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Furious Selling Slam Sends Silver Red For 2014: No Limits Triggered

Tyler Durden's picture


With gold holding gains over 6% year-to-date (and the best performing asset-class), this morning's silver slamdown has taken the precious metal notably into the red for 2014 (-2%) and makes it the worst performing asset-class. Silver is back under $19 and near its lowest price since July 2013. Of course, it all started with the futures market where the sudden fiduciary need to dump over 2000 contracts 0505ET sent the complex collapsing, sending the gold-to-silver ratio to its highest since 2010.

Silver near 9 month lows...


Someone was in a hurry to dump their silver this morning as we gapped lower in spot


as it started in the futures...but no limits triggered


As the gold/silver ratio hits its highest since 2010...


We mentioned the limits because apparently even the CME has finally noticed the increasing frequency of these idiotic, and clearly manipulative market moves, in which the seller has no interest in best price execution, but solely in moving the market. To wit:

U.S. futures exchange CME Group Inc is considering the introduction of daily limits on price moves in gold and silver futures in a bid to rein in wild volatility that has spooked investors in recent years, a CME official said on Tuesday. CME at present has price fluctuation limits for futures contracts in some energy, agricultural commodities and financial products, but none for its precious and base metals products.


The possible move reflects growing concern at the largest U.S. exchange of futures and options about big bouts of buying or selling that have caused huge fluctuations in prices without any apparent fundamental reason.


"We don't have price limits in gold and silver. That's something that we are looking into," Miguel Vias, CME Group's director of metal products, said in a panel discussion at an industry event, in response to a question about how the exchange protects investors from excessive volatility.


U.S. exchange operators are already edgy about allegations over high-speed traders rigging the Wall Street stock markets and the so-called dark pools, or trading outside of exchanges, in the wake of the recently published book "Flash Boys: A Wall Street Revolt," by Michael Lewis. The biggest concern for the exchange is the array of sophisticated trading programs that are capable of significantly pushing the market higher or lower, Vias said.

Get out of town!

Unusually big moves and the fears of price "slippage" - the difference between the price at which a market player wants to execute an order and the price at which they are able to do so - have turned some gold and silver futures investors away, he said.

But not the central banks, which take daily delight in manipulating the prices of gold and silver, either through the BIS or fixing banks, just so no fingers ever point toward them.


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Thu, 05/01/2014 - 08:20 | 4715371 GetZeeGold
GetZeeGold's picture



We have to abandon real save it.


More for me then!


Thank your grandkids for me....they're paying for it.

Thu, 05/01/2014 - 08:21 | 4715386 James_Cole
James_Cole's picture

Amazing that people buy silver (or sellside it) and then complain about the above chart activity. Maybe in a few more decades people will wise up. 

Thu, 05/01/2014 - 08:29 | 4715408 Max Hunter
Max Hunter's picture

Just another day in the universe.. Some of you may love this book..

Thu, 05/01/2014 - 08:48 | 4715482 bania
bania's picture

opportunity of the decade? century?

Thu, 05/01/2014 - 08:56 | 4715504 SoilMyselfRotten
SoilMyselfRotten's picture

They want to limit volatility? It's not volatile on the way up, only when it's monkeyhammered down. That is called price management.

Thu, 05/01/2014 - 09:30 | 4715637 outamyeffinway
outamyeffinway's picture

Well isn't it interesting that they NOW want position limits when it can't be taken much lower? No. They want position limits to limit UPSIDE CHAOS! Which is coming.

Thu, 05/01/2014 - 10:17 | 4715827 Battleaxe
Battleaxe's picture

Hold physical then there are no position limits. You don't want leverage and it will go so high you won't need any leverage to make a KILLING. Anything in an account somewhere won't do you any good when you need it anyway.

Thu, 05/01/2014 - 10:55 | 4715945 tonyw
tonyw's picture

thank you for forcing the price down and allowing me to buy moar.


Thu, 05/01/2014 - 09:41 | 4715653 Save_America1st
Save_America1st's picture

it's my fault, once again, everybody...I picked up a nice new shiny roll of Buffaloes yesterday afternoon at 19.25 thinking "this is a good bottom to stack on some more". 

Of course everything we can get under 30/oz is a fucking steal.  But my last 4 purchases in a month have triggered another step downward each and every freakin' time.

You can either hate me or thank me for it depending on your point of view.  LOL

But thanks to me silver is on one of the best sales in history, so you're welcome!  I think I'll get more today!

*****Let this be a little lesson to any newbies out there.  This is why over the last month I've only bought a little at a time and didn't drop 5000 bucks all in one shot.

You never burn up all your dry powder at once in the PM stacking game.  Cost-average in a little at time on the way down and back up again so that you accumulate as many ounces for as little fiat as possible.

Cuz if you every think you're going to be able to perfectly time a bottom and burn up all your dry powder in one shot you can damn well bet they're going to monkey hammer it the next day on you just to piss you off!!!  LOL

Don't try to time the top either cuz they can slam it down faster than you can figure out what the hell is going on and they will fuck with your brain in both directions at once. 

But if anyone out there has been saving up and thinking of making a big sized purchase one day, I'd think today would be a good day to at most make maybe just half (at most, not all) of that purchase and then sit back and wait to see what happens next. 

These times in the PM's are fucking epic and will be written about by the proper PM historians quite a lot in the many years to come after the great monetary reset.

Those who had been stacking before the SHTF are going to come out very well on the other side....if we can all survive it!!!

(guns, ammo, food, water, meds, camping-fishing-hunting supplies, etc. are ALL a necessity too!!!) 

Thu, 05/01/2014 - 09:42 | 4715672 Cpl Hicks
Cpl Hicks's picture

PM meltdowwwwwwwwn!

Hi-yo, Silver.

Thu, 05/01/2014 - 09:59 | 4715742 AustrianJim
AustrianJim's picture

Hey, would you mind selling some of your silver so the market will go back up? Thanks!

Thu, 05/01/2014 - 10:07 | 4715783 Save_America1st
Save_America1st's picture

Right?!!?  Maybe if I sell everything I've got at 10 bucks an ounce, then silver will blast off up to 75 an ounce and then I can BTATFH (buy the all-time fucking high) and drive it back down to 18 bucks again! 

Kinda makes sense in the bizarro world of PM's.

Gotta love it and gotta stay looooooooooooooooooooong.  Stacking and patience is our key to making it through the shit-storm coming over the horizon. 

Thu, 05/01/2014 - 11:19 | 4716063 SilverRhino
SilverRhino's picture

When I buy silver I am not buying it hoping the price goes up tomorrow.   


I buy it KNOWING the price will go through the roof in the next 20 years.   Silver is retirement metal

Thu, 05/01/2014 - 11:25 | 4716104 Save_America1st
Save_America1st's picture

EXACTLY, SilverRhino!  Exactly...

Thu, 05/01/2014 - 12:19 | 4716396 SAT 800
SAT 800's picture

Back over $19; where it was in Hong Kong last night. Pretty short tempest in the teapot.

Thu, 05/01/2014 - 15:48 | 4717384 ultimate warrior
ultimate warrior's picture

Silver is a retirement metal.

Exactly how I see it. Stack on.

Thu, 05/01/2014 - 11:24 | 4716101 Canadian Dirtlump
Canadian Dirtlump's picture

I'll take par of the wrap.. I got a tube of barbers, peregrine falcons, maples, great white sharks. LOL. You're all welcome.

Thu, 05/01/2014 - 11:47 | 4716214 Storm Bringer
Storm Bringer's picture

You are not promised tomorrow.  Burn up the dry powder when you have it.  When the East decides it is time, the dollar may be worthless by the time you get up. 

Thu, 05/01/2014 - 09:21 | 4715599 tmosley
tmosley's picture

Try "greatest in human history".

It may rival even an early purchase of bitcoin.

Thu, 05/01/2014 - 09:25 | 4715610 Manthong
Manthong's picture

So I guess they want India to get all the silver since they shipped all the gold to China.

Keep in mind that not only are they scooping up all the monetary silver they can in India, they are going bananas for PV solar.

Thu, 05/01/2014 - 09:30 | 4715636 SRSrocco
SRSrocco's picture


Institutions Mislead The Public About Silver Investment Demand
Thu, 05/01/2014 - 09:44 | 4715684 Save_America1st
Save_America1st's picture

Thanks Steve!  Keep kickin' ass, man!!!!  You do most excellent work!!!

Thu, 05/01/2014 - 09:47 | 4715692 HardAssets
HardAssets's picture

I reached my % of assets allocation target for silver some time ago. But this is starting to look Real Interesting.   Hmmmm . . . maybe I need to have a 'garage sale' and get rid of some junk, including a car, that we're not using much now. Turn that stuff into physical silver and see what happens. Good motivation for doing some spring cleaning & clearing.

Thu, 05/01/2014 - 10:18 | 4715822 Save_America1st
Save_America1st's picture

exactly my thinking too...I have a 1988 (in very, very great condition too) Jeep Grand Wagoneer that has actually appreciated in value.  Gets 7 MPG and I'm not driving it regularly anymore.  Sure is a kick-ass full size Jeep, but I'm thinking of letting it go to the highest bidder in a couple months and using the proceeds for more PM's, lead, lead/copper delivery systems, more supplies, etc.

Might even use the fiat to scout out and grab some bug-out property tucked away in the mountains somewhere. 

But you're out crap we don't want or need that's taking up space is the perfect way to get some extra fiat to swap out for more PM's. 

I'm gonna hate to see my Jeep go, but my thinking is that after the SHTF there are going to be some really sweet fucking Jeeps on the market that some people won't be able to keep anymore, which will be sad for a lot of people.  But I'm sure I'll be able to re-acquire a nice one for a lot cheaper than they're going for now using some cheaply acquired silver.  Who knows!  Same thing for land and homes too.

Unfortunately for some there's going to be a fire-sale after the great monetary reset.  That's when our PM's should come in real handy.

I wish more people in America would wake up and get to stackin' for their future survivability.  I hate that so many aren't going to be prepared for it, but the stackers will hopefully be able to help those people by way of barter with silver so that they can get rid of things they can't keep.   That will help them gain silver to get by with.

Hopefully America comes out better in the end once we destroy the fiat and the money changers along with their treasonous policital puppets. 

Constitutional money is what I'm hoping for in America again some day. 

Thu, 05/01/2014 - 10:56 | 4715937 HardAssets
HardAssets's picture

Yeah the Great Re-set is going to happen. No way to get around it. When and how it will look at that time, is anyone's guess. The last few years may have been frustrating and maddening for many invested in the PMs, but given the hand being played by the fiat printers - it couldn't look any differently. A guy I know recently was talking about retirement and his 401k accounts; he's 50. While he was talking I was thinking "So . . . you really think youre going to be able to retire?"  I didn't say anything. I've talked about these issues before and he doesn't want to think about it. But now its probably smart to think in broader terms than just the financial aspect of survival. - - Its enlightening to read the accounts of people from the past - Weimar Germany, the USA right before and after the 1929 stock market crash, Argentina, the USSR, etc  People feel secure in their belief that tomorrow will be like yesterday and today. And then one day . . it isn't.

Thu, 05/01/2014 - 11:23 | 4716043 Save_America1st
Save_America1st's picture

I agree...I spent much of the last 7 years figuring all that out and trying to pass it along to friends and family.  Unfortunately most of them just can't or won't see what's happening.  The "Normalcy Bias" syndrome, so to speak. 

I finally realized that you can't convince people of what's going on unless they find the path on their own and then take an interest in some piece of the puzzle that opens their mind to the rest of the "Matrix". 

Some will never figure it out...but those that do, like I did, figure it out best when they walk the path on their own discovering more and more along the way.  Then one day they finally wake up and they never see the world in the same way ever again.

Once you've discovered the Matrix you can never be plugged back into it. 

Regarding the 401k scam (which is how I view it)...I know what you mean about that too.  I'm 42 now but about 6 years ago I quit contributing to my 401k.  I'll never see any of that junk by the time I'm supposedly ready to "retire" and collect it.  Luckily I didn't have a massive amount in there anyway, but I took advantage of the 50% loan option and used a big chunck of that to scoop up a lot of PM's.  Figured I may as well use some of it while I could and since it was a low interst rate and I would be paying myself back at the smallest bi-weekly payments then at least the money goes back to the 401k in the off-chance that one day I actually might get to collect something out of it.

But even if it's nominally worth something like 100,000 dollars, what will those dollars actually have the ability to purchase in 25 years???

By then that might only get you 1 month's rent and groceries....who knows? 

But I'm damn sure if I make it that long and have my stack in tact, it'll have purchasing power many multiples higher by the many thousands than any dollars I will have saved in some worthless account.

500 Mercury Dimes at 200/oz will be worth 14.50 each.  One day if silver gets that high we just might need a silver dime for a gallon of gas and another for a gallon of milk.  But it might actually take 2 dimes for a gallon of gas.  Those only cost me 1.40 each right now to stow away. 

I'd rather bet on silver being much more valuable than anything we try to save in the 401k, IRA, or any other fiat saving scam.  It's all going to be totally devalued to nothing, stolen by the government and taxed into nothingness, or stolen by the banks with their new "Bail-In" regulations/theft laws.  Or just inflated away and we won't be able to buy a cup of coffee with any of it. 

I hope your friend and the older people out there can make it to the day when they can start cashing in on their 401k's and IRA's.  But at my age now I hold no hope at all of making it and so I told myself a very long time ago it doesn't exist and won't exist in the future, so I will always be mentally prepared for when the SHTF and the fiat system is finally destroyed.

PM's are our only hope of making it through to the other side. 


Thu, 05/01/2014 - 08:35 | 4715422 SAT 800
SAT 800's picture

Still long @19.84 basis July, from Mar.28th. as reported here. It looks like the american futures market was responding to a lower price in London Cash; rather than being the driver. Every significant rally in the metals starts with a washout. Cheap Silver ! BTFD !

Thu, 05/01/2014 - 08:52 | 4715491 agent default
agent default's picture

If it moves 1% to the upside they will introduce price limits and halt the market every time there is a significant upside move, claiming market volatility.

Thu, 05/01/2014 - 09:40 | 4715663 SoilMyselfRotten
SoilMyselfRotten's picture

You mean kinda like how they raised margin requirements on silver roughly 6 times in a week to keep it under their control?

Thu, 05/01/2014 - 09:57 | 4715736 HardAssets
HardAssets's picture

&*^%$#@$^&*  ! ! ! !


Sorry, had to get that out of my system. Feel much better now.

Thu, 05/01/2014 - 09:18 | 4715509 philipat
philipat's picture

It's interesting that this latest monkey-hammering "Coincided" with several articles from very high profile folks talking about Silver being the best value investment out there? I honestly think there is no shame anymore, they just don't want anyone to even think about buying PM's. I mean, what kind of trader would do this if he wanted to exit 2K contracts? It makes no sense other than someone with NO profit motive (cough...The Fed...cough) sending out a very clear message.

So long as the paper tail keeps on wagging the physical dog, they remain in control. As a separate matter, knowing that the PM markets are so totally manipulated via the BB's, why would any REAL Trader take a counterparty position to the BB's? I suspect that the Comex has become just a circle jerk between th BB's, taking turns at being on opposite sides of the trade, with The Fed compensating the losses with a few extra minutes of running the printing presses?

The bad news is that they do seem VERY determined this time, even though PM's are now at or below their all-in cost of production. It would SEEM that they can't keep this going much longer in view of the supply and demand fundamentals and the lack of physical metal to continue, so maybe this is a last hurrah. They won't squeeze any more metal out of GLD and The Central Banks don't have any Gold, so where will the Gold come from to keep selling into the market? Of course, there is still, at least at present, a bit more Silver in stock than Gold, so of course they attack Silver as an easier and cheaper way of attacking the PM complex.

But, Shit, this is almost THREE years now and it is getting tiring. As they also know.

Still, I had some of my Gold and Silver bars out of the safe last night. And it still looks just as nice to me.

Thu, 05/01/2014 - 09:52 | 4715708 SAT 800
SAT 800's picture

The chart published with this article shows a medium term triple bottom, rising; I don't feel like complaining about that.

Thu, 05/01/2014 - 09:51 | 4715706 SAT 800
SAT 800's picture

Oh, I'm sure within one decade they'll be fully awake. And you will be too; but you may wish you were still asleep.

Thu, 05/01/2014 - 08:27 | 4715402 lordbyroniv
lordbyroniv's picture




Thu, 05/01/2014 - 08:36 | 4715424 lordbyroniv
lordbyroniv's picture

These years be right for ones who save gold. One good ear knows meaning of wind in trees. The leaves come down as seasons change. Fools see falling price of gold as "death of tree", they chase its price as leaves on the ground. Know you all, it is the season that has died.

Time will prove all things. Ones of simple thought, such as I will save the wood, not the leaf as they buy the gold, not the price!

Fri, 05/02/2014 - 08:42 | 4719446 Lionhearted
Lionhearted's picture

One thing is for sure, the value of your FIAT DOLLAR does not historically go up. Also keeping DOLLARS in your bank account where it earns 0.0002 % and is subject to confiscation is not the wisest idea either. Even if you are not buying PM you are safer keeping your DOLLARS in your safe than the bank.

Thu, 05/01/2014 - 08:18 | 4715372 Matt_Master
Matt_Master's picture

Perfect timing as I just got paid...time to convert more single ply into hard assets

Thu, 05/01/2014 - 08:37 | 4715425 SAT 800
SAT 800's picture

Save in saving money and spend spending money; there you go Brother. Good on yer Mate.

Thu, 05/01/2014 - 09:10 | 4715553 Chump
Chump's picture

Hey just wait a few.  I'm about to order some myself, which is usually good for another drop about 30 minutes after I place the order.

Thu, 05/01/2014 - 09:54 | 4715717 SAT 800
SAT 800's picture

LOL. Well, I would suspect the price will recover some tomorrow, so it might be a good idea to finish today.

Thu, 05/01/2014 - 10:08 | 4715786 Battleaxe
Battleaxe's picture

It may go down more but will eventually be many multiples higher.  Buy now. Buy later. Anything under 20 is a steal!

Thu, 05/01/2014 - 10:24 | 4715848 Chump
Chump's picture

Agreed with both of you...just a little facetious humor to celebrate a good deal on some more metal!

Thu, 05/01/2014 - 08:18 | 4715374 macambaman
macambaman's picture

I wonder who?

Thu, 05/01/2014 - 08:28 | 4715404 101 years and c...
101 years and counting's picture

just wait a few days and ZH will give you the name(s) of the latest bankers to suicide themselves.  commodities crumbling as global economy crumbling.  margin calls will be coming fast and furious across all asset classes soon enough.

Thu, 05/01/2014 - 09:05 | 4715539 Battleaxe
Battleaxe's picture

Loose lips bring hits!

Of course, sometimes you don't even have to talk. You just have to know something they're afraid will get out.

Thu, 05/01/2014 - 08:19 | 4715377 buzzsaw99
buzzsaw99's picture


Thu, 05/01/2014 - 08:19 | 4715378 dirtyfiles
dirtyfiles's picture

its regular as a coffee in the morning

Thu, 05/01/2014 - 08:21 | 4715380 FieldingMellish
FieldingMellish's picture

Trapdoor to $17 now opened. Bombs away.

Thu, 05/01/2014 - 09:56 | 4715733 UrbanMiner
UrbanMiner's picture

I have support at $18.85, if that goes and holds then its 'trap door'. There is the outside possibility it holds here....

Thu, 05/01/2014 - 08:21 | 4715381 NoDebt
NoDebt's picture

It's almost like there's a... pattern or something to this.  

Thu, 05/01/2014 - 08:21 | 4715382 jubber
jubber's picture

looks like this could be a big sell off here Gold & Oil also getting smahed, 3/4 of the worlds markets on holiday, and weirdly the US $ down well below 80

Thu, 05/01/2014 - 08:39 | 4715434 SAT 800
SAT 800's picture

The holiday makes it easier to arrange the temporary low price; which appears to have been done in London, with the New York futures merely playing catch up to the Spot. But, classicaly this kind of mini-manipulation is done so the perps. can buy the artificial lower price. Therefore it's a buy signal.

Thu, 05/01/2014 - 08:21 | 4715383 lordbyroniv
lordbyroniv's picture

Its May 2014


really woulda thought gold/silver would be up by now


when i first learned about metals in 08'


DAMN.........these guys are good.

Thu, 05/01/2014 - 08:25 | 4715396 fonzannoon
fonzannoon's picture

If they can rig the largest markets in the world I guess we all should have realized how easy it would be to kick the shit out of a tiny market like this anytime they want.

Thu, 05/01/2014 - 08:28 | 4715403 IridiumRebel
IridiumRebel's picture

my question is why? What does this do? 

Thu, 05/01/2014 - 08:31 | 4715413 Oh regional Indian
Oh regional Indian's picture

When you need to cover yer sharts....of course you'd drive it down.....

buy low, return. Repeat.

You already did  the seliing high part....


Thu, 05/01/2014 - 08:35 | 4715419 fonzannoon
fonzannoon's picture

I believe the ultimate goal is to cut off absolutely every avenue to deploy capital other than the almighty SPY. But as for this specific move....I dunno...maybe the dollar is close to breaking through some big support and this is part of a way to shore up confidence in the USD. I mean by all logic PM"s should have been countering  this move lower in the dollar by going higher. Agricultural commodities have certainly shot higher this year. By smashing PM's down it maintains the illusion that there is no inflation. Because if inflation protected assets like PM's were to shoot higher, they would be in deep shit.

Just my guess.

Thu, 05/01/2014 - 08:39 | 4715430 IridiumRebel
IridiumRebel's picture

It just seems so focused on these metals and they just keep hammering them down and everytime I think, "Hey, it may just float back to 24 bucks..." it gets hammered even lower. It's like they hate it and its such a small market. 


Thu, 05/01/2014 - 08:44 | 4715458 fonzannoon
fonzannoon's picture

It is absolutely focused on these metals. Get them down to the point where miners are not making a penny to produce them and investors give up on them ever appreciating. If Silver floated back to $24, maybe that puts gold somewhere around $1,400...why have gold at $1,400 when you can wrestle it down to $1,000?

Thu, 05/01/2014 - 09:52 | 4715668 cowdiddly
cowdiddly's picture

This is a currency war from hell. The whole world is looking for a better monetary system. Except the United States and their lackeys in Belgium of course who is clinging by fingernails to the reserve currency.

Now that the United States has started to openly go after Russia and has weaponized their Swift system the development of alternatives will be on fast track.

If you want to know what the US plans are just listen to that POS Jim Rickards. This man is of the most dangerous kind, he is a government SPOOK. On the surface he is singing pro gold.  By his own admission He was hired by the government to study the what if scenario's of a dollar decline with China buying all the worlds gold.

You can see his tru colors by listening to what he is trying to sell now. He is trying to manage your perceptions. He states that China has probably 3000 tons of gold(being the number one producer in the world producing just short of 500 tons and no exporting they have produced more than that in country since 2009 and he knows it). If you listen closely to his song it always comes back casually to the SDRs- specific drawing rights their next planned trade system with the IMF and all the usual cronies. This is what they are actually aiming for. The Brics? I dont think so.

Thu, 05/01/2014 - 10:02 | 4715756 SoilMyselfRotten
SoilMyselfRotten's picture

I'm inclined to agree something is not quite right with Rickards. My moment of clarity was, when being interviewed by Max Keiser, he refused to believe there was anything nefarious about all the airline puts just prior to 9/11. That spoke volumes. 

Thu, 05/01/2014 - 09:35 | 4715644 Al Huxley
Al Huxley's picture

The fact that you have to ask that question should tell you you're onto something.  Why would historically monetary metals, of which the physical supply is small relative to global population and paper/digital money, be manipulated so consistently downward in price for so long?  Look at it from the perspective of somebody who's had family money for centuries, who's family wealth has survived transitions across multiple panics and currency collapses.

Thu, 05/01/2014 - 09:51 | 4715705 lakecity55
lakecity55's picture

Right, Al, and don't think those same families are not holding on to quite a few good delivery bars!

Thu, 05/01/2014 - 08:42 | 4715447 SAT 800
SAT 800's picture

Inflation protecting assets like PM's will shoot higher; the inflationary news will become commonplace and mainstream, all this is inevitable; pressure is building up in the pressure cooker. these things take time; but when the mass mind changes it's perception it can be fast and furious.

Thu, 05/01/2014 - 08:46 | 4715469 fonzannoon
fonzannoon's picture

food prices have gone ballistic this year and everyone has noticed it. So everyone sees that inflation. The key is that the dow is at all time highs while silver just shit it's pants again. So for the average guy out there who does not follow this stuff, he only sees stawks as the way to protect against inflation. End of story.

Thu, 05/01/2014 - 08:55 | 4715492 bardot63
bardot63's picture

These takedowns in both gold and silver are designed to protect the 'full faith and credit' of the dollar.  There is no other reason.  If/when gold/silver trade at honest market prices, confidence in the US dollar will evaporate.  These non-profit takedowns protect the dollar by discouraging investment in alternate currencies, which is what gold/silver are--alternate currencies.  These prices are not real, of course, so with each takedown, the coil of true market price is wound even tighter, with even more energy being stored for a move to the upside.  Gold, followed by silver, is the enemy of paper money.  Ask yourself what gold at $thousands and silver at $hundreds would mean for the perceived value of paper money.  Ask yourself why gold and silver are the only two commodities on earth -- the only collectibles -- the only measures of worth -- that are not at 2014 inflation levels, but instead are at price levels more like 1980.   Ask yourself why 4 billion Asians trust gold/silver and not paper money.  If you believe there are no buyers, if you believe there is no robust demand, then talk to them. These price takedowns could not exist without braindead hedgies playing along, surrendering their money in the futures and options markets to the bullion banks, which are operatives of Central Banks.  Ask yourself why China/Russia/MidEast/India are gobbling up gold/silver and Americans are selling.  Then ask yourself which region will emerge/is emerging on top. Why will the US Fed/White House not allow an audit of Ft. Knox. It's because the truth would put them in the guillotine.  By the way, try buying real gold and silver from honest brokers at these prices.  You cannot. 

Thu, 05/01/2014 - 09:19 | 4715589 Edward1290
Edward1290's picture


Thu, 05/01/2014 - 09:31 | 4715635 Kirk2NCC1701
Kirk2NCC1701's picture

This all sounds good until you put it to the test...

Given that there is a LOT more paper-PM than real PM, all China or even Russia have to do, is to play the same PM Futures games, but then demand DELIVERY.  The real question is:  Why are the BRIC countries still "playing nice" with Club Fed?  The Walk does not match the Talk.

Thu, 05/01/2014 - 10:00 | 4715749 SAT 800
SAT 800's picture

Perhaps these net buyer countries don't find a much higher price attractive. I think the wild card in the deck is a few wealthy families in Europe could form a buying consortium and buy the whole warehouse inventory of Silver; that would be interesting.

Thu, 05/01/2014 - 10:11 | 4715802 Kaiser Sousa
Kaiser Sousa's picture

just hit the "confirm order" button on 500oz's from APMEX....


im stackin til the day i D    I   E.

Thu, 05/01/2014 - 08:30 | 4715405 GetZeeGold
GetZeeGold's picture



easy it would be to kick the shit out of a tiny market like this anytime they want.


At one time the figure I heard was a $5 dollar move in gold was the entire silver market.....not sure how valid that is anymore, but it's probably close.

Thu, 05/01/2014 - 08:21 | 4715385 Oh regional Indian
Oh regional Indian's picture

man, i'd be buying hand over fist right now.....silver sale of a life-time.....


Thu, 05/01/2014 - 08:44 | 4715455 SAT 800
SAT 800's picture

Equally significant as the $4.35 sale price in 2001. A good buy; the most underpriced hard asset on the planet.

Thu, 05/01/2014 - 09:47 | 4715698 lakecity55
lakecity55's picture

I like to say "Hand over Fiat," hahaha.

Thu, 05/01/2014 - 08:26 | 4715399 Seasmoke
Seasmoke's picture

So is the paper price supposed to just go to ZERO??? Because my physical Silver ask is $100USD an oz. 

Thu, 05/01/2014 - 08:30 | 4715412 fonzannoon
fonzannoon's picture

seasomoke silver is an industrial metal, so the price is cratering because, as Yellen clearly stated yesterday, growth is absolutely dead. Also silver is viewed as a precious metal, and so it is cratering due to the sharply rising dollar, as illustrated by the dxy.

Thu, 05/01/2014 - 08:45 | 4715462 SAT 800
SAT 800's picture

Wrong; nothing is cratering; it's a temporary little manipulation in London; usually these are buy signals; all rallies start with a washout.

Thu, 05/01/2014 - 08:46 | 4715465 TruthTalker
TruthTalker's picture

You do realize we are not the only country that uses silver and some countries have growth - this is manipulation and done as CME announces it wants to place limits - why - because as the dollar is dying they suddenly want to - after 40 years - limit how high gold and silver can rise in a day?  BULLSHIT

Thu, 05/01/2014 - 08:47 | 4715478 fonzannoon
fonzannoon's picture

For anyone who junked me, I only have one you know you are a retard? Did Yellen say growth was dead? Is the dollar breakng higher, or lower?


Thu, 05/01/2014 - 09:12 | 4715566 greatbeard
greatbeard's picture

One junk = two greenies bro.

Thu, 05/01/2014 - 10:41 | 4715903 ParkAveFlasher
ParkAveFlasher's picture

+1 to Fonz, usual .... There's a superfine line between correlation and causality, in some cases, as fine as the line between pissing down your back and telling you that you know when it will rain. I read Fonz's comment as "Of course you got wet...Janet told you it was about to rain."

Thu, 05/01/2014 - 08:32 | 4715416 negative rates
negative rates's picture

You'll have to carry it on your back a while longer, regular people just can't afford $100 silver right now.

Thu, 05/01/2014 - 09:11 | 4715558 Ban KKiller
Ban KKiller's picture


Thu, 05/01/2014 - 08:29 | 4715407 BIHM
BIHM's picture

Fuck can't even get worked up anymore.  Continue to roll your long dated deep OTM calls on gold and your long dated deep OTM puts on the market.  And relax.  The rain will come.

Thu, 05/01/2014 - 08:29 | 4715409 Racer
Racer's picture

Got to get the worst price when you are selling dontcha know... after all it isn't like it is your money or anything

Thu, 05/01/2014 - 08:30 | 4715411 SilverIsMoney
SilverIsMoney's picture

Lol... What a farce... Just gives us more time to prep.

Thu, 05/01/2014 - 08:31 | 4715414 apberusdisvet
apberusdisvet's picture

The last 6 months of smashes to silver specifically, is very interesting.  There appears to no particular reason other than to dramatically dissuade potential buyers.  Could it be that supply issues are coming?  And why does JPM have so many millions of ounces in its proprietary account?   Hmmm Hmmm Hmmm

Thu, 05/01/2014 - 08:36 | 4715418 Ribeye
Ribeye's picture

an oz is now the same price as a romantic meal for two in Europe, 

as long as that meal consists of a Big Mac, chips and coke each for you and your missus, 


Thu, 05/01/2014 - 08:35 | 4715421 jubber
jubber's picture

 silver went from 1880 to 1913 there on those figure already back down to 1895

Thu, 05/01/2014 - 08:36 | 4715423 Kina
Kina's picture

OK so who did it this time, how often have they done it now, and why are they not in prison...and what are the chances of them ever going to prison?


Put one in prison..and the whole game stops. Or if in China one of these guys would be taken out the back and a bullet put through their head.  If only we could have the Chinese justice system operating in the CFTC CME for a many corrupters of metal markets could they execute in a day. Would Masters be safe from a Chinese Silver bullet to her head...I don't think so.


However in the west corruption is the norm and untouchable if by the owners of the Govt and captured corrupt regulators.

Fri, 05/02/2014 - 09:45 | 4719806 Lionhearted
Lionhearted's picture

All I can say is LET THEM. They are only creating buying opportunities for us. THANK YOU! I am not going to trade my eagles for paper. I am going to trade them for HARD GOODS in the future when the toilet paper The Fed is printing wont buy you crap. It doesn't cost them any more to print $100 dollar bill than it costs them to print $1.00 can you say the same for an OZ of silver? Last time I checked they can't make AG or any other element on the periodic table out of NOTHING.

Thu, 05/01/2014 - 08:38 | 4715429 Dr. Gonzo
Dr. Gonzo's picture

...and yet the U.S. Mint sold 4.5 9million oz of the stuff in April and 5.35million in March. 6 million in May?

Thu, 05/01/2014 - 09:28 | 4715624 Billy Sol Estes
Billy Sol Estes's picture

April 2013 was a lot of fun.


Thu, 05/01/2014 - 09:00 | 4715433 moriarty
moriarty's picture

Methinks the any limits imposed will be just in time for the epiphany which cause the prices to gap up a few %


Thu, 05/01/2014 - 08:44 | 4715436 agent default
agent default's picture

Silver and gold are small markets, and relatively easy to manipulate.  What you see here is the big commercial players(TBTF banks), killing the small speculators by manipulating the price in totally counter intuitive ways.  Of course China is buying both metals hand over fist and in the end everyone will be shocked SHOCKED I tell you, to find out that the too big to fails have fucked up again and depleted the West of its PMs in the process. Then of course the ECB and the Fed will bail them out again, OR THERE WILL BE TANKS ON THE STREETS BY TOMORROW, but by that time fiat currencies will have been devalued to hell.

Thu, 05/01/2014 - 09:04 | 4715534 LawsofPhysics
LawsofPhysics's picture

I don't think anyone is going to fall for the "tanks in the streets" horseshit again (especially since those tank drivers have seen their wealth and futures stolen as well).

Let me be clear, execute all the government and financial "leadership" over the last 30+ years, start with Hank Paulson...

Nothing changes otherwise.

Thu, 05/01/2014 - 09:44 | 4715691 lakecity55
lakecity55's picture

I think life in prison with horny gorilla cell mates would be a better sentence.

Thu, 05/01/2014 - 13:50 | 4716845 buyingsterling
buyingsterling's picture

Nope, we're going to dismantle their 'rape and recidivism' system.

Thu, 05/01/2014 - 08:40 | 4715438 jay28elle
jay28elle's picture

Might as well, right?  The manipulators need to stay in practice and fine tuning their skills...

Thu, 05/01/2014 - 08:48 | 4715479 SAT 800
SAT 800's picture

LOL. yes, maybe they just got bored; after all it wasn't much of a dowwash in dollar terms.

Thu, 05/01/2014 - 09:02 | 4715530 jay28elle
jay28elle's picture

Something to do inbetween their 'enjoyment' of porn, or during their downtime.

Thu, 05/01/2014 - 08:42 | 4715441 Debeachesand Je...
Debeachesand Jerseyshores's picture

Just buy Silver at these bargain basement prices.....

Thu, 05/01/2014 - 08:42 | 4715446 TruthTalker
TruthTalker's picture

TOTAL bullshit!  After 40 years of rigging now that the dollar is collpasing CME wants to set limits - if they really want to stop the rigging - separate the physical and paper markets.  Setting limits on how high gold and silver can go in a day is more rigging now at the end game!  And convienantly as they are announcing their desire to set limits someone in the PAPER market slams silver! SEPARATE THE MARKETS.  Why should futures control physical?  If they do this class action lawsuit agains @CMEGROUP! 

Thu, 05/01/2014 - 10:19 | 4715836 Flakmeister
Flakmeister's picture

Just what is the dollar collapsing against?

Thu, 05/01/2014 - 08:43 | 4715448 Dr. Gonzo
Dr. Gonzo's picture

Yeah. I noticed yesterday as well that the price was creeping pretty low so I got on the phone and ordered some Maple Leafs. Happy to do it.

Thu, 05/01/2014 - 08:43 | 4715453 LawsofPhysics
LawsofPhysics's picture

Just say "thank you" guys...

No need to be rude.

Thu, 05/01/2014 - 09:08 | 4715547 Ban KKiller
Ban KKiller's picture

Thank you. Ordering this am. 

Fuck Yellen? No thanks, no men for me.

Thu, 05/01/2014 - 08:45 | 4715459 GrinandBearit
GrinandBearit's picture

At $17 I'm backing up the truck.

Thu, 05/01/2014 - 08:48 | 4715481 GetZeeGold
GetZeeGold's picture



Been hearing that statement for decades now. In practice it never happens.


There is no do.....or do not.

Thu, 05/01/2014 - 10:04 | 4715768 eddiebe
eddiebe's picture

At $ 6.00 I'm backing up the truck and then sell it at $4.00 when I need to buy a loaf of bread.

Thu, 05/01/2014 - 08:45 | 4715463 johnnymustardseed
johnnymustardseed's picture

No worries, ask yourself what has changed? Is the FED still giving out free money to banks to buy worthless treasuries? We are Zimbabwe, most people just don't know it yet.

Thu, 05/01/2014 - 08:50 | 4715489 TruthTalker
Thu, 05/01/2014 - 08:53 | 4715495 SharkBit
SharkBit's picture

Would it not be awesome if we could kick the living shit out of their beloved USD like they manipulate Gold and Silver.  Now that would be fun to watch.  An open invite to China and Russia to topedo the USD.  I get so tried of all this rigging.  Makes me sick.  These fuckers manipulating markets should be hung by their balls out in front of NYSE.  Pathetic country.

Thu, 05/01/2014 - 09:41 | 4715671 lakecity55
lakecity55's picture

Be careful what you wish for.

I too, desire the money specified by The Constitution. And I'd love to see Lloyd holding a cardboard sign off the interstate ramp, but unless you have 10 pounds of Au or other hard assets, too much devaluation of the Fern will wreak havoc!


Thu, 05/01/2014 - 09:43 | 4715677 johnnymustardseed
johnnymustardseed's picture

More difficult to manipulate the dollar cause you would somehow have to be able to short a trecntillion (which is a 10 with 903 zeros after it)

Thu, 05/01/2014 - 08:53 | 4715496 redbird
redbird's picture

Funny.  I went to sleep last night thinking I need to pick up some silver in the morning.   Now this.  

I'm so happy!  Thank you Janet VonHavenstein.


Thu, 05/01/2014 - 09:37 | 4715649 lakecity55
lakecity55's picture

Just be aware the % on premiums will go up.

If I were a local shop owner I would take as much of my inventory off the shelf except for enough to cover my cash flow needs. I also discovered after acquiring a few ounces of Au from my local guy that I had gained entrance to the premier customer club, which is an unofficial club. Now if I want to pick up a couple of ounces, I get to choose from the "special collection."

Of course, there is that problem with the tailgate on my pickup truck. *sigh*

Thu, 05/01/2014 - 09:11 | 4715508 cowdiddly
cowdiddly's picture

The Cme is the problem. they had a 5 year investigation and found nothing with waterfall drops everywhere and they act like they do not know who is doing this.

Now with gold and silver in backwardation and the kettle running low with absurdly low prices they want to manage the amount the price can change in a day rather than bring charges on the perps and fix the problem. The bullion banks already never allow gold or silver to rise more than 1-2% in a day but allow unlimited downside smashes to contantly rob the specs anytime they wish.

The whole market stucture is a fraud. You are limited to i think 1500 long contracts under the auspices of limiting a cornering position in the market but you are allowed to buy unlimited amount of shorts. And then they act like they do not know why these smashes are occuring.

And then you set up a GLD fund where you can never get actual metal and use their holding to supply the market to control the price.

Now my only question is now that the money is seeking a fairer market and moving to Shanghi where 40+ tons sell a week vs dying volume on the COMEX. WHY is the comex allowed to determine the world price when they do not move anything but a paper promise as anyone knows if you want metal you go to Shanghi to buy.



Thu, 05/01/2014 - 09:11 | 4715560 El Hosel
El Hosel's picture

Banksters are so flush with cash after 5 years on the Federal take, smashing the precious metals is like buying a bag a of peanuts.

Make no mistake, stawks are the only place to be, tap your nail guns together and repeat... no place like stawks ( three times Dorothy )

Thu, 05/01/2014 - 13:55 | 4716863 buyingsterling
buyingsterling's picture

The CME is dung, but they found nothing illegal because the law allows the fed to manipulate the markets to protect the dollar. Here's the New York Fed's blurb on the Exchange Stabilization Fund:

All JP Morgan has to do to manipulate the price is to do so at the behest of the treasury. Then they're just being good citizens, right?

Thu, 05/01/2014 - 09:01 | 4715524 bardot63
bardot63's picture

These takedowns in both gold and silver are designed to protect the 'full faith and credit' of the dollar.  There is no other reason.  If/when gold/silver trade at honest market prices, confidence in the US dollar will evaporate.  These non-profit takedowns protect the dollar by discouraging investment in alternate currencies, which is what gold/silver are--alternate currencies.  These prices are not real, of course, so with each takedown, the coil of true market price is wound even tighter, with even more energy being stored for a move to the upside.  Gold, followed by silver, is the enemy of paper money.  Ask yourself what gold at $thousands and silver at $hundreds would mean for the perceived value of paper money.  Ask yourself why gold and silver are the only two commodities on earth -- the only collectibles -- the only measures of worth -- that are not at 2014 inflation levels, but instead are at price levels more like 1980.   Ask yourself why 4 billion Asians trust gold/silver and not paper money.  If you believe there are no buyers, if you believe there is no robust demand, then talk to them. These price takedowns could not exist without braindead hedgies playing along, surrendering their money in the futures and options markets to the bullion banks, which are operatives of Central Banks.  Ask yourself why China/Russia/MidEast/India are gobbling up gold/silver and Americans are selling.  Then ask yourself which region will emerge/is emerging on top. Why will the US Fed/White House not allow an audit of Ft. Knox. It's because the truth would put them in the guillotine.  By the way, try buying real gold and silver from honest brokers at these prices.  You cannot.

Thu, 05/01/2014 - 09:06 | 4715541 LawsofPhysics
LawsofPhysics's picture

The truth will become apparent soon enough, let's hope they meet the guillotine.  Be optimistic.

Thu, 05/01/2014 - 09:30 | 4715623 lakecity55
lakecity55's picture

True price from Gordon:

It would be great for another article by The Gekko!
The FRN is the best example of WHY you should stock up on PMs; when they lose control of the fiat, the only thing protecting your wealth will be Hard Assets, of which PMs are just 1 example.

Thu, 05/01/2014 - 10:10 | 4715795 SAT 800
SAT 800's picture

Well, you can actually., google it; and read all about it. Located in London with vaults in London and Switzerland; Silver vaulted only in London. Prices are just what you see on the Spot boards. Many Americans own millions of dollars worth of Silver there; it's 100% allocated; it belongs to you; period.

Thu, 05/01/2014 - 10:30 | 4715864 SAT 800
SAT 800's picture

Just looked at the prices on the open market at; people buying silver in Kilos at $19.50/oz.

Thu, 05/01/2014 - 09:03 | 4715532 Fred C Dobbs
Fred C Dobbs's picture

They can only take it down another $18.73.  What will they do then?

Thu, 05/01/2014 - 09:13 | 4715570 agent default
agent default's picture

They seem to be determined to go all the way to $15 this time.  But both gold and silver are moving from the west to Asia.  One day we will wake up and they will tell us that we have run out of gold.  Of course the next step will be to demand from all citizens to hand in their gold out of "responsibility" and "patriotism" in order to save the economy.  Confiscation is around the corner. 

Thu, 05/01/2014 - 09:26 | 4715619 lakecity55
lakecity55's picture

Too bad my PMs fell off the back of the pickup. I gotta get that tailgate fixed.

Thu, 05/01/2014 - 09:31 | 4715638 Billy Sol Estes
Billy Sol Estes's picture

Downvote for lack of creativity.

I'm having mine surgically implanted in my buttocks.

Thu, 05/01/2014 - 10:47 | 4715916 lakecity55
lakecity55's picture

well, boating accidents were too  overused, too.

Thu, 05/01/2014 - 10:15 | 4715817 SAT 800
SAT 800's picture

Well, you never really know; but I doubt it very much. At twenty bucks it's basically even on for recent actual inflation; some wealthy people and syndicates do pay attention to this; not everyone is a fool.

Thu, 05/01/2014 - 10:27 | 4715858 SAT 800
SAT 800's picture

I think they'll be a lot more interested in confisticating your IRA; in exchange for wrorthless Patriot Bonds; followed by a haircut for your money market funds, and last, but not least, your bank account. They really like those Federal Debt Units.

Thu, 05/01/2014 - 10:13 | 4715811 SAT 800
SAT 800's picture

Always useful to ask yourself, are they likely to be giving it away free on the street corner. Not really. At twenty bucks it's just about in balance for actual inflation; should be a pretty hard floor, since there's no low risk alternative. The 15% Federal Bonds that Volcker created to suck money back into the dollar aren't going to happen this time around; as we all know.

Thu, 05/01/2014 - 09:04 | 4715533 FreeNewEnergy
FreeNewEnergy's picture

New all-time high on the Dow yesterday was reminiscent of July-October 2007, when Dow topped in July, failed in August and then set a new high in October. And we all know what happened after that ATH.

What many fail to recall correctly is the smash-down in PMs when the bottom fell out in 2008. Metals were slammed, and they will be slammed again when this market crashes, which it absolutely must.

Buying in the 18s and 17s is fine, but the bottom - which may be extremely difficult to time - should be in the 15.45-16.15 range when SHTF. If it's lower, buy more.

I've been waiting for 17 for a long time, and it's finally coming, but that hasn't stopped me from dollar-averaging down, buying in the recent lower range.

Locked and loaded, as they say. Bring it, bitchez.

Thu, 05/01/2014 - 09:05 | 4715538 Mitch Comestein
Mitch Comestein's picture

Damm, silver really is gold's bitch!  Look at that gold/silver ratio.  It hit 68 this morning.  The crisis high was 84, and five year high was 72.XX.  I thought the ratio was going to 16.  I read it here on ZH posts and Eric Sprott, and other silverheads.

Thu, 05/01/2014 - 09:16 | 4715580 agent default
agent default's picture

If the ratio converges, it will be gold that will be going down.  The smash in silver is just a precursor.

Thu, 05/01/2014 - 10:18 | 4715829 SAT 800
SAT 800's picture

Well, the market is open every day, and they're waiting to take your short position. But I wouldn't reccomend it.

Thu, 05/01/2014 - 10:43 | 4715911 Mitch Comestein
Mitch Comestein's picture

Oh, I am not that foolish to short.  I sold at 35, 48, & 43 to buy gold.  The gold fall has been painful.  Silver just has an UNBELIEVABLE following.  Nobody mentions gold on this site.  It is just silver, silver, silver.  A wipeout of speculation in silver would still really hurt.  It will hurt me to because I bought "some" back at 21 something.

Thu, 05/01/2014 - 10:19 | 4715832 SAT 800
SAT 800's picture

I interpret this as Silver being very underpriced; as it was in 2001, at $4.35/oz. for instance. A ratio like this is not very stable I shouldn't think.

Thu, 05/01/2014 - 10:49 | 4715923 Mitch Comestein
Mitch Comestein's picture

I would say that a long term high in the ratio will be put in in the future as the ratio has been falling from 100 in 1992.  I would venture to bet that a high will be put in right in line with the channel drawn from the 1992 and 2008 highs.  Just my thoughts.


Below is a 100 year chart of the ratio I found.

Thu, 05/01/2014 - 10:25 | 4715851 SAT 800
SAT 800's picture

Couldn't we call it the working man's real money? Gold's Bitch, just doesn't sound very appealing.

Thu, 05/01/2014 - 09:12 | 4715564 1stepcloser
1stepcloser's picture

All in an attempt to "Stay away from the cans (PMs) he hates these cans... Oh no more cans..."



Thu, 05/01/2014 - 09:15 | 4715576 Ban KKiller
Ban KKiller's picture

Is lead on sale yet? 

Shipped out ten nail guns...and two shitgums. Guess who to?

Thu, 05/01/2014 - 09:20 | 4715598 El Hosel
El Hosel's picture

.... Where did you find the shitgums? There has been a big run on them out here in the west.

Thu, 05/01/2014 - 09:18 | 4715586 Took Red Pill
Took Red Pill's picture

Great! Just placed an order. It's only temporary. I ask myself, "Would you rather be holding paper dollars or PM's?" The answer is simple.

Thu, 05/01/2014 - 09:21 | 4715602 SMC
SMC's picture

Shorts are easy when you have a printing press and immunity.

The only way to win is not to play the game.

Thu, 05/01/2014 - 09:29 | 4715630 NoWayJose
NoWayJose's picture

The CME decision to add limits almost looks like they are 'prepping' for the future when PM prices explode higher...

Thu, 05/01/2014 - 10:21 | 4715839 SAT 800
SAT 800's picture

I find it difficult to imagine any other reason why they would be considering this. They used to have daily limits, of course; in the bad old days, when manipulation had been overwhelmed.

Thu, 05/01/2014 - 09:35 | 4715645 maxblockm
maxblockm's picture

After the big smash down/s to $17/$15/$??, then they will institute limits on volatility so that it can't go UP more than .5% per day. 

Then there won't be any for sale/at the ask, only bids. 


Thu, 05/01/2014 - 09:40 | 4715660 Spungo
Spungo's picture

Slamdown is too soon. I get paid tomorrow, so money will hit my trading account around wednesday. Silver will have recovered back to $20 by then, meaning I completely miss this opportunity.

I know it's a stupid mistake to have zero cash in reserve, but there are so many good stocks to buy. A lot of the junior miners are trading below 10x earnings and 1/2 of book value.

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