Quick Update

445
Thu, May 3, 2012 - 10:28am

Here comes a stream of consciousness. Probably not a good idea but here goes.

I think this is all a big setup. However, this time, it's an opposite setup to what we're used to.

The action this week seems to be a coordinated effort to suck in and trap as many spec shorts as possible ahead of tomorrow.

Every headline this week that could possibly be used to raid the gold market has been utilized.

Today is the latest example but note that the dollar was declining and silver was flat.

The decline after the claims number was released was on less than 2000 contracts. The Cartel pulled their bids and allowed the WOPRs to quickly drop price through some sell stops at 1640. This process has continued to this moment as gold has now made a low near 1635.

This final drop was worked in around the London PM fix and now gold will likely trade sideways to higher the rest of the day as WOPR positions are squared before the close.

The stage is now set for a massive short squeeze tomorrow. Look, I have no idea what the BLSBS will be. How could I know? Maybe we'll get 7.9%, 250,000 jobs and $100 down in gold. I have no idea. What I do know, however, is this: Today reeks of a final suck-in of shorts ahead of the number. Does The Cartel know what the number will be? Maybe. I can tell you this: The likelihood of them knowing ahead of time is infinitely higher than the likelihood of me knowing.

With so many weak handed longs stopped out this week, there are really none left. And now, all of the weak hands are on the short side. They look ripe to be squeezed.

A spike tomorrow, post the BLSBS, looks likely. Just as how The EE allowed the final silver spec longs to be drawn in on Feb 28 ahead of The Leap Day Beatdown, The Gold Cartel has allowed the final gold spec shorts to be drawn in today.

A spike tomorrow will cause extreme pressure on the gold shorts. A move back toward 1660 and beyond will cause them to cover. London is closed on Monday. This may cause additional shorts to cover. Would you want to be short over the weekend if NFP comes in at under 100,000?

Our pal Andy just sent me an email informing me that Shanghai silver traded with a premium to futures of $1.26 overnight! $1.26!. There is serious to extreme physical demand near $30 for silver. The paper market for silver is a joke and is being made obsolete. Anyone short silver is playing with fire.

Andy also told me of huge sovereign and central bank orders for physical at 1635 and 1625, though we were both surprised at the willingness to fill the orders at 1645. Every time The Cartel takes paper gold down, they lose more physical metal out the back door. This cannot continue much longer. It simply cannot.

Uncle Ted kicks ass. Here's an excerpt from his latest:

"In silver, the price action has been so poor that every day the phrase “the beatings will continue until morale improves” plays in my mind. Taken with everything discussed above, I’m left with the impression that the commercials are deliberately making silver look so bad in order to extract every last drop of blood from the speculative selling stone. At least the beatings are keeping the price below the moving averages, so this week’s reports should indicate a further reduction in the total net commercial short position in silver. Given the motive behind the poor silver price action, my guess is that JPM has reduced its concentrated short position by a bunch.
I’m sensing that JPMorgan is now down to 14,000 contracts net short in COMEX silver futures. That’s down from the 16,000 contracts at the last COT cut-off and down a whopping 5,000 contracts from the 19,000 contracts JPM was short in the last Bank Participation Report, as of April 3. There has been a noticeable determination on JPMorgan’s part to get its silver short position down. Clearly, if there is intent behind the rotten price action, it is for JPMorgan to buy back as many of its silver shorts as possible. I’d rather the whole thing blow up in their crooked faces, but the next best thing is for them to cover as they have done."
God bless Uncle Ted.
I still can't post charts. Everybody else can but not me. Seriously. But The Tech Team is working on it so I hope to be able to post them again later today.
I know you're sick of hearing me say this but the key word is "PATIENCE". Silver isn't going to $20. It's not going to $25, either. The domination and manipulation of silver by The Evil Empire is ending, whether they want to admit it or not.
That said, only experienced traders with money to lose should be playing in the actual casino. The manipulation can surely outlast your trading account and, absent a clear trend higher, traders will be whipsawed to death. Join the central banks, large institutions and wealthy individuals worldwide. Buy physical metal and take delivery. Hold it in your own vault or safe. To paraphrase WOPR: "A strange game. The only winning move is to take delivery."
Keep the faith. TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  445 Comments

Exbroker
May 3, 2012 - 10:46am

Why and how did Gold become money?

Because God said it was money. That's all I need to know. And, he made it money for a reason. Because there was a limited supply, and it was difficult to duplicate it. That is unless you are Chinese.

tyberious
May 3, 2012 - 10:48am

Hugo Salinas Price

“Eric, the problems we are seeing in the West are not going to be resolved in any positive way. What we have had in the West, in recent decades, has been the welfare state. The welfare state is, in my view, what I would call, ‘socialism light.’ We’ve had ‘socialism light’ and now we’re going to transition to full-blown socialism.”

​This could not be paid for out of taxes: It had to be financed. This is what has caused the explosion of debt in the West. The people who are in power, the elite, do not want to relinquish their power. They plan to retain it under full-blown socialism for the populations of the West.

This includes all countries that have central banks: They are going to have to follow suit. This is a very disturbing fact that is facing humanity. It means the inevitable decline of industrial civilization, and the inevitable impoverishment of the world’s population.

This means that over time there will be a decline in the number of people on this earth. That is the rather grim outlook that I see. So, it’s socialism ahead. And with that will come more government control and a centrally run economy. This is inefficient and unproductive, and it will lead to impoverishment."

https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/3_Bi...

My respect for that has grown immensely!

Abraxas
May 3, 2012 - 10:48am

Here we go again

Here we go again with the proverbial carrot. Just make another step and carrot is yours... and now just another one ... and another ... watch Comex is going to default ... and another one ... memory span of a goldfish, I feel I never ran away from the MSM

May 3, 2012 - 10:49am

First they came for the "Firsts"

and I said nothing because I had never been "First!"

Then they came for Jim "Rhino Horn" Sinclair, Eric "talks his book" Sprott, "Crazy" Uncle Ted, and Andrew "Whistleblower" McGuire I said nothing because I don't read them much.

Then they came for those who cry "Manipulation" and I said nothing because I can't strictly prove manipulation

Then they came for the "physical shortage" crowd, and I said nothing because I already have my stack

Then they came for the "Silver is Money" folks, and I said nothing because I didn't want to offend anyone.

Then there was little point in coming at all.

Hook
May 3, 2012 - 10:50am

If you're stacking

Provident has some decent prices on Libertads and 5oz ATB's.

Duke
May 3, 2012 - 10:50am

Seventh

Seventh

Big Buffalo
May 3, 2012 - 10:51am

UCO

Man, if we can just get a little pop up in gold, I could sell my dgp and buy some UCO. UCO looks pretty good under $42-$41.50.

Orange
May 3, 2012 - 10:52am
May 3, 2012 - 10:52am
Groaner
May 3, 2012 - 10:53am

It looks like they are going for the juggler today

ouch... It would be nice to see the shorts get burned for a change if this is a setup

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1/14 8:30 ET CPI
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