Gold and silver have just made their 2nd vertical move of today’s COMEX session, breaking out of their consolidation ranges, with gold spiking to $1781 where the cartel has previously fiercely capped the metal, and silver closing in on $35 with a last of $34.88.
Silver breaking out to the upside with $35 in it’s sights:
This move is not surprising as Gold’s options expiration is now passed, we will soon see whether the cartel will continue their fierce resistance of $1800, or with options expiration past, will step aside and regroup near $1850-$1900:
![[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)
I think the post QE3+ announcement consolidation may be over, time for renewed upward movement.
Honing in on what Bix Wier stated that Jp Morgan’s 437 Billion in Derivatives. We hit that $36.00 mark Bill Murphy & Bix Wier, I hope that your on the money with Jp Morgan, being done.
@NetRanger808: The $36 level has been talked about but I don’t recall who set that level as part of their forecast. Do you? It wasn’t Bill Murphy in the context of JPM and a trigger for their derivatives bomb. By that price, having passed $35 soundly, we’d make it to $37.50 and test that mega resistance point within a couple of days thereafter. That much is highly probable and Murphy has talked about a move once past $35.
There are a number of reasons why I don’t think $36 means jack for JPM. The danger zone for them starts in the high $30s, if not the $40s and only gets seriously painful in the mid to high $40s and onward. The Feb. 29, 2012 take-down was massive, and started with the blink of an eye when spot silver was at $37.50. By JPM’s actions, we gain insight into their book. They didn’t freak-out at $36 back then and there’s no reason to think they’d have a particular reason to freak-out at $36 today. In the months that have followed Feb 29, JPM has been trying to mitigate risk, adding longs on other stuff that counter balances their silver book, and strategically scalping silver on downdrafts. Unless something very strange is going on, they should be able to deal with $36 better than before, which is to say that price truly isn’t that meaningful.
Time will tell…
But isn’t their position significantly larger than it was in spring 2011? How much did they have to add in some of those massive take downs? Were they able to cover/hedge much of their position in the 20′s or not? If they indeed have a much larger position, their puke point (if they really have one) may be lower than it was when we hit the 40′s last time.
Doc nails it with his point about options expiration. The modest correction we saw with the cartel helping to shape sentiment was largely an effort to prevent a large number of contracts expiring in the money. Now that we’re beyond expiration, we should see a pretty quick move higher — in both gold and silver. I’d expect the advance to take place at a similar rate as we’ve seen since late August too. I do expect the cartel to make another stand at $37.50 spot sliver, and odds are we’ll be at that level as early as next week.
I think they realised they couldnt smack silver anymore at this price because of the failed triple takedown attempt yesterday and so they have had to let it go up today.
Hi, haven’t posted on here for 7 months or so. I’m a college student so don’t have tons of cash but have a fair amount, and in addition to stacking physical Ag and some 1/10 oz. gold eagles, I have been playing USLV (the 3x leveraged silver ETN). Does anybody have any comment on decay in this kind of a thing, and then I also want to get into PSLV. Are there any costs associated with this? I’m not in a position where I am needing storage or anything like that. I just want to be as close to physical as possible while having a bit more liquidity than solely buying physical (don’t have great storage options where I’m at right now as far as holding my own metals and no safe, too). Basically is PSLV able to be used as just an ETF that trades like any regular old stock?
Thanks in advance
…just reloaded at $33.50. Hey, JPM, keep playing around with silver. I like it. Take it down whenever you want. Just be gracious enough to give me enough time to get to my silver source so I can load up. Oh, don’t worry, buying a FOURTH safe does not trouble me at all!
RAID ALERT!!! Cartel will raid before Friday close. Bet on it!
If we don’t see an overnight raid it will be the standard 10:30 raid tomorrow.
Even if silver is going up right now, I think that silver will be stable at 34.50$ per ounce for a long time. Now, silver is going down by 0.50$.