GOLD 0.51% $1,391.7 gold futures

more thoughts on gold and silver sold out

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    The James Joyce Table
    Midas du Metropole
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    October 30 - $736.60 down $16.20 - Silver $9.78 down 5 cents

    Sold Out Silver Holds Its Own/The Growing AIG Scandal

    "Bank failures are caused by depositors who don't deposit enough money to cover losses due to mismanagement" … Dan Quayle (American 44th US Vice President under George Bush (1989-93).

    GO GATA!

    It is not a whole lot of fun to report talk of egregious gold market manipulation day after day, but what else is there to highlight except for that … the same drill over and over … the same pattern over and over.

    Gold rallied to the $775 area. London cartel traders reported for work about 3 AM New York time and readied their ordered plunge for the gold price … going into full attack at the AM Fix of $772.25. This was the first wave of their assault. Demand for physical gold remains very firm, so the PM Fix was set at $755.25. Once concluded, they resumed their bombing and gold was mauled the rest of the day on Comex.

    Courtesy of Rob Kirby

    The outside market factors weren’t of any help and the made The Gold Cartel’s job easier…

    *Crude oil fell $1.54 per barrel to $65.96.

    *Copper dropped 20 cents to $1.89 per pound.

    *The CRB lost 7.82 to 266.52.

    However, while the dollar was weak early, then stronger, it fell later in the day with the euro little changed and the pound higher, … making the raid by the cabal that much more annoying. The apologists for the cabal couldn’t even use panic hedge fund general liquidity liquidation as an excuse for the gold bombing, as the US stock market was higher all session long.

    The dollar was last down .08 to 84.52.

    A modest shining beacon of the day for us was silver, which sold off from its highs, but held its own, despite the gold deluge. It continues to trade as if it’s sold out in a big picture sense. A close above $10 should effect technical buying and send the price much higher.

    December silver…

    The gold open interest continues to disappear. It dropped another 10,491 to 303,218. Speculators are fleeing the Comex in droves. The silver open interest, already at abysmal levels, went down 933 contracts to 94,783.

    Two tidbits for you.

    *The first one is from a highly respected bullion dealer: "I am getting reports from many sources that Fed Melt bars are turning up in many countries!!!!! We have no idea of the general source but is seems very strange."

    *The second is a veteran, highly regarded gold pro spoke to his connection at the Comex who told him there RUMBLINGS about investors taking delivery of gold and silver at the Comex … talk which is unusual.

    On that regard, from the MidEast…

    Good Afternoon Bill (from Qatar)

    Despite the counter intuitive phrenological aberration that is playing out this afternoon in respect of the gold price etc. I cannot believe for one minute that this afternoon's USA GDP release (even on the unwise assumption that it has not been doctored but fairly reflects the true state of awfulness in the real USA economy) will deflect the legions of globalized investors flocking to real physical gold. Therefore the disconnection between paper gold/silver and the Comex prices will become even more accentuated. The internet is becoming quite full of conjecture about a possible/probable default on Comex in respect of the ability of the exchange to honour calls for delivery in respect of the Dec 08 contracts. Surely the only way to deflect the possibility of such an occurrence will be for the Comex prices to begin to reflect the current premiums for the PMs that are surfacing in every possible world wide forum for retail physical gold/silver . That may well happen. First November 4th. must come and pass. I have been dreading the barrage of grotesque manipulation that will lead up to next Tuesday to the extent that my expectations were in fact worse (don't tempt fate Nicholas, there are still two more full trading days to go after the conclusion of today's farce).In respect of the gold market, can there be any possible more significant event than the imminent, ignominious demise of the structures of the current regime that have so tormented GATA for eight long years.

    Will there ever be an inquisition into the events of the last eight years? Keep your files ready, Bill,-there will be a legion of rogues whining the stock epithet "of that, I have no recollection".

    India was closed today, all the way around, which made the cabal's price suppression that much easier.
    The LIBOR rate is 3.193%.

    The yield on the 10 yr T note rose to 3.93%.


    Markets rarely do the same things two days in a row, especially when traders are watching for them to do so. Instead of falling apart late in the day, the DOW shot up, closing 189 higher at 9180. The DOG went up 41 to 1698.
    Job layoffs at Motorola and American Express were announced, among others. These layoffs will accelerate in the months ahead, as will the deterioration in the US economy. Today's gold and stock market action smelled of pre-election engineering.

    Of special note was the horrendous performance of Comrade Paulson's former firm, Goldman Sachs. Its share price FELL $6.55 to $91.11, even as the DOW surged. I agree with Andy. It feels like a bomb is going to go off, maybe right after the election.

    When you combine the share action of GS, along with the shenanigans going on at AIG (see below), it suggests to me that a derivatives neutron bomb is going to go off in the near future, one which will have a major negative impact on the financial markets and our economy. This could be THE one which is TOO BIG TO BAIL.

    Chuck checked in…

    I had thought and hoped that the last shot down might give us a respite. The action in the oil stocks seemed like the shift. But after today, I wonder if you might not have a dramatic plunge quickly.

    Four technical reasons that this still might come. 1) The panic to buy not to sell stocks. The 2 largest moves are still on up days. That does not sound like fear and capitulation. 2) Still not a dramatic Friday and Monday combo such as happened when we have had bottoms in the past few years. 3) Today had a very bearish put-call ratio. The bulls have jumped on the train before it leaves the station. Plus, it still seems like there are a lot of skeletons in the bulls closet. The article on state shortfalls and on Goldman.

    The real clue should be gold. If we are fully out of control we should see a record daily move in the metals here. Certainly, the shares have preformed well the past couple of days. I would think that we will have some eventful days over the next week or so. Chuck

    U.S. economic news:

    08:30 Jobless claims for w/e 25-Oct reported 479K vs. consensus 475K
    Prior week revised to 479K from 478K. Continuing claims for w/e 18-Oct reported 3.715M vs. revised 3.727M w/w.
    * * * * *

    08:30 Q3 GDSP reported (0.3%) vs. consensus (0.5%); Personal Consumption (3.1%) vs. consensus (2.4%)
    Price Index reported 4.2% vs. consensus 4.0%; Core PCE q/q 2.9% vs. consensus 2.5%.
    * * * * *

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