After consolidating in a tight range throughout the overnight Asian and London sessions, gold and silver have gone vertical on the COMEX open, with silver making a .50 vertical move north through $32 to $32.27.
Gold has moved well off strong support at $1700 to $1715, and is targeting $1725.
*Update: silver has now broken through cartel capping at $32.25, and run nearly to $32.50 before currently pausing with a last of $32.43.
Once again, $31.60 holds as support, and silver is now back above $32.Look for cartel capping to re-emerge between $32.20-$32.30, as silver was capped nearly all day Thursday at the level.
Gold held at $1700 overnight, and has also made a vertical move back to the top of Thursday’s trading range. Look for cartel capping to emerge between $1715 and $1720 in gold.
While percentage wise this morning’s moves are small, they are significant in that they will likely ensure gold closes the week above $1700, and silver above $32, preventing a further escalation to the sell-off early next week. With options expiration behind us, gold and silver should be clear to resume their up-trends soon.
![[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)
Woot woot!
A great start to the weekend.
Will the ‘high level’ sell off of JPM shares have any bearing on the silver price action.
Sounds like rats leaving a sinking ship.
Any thoughts?
I think you’re right, rats don’t like to get wet. lol
Crash JP Morgan would be sweet. I’ll keep my fingers crossed.
Couldn’t happen to a nicer guy than Jamie Dimon LOL.
JP Morgan has fingers in so many pies it is doubtful they will be going anywhere soon. They have access to as much free money as they can take on and have control over too many things at once for any one thing to cause their demise.
It was probably caused by the US dollar decline. Anyway, now gold and silver went back to their previous prices but even lower. I’ll just pretend that this never happened in the market.
I think they were active overnight trying to chop the price lower before they covered some of their shorts on the open.
Just recouping the smash from a few hours earlier.
The Banksters will always be in control as long as there is paper!
There is nothing that will stop them from creating paper shorts, and if need be settle in cash instead of bullion. The market is eternally rigged!
You’re right, but it won’t last eternally. There is only so much paper they can issue before the whole nine yards come crashing down.
Hi SilverBullion Thanks for your comment.
The remark I made above has been to elicit a response as I’m somewhat puzzled as to the ability of the Banksters to rig the market with paper shorts.
Many experts assert that the rigging will stop when the physical bullion supply runs out, which I understand is just about happening since there are long waiting times for delivery in Silver and Gold.
But my take is that they can continue ad infinitum and settle in cash as the fine print allows on Crimex and I believe even on the LBMA.
Anyone with a complete grasp and insight of the issues relating to this please comment
Until that paper becomes so worthless nobody wants to take it!
If they run out of paper, they will use the digital files and computers to transfer the data. That way with one click, everything is going to be easier for them except for hackers.
Speaking of going vertical…Doc, check your email. I just sent you a frame-grab from Kitco which showed the Dow up 1412 points this morning.
Nice charts. You would not think it would be so hard to find silver miners or ETFs but they are disappearing -> whats a newbie to do
LOL ->>>> http://investordiscussionboard.com/boards/dgta/do-you-thinkaccidents-co-incidences-screw-ups-can-cause-silver-stocks-disappear-watch-mi
Can you tell I am a real cynic at heart >?
DG
@ Veracity I am personally not 100% convinced that it will happen as a result of physical gold and/or silver shortages. I believe they’re going to deliberately collapse the fiat or debt-based currency system by crashing the derivatives market for one. I believe we will only start seeing acute shortages of physical gold and silver when that happens, when the masses start to wake up and rush to get their hands on the physical. In the mean time, while the fiat Ponzi scheme is still pretty much in the order of the day, I don’t think they will allow acute physical shortages to develop. I can of course be dead wrong, but there is for one still too many of us who are willing to accept paper in exchange for physical silver. I mean, how many of us exchange silver for fiat when we need cash?
@SilverBullion I agree with your assessment.
Regarding the cash settlement as I understand it is that the fine print allows them to settle in cash or bullion. Hence their ability to continue the suppression game as they please.
I hope I’m wrong but it appears that there is nothing to force a physical deliver from these two exchanges. If so then we might be in for a long wait, but also a long time opportunity to accumulate.
“I mean, how many of us exchange silver for fiat when we need cash?”
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SilverBullion, I sell Silver when I need cash! Why keep any volume of savings in a bank account where it draws 0.0001% interest? Just cut the banksters out of the equation and move your savings in and out of Silver instead. after all, there is always a buyer when you need to exchange Silver for fiat.
@ Mammoth Exactly lol What I am saying is that the moment acute physical shortages start to develop they will manipulate the silver price upwards in order to encourage us to sell silver. I am sure many of us will sell at least a portion of our stacks, especially those of us who need cash to survive. When you need cash, it is after all best to sell silver when the price is higher relative to previous price levels. This is why I am saying for one that “I am personally not 100% convinced that it will happen as a result of physical gold and/or silver shortages”.
I never sold an ounce of silver or gold. Right now, I don’t have to sell these two metals because I don’t need any cash. I only need more cash to buy more gold, silver, copper pennies and nickel nickels. Right now, I don’t really have to worry about what I need.
A person can hold out with a small stock of FIAT to pay the normal expenses. Inflation notwithstanding, an effect that will really start to hit First Q 2013, this small stack of cash should allow a person to avoid selling silver to meet expenses.
It may take a year or even two before the price explosion we have been patiently waiting for blossoms fully. If the Weimar effect is any indicator, we could see inflation pressures coupled with a silver crisis causing a 10X price rise in silver. Since we buy on the dips, there is no reason we can’t sell a bit on the spikes. There is not a chance in the world I would sell at anything near my original buy price.
The real X factor is China and India consuming between 40-45% of the entire world YOY production of silver. One thing that we need to account for is the silver in private hands selling into a price rush. That could create some spikes in price as private stocks are sold, temporarily flooding the marketplace with silver. These sales won’t push the price downward much, any more than they did in the last runup of prices in 1979-1980. There should be little abatement of silver absorption in the next few years, so shortages will be one of the main drivers of the price increases. Private sales will feed into the use and absorption.
This is only a best guess on my part but we could easily see the 1979-81 PM price rises that had few parallels in anyone’s lifetime. The economy is very rough. Half the people in this country and perhaps more than half the population in Europe have near zero savings. Retirees see zero income from savings. These are the unintended consequences of ZIRP. It has had and continues to have a profound effect on commodity prices as people and countries bid up the prices of hard assets. This will get worse as the world wide GDP shrinks.
This perfect storm will cause to people to reach into their sock drawers to sell whatever they can find to gather in precious metals particularly if silver pushes past $50 an ounce.
Doc calls the price rise a Rhino Horn. It’s one of the better indicators of an ‘fear factor/rush to the exit’ sort of event that will allow us to get ahead of inflation and still retain the bulk of our silver while periodically selling to replenish our stack of cash. Rest assured, there will come a time soon enough when we will be asking ourselves the question “what is the best time to sell silver” before the price spike reverses. It always happens. Timing is everything in that case
I don’t know how long everyone else was waiting for the price explosion but I’ve been waiting about one year for it. My time to question myself about “What is the best time to sell silver” is still not the right moment to think of it since I’m still a beginner at staking gold and silver compare to you guys. Although, I’m sure that the collapse will happen at least in about 50 years from now or even faster than that.
AGXIIK, good comments, but as far as timing goes - it is anybody’s guess when inflation will really start to hit. Just like previous PM price increases & falls, nobody can really predict when price moves will occur.
I am keeping a jar filled with scruffy Silver rounds, holed halves, dateless Standing Liberties, and Barber smoothies that I will unload when Silver spikes again. But in the meantime, I am okay with sellingnicer Phyzz for $1 or $2 above what I paid for it as this still represents a profit AND I can refill the coffers during the next price dip.
Every year I am a vendor at a few holiday craft fairs; I always lay out a few coins for sale at these – and always find a some buyers. Will report here on how it goes this time around, so stay tuned….
“But in the meantime, I am okay with sellingnicer Phyzz for $1 or $2 above what I paid for it as this still represents a profit AND I can refill the coffers during the next price dip.”
Beware the day when the price doesn’t dip and you can’t buy back what has been sold. This aspect of normalcy bias needs to be overcome by many of us before it bites us in the butt.
On the other hand, it’s probably OK to divide one’s stash into multiple pots, one of which can be bought and sold for “profit” if desired. I suggest that this be one of the smaller pots.
More and more I’m of the mind that when these rigged excuses for ‘exchange markets’ moves ‘up’ it’s only meant to lure in suckers and desparados to pry bullion from. Mines, banks wealthy retired folks and the like, will drop a few ounces to ‘pay’ some bills, but as soon as they ‘go home’, the so-called ‘bids’ go back down. Now, if settlements were in other metals because they represented some convenience or local arbitrage for the responding party, I wouldn’t have this view. A settlement ’price’ in Plantation Scrip, however, is in a very real sense robbery at gunpoint.
“A settlement ’price’ in Plantation Scrip, however, is in a very real sense robbery at gunpoint.”
I agree, Pat, and suggest that fiat is not a mechanism for debt settlement at all. After all, the current legal tender currency in the US is the Federal Reserve Note, and as we all know, a note is a debt instrument and not payment. It is the promise to pay but not payment in and of itself. FRNs would have to be of some intrinsic value to be immediate payment and clearly, they are not.
Vertical is the most overused word on this site.
Closing at $32.09
WTF? At exactly 1630 Pacific time, my long reply to this article blinked and disappeared. I suspect skulduggery! X-p
Right now, gold and silver are lower than these prices. I’m waiting for a long time to see gold going back to 1500$ per ounce and silver at 27$ per ounce. It was at these levels that I was able to buy my only 1/10 ounce of gold for 180$ and my lowest price paid for an ounce of silver which is 28$.