Gold And Silver Are Potentially Explosive

Gold and silver are acting differently right now. Usually when the open interest in the paper gold (Comex) net short of the bullion banks becomes overweighted, it’s a signal that they are getting ready attack the price of gold by triggering massive stop-loss selling by the technically-driven hedge funds.

And through last Tuesday, per the latest COT report, the Comex banks had piled heavily into the short side, feeding paper shorted to the hedge funds. And true to form, the market was attacked aggressively this past week starting Tuesday with the expiration of Comex options. Interestingly, the banks had to wait until after the Comex floor trading closed on Tuesday in order to take advantage of a thinly-traded electronic “access” market that is open for about another 90 minutes after the Comex closes in order to push down the price of gold enough to trigger automated hedge fund algo stop-loss selling.

The attacks on the price of gold persisted through Thursday, resulting in what appears to be a record weekly percentage drop in Comex gold open interest. But this attack resulted in a shallow price decline.  And if you trace the build-up in the bullion bank short position over the past couple of weeks, it appears that the banks were willing to sustain losses on those shorted contracts in order to cover them.  Bill “Midas” Murphy at Lemetropole Cafe first pointed this pattern out to me and I confirmed his theory by tracing out the rise in the commercial short interest with the movement in the price of gold.

At the same time, there has been a massive amount of silver – as reported – moving in and out of the “registered” accounts at the Comex silver vaults.  The silver in the “registered” account is the silver designated to be available for delivery.   On the last two days of this past week, for instance, nearly 30% of the silver held in the registered account was moved into the “eligible” account. The “eligible” account is the account in which silver is allegedly “safekept” for the owner of that silver.

Finally, although the mainstream financial media and the fear porn oriented alternative media has been making a lot of noise about the sudden fall-off in the sales of minted bullion coins, I heard a report from a large bullion dealer who said that, while retail coin sales are slow, his company has been receiving very large orders from very connected quite off the radar types purchasing large quantities of physical silver. The recurring theme from these buyers is a desire to move money out of electronic fiat currency bank credits and into privately safe-kept precious metals in bullion form.

Eric Dubin (The News Doctors) and “Doc” invited me to join them on their weekly Metals and Markets podcast to discuss the latest developments which point to possibility of a big surprise move to the upside in gold and silver that is driven by the physical market:

One thought on “Gold And Silver Are Potentially Explosive

  1. Andy Maguire confirmed this, there is no more physical metal left to supply from central bank vaults esp. Bank of England.

    They’ve overplayed their hand & are scared shitless. They can’t defeat the laws of physics. They don’t have alchemy. Where is the metal going to come from for their over-commitments?

    Will they start a war as the “Get out of jail” card? Nuclear missiles?

    Meanwhile, Russian central bank opened new office in Beijing “to issue home currency-denominated bonds in each other’s markets”, “yuan clearing bank in Moscow”, “yuan bonds in the Russian market”, “solving technical issues around China’s gold imports from Russia”, “increase in China-Russia trade deals”, “dethroning US Dollar”.

    It’s all happening too fast now. Xi will meet Trump in Florida on April 6-7 for the highest level USA-China talks. What the hell will they talk about, what can Trump possibly offer when China got all the gold & US has nothing left? Hand over keys for US Treasury & Exchange Stabilization Fund to China? Make nuclear threats?

    Trump is acting like an unhinged lunatic madman, with debt ceiling frozen, he’s coming to meet China from a position of weakness. Yes, he got small token victories on home front like defeating Planned Parenthood etc. But those are social issues token brownie points that don’t amount to crap, while faced with massive unprecedented crisis. Instead of thinking of a plan to figure out June 1 debt ceiling deadline/budget proposal, Trump has set out to make enemies he doesn’t need to make. Sending out angry tweets attacking US Constitution adhering Freedom Caucus, today morning asking his social media front-man to tweet that Justin Amash must be defeated out of his Michigan congressman post.


    What kind of a sadistic & macabre joke is this? Do all the urban neo-liberal ZOMBIES in New York-Washington-Chicago-Los Angeles-Silicon Valley even realize what’s headed their way?

    God help us now.

    Even if you were an agnostic or an atheist, GOD HELP US NOW! Because you can’t defeat the laws of physics, especially thermodynamics.

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