The Precious Metals Morning Slam Is Right On Schedule

Tyler Durden's picture

As noted yesterday, the paper precious metal 'slamdown' window remains open for another two hours as Gold trades under $1600 and Silver below $29. In other news, US Mint reported February physical gold and silver sales through yesterday have already surpassed the 2012 February total.

 

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Lost Wages's picture

I'm buying more silver on Friday. I'll give it a few more days for them to really bitchsmack the life out of it before options expiration on Monday.

nope-1004's picture

COMEX war against open interest, that's all.  Trying to get holders to pitch.  This is nothing new, and about as far from underlying fundamentals as can be.  But then, so is this entire experiment.

 

Comay Mierda's picture

exactly, thought about buying calls two weeks ago until i saw the massive open interest relative to puts.  these slamdowns are becoming so predictable

nope-1004's picture

But what's different is that holders aren't pitcing.  During these slams, OI has been actually going up!  So the price controls aren't working and this is getting really serious for the COMEX criminals.  Whoever is buying is big and is aware of the game and pushing JPM and HSBC to the brink.  This is getting good.....

 

 

WayBehind's picture

Gold is on sale? I liiiiike it! Time to load the truck again!

Middle_Finger_Market's picture

Mad money bitchez! There is a hypothetical war playing out in the pm market hear my words.

Middle_Finger_Market's picture

Do you remember Goldman et als forecasts for gold year end 2012? Do you now see? Spot prices are for dummies. 

Middle_Finger_Market's picture

All the gold and silver on the surface (and in the ground) is accounted for over and over and over and over and over and over and over and over and over and over and over again! 

Chuck Norris's picture

Million Dollar Bonus was right.  Sigh...

Papasmurf's picture

That would be a contrary indicator to buy, buy, buy.   Sort of like the shoe shine boy telling you to buy RCA and other "tronics".

strannick's picture

Jail Bart Chilton.

THe corrupt CFTC wont declare this regularly timed, exploded OI, concentrated short as manipulation.

 

Au_Ag_CuPbCu's picture

Damn I hate how impatient I am.  I friggin bought yesterday…

MrBoompi's picture

At these prices I don't think you could really make a mistake now.  I'll probably wait too long to order....but even then it'll be a good "investment".   Is it just coincidence we've seen the prices slammed after they sold out of silver eagles last month?  I seriously doubt it.  Now I think the cartel just wants to rub peoples' noses in it while they can.

 

 

kralizec's picture

Agreed, I bought more, I'll buy some more, damn right I will!

nope-1004's picture

Last fall, premiums at the place I buy were 5.5 % over spot.  In Jan they were 7.5% over spot.  Yesterday after the slam they were 9% over spot.  Today (as of 5 mins ago) they were 12% over spot.

There is no bad time to buy at the lower end of this channel.  Buy physical, hold, sit tight, and wait the criminals out.  Something big is coming and something has to happen as far as a movement or policy change.  Status quo for Bernocchio is not working.

 

James_Cole's picture

"Last fall, premiums at the place I buy were 5.5 % over spot.  In Jan they were 7.5% over spot.  Yesterday after the slam they were 9% over spot.  Today (as of 5 mins ago) they were 12% over spot."

Wow are you getting ripped off! I can buy bars ~2% over spot right now in gold and silver at my usual local bullion dealer. 

When I buy I just walk in the door, but they also operate a shipping company with elevated prices:

http://www.bordergold.com/products.php 

12% over spot is criminal!

nope-1004's picture

Yes, 12% over spot is criminal.  I followed your link and went to the Border gold site.  Right now they are showing 1 oz silver maples for 11.2% over spot.  Show me 2%???????

Border gold 100 oz silver bars are selling right now for 6.4% over spot, according to their website.

Last time I bought from Border Gold they didn't have it in stock and ordered it directly from the mint (maples).  60 days later it arrived...... Never again.

 

James_Cole's picture

You can't compare the mark up on the maples vs. spot price. The maples are already priced differently to spot, the spread on their maples is $1.50. Why people buy maples (other than lack of funds) is beyond me, but to each his own. 

I was talking about the bars, which are marked up ~4% to spot.

I wouldn't buy phys online either, I just thought since you were getting hammered so hard on the mark-up from wherever you were buying you could at least get a reasonable price from BG. 

I just noticed you wrote that their mark up on their bars is 6.4%, you must not have it all in USD

One last thing, the 10oz gold bars are ~2% over spot which is what I'd expect. 

nope-1004's picture

Yes, was referring to silver.  Right now with GSR over 53, I'm buying silver.  When it goes to 32 range, I'll trade in my silver for gold.  Right now is not the time to buy gold if faced with a choice, IMO.

 

caconhma's picture

Any fiat comes to the end (sudden and substantial loss of its value) when there are no takers willing to accept fiat in exchange for underlining hard assets. This goes for US$ (as the reserve currency) or gold or any other hard assets.

Speaking about gold, the paper-gold system collapses the moment when holders of fiat paper-gold become concerned about security and/or value of their paper-gold holding and want to exchange their paper-gold for physical gold. This exchange process cannot occur due to the nature of fractional fiat creation when fiat paper-gold quantity enormously exceeds the amount of physically available gold assets.

At the moment, China reluctantly supports fiat US$ since this reserve currency is used by Chine to acquire hard assets (oil, gas, copper, and other commodities). At the same time, the use of US$ heavily taxes China's economy. Consequently, China intend to stop using US$ in their foreign trade.

Price of Gold Dynamics

There is fiat paper-gold and there is physical gold.

We were told all these hyper smart and complicated theories about price of gold. But somehow all these theories are close to useless since there is no guidance to explain the current price and/or predict future gold price.

Well, regardless what someone might say or do there no way to change the Law of Nature or fundamental laws of economics. Specifically, nobody can abolish the law of Supply and Demand regarding to gold. In other words, if gold could be mined in quantities and at the cost of copper or bronze, gold would not be much more valuable than copper or bronze. It is that simple.

Now, let us look at gold supply. Approximately, 2,500 metric tons of gold is annually mined all around world. Presently, private buyers in China and India buy approximately 1,100t of gold.  China mines and keeps its 320t of gold. Therefore, there are ~1,000t of physical gold left for the rest of world including world central banks to accumulate.

As the printing of fiat reserve currencies continue, inflation around world will accelerate creating a strong physical gold accumulation particular in Asia. Consequently, even a very minor run for physical gold will lead to a forceful sale by central banks to prevent a panic. This is when fiat-paper gold will collapse creating a worldwide run for physical gold. I thing we are not too far away from this point.

SafelyGraze's picture

dear nank,

hows it going. everything good? ok.

here's the thing. people are loading up with metal. that's just how it is. 

so here's what you're going to do. you and mister loo are going to work together to jack up prices on the metal assets. 

he said "mister loo would jack"!

no playing around here. factor of 100, nank.

wealth effect.

people are going to generate economic activity like you wouldn't believe.

an ounce at 150k. are you reading me nank? an ounce. 

it would buy a house. it would start a business. 

150k for an ounce, nank. real estate prices to the moon. mark-to-market again. solvent banks. mbs rocket.

free the ounce, nank. stimulate the boom. let the horses run free.

the ounces will once again flow. maynard envisioned it. you can make it happen.

velocity, nank. hot, flowing ounces.

organic, liquid, mobilized, slippery, shiny, endogenous, circulating ounces.

just think of it.

and then please clean up after yourself. 

 

DoChenRollingBearing's picture

+ 1

Very creative!  I would take $150,000 / oz...

SafelyGraze's picture

exactly!!!

and with that 150k you'd buy that car and that boat and that big screen tv and hookers and blow and an apple trinket.

NANK! take note, buddy! the wealth effect can be had right here right now.

he said "note"

Long_Xau's picture

I'd pay for a boat even now... I really need it for boating accidents!

thisandthat's picture

You guys are just too cheap - 1T$/oz is the exact platinum convertible, market value, once you factor in US national debt (or so I've been told...)

eclectic syncretist's picture

SLV jan 2014 open call volume = 365,844

SLV jan 2014 open put volume = 198,866

Almost a 2-fold call/put volume

LawsofPhysics's picture

Indeed, paging Eric Sprott, care to comment on PSLV?

Mugatu's picture

You can keep buying at lower levels each day, but your losing money each day too.  Weeks ago I hedged my phys gold position by buying a 3x Inverse ETF Bear Miners Fund (DUST). Now, I will have huge buying power as this move bottoms out.  Still time to hedge, as we at least are falling to 1500 (but probably will go to 1300).

When I back my truck up this time, it will be a very big truck - not a pickup.

Likstane's picture

Good for you.  I prefer to keep my shiny stuff where I can see it...in the surf next to the Bainbridge ferry.   

GetZeeGold's picture

 

 

Your freshly printed QE tax dollars at work......it's the only plan going right now.

AllThatGlitters's picture

I don't have to pay my taxes for another few months. I'll buy the silver smash and file for an extension.

Look at Spot Silver real time as it prepares to bounce: http://www.pmbull.com/silver-price/

 

El Diablo Rojo's picture

no way dude.  compare to NWTMINT.com   Look at the buffalo 1 oz. rounds on PM Bull vs. the Pan American rounds on NWT mint.  At least a dollar more per round on PM Bull.  Also the free shipping kicks in with a lot smaller buy on NWT mint @ FREE in the continental US.  $2500 buy before free shipping on PM Bull.

The downside on NWT Mint is that it's 8 weeks out.  Not sure about the lead time at PM Bull. 

one-in-nine's picture

Harvey Organ at

http://harveyorgan.blogspot.com/ tracks this daily.  It looks like a big player or players are loading up on the silver raids increasing the open interest -- not exactly the desired effect the raid is supposed to produce.  One of these days it will turn up and all hell will break loose. 

Pegasus Muse's picture

This might give you some fresh insights into the machinations and manipulations in the gold and silver markets.

 

This is work is right up there with G. Edward Griffin's Creature from Jekyll Island and similar works in terms of peeling back the layers of government disinformation, propaganda and criminality to reveal what could be at the nasty core of it all.

==========

Eric DeCarbonnel’s presentation on the US Treasury’s ESF based on his extensive research. Part 5 gets into what he describes as the Deflation Myth.

http://www.dailymotion.com/video/xn4a62_exchange-stabilization-fund-parts-1-to-4-eric-decarbonnel_news

http://www.dailymotion.com/video/xn4i9o_exchange-stabilization-fund-part-5-eric-decarbonnel_news


• The Exchange Stabilization Fund (ESF) was created (without oversight) by Congress in the 1930s to ensure support of the Dollar. It has done a lousy job of what it was supposed to do, as the Dollar has lost almost all its value.
• The ESF was put in the hands of the head of the US Treasury and the US Treasurer has absolute power to do what he wants with the fund.
• As a result, the ESF has acted as a giant slush fund that has funded the growth of the American Empire over the past century against the will of both Congress and many bankers in private industry.

See more: http://www.thedailybell.com/3343/Fearfully-the-US-Treasurys-Secret-100-Year-Old-Fund-and-Its-Dark-History-Has-Been-Exposed-

 

scatterbrains's picture

Wait till they jack margins sky high.. peeps will start capitulating into the waterfall which will be a glorious buying opportunity

disabledvet's picture

Exactly. "they're lowering them you dope." Gold...and now even silver apparently...are flooding into the US market. One does not manipulate these prices lower...only the market can do that. If oil starts flooding in too "watch out below." natural gas still looks like a good trade because so much is wasted....but if "printed solar panels" is for real then even that looks vulnerable.

dow2000's picture

They are lowering them to encourage buying by US citizens, after that confiscation.

Confiscation conversion price: $250/oz for Gold, $4/oz for Silver. 

You lose, socialism wins!

seek's picture

My thoughts are similar. If the buyer actually wants the gold and positively won't settle, we could be looking at another MFG incident shortly.

I think it's worth keeping an eye on the COMEX inventory. Also, if this works for the buyer, it's blood in the water to the sharks, which is no doubt one reason they're slamming so hard. I don't think they've run into that many outside of the MFG situation where the buyers absolutely wanted the gold no matter the cost.

youngman's picture

I think this is how it will implode...think China buying most of the OI......and asking for delivery on all of it....that would crush the game....

ParkAveFlasher's picture

Hey guys, you really have to stop all this buying of physical PM.  All the manipulation is so that Chinese - NOT American - citizens can afford gold. 

one-in-nine's picture

Yeah, it's too bad.  I don't want all the metal moving to China via Hong Kong either, but I'm not the one raiding gold and silver in an attempt to force players in the futures market to liquidate.  I like the lower prices though because I'm still a buyer. 

 

It will really get ugly when those players demand delivery rather than rolling it over or taking cash. 

Alpo for Granny's picture

Yes you are supporting the evildoing hackers by buying all of the phyzz and thus can be seen as contributing to turrism. Therefore, please turn in all of your PM's which are now considered weapons of mass destruction of the US dollar. No worries though. you will be given an equivalent amount of "Patriot Paper" aka 30 year UST's and a spiderman towel for your trouble.

 

Anasteus's picture

The more demand the cheaper price.

GetZeeGold's picture

 

 

The more we print the cheaper it gets.

Anasteus's picture

Clear message from the charitable Fed to its citizens that so few grasped...

Ag Tex's picture

This is a gift to those and their families who are buying and holding physical silver and gold.  The ones buying physical precious metals today and holding for the very near future are elevating themselves to a level on par with that of aristocracy.  It is a paradigm shift.  The smallest amount of silver and gold is great wealth with very soon to be enormous purchasing power.