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THAR SHE BLOWS! … Silver Remains Super EXPLOSIVE!

lemetropole's picture





 

Hello zerohedge followers,

Don't know who started this web site, but it is first class with what they put out. About a month ago I first appeared here saying my best sources told me gold and silver would explode in August. Well here we go. NEXT I also said that the JP Morgan MASSIVE short silver position, and their anipulation of that market, was going to be exposed. STAY TUNED!!!

August 22 – Gold $1637.40 down $2.50 - Silver $29.55 up 13 cents

THAR SHE BLOWS! . Silver Remains Super EXPLOSIVE!

"Keep away from people who try to belittle your ambitions. Small people always do that, but the really great make you feel that you, too, can become great." Mark Twain

GO GATA!

It’s 1:20 Dallas time and I am starting this part of the MIDAS from scratch, saving the first sentence only.

After a couple of exciting up days, today was a quiet one, but perhaps just as exciting in a different way as far as silver is concerned.

***

It WAS quiet with silver acting like a "ten" and gold steady . and holding yesterday’s gains when I went off to my "Cheers" hangout, the local Chili’s Restaurant a block away from me to have a quick bite to eat and to say goodbye to a server whom I have known for ten years.

Had CNBC turned on to watch the closing Comex action. All of a sudden, going into the close and beyond, gold dropped $5. Silver followed gold down. What the heck? I then figured I lost this bet I made right before I left with a veteran, savvy Café member.

Want to make a bet?

Good morning Bill,
As of 11:55 AM Chicago time, gold is up $1.40/oz to $1,640/oz and silver is up $0.16/oz to $29.40/oz. GDX is down 0.36 (0.78%) to 46.02. SIL is down 0.25 (1.22%) to 20.31. Where have we seen this scenario before?

I recently picked up my Merlin the magician hat at Wal-Mart. It was very reasonable. Want to make a bet that gold and silver take some type of hit in the near future possibly starting at 1 PM Chicago time? Only Merlin the magician could figure this out.
Paul

I responded to Paul that I thought silver was going to go "ballistic" soon.

But then, just as I was finishing up my lunch, I saw CNBC’s Steve Liesman on the tube talking about the Fed Minutes report. All of "another sudden," gold made an abrupt U-turn and was going straight up. The quiet day, then a disappointing one, turned into a fun one for our camp.

First on the Fed Minutes that has created a gold/silver stampede.

4:01 FOMC Minutes indicate many members say additional accommodation likely warranted unless economy improves

Minutes can be viewed at the link below. 4:01 FOMC Minutes indicate many members say additional accommodation likely warranted unless economy improves

Minutes can be viewed at the attached link

http://www.federalreserve.gov/monetarypolicy/fomcminutes20120801.htm

Jeepers Creepers! Gold and silver are on fire. This is what I had HOURS ago to conclude this commentary.

"As we have discussed the key price points for gold and silver to begin their launches to their all-time highs and beyond were $1630 and $29 respectively. Mission accomplished so far. The next levels to conquer will probably be even more significant. They are $1650 and $30, which have been key levels in the past. Once taken out, the prices of both precious metals should accelerate very quickly."

Gold just blew through $1650 and silver is $30 offered. Yeah baby, here we go!

OK, will put last Access Market closes at the conclusion of this commentary.

Back to the original commentary.

The specs finally showed up in the gold pit on the Comex. The gold open interest rose 12,028 contracts to 398,747, still a low number. There was some minor shortcovering in silver. Its OI went down 600 contracts to 127,776.

Speaking of silver, yesterday my STALKER source reported rumors of two very large silver transactions. Ned Naylor-Leyland, who presented at GATA’s Gold Rush 2011 in London a year ago, reported on the The Keiser Report that there are massive physical strains in the silver market due to two large silver purchases in London in the 5 to 10 million ounce range . and that the LBMA is refusing to deliver them outside of the LBMA system. It should be duly noted that Ned is very sharp and very well connected.

From the man, James Mc, in late

Consecutive limit-ups

High tick Dec. $1,658.80, or +1%. Second consecutive limit up day, cartel style. Funny too this was roughly the +2% figure I circled yesterday. Rare lately for them to need to stop 2 advances in a row.
JMc

So, the dust has cleared. It was our kind of day and one we have all been predicting and expecting. The HUI, after trading like the wimp of wimps, exploded after the Fed thing and finished up 9.85 to 454.44, and has cleared MEGA technical resistance. This is HIGH FIVES stuff. The XAU performed well too, up 3.69 to 168.05.

To conclude, and I know this will elicit some groans from the GATA peanut gallery, but these shots have worked the last two times I put them up. We shall see. With many smiles from me tonight.

The last Kitco quote on gold is $1654.90 and silver is $29.85.

GATA BE IN IT TO WIN IT!

MIDAS

www.lemetropolecafe.com

 


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Thu, 08/23/2012 - 13:13 | Link to Comment SPADOC4
SPADOC4's picture

Delta rocket mated with a GPS satellite payload.

 

Thu, 08/23/2012 - 10:42 | Link to Comment Yohimbo
Yohimbo's picture

 31.50 or so  is a critical resistance and support

this is gonna get ugly for someone.

I am fully bought in until it hurts since 2004, I will not turn lose of my holdings until the banking system as it current stands with its hooligans are vacant from the landscape. Then I will distribute the holdings to my children who will then have the wealth and wisdom to create a better society.

join me in earnest and dont turn loose!

evil wins if good men sit idle. We must join together in this common goal.

dont turn loose, hold the line!

 

 

 

Thu, 08/23/2012 - 10:17 | Link to Comment PatientZero
PatientZero's picture

*rubs silver stash on himself*

Mmmm..silver; feels nice on the skin

Thu, 08/23/2012 - 10:01 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

lemetropole is funny.

My sources tell me! 

I heard from one of my sources!

I have so many sources and they told me things!

Thu, 08/23/2012 - 12:12 | Link to Comment covert
covert's picture

it's all a natural result of fiat economics.

http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/

 

Thu, 08/23/2012 - 10:46 | Link to Comment LoneStarHog
LoneStarHog's picture

What is "funny" is just how damn ignorant people are when LeMetropole Cafe has a sterling track record of over a DECADE. But then, "Ignorance is bliss", I guess.

Thu, 08/23/2012 - 09:58 | Link to Comment pies_lancuchowy
pies_lancuchowy's picture

lemetropole , you claimed silver will go 100% up in 90 days. So far it went up 10% . I will remind you in 2 months.

'My source who is in contact with NEW YORK' - that was hilarious

Thu, 08/23/2012 - 09:57 | Link to Comment Dangertime
Dangertime's picture

This is atually a great time to be loading up on gold and silver.

This bull market is not done yet, and the time to buy is when nobody cares or talks about it.

Thu, 08/23/2012 - 09:48 | Link to Comment Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Margin hike in 5.. 4.. 3..

Thu, 08/23/2012 - 10:10 | Link to Comment outamyeffinway
outamyeffinway's picture

Not enough spec money in it yet...

Thu, 08/23/2012 - 10:02 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It will force investors into physical if they raise margins at this point.

Thu, 08/23/2012 - 09:44 | Link to Comment Unbezahlbar
Unbezahlbar's picture

The massive expansion of M2 is finally leaking into M3 (velocity) I believe.

Thu, 08/23/2012 - 09:16 | Link to Comment Eddy Vluggen
Eddy Vluggen's picture

"Tyler Durden"

Article sounds like it's been written by a lost stock-broker, with his "bets", "inside info" and rumors. So, you got right on a single datapoint and your jumping for joy.

Was there anything else that this article is meant to say, or is this all?

Thu, 08/23/2012 - 09:42 | Link to Comment LoneStarHog
LoneStarHog's picture

Get a subscription to LeMetropole Cafe, which has been published for over a decade, and see how correct Bill Murphy and GATA have been.  It will prevent you from making a fool of yourself and exposing just how uninformed you truly are of the metals markets.

Thu, 08/23/2012 - 09:13 | Link to Comment SafelyGraze
SafelyGraze's picture

bought at 48

sold at 26

what's left was lost in lake

Thu, 08/23/2012 - 09:50 | Link to Comment Freddie
Freddie's picture

All gold, silver in guns were lost in a boating accidents.  I miss them but it was a deep lake.

Thu, 08/23/2012 - 09:47 | Link to Comment LoneStarHog
LoneStarHog's picture

I bought my hoard of silver at an average price of about $5.00 ... Gold at an average price of about $325.00 ... At that time the sheep were being told to stay away from gold/silver - that much has not changed - with the likes of Bob Pastrami making the statement from the floor of the NYSE with gold trading around $350-$375, "Trust me, folks, gold is going nowhere." ... Your avatar is so apropos since the sheep only started to wake up when silver was on its peak run, which it will do again, and then some ... Bahhhhhhh Bahhhhhhh.....

Thu, 08/23/2012 - 09:46 | Link to Comment Unbezahlbar
Unbezahlbar's picture

"bought at 48

sold at 26"

 

Sounds more like my house if you add in several zeros.

Thu, 08/23/2012 - 09:33 | Link to Comment oddjob
oddjob's picture

Here come the parade of <6 week trolls pontificating about fictional silver investments from 18 months ago.

Thu, 08/23/2012 - 09:05 | Link to Comment ZeroAvatar
ZeroAvatar's picture

I just want to say, for the record, that I DID sell into the $40-plus price levels last year.  I have been patting myself on the back ever since.

 

I expect AT LEAST one more good run for silver, before the market crash (which will take silver down with it). My expectations are for silver $50-$60, (at least), before crash.  I will look to start selling again in low to mid $50's. 

 

During next stock market crash, silver COULD go as low as 'high 'teens':  $18? $19?  My plan:  Sell silver again into QE3 (being as patient as possible: could hit $70,80,90), then buy again at $20 level one LAST time.  Next blow-off top in silver ($200?) should make me rich, literally.

Thu, 08/23/2012 - 09:38 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

Should you need a bigger cheer section, consider creating a blog.

Thu, 08/23/2012 - 09:18 | Link to Comment Eddy Vluggen
Eddy Vluggen's picture

Do educate me; why would silver go down on a market-crash? Sounds more logical that people would flee into a hard currency as it happens.

Thu, 08/23/2012 - 10:15 | Link to Comment Doubting Thomass
Doubting Thomass's picture

Eddy- I would be happy to educate you and expect many negative votes doing so.

In a stock market rout banks, investors, hedge funds etc. will have to scramble to sell all positions to maintain capital requirements in jeopardy because of margin calls and short/long position options. When they do so, the baby also gets thrown out with the bath water and Silver and Gold will most likely take a serious hair cut like they did in the last market crash in 2008.

On July 14th 2008 SLV stood at $18.93, in 3 short months it fell over 53% to close at $8.85 on October 12th 2008.

The board likes to think "this time will be different" but although history doesn't repeat, it often rhymes. The only real wild card is if a black swan event like JPM's silver shorts blow up on them.

Unless the USD is in jeopardy of failing (via a failed treasury auction or two) money will flow heavily into it during the next market crash as the "safe haven" play. Those holding it will likely do well when this happens.

ZeroAvatar looks to have a solid game plan going into these events and will likely do well (timing is impossible to get completely right though) 

 

Full disclosure- I currently hold both paper silver (will be selling into a large rally should it occur) and both physical Gold and Silver you will have to pry from my dead hands to take it away.

I have dry powder and if the metals markets do crash like they did last time, will be adding more physical Gold and Silver.

Thu, 08/23/2012 - 11:36 | Link to Comment fiftybagger
fiftybagger's picture

You are assuming that you will be able to buy physical for the paper price next time.  I am guessing you won't be able to.

http://www.brotherjohnf.com/

Thu, 08/23/2012 - 08:48 | Link to Comment Ponzi_Scheme
Ponzi_Scheme's picture

What did you spend on car insurance, home an health insurance this month ?.

Make any claims ??..

Think about it.

Silver gold bullets and mre ... Disaster insurance.

Thu, 08/23/2012 - 09:10 | Link to Comment WeAreJellyfish
WeAreJellyfish's picture

Even third world countries know better:

http://www.youtube.com/watch?v=0KjeB9gD44w&sns=em

Thu, 08/23/2012 - 08:45 | Link to Comment Bubble
Bubble's picture

BUY IT, BID IT

Thu, 08/23/2012 - 08:41 | Link to Comment falak pema
falak pema's picture

calling Blythe, calling Blythe...

Thu, 08/23/2012 - 08:41 | Link to Comment jayman21
jayman21's picture

My best sources?  WTF....this kind of stuff is for yahoo finance, CNBS, and other MSM outlets.  No sources sited or no ananlysis, please post somewhere else.  This is ZH.

 

For the rest of us looking for ananlysis.  Turd and Martin always offer some food for thought.

 

Keep on stacking.

Thu, 08/23/2012 - 09:33 | Link to Comment NotApplicable
NotApplicable's picture

You don't think they use GATA as a source?

Thu, 08/23/2012 - 09:59 | Link to Comment jayman21
jayman21's picture

He probably did, but say it.  "My best sources" is not ZH quality and you will be called out on it.  It keeps the conversation honest.

 

*edit: I did not junk you.

Thu, 08/23/2012 - 08:32 | Link to Comment Bringin It
Bringin It's picture

I want to say congradulations on the last two 1%-jump calls.  I'm impressed.

Thu, 08/23/2012 - 08:32 | Link to Comment Lets_Eat_Ben
Lets_Eat_Ben's picture

It will be time to reduce PM holdings when a new, viable monetary system is adopted throughout the world...so it might be a while. The dollar amount eqauated with an ounce of Ag or Au is mostly irrelevant. Rather, look at the various administration's policies (especially the U.S.) and what the big players are doing. (i.e. Soros selling bank holdings and moving into gold, or PIMCO raising its allocation of funds into Au to 11.5%, or central banks buying, or China increasing gold reserves etc.)

These are the types of things to pay attention to and formulate a plan of action. No one wants to be buried with their gold (unless you are King Tut reincarnate) so there will be a time to sell. However, the dollar amount the PMs are said to be "worth" is laregly irrelevant.

Thu, 08/23/2012 - 08:39 | Link to Comment AT
AT's picture

Actually gold is the BEST asset to be buried with because it's the hardest for the government to steal from your heirs via taxes.

Thu, 08/23/2012 - 08:27 | Link to Comment spinone
spinone's picture

As long as OPEC only takes dollars for oil, gold and silver holders are screwed.

EDIT:  I hold silver

Thu, 08/23/2012 - 14:05 | Link to Comment Imminent Crucible
Imminent Crucible's picture

"As long as OPEC only takes dollars..."

As long as the herd still believes that OPEC controls the world's oil supply...duh. OPEC's share of world oil fell UNDER 40% back in 2008. 

"only takes dollars for oil".....Oil is traded for gold, euros, yen and other correncies EVERY DAY. OPEC is so Last Century.

And OPEC itself, led by Saudi Arabia, has been in secret talks for at least two years to transition away from the dollar.

http://www.huffingtonpost.com/2009/10/06/arab-states-have-launched_n_310...

Thu, 08/23/2012 - 02:02 | Link to Comment DavidPierre
DavidPierre's picture

 

silver premiums 


Yesterday Jesse pointed out the low premiums of silver funds compared to gold.

The premiums of the funds all seemed low but that is what we are seeing currently with the actual metals, especially silver.

As a vendor I get solicitations from larger wholesalers on a regular basis. In the nine years my shop has been open I cannot recall seeing premiums so low on silver bars and coins. There is a surplus of material available and vendors like myself are finding more product offered from the public as the price rises. There are many stale longs who bought into silver at much higher prices and they are looking for exit points that allows them some dignity. Some silver investors understand the actions of the cartel and are willing to ride things out. Sadly, too many new buyers came into the market with unrealistic expectations and became fodder for the cartel. There are also many long term silver investors out there who regret not selling into the $40+ price levels we saw last year. Some of these folks acquired their specie in the late seventies and early eighties. As the prices rise they will certainly start filing into metal dealers shops to take some long overdue profits.

Just as we had the paradox of very low silver prices about a decade ago but very little quality product available, we are now seeing rising prices amid a surplus of quality retail level product. This situation can be seen as the result of a manipulated market but it also points to something far more significant.

That is the horrendous low public participation rate in the West in precious metals. Through excessive volatility and media misinformation, the cartel has pre-empted widespread participation in this market. I am beginning to wonder if the cartel is more concerned with public participation than they are with actual price. In a free market price would be directly proportionate to the demand assuming a stable supply. GATA has shown the vast disconnect in this market of price not being set through supply and demand dynamics.

The point behind this missive is that there is a sleeping giant in this market.

One, as Admiral Yamamoto described as;"awakening with a terrible resolve". It isn't the East. That giant is the public of the West.

At some point the public will be confronted with the reality that the media has hidden from them. Everyday I meet people who have a great deal of angst concerning their financial future. They are but one event away from moving into what they currently perceive as the darkside, that being; gold and silver.

That giant will wake up sooner than later and it's "terrible resolve" will be directed at those who have robbed the public and those who have protected the robbers through state office. That giant will also seek to protect itself from further larceny with precious metals. Barring some event coming out of left field such as a war or shortage of a staple product, I believe silver will provide the awakening.

Silver prices will continue to rise amid relatively heavy dishoarding. As it approaches new highs, new buyers will be attracted by the momentum. Many of those who are discouraged and currently selling will come to understand the potential for downward volatility. Even if they do not connect it to manipulation we will see future corrections bought very heavily and not just by die hard savers. I firmly believe silver has a critical mass of public participation that can lead to a much larger participation once those who are in and discouraged come to understand the true nature of the market and embrace the volatility rather than let themselves get shaken out.

One of my peers firmly believes what we, as vendors; are seing now is a clear bottom signal. I have to agree. Take advantage of the lower premiums and selection because it won't last. New highs in silver are coming and they will provide the long awaited catalyst to accelerate public participation in this precious metal bull market.

http://www.jaxville.com/

A veteran GATA supporter from "eh" country...

 

Thu, 08/23/2012 - 14:22 | Link to Comment Imminent Crucible
Imminent Crucible's picture

"folks acquired their specie in the late seventies and early eighties. As the prices rise they will certainly start filing into metal dealers shops to take some long overdue profits."

Not too sure about that. As someone who began acquiring back in the late 80's, I'm feeling no urges to go swap real money for rapidly decomposing Benny Bucks. If someone held onto PMs for 20 or 30 years, they're hardly a trader; they're clearly hedging a monetary collapse of some kind. Now that it's finally in sight, their gold and silver will look increasingly MORE precious, not less. I don't see these people as itching to rush down to the coin shop to grap a quick 30-year profit while the monetary regime is falling to pieces before their eyes.

Thu, 08/23/2012 - 11:49 | Link to Comment fiftybagger
fiftybagger's picture

Good to see someone gets it

 

Physical silver is the stake in the hearts of the financial vampires Physical silver is the bullet that slays the wall street werewolves

Silver For The People

http://www.brotherjohnf.com/

Thu, 08/23/2012 - 09:22 | Link to Comment davood
davood's picture

Very insightful post.  But I disagree with you on the East-West part.  This is not the 70's or 80's when the East was not in a position to pour their hard earned money into gold and silver.  When that "next event" occurs, be it another 911, major financial crash, War in the Middle East, both East and West will be buying gold and silver with two hands.  Once gold and silver blows through the psychological barrier of $2,000 and $50 USD, respectively, the cartel's suppression of game will be over.

Wed, 08/22/2012 - 23:46 | Link to Comment San Diego Gold Bug
San Diego Gold Bug's picture

Kick some more ass Bill !!

Thanks for keeping up the fight!!!

ML

Wed, 08/22/2012 - 20:08 | Link to Comment lordbyroniv
lordbyroniv's picture

We all owe GATA a debt of many thanks for all the hard work they have done.

Thu, 08/23/2012 - 10:37 | Link to Comment RockyRacoon
RockyRacoon's picture

I'll agree with you with one caveat:  A bit of calm is called for.  Most of those who cheer the rise in prices also agree that the metals are manipulated.  We've all seen this movie before.  Same plot, same actors.   Funny how the charts are dragged out to show possible future prices, but TA is discounted due to "manipulation" when prices go lower.  A cooling of the jets is necessary for deliberate action.  I've been in the metals markets since the early 1990s.  It's all part of a larger picture.

Fri, 08/24/2012 - 10:37 | Link to Comment BigJim
BigJim's picture

+++ yup, unless something radical happens overnight (like Iran managing to sink four US carriers) this is a long-haul play. The EE has plenty of teeth yet.

Wed, 08/22/2012 - 21:07 | Link to Comment Bullionaire
Bullionaire's picture

 

Put your money where your keyboard is:

 

http://gata.org/node/16

Wed, 08/22/2012 - 19:05 | Link to Comment wesayukcom
wesayukcom's picture

A picture says a thousand words Gold and Silver to the moon. All aboard !

Thu, 08/23/2012 - 02:10 | Link to Comment akak
akak's picture

I have to wonder if Trav7777 is still screaming at pigeons in the park:

"You all bought silver at $48, and you're all still bagholders!"

Thu, 08/23/2012 - 09:59 | Link to Comment Dangertime
Dangertime's picture

Well, buying at $48 WAS a bad idea....especially as seeing they could have bought it much cheaper today.

Thu, 08/23/2012 - 10:10 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Dangertime!  ZH's luckiest Troll avatar!  Or Dangertime used various avatars to scream about a falling silver price from $20 all the way to $48 and "Dangertime" was the one being used when the price was at $48 and started to come down.

Thu, 08/23/2012 - 10:16 | Link to Comment Dangertime
Dangertime's picture

Luckiest eh?

It was obvious to anyone with a brain that silver at high $40's was unsustainable.  So buying those puts was a no-brainer (turns out you should have listened to me eh?)........But yeah, you can call me lucky if that makes you feel better.

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