Gold $1669.80 up 20 cents - Silver $30.61 up 16 cents Silver Charges Ahead, Gold Rebuffs Cartel Raid

lemetropole's picture

August 24 – Gold $1669.80 up 20 cents - Silver $30.61 up 16 cents

Silver Charges Ahead, Gold Rebuffs Cartel Raid

"You haven’t had a rush until you’ve had a Gold Rush." … GATA’s Adrian Douglas


Here is a real surprise. Gold sold off in Asia and then began to take off into the early London trading hours … WHEN … "they" showed up yet again. The Gold Cartel traders stopped the gold advance about an hour later than usual and quickly shoved the price back to $1664 in an effort to calm down newfound precious metals excitement.

This is no surprise to veteran Café members with the way the HUI acted yesterday. It couldn’t get out of its own way with gold and silver on fire to the upside. Over the years we have made a point how The Gold Cartel manipulates the gold/silver shares at times to indicate to allied traders what they have in mind for gold the next day. Is it yet another coincidence gold is called $6 lower this morning after its breakout?

Gold and silver have shot up very quickly. It’s not some testing of breakout points on the downside that is the issue. It is how, when and why gold trades the way it does … how easy it is to spot The Gold Cartel interfering in the free market process. There ought to be a great deal of buying support for gold above $1650/$1655 and for silver above $30. Physical market buyers know the significance of the breakouts and will be ready and willing to buy any kind of breaks towards those levels … which means the price of both precious metals should not get back there.

Pundit commentary about why gold and silver took over remains amusing…

Reuters this morning:

"Spot gold has risen more than 3 percent this week after minutes of the Federal Reserve's August policy meeting showed the bank is likely to deliver another round of monetary stimulus "fairly soon" unless the U.S. economy improves considerably."

Reuters very early this morning:

U.S. stocks ended near session lows Thursday after St. Louis Fed President James Bullard dampened expectations for further monetary easing, saying current economic conditions are not weak enough and called the latest meeting minutes that hinted at more easing "stale."

The what is good for the goose ought to be good for the gander thing again. How can the same news elicit that sort of contrasting commentary to be taken seriously? It brings me back to my ole line, "PRICE ACTION MAKES MARKET COMMENTARY." The pundits will put out anything to the public to justify what the price of a given market does.

If I may … for the last 13 years it has been my take that THE key to understanding the gold and silver markets was to appreciate how bullish the supply/demand situation has been. In that regard the supply/demand statistics put out by the gold/silver world establishment have been WRONG and misleading … probably purposefully so. No need to go back and get into all the details. Suffice it to say the GFMSes and CPMs of the precious metals world have not accounted for the gold and silver supplied into the marketplace to suppress the prices. Therefore, the price potential for gold and silver to go higher and higher has been there all this time, as the supply/demand situation is always in bullish mode. The artificially suppressed prices of these two precious metals always encourage more demand than would be the case if they were allowed to be traded freely. This is why GATA has been right about what the price of gold would do 12 years in a row, while those establishment types have often been wrong. Even now Kitco’s Jon "The Nitwit" Nadler and Jeff Christian of the CPM Group are BEARISH, even if allowing for a modest rally, one they say won’t last.

So … IMO that is the key to the gold and silver markets. It is not what the dollar does, nor whether there is more QE. Of course, anything, like QE, which stimulates more demand, is BULLISH. But, it is not critical for gold and silver to take off. That is how bullish the supply/demand situation really is … and this is WHY gold and silver can do what they did yesterday, while the stock market sold off, on the very same news.


Silver is acting like a champ. After falling to $30.34 on the Comex opening, and lower than that prior to that opening, it has steadily moved higher, making one high after another, even with gold down on the day.

The open interest numbers were just released and traders seemed to like them, as gold popped to go positive. The gold open interest only rose 5384 contracts to 410,679, which is a pittance considering the move we had yesterday. This means there is PLENTY of room for new spec longs to pour in here without even coming close to having them be over extended.

The silver open interest went to yet another new HIGH for the move, up 3627 contracts to 129,496. This is extremely bullish as the specs are jumping onboard the breakout above $30. Perhaps it is also more of the smaller commercials adding to their positions to take on JPM and their massive short position.

So, who is selling? JPM again? This is a quandary for me in that they are in trouble in the first place with their silver short position. What are they doing? Here’s the deal the way I see it…

You will recall in early July that our Switzerland source said that both gold and silver would breakout in August, and then make a run to all-time highs. At the time he also said that JP Morgan has a big problem with their silver short position, and that it had something to do with JPM "whale trade loss" and with the silver position they took over from Bear Stearns years ago. And, naturally, it has something to do with their constant manipulation of the price of silver.

This "problem" ought to surface at some point, so why are they still at it in terms of selling? James Mc hit it on the head yesterday, and that the real problem is not whether the price of silver goes berserk (unless it means a failure to deliver problem to longs … that would be a MEGA problem for numerous reasons), but how it might affect the price of gold … which, in turn, could have a catastrophic effect on JP Morgan’s larger than life derivatives book. An explosion in the price of gold could set off an adverse chain reaction in that book (especially
with interest rate derivatives) which could quickly get out of control, especially in terms of counterparty activity.


Oh, for crying out loud, gold just fell $8 and silver dropped 20 cents on this, while the DOW rallied quite a bit on this…

Bernanke Letter Defends Fed Actions


Federal Reserve Chairman Ben Bernanke, in a letter responding to questions posed by U.S. Rep. Darrell Issa (R., Calif.), chairman of the House oversight committee, defended actions the Fed has taken to support the economy and said there is room for the Fed to do more…


As I was saying earlier, The Gold Cartel is so easy to spot and so predictable. Time and time again of late we have noted how gold is sold on Bernanke/Fed pronouncements. It happened yet again. The good news is gold came all the way back to make a slight new high for the day and silver recovered what it had lost.

Note how gold was pushed back at the exact time it was stopped yesterday…

The AM Fix was $1666.50 and the PM Fix came in at $1667.

The Commitment of Traders Report


*The large specs increased their long positions by 3,329 contracts and reduced their shorts by 2,284 contracts.

*The commercials reduced their longs by 4,651 contracts and increased their shorts by 4,424 contracts.

*The small specs increased their longs by 2,676 contracts and reduced shorts by 786 contracts.

JP Morgan and its Gold Cartel allies were going all out to prevent silver from breaking through $29 and then $30, but have failed so far. The specs have the upper hand for the time being. Should silver be able to lurch through $34, we could be looking at a commercial signal failure.


*The large specs increased their longs by 9,345 contracts and reduced their shorts by 7,035 contracts.

*The commercials decreased their long positions by 9,515 contracts and increased their shorts by 17,767 contacts.

*The small specs increased their longs by a huge 9,795 contracts and reduced their shorts by 1,107 contracts.

As in silver, The Gold Cartel went all out to prevent gold from taking out $1630 and then $1650. So far they too have failed. Of note is that, unlike in silver, the gold open interest only began to take off the past few days. It was very low when that change of futures ownership was taking place. Because the overall open interest remains so low in gold, the big spec long increase should not be construed bearishly, in my book anyway.

The weekly precious metals charts are beauties…

Weekly silver

Weekly gold

Gold and silver have come a long way in a short period of time. Today’s comebacks after early pressure were reassuring. As mentioned before the breakouts, the bases that gold and silver have formed over the past many months are extremely powerful and can support moves to much higher prices. It appears the smart money has moved in and is moving in further … while the general public yawns, as demonstrated by the comatose action in the shares. While aggravating if you are a share owner for the time being, it is very bullish!

NOTE: Silver made a made a new high for the day in Access Market trading and is last at $30.82!


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Silversem's picture

For extra profits i trade gold and silver using cfd's. But you should also hold the fysical stuff just for safety.

Haager's picture

Price of gold/silver doesn't matter. If you choose for physical you won't do it just for possible gains (Gold @ or above 10K? You won't sell for worthless dollars unless you have to).

My winning moves: Scrap costs - sometimes at the cost of comfort, invested in products that gives an advance (eg. low energy consumption), invest in products that holds worth or will stay of reasonable value, invest in products that could become more expensive due to ressources, cost of production. 

yukon5's picture

All that gnashing of teeth about what JPM et al are doing to gold or silver is a good reason why Earthmonkey retains the no. 1 comedy channel in the galaxy.

Just follow the tape.

booboo's picture

I wonder what the chinese thoughts are on Ben and his high speed electronic dollar money machine? Getting hit with money bombs can't be too thrilling for the people buying food over there either.

Sean7k's picture

The biggest news of the month is the LBMA requiring large purchases to stay in their system. August is almost over and no breakout is materializing- again. The metals continue to trade in a narrow channel. This piece is just cheerleading.

My other suspicions run to the inventory numbers for GLD and SLV. The inventories are higher each day, gold has been increased by 5 tons in a day at times- yet Sprott is having trouble sourcing his latest add? Is this the effect of LBMA's actions? 

There has been no additional stories on the silver manipulation case, which indicates the FT article was a floater. There appear to be a lot of cards being held, when does the levee break? 

The lack of transparency in all markets is killing economic activity. The Elites know this, so why are they doing it? They are beyond the law, so why gum up the profit machinery? Is this inter-bank warfare? 

Is there a specific event scheduled to cover the rehypothecation- deriviative breakdown that will require and allow for massive CB intervention to protect specific actors in the financial system? The burden on sovereigns is crushing now, how do you add to it?

What good is a silver and gold breakout, if you are measuring it in dollars and euros? 

The real breakout will happen when people begin to substitute silver and gold for products and services in a new marketplace. When contracts are written in metals and other commodities. When taxes are paid in notes. Governments have less control in this area than you think. People's money is People power.

Sean7k's picture

Harvey Organ covers most of this stuff as well as Jim Sinclair. 

BigInJapan's picture

"Will blow your face off" after Jackson Hole.

I'm waitin'. 'N holdin'. 'N junk 'n stuff.

unirealist's picture

The prices of gold and silver are suppressed and will always be suppressed...  until one of two things occur.

1-The entire f'ing system collapses, in which case gold and silver will immediately become priceless.

or 2-The suppression of gold and silver prices fails, which collapses the entire f'ing system (see #1).

There's nothing in between.


pies_lancuchowy's picture

whassup frogeater , is your 'source' stll 'in touch with NEW YORK' ?  /sarc

CompassionateFascist's picture

Gold is lazy. A Jewish metal. Silver works: White Mans' metal.

q99x2's picture

Gold Gold Gold the musical fruit. The more you eat the more you toot.

Nachdenken's picture

Can consumer and central bank hoarding offset industrial demand for gold long term ?

DavidPierre's picture



"Everything is what?


Got a e-mail yesterday entitled "Everything is rigged, so what?".

The e-mail came from Bill Bonner's "Daily Reckoning" website which more often than not has some good and thoughtful pieces to read.

THIS not only was an exception, it was beyond stupid!

Maybe the title is misleading... read the piece. Nope, not misleading, the author, Chris Mayer, basically is saying that since everything is rigged and you are aware of it, you can take advantage of it. Through good research...blah blah blah you can more or less "outsmart" the riggers.

I was not in a particularly good mood while reading this and sent off a terse and vulgar reply to such ignorance. Think about it for a moment, "Everything is rigged, so what?". If you know that everything is rigged, what does that really mean?

It means that EVERYTHING is false.

It means that you cannot trust anything. You can't trust what your bank statement of what you have. You can't trust your brokerage or insurance statements. It means that when you work or trade, if you accept Dollars, you are being ripped off.

If everything is rigged, you can pretty much bet that it's not rigged in YOUR favor, it is rigged in their favor.

Investors will react to this en masse when they figure the game out. They will EXIT!

In fact, look at the mutual fund out-flows and the volume on the stock markets, investors are already withdrawing.

Where will they withdraw to?  This is easy. Tangibles that they can purchase and hold outside of the system.  Eric Sprott just wrote a piece similar to this train of thought...

...saying that investors will exit NIRP (negative interest rate policy) by moving into Gold and Silver. 

Gold and Silver ARE money, when investors are being pushed into a corner, these funds will have no other logical place to go.  It is the most basic of logic. You are not being paid a fair interest rate!

Silver and Gold.

The markets and everything about them are rigged, not in your favor!

Silver and Gold.

Do you see where this has lead to? "Official policy" of suppressing interest rates to prolong the debt bubbles are pushing investors into the exact investments that the policymakers DON'T WANT YOU IN! Their policies, (lies, rigs etc.) are now the foremost catalysts pushing logical investors AWAY from their system and into real money.  When you can't trust anything, what do you do?  You move into THE only thing that you can trust.

Real, hold in your hand, MONEY!



Red Heeler's picture

Damn those riggers! It seems they're everywhere these days. I can't leave the house without eventually bumping into one or two. The thing that galls me off most is that they don't seem to know their place anymore;  they used to keep to the dark recesses of society and stay among their own but not any more. Now they are bold enough to move amongst us as if they are not only no different but somehow better than the rest of us.

Of course, what's one to expect when the president himself is a rigger.

The bottom line? When you've seen one rigger, you've seen them all.

XitSam's picture

Great kid. Don't get cocky.

Hulk's picture

To the moon Ralph !

Mez ain't holding my breath. I ain't sazing it won't happen, just ain't holdin my breath is all...