war. Sure as day turns into night.

goldenbear's picture

Unexpected... crude but very

Unexpected... crude but very unexpected.

Krugerbug's picture

Status quo

I wasn't in on Ag when the SHTF - I was just getting aware of Au at the time.

After meager ~10 months of burrowing into aspects of PMs versus world economy, it has become conceivable to me that today's silver could be tomorrow's gold. And thus I have accepted and acted accordingly to the idea that "it's better to have some and not need it, that to need some and not have it".

After making a bigger initial acquisition to start with, I've continued thereafter by buying some tens of tr.oz. from my each salary.
 

Tabberto's picture

Repost re Martenson Thread

I managed just a few pages of the tosh over at CMartenson's blog.  What a shame for him to have such a bunch of zombie-like automatons crawling all over his blog.  Go turdland!

One small observation on it:  The 'Erik' individual at the beginning manages to contradict his initial flaming by the end of the very first page - he claims GATA, Ted Butler etc are charlatans and then says that he essentially believes Rickards who says that the Gold market is 'managed'.

One big observation:  All you have here is a simple phenomenon.  Many of us here struggle with it for very understandable reasons.  A whole load of people (sorry, let me re-phrase) almost everyone not on TFMR, still believe that the system is essentially benevolent.  As such they will fight you tooth and nail to hang on to their perception of how the world works.  It is truly exactly like the fight scene from They Live, referenced by a few people lately:

With the exception of the ultra-weasel Christian and his like, most people just refuse to accept there is an EE, despite truly overwhelming evidence being available everywhere you look.  This is because their entire filter on life, all the fuzzy memories, all the ego massaging, is shown up as a worthless sh*tshow of brainwashing.  Most people are not strong enough to take this and even more so, those with big egos built up in their sense of 'intelligence' will fight just like the guy in this film, do ANYTHING not to put the sunglasses on.  Our job is just to keep trading toe to toe until they give in, show that our visceral determination outguns theirs.  Eventually everyone gives in and puts the shades on because the truth is like a virus, you can pretend you didn't hear it, ignore it, laugh at it, but eventually it takes over and infects you from the inside.  Keep up the good work everyone!

HROLLER's picture

I clearly remember that. I

I clearly remember that. I lost at least $40,000 in those 2 day on the COMEX.

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