The Gold, Silver Morning Smackdown Is Back

Tyler Durden's picture

Having had yesterday off, it appears the ubiquitous morning dump in precious metals is back in all its glory... but didn't Jim Bullard just tell us 'Fed policy will stay very easy for a long time'?



Charts: Bloomberg

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JeremyWS's picture

lots of hedge funds going bust then? or more manipulation?

nope-1004's picture

OI is still high, and going higher.  Have to try to get OI down, and the only tool COMEX has is futures price since they have no metal.


EscapeKey's picture

in the event the comex FTD, why would anyone want to do actual physical trading there again?

GetZeeGold's picture



Knew a guy who actually tried to take delivery about 10 years ago. It was like watching a retarded goat roping contest.


So I know how the Germans now feel.

Pladizow's picture

Qusetion I recently asked of Sprott and their response:

Dear Participant,

Thank you for submitting your question to the Sprott Precious Metals Round Table Webcast. Our panel is pleased to provide the following response to your inquiry:

Your Questions:


Q - Why doesn't the Sprott organization force Comex delivery and end the charade?

Ans - They are bigger than we are.

Shell Game's picture

And that is how Rogue Governments stay around much longer than anyone can imagine..

SafelyGraze's picture

"Naturally, those who make leveraged purchases do not get possession of their assets. Those are held as collateral to secure repayment of the loan. Some crooks have charged people for leveraged purchases without ever bothering to acquire the assets allegedly being held as collateral."

or, as we like to say in the bizness, some people-doing-God's-work


get back to work, ye servants of God!


The Thunder Child's picture

Next coupe of days is THE BEST LAST CHANCE to exit the paper promises of Wall St. and enter the realm of physical silver and gold. All the signs are there, the fractures are begining to show and the big money is quietly exiting the stage. I highly advise people to cash out now, leave the table and return to hard assets otherwise your greed will bankrupt you.

AllThatGlitters's picture

If silver bounces here, we know today's "smash" is just a retest of Fed inspired selloff lows.

Live Spot Silver: <- Ready to Bounce?

Dealers still have plenty of inventory for less than $1.00 under spot:

Will all those bars and rounds disappear soon?

Threeggg's picture

It won't bounce until after the options expiry Monday and the delivery notice on Tuesday. Look for a bounce Tuesday night going into wednesday.

AllThatGlitters's picture

Cool. I always forget about the options.

Another way to know when it is going to bounce is when dealers start start showing lack of inventory and posting notices of delivery delays.

flacon's picture

Yes, don't forget about Op Ex on Monday. I opened a small gold call position today and will add to it on Monday if there is further down side. I might open up a small silver call position today as well just in case this is the bottom here and now. 


One could also play the gold:silver ratio. Gold puts, silver calls.


flacon's picture

I just opened a small diagonal spread to be used until after Op Ex. 


SLV Mar 01 $28.00 puts (ITM)

SLV Mar 16 $28.00 calls (OTM)


2/3 Calls, 1/3 puts


RockyRacoon's picture

Thanks for pouring gasoline on the fire.

With paper-trading fools, who needs legitimate markets?

Quinvarius's picture

I guess that is why he goes right to miners and refiners.

I am pretty sure everything that is supposed to go into SLV is being counted in a JPM vault these days and papered up as a customer account.

Canadian Dirtlump's picture

I believe it was Sprott who mentioned something to the effect of the guy who breaks the silver market would have to "look under his car ever time he got in it for the rest of his life" or words to that effect.


He's right. You either play the game, shut your face, or get suicided. There is no reason that Gold and Silver should need a collapse to break out, but they will need one, because the sociopaths playing the music won't stop what they do otherwise.

SilverMaples's picture

Announcement! Comex silver contract delivery will now conveniently take place using our "special" drone transport system. Just provide your exact coordinates ...

Canadian Dirtlump's picture

I read some blurb that people were being paid as much as a 25% premium to settle in cash. I have no idea if this is true, but TPTB obviously have an unlimited well from which to draw their ammunition to fuck us over.


Goddamn, it's early for a drink but hey, I'm a trooper.

imbrbing's picture

Settle in cash, then go buy the real shit.

cynicalskeptic's picture

If prices are headed downward and everyone expects the trend to be DOWN, then why is the US Mint RAISING prices on silver and gold?

They upped the prices on silver a few months back - you now pay substantially more for a silver eagle proof and uncirc as well as 5oz ATB


but now they upped the cost on gold and platinum - the grid pricing based on London close is not HIGHER than it used to be


methinks the US Mint is expecting higher prices for the raw materials - that and they intend to stick it to consumers even more......

Diet Coke and Floozies's picture

Size does matter! She lied to me! :^O

HoofHearted's picture

Lots of ZHers putting the truck in reverse and getting to the loading dock. The bad thing is that we can't find physical metal anywhere near the "spot price" for paper. That damned paper is so much easier to mine than is actual metal. 

eeaton's picture

true, silver eagles about $3 over spot, more than 10%!! Bars about $1.25 over spot but they kill you when you want to sell.

new game's picture

if you must sell try bullion direct out of austin tx

they nucleo exchange with 1 percent fee, buyer/seller bid/sell match system

been using it for quite some time

physical only!

Kirk2NCC1701's picture

"...but they kill you when you want to sell."  Sell?  SELL?  Are you speculating with silver or stacking to store value?  If the former, you should be speculating with paper (not bullion) and skip the margins hit.  If the latter, then who really give a crap what the dealers are doing?  You can always be your own dealer if you need to sell for some reason of fiscal desperation.

Svendblaaskaeg's picture

At least you dont have to pay 25% VAT

how do You like them beans: (Denmark)

1 oz Eagle  Dkr. 161.00/253.00

Irelevant's picture

I said the same. However there appear to be on line dealers from Germany and Austria that sell without VAT.

Svendblaaskaeg's picture

Dunno any but Silberling in Germany and they ad 7% VAT

Estonia will deliver VAT free pre payed via bank transfer but I rather play it safe and pay the German 7% VAT


LawsofPhysics's picture

Bingo.  The world is drowning in paper fucking promises, the greater the divergence between the paper market price (for all commodities) and the actual prices paid to take delivery, the closer we get to another world war.  Why?  simple, eventually, people won't be able to get the essential commodites they need for survival and when goods and services stop crossing borders, troops will.  Same as it ever was...

LawsofPhysics's picture

Bloomberg is putting a positive spin on things.  Despite getting more for our wheat, corn, soybeans, and cotton.  Subsidies have been cut, the input costs are up (fertilizer, diesel, etc.) and to be honest, you don't make any money if you have no produce to sell.  These folks are planting more acerage in hopes that prices will hold, or not drop much more.  This isn't an easy business, but these folks know nothing else.  Farming is changing, everyone will pay more.  No way around it with 7+ billion mouths to feed and commerical farms so dependent the energy infrastructure (which is dealing with a collapsing EROEI).  Own idle land?  Put the appropriate fruit, nut, and hives on it now.  It's the easiest way to get a tax break in most states and make the land profitable.

Diversivication is the key.  We have moved into areas like pecans, walnuts, and honey.  Why?  For the most part, these trees and hives take care of themselves.

tip e. canoe's picture

thanks man. 
smart move on your part.
agroforestery is the future.

Room 101's picture

Hives take care of themselves?  BWAAAAHAAHAAA!   We're seeing 40-60% overwinter mortality this year.  Depens on where you are of course, but been a horrible year.

tip e. canoe's picture

that's not good.   any thoughts as to the cause?

LawsofPhysics's picture

Some of the simplest sayings are the most accurate. In this case, it's "location, location, location". The point is to have a business model that smoothes things out.  When one thing is up, another is down etc.

Midas's picture

Things are getting so bad Hedgeless has been eating his pet rabbits.

Bicycle Repairman's picture


Farm commodities are not like gold.  Anyone can plant corn.  Anyone.  I see little guys planting corn on small plots of land all over NE. 

Unless government ups ethanol content to 15% countrywide, the corn bubble is over.

Let's all head down to DC and get the government to make America energy independent.  15% ethanol or OPEC wins!!!!!


Irelevant's picture

Have no worries, China will be happy to buy all that corn, they have all those pigs to feed.

Bicycle Repairman's picture

The price goes down anyway.  I wonder if any other countries can grow corn?

CORN is down 20% in 6 months.  The corn bubble has *popped*.

Keep this in mind when someone says "buy farmland".

LawsofPhysics's picture

Indeed.  Anyone can plant it.  It's another thing entirely to make a living planting, growing, harvesting, and selling it.

Bicycle Repairman's picture

These guys make a living at something else.  Corn is their hobby.

LawsofPhysics's picture

"Corn is their lobby" - fixed.  And for some reason that lobby just won't die.

Acidtest Dummy's picture

Anyone who can afford to farm can afford to retire.

Big Corked Boots's picture

"Anyone can plant corn.  Anyone."

Yeah. Next you're going to say that it doesn't cost anything to grow stuff, you just plant the seed and wait. Just like some of the dumbass city slickers that come to my onfarm produce stand.

Newsflash for you: It takes a lot of skill to get a good crop. Corn *might* be easier but your small plots don't produce much yield.

fuu's picture

Corn only costs $5 to dig out of the ground.

Conax's picture

I greened you one because I have discussed farming with a few polished urbanites that think it means you feed the chickens, milk the cows, and all that other "old MacDonald had a farm" bullshit.  Farming is a science and making a living on a small plot (@ $15K an acre plus taxes) is a lot tougher than it seems.

Eeyi- eeyi- O.

Bicycle Repairman's picture

Corn is a very simple commodity.  The price went up.  More supply appeared within a year.  Price goes down.

It's a commodity.  The barriers to entry are as low as they get.

The corn bubble is over.

Spastica Rex's picture

It's so hard to throw a good big war these days.

Rich V's picture

I have good luck with Texas Precious Metals. They are about $2 over spot on Maple Leaves and best of all you can place a limit order with them for any PM the sell. Set your price and wait for it to lock in 24/7.