Monday, January 10, 2011

Gold PRICE Down, Demand Up

Gold and Silver opened up Sunday evening in the Asian markets. These gains were sustained through Asian trade up until the European markets opened at 2AM est. I continue to be amused at the way the Asians, largest holders of Western debt, buy Gold and Silver regularly while the debt ridden nations of the West sell theirs.

But are they really selling their Gold and Silver in the West? No, the banks are selling pieces of paper that they want you to believe are Gold and Silver in the "futures market". And the more Gold and Silver these banks in the West sell that does not exist...except on paper...the greater the demand for real Gold and Silver becomes.

In their banks haste to sell unbacked Gold and Silver to stop the rise in the price of these metals, and scare investors out of their physical Gold and Silver, the banks have actually created a growing demand for the ownership of these Precious Metals. The Asians certainly see the opportunity here.

Harvey Organ in his blog, The Gold and Silver Daily Report, reports on the futility of the CRIMEX banksters efforts to shake Gold and Silver from the hands of investors, and the market bulls decision to stand firm and force the banksters to sell, and sell, and sell mountains of non- existent Gold and Silver:

The total gold comex open interest surprised investors greatly once they were released at 1:30 yesterday afternoon. The total open interest in gold rose by 640 contracts to 583,920 (basis Thursday). The raid was huge and thus no gold leaves fell from the comex tree much to the chagrin of the bankers. The front options delivery month of January saw the open interest decline from 71 contracts to 28 for a drop of 43 contracts. All of the drop was due to Thursday delivery notice of 60 contracts. The next key number is the front delivery month of February. The month of February is a big delivery month and is generally third as to the mostly played months in the gold calendar following December and June. The February open interest declined by a very tiny margin:5939 contracts (335,228 to 329,289). You will see a slow decline in this month until the first day notice. The estimated volume on the gold comex yesterday was a monstrous 252,190 as the bankers threw massive un- backed paper trying to quell gold's demand. Judging from the eventual rise in price of the gold ( as the shorts tried to cover) and the open interest announcement at 1;30, the raid was a massive failure. The confirmed volume on Thursday was also a massive 208,593. Wait until you see what happened in silver.....

The total silver comex open interest rose again for the 3rd consecutive day by 731 contracts to 139,291. (Thursday's reading was 138560 which is basis Wednesday). The reading at 1:30 Friday is basis Thursday night. Can you imagine the shock on all the bankers faces when they discovered Thursday night that their relentless supply of un backed paper has no effect on our longs. On a net summation, instead of losing some silver leaves we gained some as many have caught on to the bankers scheme. The bankers , by their raiding tactics provided silver at lower prices and many were waiting in the wings to take on cheaper silver metal. The front options delivery month of January saw its OI mysteriously climb from 95 to 153 for a gain of 58 contracts. In another surprising statistic, the front delivery month of March saw its OI rise by 267 contracts to 77,747 from 77,480. The front delivery month boys were not scared off. The estimated volume Friday was a very large 89009. The confirmed volume for Thursday turned out to be a healthy 68,429.

Mark J. Lundeen with some excellent commentary in his Gold Bull / Stock Market Bear Overview notes:

Gold has declined less than 4% from its last last all-time high, seen just this Monday.

Silver has fallen only 7.5% from its last 30 year high, also seen on Monday 03 Jan.

So far the action gold and silver saw this week is completely normal for a bull market and in no way deserves the hysterical comments expressed by so many TV “experts” in the gold markets. I’m not saying the closing prices for the week are the lows for the move, they could go much lower. I am saying that based on what we saw Friday 07 Jan, there is no logical basis to shout “crash” on TV unless you are attempting to start a selling stampede in the gold and silver markets. My investment tip for the week is: if after watching television you feel like selling your gold and silver: stop watching TV.

Please take a moment to read Mr. Lundeen's latest commentary on the Gold and Silver markets relative to the equity markets here: LINK . It is quite an eye-opener.

News strangely affecting the Precious Metals to the downside this morning:

Portugal bailout talk hits stocks, euro

China's December exports up amid tensions

Both should be Gold positive. Unfortuantely, because millions of people have left the workforce in the US, and are no longer counted as unemployed, the unemployment rate in the US has fallen to give the impression that the US Dollar, despite the largest pile of debt in the world that it represents, is a financial harbor of safety.

Don't hold your breath! An explosion in the prices of Precious Metals is much closer than the crooks at the CRIMEX or at the LMBA in London would have you believe.

Be right and sit tight!

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