July 4 – Gold $1350.40 up $13.70 – Silver $20.40 up 86
(Last prices over prior Comex close)
Fireworks: Silver SOARS … Gold Roars!
“The gold price manipulation scheme will go down as the biggest financial market scandal in U.S. history.”
— Bill Murphy, Chairman of the Gold Anti-Trust Action Committee
Publisher, Uncommon Wisdom Daily
Last night was something else and a sign of the times for what will be standard fare for the precious metals over the months ahead.
After the briefest of dips, silver popped a dime and then began to steadily move up to take out $20 an ounce. Once that level was breached, all heck broke loose. Silver began a run higher rarely ever seen. Its price moved up and up and then began trading EXACTLY like gold did the evening following the Brexit vote, shooting up ten cents at a click. Just as gold soared to only pennies less than a gain of $100 an ounce at that time, silver rose $1.50 over its prior Comex close and blew through $21 to $21.13 in the process.
Excitement would be an understatement. Gold was acting sluggish at the time, but then caught some fire, as silver finally did briefly following that gold post Brexit run, by rising to $1356. Both precious metals corrected, giving up most of their gains, but then began to move right back up again as the trading hours in London progressed. In a relative blink silver was back to $20.50 with gold back above $1350.
“Can’t tell the players without a scorecard,” is an old sports expression we used as kids.
While watching the action last night in the silver price arena was exhilarating, it probably is no surprise to Café members in that it has all been laid out over the past two weeks. Now that what has been discussed is playing out almost as part of a script, it is time to really pound the table about what the silver price is in the process of doing, and that is a historic move towards $100 an ounce and probably at lightening speed. The lack of comprehension and enthusiasm by the general public of what is occurring is astounding.
Some retro MIDAS comments for focus purposes:
June 23 – Gold $1261.20 down $6.80 – Silver $17.35 up 4
An emphasis in this column for some time now has been on the “whacked out” silver price action. Never seen anything like it over the past 40 years. And now, after all that focus, the silver OI confirms that something “wacky” (profound?) is indeed making itself felt in the silver market … and that STRANGE is being reflected in the silver open interest itself.
I was very fortunate in my early commodity trading days to be a part of spotting situations such as what I think I see developing in the silver market via the genius of some big time market legends…
*Dan Ritchie, former CEO of Westinghouse Broadcasting who turned down running the empire of the richest man in the world at the time DK Ludvig; and turned down an offer from Harvard to be their chancellor to take that same position at Denver University. Dan made fortunes trading cattle, hogs, pork bellies and soybeans by spotting the mega moves before most anyone else.
*Ray Dalio, who has become the number one hedge fund manager in the world. Ray’s acumen in spotting the big moves began to take hold way back in late 1970’s and 1980’s. Veteran Café members will recall his feeder cattle/corn/cattle profit margin trade (and the reverse) which always made 100% within a month (usually within a week) every time we put it on.
*Frank Veneroso, who wrote The Gold Book, and was instrumental to bringing GATA’s attention to The Gold Cartel because of their secretive gold lending operations via the central banks. In 1987 Frank realized the investment world was failing to take into account all the copper demand emanating from Asia. In 9 months the copper price went from 46 cents a pound to $1.46.
Will never forget the ah-ha moment in early May of 1987 with copper trading under 50 cents. There were NO deliveries, which no one expected, and it was off to the races. By the time most investors caught on, copper was over 75 cents per pound.
What each of them had in common was to spot what was REALLY going on in a commodities market before most anyone else. They were visionaries in that sense and that is how they could spot coming MEGA moves WAY before the herd showed up. They paid attention to details, when few others were, which foretold what the big picture was going to look like price-wise in the near future … and they made big bets with their own money.
SO, based on the sort of market analysis they taught me so long ago, it is time to jump up and down and suggest that the historic move up in silver, which we are waiting for, is finally in play. Predicting the exact moment when the silver plug will be pulled is impossible. But, based on all the unusual anecdotal happenings which seem to confirm each other, the time bomb clock is ticking MUCH LOUDER. If this is correct, the silver price explosion is not far off. Very few in the investment world are prepared for the coming fireworks…
How appropriate to have such fireworks really commence on our July 4th celebration day. There are much more spectacular ones to light up the scoreboard as this year progresses.
Ah, what fun to watch. Now for some commentary written on Saturday in preparation for today…
On the open interest front the gold “Preliminary” open interest numbers show a 23,749 contract increase to 644,984, which if even coming close in the “Final” number, puts it only thousands of contracts off of its all-time higher number around 650,000. And this is with the lowly price of gold not even above $1350. The silver open interest Preliminary number also shows a hefty increase, up 4782 contracts to 216,311, which means it too is just a tad below its recent all-time high.
The latest guesstimate OI numbers reveal a couple of critical observations…
*How intent The Gold Cartel is to prevent the gold/silver prices from going to where they want to go and how much trouble they are having right now preventing them from doing so.
*Their obvious growing desperation. As such, it strongly suggests THEY are in a quickly developing process of finally reaching that Tipping Point in which their price suppression efforts are overrun. Dynamic demand forces are overpowering their dwindling physical supply to stop the inevitable.
Silver is worth pounding the table focus at the moment because of the increasing odds the beginning of one of the most unusual moves in market history is now (finally) in play. For repeat emphasis purposes the deal (supposition on my part) is this…
*The price of silver has been suppressed as a monetary metal to enhance The Gold Cartel’s efforts of the gold price for the many reasons discussed here for the last 17+ years.
*The ringleader behind the scene is the U.S. Government, with their number one key agent over all this time: JP Morgan, the acknowledged Fed’s bank. It has long been discussed that JP Morgan took over Bear Stearn’s massive silver short position when Bear blew up. My take on it all is that the Bear position was at the behest of our government, or a trading group acting as an agent for, or in sync, with The Gold Cartel. Stunned by the Bear collapse, THEY went into emergency mode, shifting that position to the safest of hands, JP Morgan.
*JP Morgan has honchoed the short silver operation on behalf of The Gold Cartel ever since and taken it into higher gear with their MASSIVE selling of silver futures, taking it to all-time high levels.
*Based on all what has been brought your way the past two weeks in this commentary, the thought here has been that JPM and The Gold Cartel have reached a stage when they are beginning to operate on physical silver supply fumes.
The smart guys in our camp in line with the GATA type of thinking/analysis, have not been able to figure out where the physical silver supply has been coming from to meet demand at such pitifully low price levels. However it was done, that available supply may be quickly disappearing.
*There is a very good chance that some VERY big money buyers have moved in to squeeze The Gold Cartel and make a huge fortune by doing so … first by getting to all-time high long positions in the futures market and then by buying up the remaining available physical supply as best they can.
*If all of the above is the case, or close to it, then it explains The Tipping Point price action we saw last week,
The technical silver chart picture supports what is very likely to be a historic silver price move to the upside, which at times trades in volatile price action higher rarely ever seen before.
The daily chart shows the powerful outside day price reversal to the upside immediately following the Brexit surprise. Once silver was able to close above the neckline of its prominent reverse head and shoulders formation at $18, it was ready to move…
However, the big picture real key was at $18.50, which proved out on Friday … the reason being is that a move above $18.50 meant the completion of a massive base formation, with no short term minor resistance until the price rises to a little above $21…
It is the monthly chart, which did not include Friday’s ramatic surge, which sets up what is coming for the price via a technical picture. Important technical resistance doesn’t surface until $25 and then $35 an ounce. But the most exciting aspect of reviewing this chart is that IF the simple fundamental analysis put forth here is correct, it shows how fast the price of silver can move up when it is a “go.”
My bet is that silver is so explosive that it will move up faster than it did in late 2010/early 2011 to reach $50. The third time being the charm (the first in 1980), silver will take out $50 this time and shoot for $100…
And here we are two days later…
First published here: http://j.mp/29Ixo8V