Gold And Silver Begin Launch On Schedule

lemetropole's picture




Bill Murphy

August 21 – Gold $1639.90 up $19.80 - Silver $29.42 up 83 cents

Gold And Silver Begin Launch On Schedule

In a way how extraordinary that gold would take out $1630 and silver take out $29 at exactly the same time. Only a couple of days ago seeing silver take out its $29 key technical level seemed so much further away than for gold to take out its Gold Cartel defended $1630 mark. But, as we bolt into today’s trading on the Comex, that is just what happened right after the opening.

Gold and silver both opened up below those significant price points, took them out, and then took off. Gold stammered about around $1630, then rose to $1635 in seconds before shooting up further to $1641, when guess what, The Gold Cartel implemented their 1 % Rule for the day … the same rule they have used to stop so many gold price advances on a given day for as long as I can remember...

James Mc right at the time…



So far so good... although they're still doing that 1% cap job on gold. It isn't $1,640 that's resistance, it's the 1% rule.

$1,639.20 = +1%
$1,655.40 = +2%

Looking for several days well above +2% for that commercial (cartel) signal failure. If silver blows up as you think, it just might do the trick.

As far as silver goes today, it was all good. Once silver took out pivotal $29, the price shot up very quickly and it made a $29.44 high. So, yesterday was NO ONE DAY WONDER, that’s for sure. The follow-through was as good as it gets, especially when we are talking about give it all back silver.

That said, as good as it gets might just be jacks for openers. The silver open interest rose another 2259 contracts yesterday to 128,376, which is a new recent HIGH. This means the rally yesterday was fueled by the BIG BUYERS we have been referring to. It means strong hands are going after the JP Morgan short position. And obviously, it means JPM is digging in further and defending their massive short by going more short. If my source in Switzerland is correct, JPM knows by now what they will be up against in the near future, as it is revealed to the investment world what a predicament they are in. Their continued selling at this point suggests they don’t care what is revealed. Is this because JPM is acting on behalf of the US government? If so, what right does the US government have to act like this? What is the point of having anti-trust laws if they are going to trample the investing public themselves when they feel like it.

What we have going on here is VERY intriguing…

*Will it matter to the price if JPM uses the he made me do it excuse?

*Has JPM lied to the CFTC that its silver short position was hedged, when it was not? … or does JPM count the physical holdings of their ETF (SIV) as their own supply? JPM is the custodian of SIV.

*IF it is the case the US Government is behind the silver short position, will it make any difference to the spectacular price explosion the GATA camp sees in the works? The US Government dumped its silver reserves some time ago. If the longs want the silver, and they don’t have it, then how can they stop the coming move?

*Is JMP continuing to sell because their losses will be backstopped by our government, and those losses, will be Mickey Mouse minor compared to the trillions they are throwing around here and there for government operations?

That great looking silver chart with its massive base and beginning breakout … it won’t take an Einstein market technician to see what the price of silver could do on the upside once $30 is cleared…

Daily silver


*For the second day in a row, silver made highs late in the day, even with gold capped at its 1% Rule limit, thanks to The Gold Cartel. For silver to make highs late like it did yesterday is a rare event. And now, TWO DAYS IN A ROW OF THE SAME! The silver move up yesterday was no fluke.

It gets better, just in from our STALKER source…

*He has rumors from two sources that a LARGE silver transaction was consummated last week. I mean LARGE! It is very possible the increase in the silver open interest is initial pricing by various commercials as they source out physical supply to make actual delivery. What if it is just not there to get?

*His famed London trader has been buying silver, but will load the boat when the price takes out $30.

*On a related note, veteran Café members will recall that the last time we heard about the trader, his number on pick was palladium. It has gone up 10% since then and he is BUYING MORE.

Now for the good gold news…

*The gold open interest only rose 1285 contracts yesterday to 386,179, which is right off its LOWS since 2009 … which means the specs are just not there yet, and weren’t at least until today. There is room for tens of thousands of contracts to enter the long side to fuel the price up a long ways, and perhaps quickly so.

*That same London trader yesterday said he would be buying gold aggressively if it got to $1635, which of course it did today. And get this, he related to our STALKER source that gold would have a big day the next day if that happened. Course, the next day is TOMORROW!

*The technical gold picture is as good as it gets. Not only does it have the same enormous base as silver, if you tilt the chart a bit, an even bigger reverse head and shoulder appears.

In addition gold is also breaking out of a GIANT pennant formation. After making five consecutive lower highs on rallies, one after another, that pattern has been broken…

Daily gold

I can’t stress enough how powerful the gold and silver charts are…


A few points to sum up with as we wait to find out what tomorrow brings following the breakout out action of today…

*No jinx from me. Not even a necessary comment as The Gold Cartel saw to that. The "algo" traders went back to work. Just because the DOW downticked late, they have taken gold down $3+, and silver down 20 cents, from their Comex closes in Access Market trading.

The gold/silver share action is worse. The HUI is plummeting with the DOW. After making a high of 452.70, it has fallen back to 441 and change before settling up 7.42 to 444.62. The XAU only finished the day up 3.31 to 164.36. Some great action on this significant breakout, eh! The Gold Cartel is always there to quell excitement any way they can, and will be until they blow up.

*The bullish sentiment remains so BLAH. In days of old you could feel the excitement after days like yesterday and today. Not so now. One big yawn and that was with gold and silver on their highs of the day. This is what The Gold Cartel has wrought.

*Gold Cartel or no, nothing has changed regarding the big picture for gold and silver. We are on our way to all-time highs!



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Badabing's picture

Shhhhh it's at $1653 RIGHT NOW!

Silversem's picture

That is why i am long silver and gold 99% of the time. Handelen in goud

lsbumblebee's picture

GDXJ was actually up almost 3.5 percent today. I noticed that probably for the first time this year juniors that released good drilling results were allowed to keep their gains at the end of the day. Maybe the naked shorts are beginning to retreat.

plata pura's picture

periodic table vacancy coming like a ryan 0-2 pitch.

GS-DickinDaMuppets's picture

Looks to me like this is the big push up by JPM to lure the muppets into the PM markets - THEN they (JPM-GOV) sell all the fake paper silver it takes to drive price down to ~24, where they cover all their shorts, and the smart guys (Rogers, Soros, et-al) fill up their vaults with cheap silver/gold.  They then sit around and laugh and talk about how they crapped on all the muppets, and bet with each other on how long it will take the muppets to get enough courage to get back into the PM markets so they (JPM-GOV) can do it to them AGAIN !!!!


...doing GOD's work...GS-DickinDaMuppets

StychoKiller's picture

Actual Tozs of Au/Ag don't seem to flucuate with the # of FRNs they're supposedly worth -- stop watching the rubber measuring tape(s).

beachdude's picture

Maybe, but Rogers will tell you that that's what he's doing, and advise you to do the same. Every time I hear or read him he say to buy the dips, wait for the pullback and buy some more. Rogers doesn't come across as to be so mean spirited as to laugh at the proles. Soros on the other hand...

passwordis's picture

 I don't know what to make of Jim Rogers. A very likable guy but he is clueless.. or worse, pretends to be clueless with respect to the PM markets. I don't know which it is but he has made it very clear that he does not believe Gold and Silver are manipulated. I find his naivety to be suspect.. He is a very sophisticated investor. Very smart.. made lots of money.. It's hard for me to believe that a billionaire does not understand completely how the markets really work.

 For this reason I'm suspicions about what a lot of these guys have to say.  The fact that they are given a forum on the biggest propaganda networks has always given my pause for thought. Also consider that people like Schiff Rogers and that German guy are always blaming the worlds problems on incompetence of the FED as if everything would be fine if we simply had a competent fed.  As if the Fed is just making a bunch of mistakes.  

 You're not going to convince me that these people are that naive. It's not incompetence, it's a plan to steal all the wealth and to destroy America and these guys HAVE to know what's going on.

GlomarHabu's picture

Jimma Rogers is a smart guy. He's touting big time commodities and land. Gold and silver are just a side show for him. ahe owns plenty though, it's just not his forte.

And keep in mind that big money makers today are big money losers tomorrow. I always keep in mind Long Term Capital Management...not one, but two Nobel prize winners in economics who lost it. Too many on WS end up making their strengths their weakness.

But I'm in your camp on the suspect part. But then I've lost ALL faith that any market in this world. You'll never convince me again that they are not ALL highly manipulated, underwritten by sovereigh powers who protect only the wealthy. The rest of us can suck eggs for all they care and yet people still eat up their shit as gospel.

He is right on one thing. The November election won't change a thing.

As Edward Gibbon said in his classic The Rise and Fall of the Roman Empire:

"History…is indeed little more than the register of the crimes, follies, and misfortunes of mankind."


beachdude's picture

Rogers may indeed not only understand cartel manipulation but could describe it to you to the nth degree including names and other pertinent data that could have the shock value of watching a UFO land on the white house. Rogers may be protecting his mainstream low key persona; he doesn't want to be considered fringe so he tempers or moderates his comments. The fact that he is alowed on msm pablum is due to this ability to speak in code, as it were. Schiff on the other hand would abolish the fed and put us on a gold standard. Not clear as to who he would have control currency, not Congress as founders intended. Schiff has been right on the $ since '04. Much of what I have I credit to him.

orangegeek's picture

USD fell today.  Gold rose today.  Fair enough.


For the USD to continue to fall, the Euro should rise.  Not so sure about this.

HungrySeagull's picture

Ah Grasshopper.

Imagine a staircase going down, down down and down...

Euro makes a stand, usd rises a little then falls on the next step down and so on...


30 more days at .60 per on Silver... up a little and a little more.

honestann's picture

Is JPM continuing to sell because their losses will be backstopped by our government, and those losses, will be Mickey Mouse minor compared to the trillions they are throwing around here and there for government operations?

Yes, of course this is what is happening.  This is what I and other realists have been saying for years... because it is obvious.  The situation should be obvious to everyone.

1:  fiat is the biggest scam in history.
2:  the gold market is large, but moves with silver.
3:  the silver market is small, and easily manipulated.

That's all you really need to know.

predators DBA governments
predators DBA central banks
predators DBA financial organizations

all realize astronomical unearned wealth and power by running their fiat scams.  Does anyone really imagine in their wildest dreams these predators don't care whether their hyper-scam ends?

No?  Then there you have it.  Do you understand how much the fiat scam is worth to the predators who run it?  Take a wild guess.  Then compare that to the PEANUTS the freaks at JPM supposedly stand to loose when the demand for physical silver and gold overwhelm their ability to cap prices with bogus paper instruments.  How much could they lose?  $10 billion?  $25 billion?  $50 billion?  $100 billion?  How much is $100 billion in WORTHLESS PAPER worth?

In other words, they lose nothing of real value!  And guess who holds the physical assets of SLV?  That would be JPM.  And guess who will REFUSE to pay SLV shareholders real, physical silver?  That would be JPM.  And guess who will unilaterally allow JPM to "cover" their "losses" with newly printed fiat computer bits instead of delivering the physical silver as their commodity contracts demand?  That would be the predators DBA government.  Will this be done by "executive order"?  By congressional action?  By some doofus in some federal department?  By CFTC?  Answer: Who cares?

No matter what, the predators win by keeping the fiat, fake "value" of their fiat, fake "money" infinitely higher than it should be.  The predators gain the equivalent of TRILLIONS of dollars in benefits from their fiat scam every month - if not every week.

And the ONLY ways to put a chink in their scam is to stop transacting in fiat, and to convert all your fiat into real, physical gold, silver, platinum and other precious metals.

The above should be obvious to everyone who has paid any attention to the nature and modus-operandi of the predators DBA government, central banks, financial institutions and other hyper-frauds.

gdogus erectus's picture

That is the best post ever on the motivations for pm manipulation. I am copying that and sending it out to my knucklehead friends that I can't seem to get to buy more than a few ozs.

q99x2's picture

Don't touch my gold.

spinone's picture

As long as OPEC only takes dollars for oil, you're fucked.

BigJim's picture

What if OPEC are immediately turning those dollars into gold and silver? Are we still fucked?

AnAnonymous's picture

Probably. OPEC debt is nominated in USD.

They need USD to pay back on it. If they do not, 'Americans' will do what they do in those case (excluding themselves): immediate repoing, backed by the US military might.

akak's picture

The ragingly bigoted and otherwise meaningless babbling of the demonstrated troll above are unworthy of response.
Please do not reply to it, or to him, in any way.

Piranhanoia's picture

I pity the folks mumbling;  "I really have silver in my ETF",  or "Mine is stored at the warehouse", or maybe,  "I have mine at JPMorgan so I know it is....."

If a big purchase did happen, then hypothecation just got a lot worse. What if it was a nasty great chunk of what is left? Wonder if this time it is more than the Comex really has?   Where's Harvey?

shovelhead's picture

Whats this?

Blythe forget it was Tuesday? No silver smackdown?

Timmah is not pleased.

Mr Lennon Hendrix's picture

It was a good call by Bill. 

In March I said the breakout would happen in July.  It may have started in July, but August so far is the bright spot.  We will likely test the bottom of this new range later this week before the breakout resumes, and I think the breakout will last until the election and we should see $42 silver and close to the all time high in gold.  Then of course we will have the election which should spark more uncertainty.

Things look up from here.

HungrySeagull's picture

Stackers, stack. All others burn money.

KingdomKum's picture

we few, we happy few, we band of silver holders  .  .  .  

Nadaclue's picture

Would Options Exp on Friday have anything to do with the ramp on PM's?

I do realize it's not triple witch so I can't see how they would but hey, I am Nadaclue. lol

My guess is that it is EURUSD changes no?

Conax's picture

"The Gold Cartel implemented their 1 % Rule for the day … the same rule they have used to stop so many gold price advances on a given day for as long as I can remember.."

Did they stop trading, or what? What is the method to implement this 1% rule of which the article speaks?

NotApplicable's picture

The cartel starts selling heavily in an effort to stop a rise once it reaches 1%. Kinda like how the stupid "investment banks" will buy everything in an effort to support their BS IPO valuations, like the (if memory serves) 2M share bid @$38 MS had sitting there on FB's IPO day.


Conax's picture

oh, I see.   Regular controls kick in.  I though it was some official program or something.  I put nothing past them.

Thanks very much! 

Badabing's picture

Official program put in place by Ben Dover

GlomarHabu's picture

O/T ..actually one of the survivors of the Hindenburg crash was a dude named ...yep Ben Dova.

SAT 800's picture

I don't know about your schedule; it's going up according to my schedule; as I posted here on the day I took the contracts, I'm long '12Dec. Silver from 28.08. Up more than $5,000 per contract.

NotApplicable's picture

You're up all right. Up next to be Corzined, that is.

Why do you feed the beast by playing in their rigged game?

Do you believe you're somehow smarter than Celente? Or just lucky enough that your FCM wasn't named MFG?

If you don't hold it, you don't own it.

honestann's picture

Absolutely correct!

The only SATs that matter are physical ones.

SAT 800's picture

I'm not intersted in owning it. I spend the dollars; just like you would, if you knew how to make any. It's very easy to be luckioer than Celente; I am also significantly smarter than Celente, but that is not necessary. I hope this clarifies things for you.

Ironmaan's picture

I hope you scored higher than 800 on your SAT.

pbppbp's picture

What does your user name mean?  Did you just graduate high school?


honestann's picture

Understand.  We are happy you have been lucky enough to avoid the predators so far.  But keep on playing their game and eventually they will destroy you (unless you're only playing with a tiny percentage of your wealth).

Gringo Viejo's picture

I believe what Jim Sinclair says when he states you'll know the PMs have achieved price equilibrium when contracts are traded not on margin, but at full cash value.

SAT 800's picture

He has a lot of cute, quotable one liners for persons with little or no education in the subject. Your belief reveals pitiful ignorance.

Gringo Viejo's picture

SAT: I didn't "junk" you. There was no need. You speak for yourself.

Clint Liquor's picture

And you are a condesending little cocksucker with obvious ego problems.

gdogus erectus's picture

Come on. Go easy on the guy. The poor bastard pulled out an 800 on his mind-fuck Scholastic Aptitude Test.

midtowng's picture

Asian market is going to be interesting

Hannibal's picture

Silver porn is kicking ass.

Racer's picture

 JPM "all your silver belongs to us"....

As well as MFG and the rest of the other 'segregated' accounts

Racer's picture

Let me guess.. the  negative mark = associated with JPM propaganda machine

Seize Mars's picture


all bold



I missed the "Silver Bitchez!" comments :)