Will Physical Gold/Silver Demand Prevent A Bigger Sell-Off?

The precious metals market has been under attack for the last two weeks by the Comex banks who have once again built-up an extreme net short position in their paper gold and silver positions.  In fact the open interest in paper silver recently set a new record high, exceeding the previous high set in 2011, when the price of gold was approaching $50.  That it took a record amount of paper silver creation to keep the price of silver below $20  a sense of desperation by the banking cartel in its effort to keep gold and silver “irrelevant” as an investment.

But the price action of the metals is behaving somewhat differently from past cycles when the banks decide to flex their muscles and trample on the precious metals market by bombarding the Comex with thousands of gold and silver contracts in order to disgorge the long positions held by hedge funds and create intermittent “waterfall” sell-offs.

Eric Dubin (The News Doctors) and the “Doc” (Silver Doctors) invited me back on to their “Metals and Markets” weekly show sponsored by SD Bullion to chat about the precious metals, junior mining stocks and geopolitical current events:

If you would like more information about Investment Research Dynamics’ Mining Stock Journal or Short Seller’s Journal, click on either banner below. The latest MSJ features a relatively unknown junior mining stock that could eventually be a 5-10 bagger from its current price (currently below 30 cents) and the new issue of SSJ (published this evening) explains why the housing market is about to follow the retail and auto sales into a recessionary spiral:

9 thoughts on “Will Physical Gold/Silver Demand Prevent A Bigger Sell-Off?

  1. In addition to the repeated attacks on gold by the banking cartel, I see bitcoin as another threat to gold prices. It has had enough promotion and coverage to make it something everyone has heard about. Some people are diehard fans, and some reluctantly agree that while it is not something they understand, its rise and importance cannot be ignored. The irony is, the bitcoin logo looks gold colored and shiny, subconsciously making people believe it to be real and of great value. Some people say that while they think it is just garbage, the world is run by technocrats and thus, it will maintain legitimacy and demand as a result – just look at the stupendous success of AMZN and TSLA. I would love to hear what others think about this – i.e bitcoin as a threat to gold prices.

    1. The only threat to the gold price is the corrupt paper gold created by western Central Banks and endorsed by their Governments. Cyber-currencies are not suitable replacements for gold and silver because they still are embedded with counter-party risk. I don’t give a fuck what that sleazebag Doug Casey says

      1. Thanks for weighing in, Dave. That’s an excellent point – bitcoin has counter party risk and not too long ago, some bitcoin exchanges got “robbed”.

  2. It is kind of hard to hold Bitcoin when you can’t actually put something physical in your hand. Geez, what do that remind me off—–oh yeah, paper silver and gold…

  3. The manipulation scheme will fail just as the gold pool failed in the 60s, and when it does your dollars won’t be able to buy much silver or gold. You think juniors are risky? Imagine buying them 10x higher in price, that’s risky. I believe China, India, and Russia are sucking the wealth out of the west. Once they are done buying our wealth with fake money then we will be left with nothing. Now is the time to accumulate. Get your gold, silver, and cheap mining stocks while you can. I’m currently trying to get more money into the juniors. I believe they are a great value relative to the price of gold. I also like silver a lot. The juniors have huge potential and because of their low acquisition price, their downside is somewhat limited. I like the juniors at this price and plan to hold while the bull rips off the weak. The thing to remember is that we are accumulating not just for today, but for future generations. At some point the insanity will end, and future generations will be amazed that you could once take government script and buy real wealth.

    1. Just posted on the front of IRD. Not surprising ZH overlooked key features of the gold market manipulation. That’s de rigeur for ZH

      1. Dave, that the cartel couldn’t pull that rabbit act out of a hat prior to the London PM fix is significant. They didn’t want to have an immediate boost to physical buyers while leaving the following 24 hours before the next PM Fix to run their dumb games still further in hopes of having sentiment flushed down the toilet enough by the next PM Fix that there isn’t a huge leap in physical buyers. The Shanghai Exchange off-take in March was HUGE. Hong Kong, very large. Smh…. This level of buying is similar to what happened after the 2013 April, 2013 “drive-by” shooting where gold was taken down $200+ in but a few trading days. We’re getting that sort of buying stimulus BEFORE a big down draft discount in gold! Just goes to show how late in the game we truly are.

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