Submitted by SD Contributor Marshall Swing:
The launch into spot price long heaven will not come until the commercials have divested themselves of most of this massive short position and are at something approaching a breakeven point. They know that $12,000 gold and $500 – $1000 silver and beyond is coming and coming quickly but they will not allow it to happen until they have substantially reduced their exposure to death of the manipulative short world as we know it. Besides, they make way too much quick cash by playing it the way they play it but since the Eastern sovereign nations are insistent in gobbling up all the hard assets in the world the commercials know the handwriting is on the wall and it is just a matter of time before their holy cash cow is skewered by Moses and then they have to settle for just being tares in the wheat field.
The only question is are they going to get out relatively unscathed or are they going to lose their short shirts?
I am on the team that says they lose their shirts and fall into oblivion as the European banks default and then the game is over for the best of the West!
Get your physical now. Do not wait to buy on the crash bottom that is coming. Whether you buy silver now at $28 or in a few months at $15 does not matter. You will not be able to time the bottom.
In my COT reports this weekend, I promised a synopsis and a blow by blow of what happened after the COT reporting period.
People keep writing me and asking how I can make my statements so decisively as to what happens from day to day in the gold and silver markets.
It is through continuous, daily examination of the CME daily bulletins and deep study in the COT reports over years of data that I have gold and silver options trading down to a science.
Once you understand the producer/merchant commercial’s MOs (method of operation) then these things become so clear they are transparent.
It is also transparent to me that the CFTC is a corrupt organization and serves the Treasury Department and not the people or Congress. If I can see this and make great money off it then anyone can see it with significant due diligence and I don’t have the benefit of examining the specific entities that do these trades, unlike the CFTC who has this information at their fingertips at any given minute.
Oh well…
On the chart below we see the commercials “lie in wait” until a specific number of longs have been bought by speculators then they pounce, drop the price, and gobble up the longs so they can get rid of their “toxic shorts” (fancy name for metal-less backed derivatives).
When they perform these operations, they are purchasing shorts all the way up on the price rise. We see this clearly in the gold COT at bottom. Then they sell higher priced contracts to drop the spot price super quickly while they deftly cover the toxic shorts as the speculators unload themselves of the longs they just purchased in anticipation of a bottom being in and hoping against hope that this craziness is at end and we are about to see the blast off to the moon.
The blast off to the moon is NOT coming yet. Most people in this industry do not believe me but I accept being right and being ridiculed comes with the territory.
The launch into spot price long heaven will not come until the commercials have divested themselves of most of this massive short position and are at something approaching a breakeven point. They know that $12,000 gold and $500 – $1000 silver and beyond is coming and coming quickly but they will not allow it to happen until they have substantially reduced their exposure to death of the manipulative short world as we know it. Besides, they make way too much quick cash by playing it the way they play it but since the Eastern sovereign nations are insistent in gobbling up all the hard assets in the world the commercials know the handwriting is on the wall and it is just a matter of time before their holy cash cow is skewered by Moses and then they have to settle for just being tares in the wheat field.
The only question is are they going to get out relatively unscathed or are they going to lose their short shirts?
I am on the team that says they lose their shirts and fall into oblivion as the European banks default and then the game is over for the best of the West!
Get your physical now. Do not wait to buy on the crash bottom that is coming. Whether you buy silver now at $28 or in a few months at $15 does not matter. You will not be able to time the bottom.
Besides, when silver is $500 to $1000, who cares? N’est pas?
Marshall
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
$1000 silver would be pretty umm…..lets see, what’s the word I’m looking for…oh’ yeah…FAN-FU*KING-TASTIC!
Thanks Marshall
The 4th Largest Italian Bank just Declared A Banking Holiday!
http://investmentwatchblog.com/report-italian-bank-declares-holiday/
Better get that deer eating popcorn out again!
absolutely could go to 15 dollar ….could go to 1500!!
Off-topic as usual, but this one is interesting…
Every rare now and then, justice is served. It seems yesterday in Florida, a LCS shot and killed a would-be robber who came into his store and stabbed him. Ironically enough, the name of this coin shop is Justice Rare Coins. Justice was indeed served yesterday.
From Pink Floyd’s song, ‘Money’
“Money get back
I’m all right Jack keep your hands off my stack”
Here is the news story & linkey:
http://tinyurl.com/7h5owj6
Thanks, Marshall, for answering my question from yesterday. As I said yesterday, I stack a little each week and BTD’s. I am building dry powder to attack at $25.00, $20.00, $15.00 or whatever price I can take advantage of. Not going to catch the knife but at $15.00/OZ. I’d buy plenty. If it does get to that price, I’m not sure if silver will be available. It may even decouple before it gets that low. Stack high fellas/fellowettes.
sooo, there is a silver crash coming?
The Hong Kong Exchange and Clearing, partly owned by the Chinese government, made a bid of $1.3 billion pounds for the LBME This is a 30% premium over the expected price, meaning that the HKEC should prevail even if Intercontinental Exchange lines up. This acquisition is coupled with the other new metals exchanges and bullion banks being formed in various parts of China.
The fact that the Chinese are trying to buy the LBME is a significant event. The chances of silver going to $15 is possible even if for only a moment or two in time That event will mean every gram of silver above ground will disappear instantly according to Sprott. How we could take advantage of that event might be tricky since it will be short lived so the best thing to do is continue buying aggressively so as possible to remove yourselves from the world of FIAT and keep a small amount of dry powder available to bag the lowest prices when they come on to the radar. IMO
I am long physical silver.
The Bull Lion -
$1000 for silver is absolutely no FUN… can you imagine what will happen with the price of all your everyday expenses, food ??? Silver is hard to chew
Still much better than the freshly printed papers …
I think this would play out just like gas prices. Lets say oil falls from $100 to $70 the gas price trickles down over months. But if oil prices spike from $100 to $150 then gas prices seem to go up overnight.
Here’s my 2 cents:
So basically no phyzzz would be available at anywhere near $15 or $20 unless the price stayed there for months.
As an example, go to flea*bay and look up the lowest price (buy it now) for a roll of junk 90% silver dimes or quarters. Everyone is still asking 30% to 50% above spot for circulated, worn junk silver coins even though we’ve been at under $30 for a weeks. They are still asking upwards of $35 / oz for the phyzzzz.
If paper silver plunged to $15 expect real phyzzz prices to not move for several days and then perhaps fall a couple bucks then hold for a week or two. Expect the U.S. Mint to close their doors for silver eagle sales or they’d charge a $10 or $15 premium per coin.
I just wonder if the COMEX traders would go ‘all in’ on silver / gold contracts and request delivery.
@ MAMYTA – You can’t assume that food prices will rise in conjunction with silver, especially if silver is so undervalued at the moment.
Breaking news from ZeroHedge:
‘Europe Brings Out The “Capital Controls” Bazooka’.
In a total collapse, any remaining trust in paper CASH (fiat currency) will quickly fade, leaving actual commodities and commodity-currencies the only things that people will value. The commodity-currencies that people have known longest are silver and gold (with gold being too valuable for everyday transactions). That leaves silver as the best form of savings for individuals.
Ag-nostic –
I am thinking more of a Hyperinflation than undervalued price of silver (gold) in this case.
Hope you don’t think $1000 is a fair value of silver..
Strong bullish trends Gold and Silver;
Gene Arensberg updates subscribers on the COT reports for the June 5 COT
report.
“Silver is not food. You cannot eat it”’
This is probably one of the most ridiculous excuses that we’ve heard, and as ridiculous as it is, more than one person has brought this up as an excuse or reason for not buying or acquiring silver (and/or gold). Yes, silver (and/or gold) can indeed not be eaten, just as it would be unwise to eat fiat money (or electronic digits for that matter). One must truly be deranged to eat silver (and/or gold) or think it can be eaten or serve as a replacement for food, hell no! The idea is to replace fiat money (non-redeemable paper notes, electronic money, paper money, fiat currencies) with honest money, especially in the form of gold and silver coins, not food. Apples need to be compared to apples and not apples to oranges. Despite this, past fiat currency failures have shown that those holding silver (and/or gold) had the best chance of survival. In most instances where food was available and for sale, those holding silver (and/or gold) enjoyed priority and could afford to buy the most. Now make no mistake about it, if you only stock up on food and no silver (and/or gold) or vice versa, then you’re surely looking for trouble. The secret when approaching silver (and/or gold), food, cash and such things lies in one word: BALANCE.
In addition to the above, don’t forget that silver is money (and gold), especially in the form of silver coins (and gold coins), and is among the best means to protect the purchase value of one’s monetary wealth. Food can after all only last that long, before it needs to be consumed, traded or left to get rotten!
Source: http://www.silverbullion.co.za/what-is-your-excuse-for-not-buying-silver-gold.html
Caught naked with their shorts down…usually not a good thing.
Why wait for $15? I’ll gladly load up at $20 if someone will just let me know where to get it when it gets to that price.
40OZ Exactly!
If silver goes to $1k and gold to $12k, the other metal you’ll need is lead, preferably .45 cal.
Great article, Marshall!
If anyone wants to know the absolute truth of what I think, I silver will eventually out pace gold in price because of its industrial uses which make it more rare than gold.
Colloidal silver is a full-spectrum antibiotic that everybody should have in their survival bag (or just buy a colloidal silver generator – you can use Maples, they’re pure enough to make colloidal). And you can drink it or apply it topically. So yeah, you pretty much can eat silver. Naturalnews.com has a bunch of great articles about colloidal silver’s uses etc.
I agree with silverbullion, balance is key.
I think I’d also rather suck on a silver eagle than a filthy, sweaty piece of fiat trash.
Gajervis
A couple of thoughts.
Silver is price inelastic which means its price, whether $20 and ounce or $200 have little effect on inflation since the entire silver supply per year is less than $30 billion. We spend more on dog food a year. Silver at $200 an ounce is only $150 billion world wide in a global GDB of $65 trillion. Given its numerous vital uses for commercial and investment purposes, silver at $200 an ounce would be meaningless in the realm of inflation. It might bump the price of a computer by $20 or a cell phone by $2 but it is really meaningless to the price of gas, bread or other consumer goods. Inflation or hyperinflation will raise its ugly head for very different reasons. Gold will be a bell wether in that event
Silver costs about $20-25 per ounce to mine so a floor of $20 means that virtually every silver mine would be shut down. The royalty streamer mines who sell silver as a by product of lead, zinc or iron ore would probably not care what price silver is since they sold off their production Silver Wheaton might take a large hit however.
If you want to have dry powder on tap consider this. Keep one credit card with a large credit line $1,000, $5,000 or more, preferably one with a deferred interest rate of 0% for 1 year and keep that as your purchase option. I used my credit card twice with Doc even though there is a 3% service fee to access the line with SD Bullion. SD bullion merchant service charges are passed through to the buyer since Doc operates on a razor thin margin. That is the way I make my periodic purchases on price dips.
The 3% cost was immaterial since I get more than that in frequent flyer miles. The service charge was the cost of being able to get an instant price lock once I made the decision to call Heath. IMO
To me it’s not the value of the PM just that the fact that I have it, for survival. Keep Stacking I am and I hope to hell they do lose their shirts and their F-En Heads.
Amen Marchas45
Nice thoughts AG.
excuse me power ball, but what you write is totally false. the 4th largest italian bank is still alive. please before you write stupid thinks be sure of what you write. i’m living in italy and my information are a little better than yours!
Since I began stackin I have learned to take the same approach as I did racing… Take each race as it comes, tune for the conditions and keep the big picture in sight… If the price is reasonable on the dip then I pick some up… Of coarse every week or so I add to the stack… I don’t dwell on what may come I act on what is while having the ability to react as needed when the time comes… I’ll keep converting my fiat to silver and gold until it longer makes sense… The way things are lookin…. That’s a long way off…
MS Great posts.
“If anyone wants to know the absolute truth of what I think, I silver will eventually out pace gold in price because of its industrial uses which make it more rare than gold”
“Make sure as part of your preparations for the crash that you are buying seeds!”
“Gold and silver may not be immediately usable because of no system except what will be local barter. Think about it. Without someone somewhere saying THIS is what the price of metal is and THIS is what you get when you sell a coin at the coin shop then there will be no immediate medium of exchange”
It sure would be great for silver to go to $1000 an ounce, so long as my silver truly does protect me from whats about to come, I care little for how high it goes.
every day I’m stackin…
All…please understand the stack of silver phyzz that you’ll need needs to be be a lot more than just a couple of coin tubes.
So what are you suggesting UglyDog? 1000 Eagles, 1000 halves, 1000 quarters and 1000 dimes?