There's One Very Simple Reason Why Precious Metals Were Pummelled This Week

Tyler Durden's picture

Submitted by Mac Slavo via,

If you are a precious metals investor then you may be wondering why the price of gold and silver were absolutely massacred this week. Ask the expert pundits on financial media and you’ll get a swath of explanations for how the strength of the dollar or the improving health of the global economy are to blame. One could reasonably argue that dollar strength this week could certainly put downward pressure on the gold price. So, too, could one make the point that mainstream perspective is such that the economy is improving, which means investors aren’t in panic mode and have no reason to hold a safe haven asset. But neither of these arguments could realistically lead to the smack down we witnessed this week.

So what happened? Well known gold and silver analyst Andy Hoffman suggests the answer could be much simpler than we have been led to believe.

There’s no reason… there’s not even a propaganda meme of why [gold has been smashed]… there isn’t even a such thing as negative news for precious metals anymore…


The fact is, [lik eth elast few years, when prices collapsed], China is closed for the week.

Had you been listening only to the big financial news sites, you would have noticed that they made no mention of this very important fact. With China closed the markets were open for rampant manipulation, which is exactly what happened as several billion dollars in leveraged paper assets were dumped on the market.

Easy money for The-Powers-That-Be.

Hoffman explains in the latest precious metals update with Future Money Trends:

On Monday, China will be back in business, and that means the Shanghai Gold Exchange, which opened last year to counter Western manipulation of precious metals, will likely help re-balance prices to where they were before this week’s takedown.

We could be wrong, but something tells us gold and silver prices won’t stay this low for much longer and that they could well see a complete turnaround next week.

What does that mean for investors? This could be one of our last buying opportunities before the long-term bull market trend makes another move like it did in the first part of this year which saw precious metals rise amid market panic.

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bjax's picture

Phyical price in the UK hardly moved. I was hoping to buy the dip, but it really wasn't a dip in physical, just paper.

JRobby's picture

China was closed

How come the wizards of imbecility at CNBC and Bloomberg didn't see this? (Laugh Track Deafening)

joego1's picture

They are paid for their wilful blindness.

38BWD22's picture



This may give us some early evening (US time) insight:


EDIT: HenryKissinger (below) beat me to it.

BaBaBouy's picture

WOW ... Crapex Attack on Paper PM's, Same Time, Same Place, Every Year ...

SoilMyselfRotten's picture

These charts woulda been a whole lot handier last sunday night, just sayin

giggler321's picture

That's because sterlin tanked at the sametime

OpenThePodBayDoorHAL's picture

Wrong. Gold stayed where it is, because that's what it does. The paper claim on an insolvent nation that is called the pound dropped in value against it.

38BWD22's picture



My ounces stayed put too.

hxc's picture

If you understand that simple fact, then bet on USLV on Monday (and miners and the rest)

Kirk2NCC1701's picture

That's why the smart guys in the room buy the Kitco Unallocated Pool (low buy/sell spread), and convert to phyz delivery when appropriate. (Me)

The really smart guys play Futures games, and use their winnings (assuming their gamble paid off) into phyz. (Not me)

I gather that the latter group includes the Pump & Dump guys, who live/love to talk up PM, while they're making their moves.

jailbirdjackson's picture

bjax, didn't the pound get hammered this week too? That would explain why physical price didn't move when priced in the pound.

SubjectivObject's picture

Now you tell me.

Right before the open.

RAT005's picture

Many online retail sites are still pricing premium above Friday close so I think you have about 2.5 hours before Globex opens and the Friday price is history.  You only have yourself to blame for the next 2.5 hours.

Snaffew's picture

ZH has been spinning stories all week about the Chinese markets being closed and the price of gold artificially suppressed downwards because of it.  If you hadn't been buying gold/gold related stocks on Thursday and Friday, it was because you simply did not make an effort to do any research into the how or why.

Mr.BlingBling's picture

When will China next be closed for a week?

Kabissa's picture

Soon next year this time around, when we'll then be able to buy gold with a 3% discount from its $1.800/ounce Oct/2017 price !

StychoKiller's picture

Chinese New Year (in February).

roddy6667's picture

Early February, during Chinese New Year.

dow jones 20000's picture

Got another $1000 in gold and silver when I got the news. Don't mind buying the dip and having something denominated in USD for the time being to hedge against my home currency. Gold for medium term unit of account and silver for long term (currency collapse) unit of trade/barter.

Mtnrunnr's picture

Yay for paper gold

Fisherman Blue's picture

I bought more gold stocks Thursday and Friday. I like thoses charts.

joego1's picture

Me too, can't wait for the day that you can't get phyz after a paper tiger knock down like last week and the MSM babbles away about how this is all normal.

Bay of Pigs's picture

So, it appears we will see a good $70 to the upside this week for gold, and silver rising a couple bucks.

Stack on brothers and sisters...

38BWD22's picture



Could be, Brother Bay.  I too have seen comments (elsewhere) wondering how the Shanghai - London/NYC gold price differences will play out.

In a few hours we will know more.


Rock On Roger's picture

Maybe I should read all the comments before I link something that's been linked twice before. I go newest first if that's any excuse.


Stack On

Clara Tardis's picture

Harvey Organ said Saturday:

"We will see a rise in the  gold and silver price starting Monday as China will be back from their one week holiday, and they will have a feast on the low prices…"

we'll see....soon


The Shanghai fix is at 10:15 pm est and 2:15 am est

The fix for London is at 5:30  am est (first fix) and 10 am est (second fix)

Thus Shanghai’s second fix corresponds to 195 minutes before London’s first fix.


link to article:

Consuelo's picture



 Poor guy really jumped an angry T-rex though a couple years back when he steadfastly predicted, that by a January the system would collapse and gold would go no bid. He wasn't heard of for months after that...



Bay of Pigs's picture

Harvey Organ may be a nice guy and well intentioned but his overall analysis isnt good and his wildly bullish predicitions have been absolutely terrible.

My advice is to stick to people like Andy Hoffman for PM commentary. Sane, rational and logical.

stacking12321's picture

Ranting Andy is too angry to be rational.
I respect his analysis, but listening to him is a downer.
When I think rational, I think rick rule.

Fester's picture

Silver doctors sucks big time.

CoolHandLuke's picture

Given past experiences, I've been keeping plenty of dry powder for such instances. The amount of manipulation is sickening BUT are also an opportunity to stregnten positions. It takes guts, butressed by knowledge, to commit to such. Given many years of studying the market and the pickle that the central bankers have gotten themselves into, is the only reason I'd the courage to double down and buy during this dip. Normally, I wouldn't...but that facts are that there aren't any escape routes left for the paper gold parasites.

I find the immediate bounce back up from Friday's 2 Billion paper gold dump intending to scare investors out of gold very promising.  It was  like  the fat kid trying to push the ball under water at the pool, only to be attacked by the skinnery more athlectic kids...and the ball resurfacing. The fat globalists in the pool wearing shirts to hide thier fat/excessiveness are losing.

It won't be long now. The ball will surface/breach the water to it's rightful position.


Fuku Ben's picture

They can do all they want to manipulate it but it won't hide the facts. The 88% probability will undoubtedly be higher this month. Why gold isn't included as an asset in a global currency yet I have no idea. Unless someone's unwilling to unwind and release the current backing assets of the global fiat frauds. We don't need a global fix. We do need a global market price that isn't a manipulated fraud.

Latitude25's picture

This is an opportunity that not even a paper trader could pass up.  Gold bitchez.  APMEX had AGEs at $1300 on Friday

38BWD22's picture



In Naples I got two AGE's at $1245 each (Fifth Ave. downtown).  Got an invoice, no ID.  :)

Naples?  Fleeing the hurricane!  We don't stick around if a Cat 4 may be heading our way.


Latitude25's picture

Awesome.  Which store was that on 5th Ave?  Next time you're in Naples let's have a beer.

Consuelo's picture



  And of course China wasn't buying anything last week- what with all the low prices & stuff - nah...   They were away on holiday...

gatorengineer's picture

boy, sure glad the price of paper gold cant be manipulated......  Mr. and Mrs chen who make a $500 a month can sure move that opex price.....

Does the person who writes this crap actually believe it?

css1971's picture

Hmm... Might dabble. Might dabble.

joego1's picture

I buy it to vote against the banksters.

Global Douche's picture

So do I, but I take a slightly different spin on it. It's essentially a SHORT of those banksters. I told a guy visiting an Amarillo pawn shop while holding a 100 Oz Johnson-Matthey I just bought (one of their more rare Canadian minted ones) "This is economic kryptonite against these criminal bankers! It will take some time to be proven correct, so take advantage of these GIFTS you're given by them."

I may not have to sell it. Having it for trade for the right stuff may be all that's needed.


mary mary's picture

Mr. Slavo,

Excellent.  Thank you very much.

Sir John Bagot Glubb's picture

And here I thought it was Putin's fault gold and silver got clobbered.............

NobodyNowhere's picture

Gold has been selling off since late Aug (except one or two technical rebound days).  Trump's recent rising poll numbers could be a factor (his policies are USD-positive).  He also critisized Fed's low rates policy.  Last week's steep fall is only due to build up of short-term oversupply which breached months-long support on Oct 4, triggering stop-loss orders.  Of course, the manipulators always exploit any illiquid periods.

Mat Cauthon's picture

This is true about China being in holiday, but there might be another reason for the three separate dumps between Oct. 4 - 6.

China was seeking to buy Deutsche Bank's gold derivatives book, and the US and London forced DB to start dumping... even at losses to stop this sale at all costs.

GotGalt's picture

That is an interesting theory, but it begs the question how DB is 'dumping' their derivative positions without someone else being on the other side of that trade.  Why couldn't China just buy it up that way should this really be the scenario?

northern vigor's picture

I am just a poor dumb farmer but I have made over $250,000 on these dips since 2005. I made it too... I traded, and only considered it profit when I cashed out and paid tax on it. Some years were great, some not...but at least I didn't have to clean manure out of pens.If you hit it wrong, you just wait.  I knew it was going to up, and I knew it was going to go's like a licence to print money.