July 4 – Gold $1350.40 up $13.70 – Silver $20.40 up 86
cents
(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
Brad Hoppmann
Publisher, Uncommon Wisdom Daily
Simply click
this link for all the details.
GO
GATA!
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
cents
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
dramatic 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…
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