Tuesday, April 16, 2013

Never Look A Gift Horse In The Mouth...Buy Gold And Silver Now--While Supplies Last!


"...for people who have put some cash aside you are looking at opportunities being served to you on a golden platter.”
 -Pierre Lassonde

 "'Friday was a 4.88 standard deviation move in the price of gold. For simplicity's sake let's call it a five standard deviation move. Statistically we get a five standard deviation move approximately once every 4,776 years. So we should not expect another move like this out of the price of gold until May 17, 6789. ... Currently the two-day price change in GLD is 16.65, which can be converted to just over eight standard deviations. I wanted to share what this comes to, but the table I use only goes up to seven standard deviations. Let's just say the sun is expected to burn out first.'"
  - Russell Rhoads, CFA of the CBOE Option Institute

The Price Smash – Who, What, How and Why?

Theodore Butler
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April 16, 2013 - 1:19pm

There is no doubt that we are at a critical juncture in gold and silver and the first order of business is to drill down to how and why prices plunged so much Friday and Monday. Certainly, more commentary (mostly on gold) is being written about the precious metals currently in regards to the price weakness than I can remember. Unfortunately, much of the analyses and commentary is wide of the mark, in my opinion. But the great thing is that everyone interested in what just took place with gold and silver prices can decide for themselves from the multitude of opinions offered as to what makes the most sense.
For me, explaining what took place is easy, since the price plunge occurred in the confines of how I analyze gold and silver. First, what exactly did happen? Basically, a neutron price bomb was detonated in certain NYMEX/COMEX markets that selectively targeted gold, silver, copper, platinum, palladium and crude oil prices. On just about every other market, like stocks, bonds, currencies, grains, meats, soft commodities yesterday was non-eventful pricewise. The importance of this distinction that only selected markets experienced unusual price weakness is that it eliminates many general knee-jerk explanations about prices being impacted by broad macroeconomic factors. How could broad economic factors influence certain commodities and not the stock or currency markets? Looking deeper, the commodities experiencing price weakness all have different supply/demand fundamentals relative to one another, so as to eliminate the possibility that all those unique fundamentals changed yesterday in synch. Commodity fundamentals change glacially; it’s impossible for the supply/demand equation of many various commodities to change overnight.
So, if it wasn’t abrupt change in the fundamental story in the various separate markets that were hit to the downside yesterday, then what the heck accounted for the steep declines in price? Stated differently, what was the common denominator present in the markets that plunged? The most visible common denominator was that the various big price declines occurred on the NYMEX/COMEX markets owned and run by the CME Group. But the most important common denominator was the nature of the buyers and sellers across all the markets that got smashed. Without exception, in any market that declined significantly, the big net buyers were the traders classified as commercials and the big net sellers were those traders classified as non-commercials, largely technical trading funds. Not only was this true yesterday, it has been true on every single big price decline throughout history, according to US Government data (COT reports).
This may seem elemental, but I ask you to contemplate this anew. In the highly-charged emotional state of significant price declines, it is tempting to accept fabricated stories as to what may be the cause of the declines. Because of that, it is more important than ever to rely on the known facts and only that which can be substantiated. COT data have and will show without question that the commercials are always the big buyers and the technical funds are always the big sellers and there was no exception this time. Once you know who the big buyers and sellers are (which is the beauty of the COT), only then can you proceed to the how and why of the big price declines.
Armed with the certain knowledge that in every market that declined substantially the big buyers were the commercials with the big sellers as the technical funds, how and why fall into place. Why is real easy – in order to make money. The way one makes money is by buying low and selling high, although not necessarily in that order. For instance, JPMorgan the big concentrated short seller and manipulator of silver and other markets, has made a boatload of money, many hundreds of millions of dollars, by short selling at higher prices than the prices they have been buying back at. I don’t begrudge JPMorgan for making large trading profits if they were doing so legally, but that is not the case. The trading profits being made by JPMorgan and the other commercials are as far from legal as is possible. That’s the only plausible conclusion a reasonable person could reach when answering the last open question – how do they do it?
READ MORE
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HOW JP MORGAN & THEIR CO-CONSPIRATORS ENGINEERED THE GOLD CRASH & WHY

7 comments
Posted on 14th April 2013 by Administrator in Economy |Politics |Social Issues
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Things are not as they appear. Those in control are panicked. They are flailing about attempting to give the appearance of normalcy. Anyone with a functioning brain can see the wheels are coming off this bus and we’re headed for a fatal crash. JP Morgan and the rest of the Wall Street cabal are growing desperate, as their physical supply of gold and silver has rapidly dissipated. They needed to cover-up their impending financial implosion with an engineered crash in metals prices. Bill Downey tells the story you won’t hear on CNBC or any other corporate controlled MSM outlet. Understanding how and why this is being done, is crucial to seeing where we go from here. The bus ride is about to get really interesting. 
12 Apr 2013 2:12 PM | Bill Downey (Administrator)
How the Gold Market was Crashed
There’s been a recent huge draw down of physical gold at the New York COMEX and at the JP Morgan Chase depository. Look at the physical market draw down on the charts below. It has taken a drastic plunge.
HOUSTON — we have a problem.
Physical inventory drawdown at JPM
Charts by Nick Laird of www.sharelynx.com
Physical Drawdown at COMEX
Charts by Nick Laird of www.sharelynx.com
You can imagine the dilemma this is causing for the market interests behind these inventories. If the inventory runs out and one cannot meet deliveries then it has to be bought on the open market. Not only that but it could cause a run up in prices that would hurt the shorts in the market.
So what to do?
There is only one way out of this for the market controllers would be to devise a plan that would collapse the market and trip up all the stops at the correction lows in gold of 1525 thereby setting off the stop loss orders under this important market low. And what if the plan included a way to stop the physical market from purchasing gold under 1525 while that correction was underway?
And how can that happen?
They have to hatch out a plan and carefully orchestrate it in a series of events that takes the gold market by surprise and force the players out of their positions.
Read on for today’s lesson in market manipulation and allow me to relay my speculation about what transpired last week.
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ALL US WHOLESALERS SOLD OUT OF ALL PHYSICAL SILVER!!!

APRIL 15, 2013 BY  
*UPDATE: ALL US WHOLESALE SUPPLIERS ARE NOW SOLD OUT OF EVERY OUNCE OF PHYSICAL SILVER & HAVE SUSPENDED ALL SALES!  SDBullion.com has closed due to lack of ANY AVAILABLE SILVER!
Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!!
AND……IT’S GONE!!!!!
In the face of an EPIC TSUNAMI of gold and silver sales today as the cartel hammered the price of silver down over 12%, and off $6 from Friday’s open, we have just been informed at SDBullion upon trying to place a large inventory order that BOTH AMARK & CNT ARE SOLD OUT OF EVERY LAST OUNCE OF PHYSICAL SILVER!!!
Apparently the fact that one of the largest wholesale suppliers in the US is SOLD OUT, while simultaneously the 2nd largest silver mine in the US is offline perhaps permanently is of absolutely no consequence to the paper dumping cartel bullion banks.
Bullion bank silver shorts are most likely covering in mass RIGHT NOW, and we’ll soon have the data to make the case.  Many have speculated that the bullion banks are going to switch to a net long position. There couldn’t be a better time to do just that given that at $22/oz, pretty much all existing shorts taken out before this week will be in the money.
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Bullion Shortages Develop As Retail Demand Skyrockets
Amazingly, on Saturday 41-year market veteran Bill Haynes warned King World News that we were already on the verge of seeing major shortages of available retail bullion products.  Well, there are already massive shortages of bullion products.  Haynes also updates KWN readers globally on the stunning margin which gold and silver buyers are outpacing sellers.  Below is what Haynes had to say in this extraordinary interview.
Haynes:  “Eric, on Monday there was such chaos in the markets that some of the larger wholesale dealers had to shut down at various times because of the massive demand on the buy side.  These wholesalers simply had to quit taking orders not only because of the demand, but also because of the enormous price volatility.... 
Gold and silver buyers are still outpacing sellers by a stunning 50 to 1.  There were premium increases on everything bullion related.  The wholesalers are now telling us four to six weeks on silver maple leafs, and wholesalers quit taking orders on one ounce silver rounds.  Wholesalers also kicked the premium higher on 100 ounce silver bars as well.
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Price and Availability – Revisited

Author : Bill Holter
Published: April 16th, 2013

It looks like the CME has “changed” their open interest numbers since posted this morning.  I saw the numbers with my own eyes this morning which showed an open interest gain of over 10,000 contracts for gold and over 3,500 for silver.  If the “new numbers” are correct, there is still more open interest in gold than there was Thursday’s close and only a drop of 2,000 in silver.  Still not anywhere near the amounts one would think that was necessary to create the price drops we’ve seen.  I know that these numbers were displayed earlier because I have since read commentary similar to mine that had the same figures… I do believe my lying eyes and am not senile yet.  I know what I saw and even checked the date to make sure that they were yesterday’s numbers.  Who knows, maybe the real numbers were too unbelievable and even a shlep like me saw what happened so they changed them… crazy world we live in!
When there are more buyers than sellers… the “price” goes up, when there are more sellers than buyers… the “price” goes down… right?  This is the way it works?  Or is supposed to?  As you know, we live in a world where nearly everything real has 2 markets, the paper market and the physical market.  Originally the paper markets were created so that farmers could “hedge” their crop and outright buyers or speculators could have access to the commodity.  This has morphed into a situation where the paper markets have outsized the real physical markets and become more important to “price.”  It is a “Wag the Dog” scenario where in gold for example there are at least 100 “paper” ounces for every real ounce (thank you Jeffery Christian for this admission) and the paper markets have “made” the price for years now.  We knew all of this before and what has happened since last Wednesday only supports this view and confirms it.
First let’s see what has happened in the paper markets.  The open interest in gold went up during Friday’s trading by some 13,000 contracts while silver dropped about 1,000 contracts, yesterday gold open interest increased another 10,000 contracts and silver increased by 3,500.  So, while gold and silver’s price was monkey hammered, the amount of contracts open actually increased?  How can this be?  Weren’t people “selling”, the price went down… more sellers than buyers… right?   Well yes, what apparently happened was that there WERE more sellers, the increase in open interest was initiated by “short sellers”.  Were the last 2 trading days an event where “longs” finally panicked out and sold, open interest would have gone down, it did not and in gold’s case the open interest actually rose substantially.  The obvious fingerprints of what GATA has been saying for 15 years now are all over this move, it was a fake and “made” to happen!
Now let’s look at the physical side of the market.  On Friday, Miles Franklin did 116 orders, there was only 1 buyback.  Yesterday we did 90 orders with only 3 being sells.  So what is this “buy to sell” ratio, at least 30 to 1 buys over sells?  Does this sound like a panicked market where everyone wants out of the water?  We also can look at what other dealers are doing by going online to look at pricing and availability.  Junk silver for all intents and purposes is gone, the only thing left are the scraps that your local dealer has to sell as “bags” are not available and were last trading at $5 (20%) over spot on Friday morning.  Other silver product has become spotty as to availability and premiums rose dramatically over the last week.  Low price in the physical market IS doing what it is supposed to do; it is bringing out demand and drying up supply.  But, if real demand has been exploding and supply is tight, then how did the price get here in the first place?  It is obvious that the futures market “wagged this dog” BIG time!
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Gold Market Update

Clive Maund
originally published April 14th, 2013 
A number of subscribers have written in to me asking how I knew to load up with Puts on Thursday ahead of Friday’s massive smash in the gold market. The answer to that is that when you have been watching markets and price movements for as long as I have and understand how Big Money thinks and operates, you develop a “sixth sense” for the kind of stunts they can pull.
We have pointed out repeatedly in the recent past the immense importance of the strong and clearly defined support levels for gold and silver at about $1500 - $1530 and $26 respectively, which have generated several significant reversals over the past 18 months or so. We also made clear that if we know how important these support levels are (were) then for sure Big Money does, and that they would plot to crash these support levels and trigger waves of stops if it was in their interests to do so.
Now that they have done so, let’s consider why – what is their motive? There has been a big drawdown in physical gold warehouse stocks at the Comex this year, and a really dramatic drawdown at the J P Morgan Chase depository. If, as a result of this, stocks are too low to meet deliveries, gold would have to be bought in the open market, driving prices sharply higher, and they for sure don’t want that now that their stocks are so low. So the game is to smash the gold price so that they can replenish their stocks on the cheap – and they are not short of friends in high places who can assist them in this endeavor.
The first “smoke signal” came over a week ago with some members of the Fed purported making rumbling noises about reining in QE, as reported in the latest Minutes. That served to get the gold market nervous. Then there were widely circulated reports last week about the “tiny island”, Cyprus, having to sell 400 million euros worth of gold on to the market – not bad for a “tiny island” - which, although unfounded, depressed and weakened gold further. By the way Cyprus is not tiny, it is BIG, and I invite any more ignorant or sloppy commentators referring to Cyprus as a “tiny island” to come with me to the island, where I will gladly drop you off at a remote location with a decent pair of walking boots, and then relax in the capital and see how long it takes you to join me on foot, no buses or hitchhiking permitted.
Finally, just by coincidence you understand, after waves of selling in New York during the day on Friday had softened gold up nicely and brought it down close to its critical support, the London physical market locked up on Friday afternoon. Some investors entertain the romantic notion that this physical market is like an old fashioned cattle auction, with a guy in a tweed jacket and a hat spouting 200 words a minute of auctioneers jargon. It is not. It is computerized and the computers froze on Friday shutting out would be sellers who then went into blind panic, entering the futures market to hedge or short. This tipped the market into a vertical plunge that completed the job of crashing the key support level.
So what now? We can expect a wave a margin calls to go out over the weekend that could crash the market further next week, possibly causing the vertical plunge that began on Friday to continue, perhaps for several days. The ball may be kicked further downhill by Big Money’s media pals having a field day over the weekend proclaiming the death of the gold bullmarket. Once all the stops in the $1500 area and beneath have been triggered, it will take a lot of pressure off Big Money and the Comex to meet deliveries – and it will also enable them to replenish inventories at knockdown prices. This is why we were in favor of Puts rather than being stopped out, and thus becoming victims of the trap that they had set.
So, is the gold bullmarket over? Only if the Fed and other Central Banks choke off QE, and there is no sign of that happening, nor is it logical for them to do so as it would trigger a devastating deflationary implosion. The bull case for gold remains intact, as a friend in California put it this weekend – “Did gold fall off the cliff because the dollar index ripped higher? NO! Did Uncle Ben Bernanke say they were stopping the $85 billion + QE immediately? NO! Has physical gold become more abundant than any time in the recent past? NO! Are the world's central banks stopping their counterfeiting operations by devaluing their currency by stopping the printing presses? NO! It's quite the opposite, Japan, U.S., and the EU are increasing the money supply.
Things to look at that are happening. Are Russia, China, and India amongst other nations still buying huge amounts of gold? YES! Is QE going to continue? YES! They cannot stop it now, because they'll have a HUGE deflationary episodes which those in power do not want. It would be what is needed to reset the scales of the financial system and debts around the globe, but would mean huge financial losses to the powers that be. Silver isn't becoming more abundant, it is rarer than gold, so why is it around $26 bucks per ounce?
As we look at the charts on the precious metals, just remember, not all is what it seems. In chess you disguise your true intentions by moving the pieces around the board, setting them up for the attack; better deception skills you have, the more likely you'll win the game. Think 2-3 moves ahead of your opponent, and you'll always come out a winner.”

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Maguire - LBMA Default Triggered Gold & Silver Takedown

With massive selling once again in the gold and silver markets, today whistleblower Andrew Maguire told King World News the reason for the recent takedown in gold and silver was because of an imminent LBMA default.  Here is what Maguire had to say in part II of this remarkable and exclusive interview. 

Maguire:  “Gold and silver only have this type of selling when there are extreme shortages of the physical metal.  I am totally aware that before this takedown occurred there was an imminent LBMA default.

We had already seen COMEX inventories plunging.  In 90 days COMEX inventories saw an incredible decline.  So immediately available physical gold was disappearing.  People around the world don’t understand what has been happening since Cyprus.... 

“Entities went to the LBMA and said, ‘We don’t trust anybody anymore.  We want our physical metal.’  They were told they would be cash settled instead by a bullion bank.  The Western governments have been trying to plug holes, and the reason for it has to do with the default that was taking place at the LBMA.

This is why this smash has been orchestrated because of the run that has been taking place on physical metal.  So Western governments had to do this because of an imminent run on the unallocated LBMA system.  The LBMA bullion banks had become so mismatched at one point on their trading positions vs real world demand that they had to orchestrate this smash. 

This orchestrated smash in gold and silver was nothing short of a bailout for the bullion banks.  So there is a run on physical gold that is taking place and the Ponzi scheme the West is running is being threatened because of it.”

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This Gold Slam is a Massive Wealth Transfer from Our Pockets to the Banks

It likely signals a big downdraft in the stock market, too
by Chris Martenson
Monday, April 15, 2013, 3:55 PM

A while back, I noted to Adam that the gold slams that were first detected back in January were among the weakest I'd ever seen.  Back then I was seeing the usual pattern of late-night, thin-market futures dumping, which I had seen before in 2008 and 2011, two other periods when precious metals were slammed hard. 
The process is simple enough to understand; if you want to move the price down for any asset, your best results will happen in a thin market when there's not a lot of participation so that whatever volume you supply has a chance of wiping out whatever bids are sitting on the books.  It is in those dark hours that the market-makers just dump, preferably as fast as possible.
This is exactly what I saw repeatedly leading up to Friday's epic dump-fest.  The mainstream media (MSM), for its part, fully supports these practices by failing to even note them.  The CFTC has never once commented on the practice, and we all know that central banks support a well-contained precious metals (PM) price because they are actively trying to build confidence in their fiat money and rising PM prices serve to reduce confidence.
Here's a perfect example of the MSM in action, courtesy of the Financial Times:

Gold tumbles to two-year low

“There is no other way to put gold’s recent sell-off: nasty,” said Joni Teves, precious metals strategist at UBS in London, adding that gold would have to work to “rebuild trust” among investors.
Tom Kendall, precious metals analyst at Credit Suisse said “Once again gold investors are being reminded that the metal is not a very effective hedge against broad-based risk-off moves in the commodity markets.”
There are two things to note in these snippets.  The first is that the main ideas being promoted about gold are that it is no longer to be trusted and that somehow the recent move is a result of "risk off" decisions – meaning, conversely, that there is increased trust in the larger financial markets that 'investors' are rotating towards.  Note that these ideas are exactly the sort of messages that central bankers quite desperately want to have conveyed.
The second observation is even more interesting, namely that the only people quoted work directly for the largest bullion banks in the world.  These are the very same outfits that stood to gain enormously if precious metals dropped in price.  Of course they are thrilled with the recent sell off.  They made billions.
In February, Credit Suisse 'predicted' that the gold market had peaked, SocGen said the end of the gold era was upon us, and recently Goldman Sachs told everyone to short the metal.
While that's somewhat interesting, you should first know that the largest bullion banks had amassed huge short positions in precious metals by January.
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JIM WILLIE: REAL PHYSICAL PRICE OF GOLD SOARS TO $2,000/OZ AS COMEX BURNS!





In this MUST LISTEN interview, the Golden Jackass Jim Willie states that in the wake of the impending LBMA default that Andrew Maguire warned was in progress Monday, physical gold orders in size are being filled at the $2,000/oz price level, while the COMEX futures prices crashes and burns!
Is the long-awaited final disconnect between paper and physical gold and silver occurring before our eyes?  The fact that US wholesalers are SOLD OUT of physical silver as of Monday evening seems to substantiate this fact.
Jim Willie’s full report is below:


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GOT GOLD YOU CAN HOLD?

GOT SILVER YOU CAN SQUEEZE?

GET IT WHILE YOU CAN!!!!!!!!!!!!!!!!!!!!!
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