The Attack On Gold/Silver This Morning: Nothing But Shock And Awe

A pure psychological warfare operation on the metals.  I received several emails and phone calls from clients and colleagues who were in a panic.   My response was:  “It’s a mid-August Friday, the rest of the world is at happy hour or in bed.  Most of the big players in this country are at the beach.   India was closed last night for their Independence Day, which put a lot less demand-stress on the physical market.  Something really ugly is developing behind the scenes that is not apparent yet and that’s why they smashed gold during the one of the most quiet trading periods of the year.

For the record, I mean to post this blog before this news hit:  *UKRAINE FORCES ATTACK ARMED CONVOY FROM RUSSIA: LYSENKO

This is what happened at 7:40 a.m. EST, with no news or even triggers:


Shock and awe.  Pure and simple.  There was absolutely no news events that would have triggered the sudden selling of silver in huge quantities.   As I write this, a little over 40,000 September silver contracts have traded since the Globex electronic session opened yesterday at 6:00 p.m. EST.  Starting at 7:00 a.m this morning, over the next two hours over 13,700 contracts were dumped onto the Comex electronically and on the floor. That’s 34% in just two hours of the total volume over 15 hours.   Gold futures were smashed 20 minutes later.  Silver often leads gold down.

Why?  Here’s the financial news that hit the tape when the contract dump started:    Estee Lauder earnings, corrected Estee Lauder earnings, Spanish drought stirs fears of olive shortage,  Israel CPI for July .1% vs. expected .1%.  That’s it.   Wait, NATO calling for de-escalation of Ukraine conflict and Ukraine accusing Russia of moving military vehicles across the Ukraine border.   Are the latter two items reasons to annihilate silver?

The reason the metals were slaughtered temporarily is that U.S. knew well ahead of time that Ukraine would start bombing the Russian humanitarian convoy.   How do we know?  The Ukrainian military doesn’t even fart without U.S. permission.   They bombed the metals because they wanted the spike up that would occur when the attack news hit the tape to start from a lower level.  And they wanted to scare potential buyers away from the market.   The evidence of that?   The clients and colleagues who contacted me all freaked out this morning.

I doubled down on the leveraged junior ETF trust, JNUG, in my fund this morning pretty close to the bottom (I added at $24.20 – it’s currently at $25.50).   This is transparent if you can divorce your emotions from the shock and awe of it.

My Easy Trade idea is still valid.  I added to the fund yesterday right around the current trading level.  The trade has already returned $3 and I’m looking for at least another easy $3 move higher.  If you buy the report and want some options trading ideas, I would be happy to discuss some strategies if you email me.  Here’s the link:   EASY TRADE IDEA.


12 thoughts on “The Attack On Gold/Silver This Morning: Nothing But Shock And Awe

  1. Pure and simple , the physical silver world cannot rely on the miners for steadily rising prices to a level which would be the true worth of physical silver. Not ever !
    The central banksters have all of them bought and paid for through forced financing.
    At one time when the dollar ruled and it was business as usual it really didn’t matter. The paper world of silver in the form of derivatives, etf’s, hedge funds , etc. were just traded on a daily basis throughout the work week . Fluctuations went on without the blink of an eye.
    Today though things on the financial playing field as well as all other fronts having to do with civilization , are in dire straits. For this reason alone physical silver ‘s properties are pulling away from the cooked up paper world of pricing.
    It is impossible for the two properties , physical & paper to stay connected no matter how hard the powers that presently are trying keep it that way.

    It boggles the mind of many a physical owner of silver why the masses haven’t caught on to this obvious truth yet ! What better and easier way to accumulate wealth then to go down to your local coin shop and transfer paper debt notes into real money for a future leveraged true value rise !!?

  2. You nailed it Dave. Very tempted to bottom fish today, SLV 18/19/20 (01/17/15) strikes are down nicely… but I think I’ll hold off to see if they persist next week.

  3. Hi Dave,

    i must say your Easy Trade Report is comprehensive and definitely value for money!

    also, your explanation and advice on options strategy are indeed very useful, i can see my path to profitability now..


  4. Shock and awe for 3 years and will continue for much longer than everyone expects. I still chuckle at the stuff I was reading in 2010 about future prices from “experts” and we are at the same price 4 years later. I’m still of the opinion not much will change until it all collapses, then price won’t matter since there will be far more important things to be concerned about.

    1. Such vague, inaccurate cynicism; Dan Norcini fires such quick shots at imagined tormenters.
      How about some “TA, back and fill, I’m the last person to care about the dollar bill”?
      What is the basis of your boast “Shock and awe for 3 years and will continue for much longer than everyone expects”- a handful of hapless day traders or market timers in 2010 and 2011? A flight of participants from the US exchanges?
      Even wilder, you say you “still chuckle at experts” you cannot identify, then self-indulgently despair: “I’m still of the opinion not much will change until it all collapses, then price won’t matter since there will be far more important things to be concerned about.”
      Next time you have to sell out so cheap, at least reset your doomsday clock.

      1. I agree that the price of gold might not really go where it’s going until the dollar collapses. But I think gold will start to take off well ahead of that, starting soon.

        I also agree there will be more serious issues to deal with than how much money we all make from gold. At that point gold will not have any value dollars because the dollar will have collapsed.

        1. Most Americans can not ever remotely conceive of the dollar collapsing, nor do that have the ability to understand what the implications will be. They will be economically slaughtered beyond their wildest imagination.

  5. Wake up America ! While you’re snoring away China is buying up the physical gold every time the paper prices get smashed down ! And don’t think that it isn’t happening to silver too !!!!
    It will be a pathetic sight to see all the crybabies boohooing when the U.S. dollar craps out and they can’t get any physical.
    They are supposed to be financially sophisticated ,
    AREN’T THEY !!?!
    They’ll only have themselves to blame !

  6. Dan may be right but that said when things collapse those with hoarded gold and silver will be a lot better off than those without. The rest of the west may be selling their precious metals but I’m not– I’m building my pile while prices are still cheap!

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