After initially popping to $34.20 and $1747 on the German High Court’s ratification of the ESM with conditions, gold and silver have slowly given up all their initial gains as the trading session wears on, as traders have realized that the court effectively voted YES to German participation in a Euro-bailout, but NO to hyperinflation.
Silver has been under pressure throughout the London session, and a new wave of selling emerged with the COMEX open.
Attention will now turn to tomorrow’s FOMC decision, and it looks likely gold and silver will fade this afternoon as traders begin to ponder ‘what if’ Bernanke disappoints and fails to announce monthly outright asset purchases Thursday as is widely expected by the market?
Gold has retraced it’s entire post German announcement gains back to the mid $1730′s:
We can almost guarantee that at some point over the next two days you will see an excellent entry point and stacking opportunity in the metals. Have your dry powder ready, and be prepared to respond professionally to price weakness by pulling the trigger and accumulating into price weakness. Better known around here as STACK THE SMACK!!
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In the beginning of the year, the smack downs stuck on the wall for a week or a few days. These days, the smack downs are reversed within hours.
I just can’t stay plugged into the computer like that, sooo… I’ll add to my position now. Just so I can get on with my day and save the mental and attention costs.
not surprising to me. This run up is to suck in the hedge funds and to bring back in people like us who want to see 200.00 silver. Steve LIESman and cnbc have been promoting QE3 for the past 3 weeks. JPM has written the script. So many people have caught on to the BS manipulation that they were not playing the game any longer. So they used the media to drum up QE and get the masses to go long. Let silver run to 34.00 as they the commercial banks go short. No QE announcement tomorrow or Friday and the JPM’S have an excuse to hide their computer programmed take down of gold and silver. Only this time it will be the last as position limits go into effect Oct 12th. JPM Covers all the contracts it can with a silver smash to the low 20′s. then go long just before QE is announced in a few weeks on a Sunday Morning at 11:00 A.M. JPM has a 28,000 contract silver short position. They must unload it before QE is announced. JPM owns the majority of the Federal reserve stock. JPM knows exactly wha the FED is going to do.
Nice post! I love the logic. I personally would not like to see QE and Silver go to $200 if that means everyone starves. Originally I felt QE would come In Nov / Dec 2012 and Silver to drop to as low as $23. But I could also see reasons for the Fed to announce it tomorrow and Silver to shoot past $50 by years end. Currently Im 50/50. I still think Silver wont pass $35-36 unless a new QE program is announced as that level has proven to be a ceiling for the last year.
We are all here not to make a profit but to preserve our current way of life at the very least. Sure if we preserve our current wealth/savings while everyone else slides into poverty that would be a tremendous advantage for us, but this wealth disparity would cause friends and family to distance themselves from you further isolating oneself. I would rather rise to wealth with friends and family then with oneself. Thats why I communicate with them about Gold and Silver. With that being said I find it much more preferable if they have no QE, lower the national debt and preserve the illusion of the US constitution.
If QE is announced tomorrow we will all experience Hyperinflation first hand within a year and a half. Bec areful what you wish for people! An announcement of a QE would be a very sad day. Even it Silver shoots past $40 an ounce. and I make Thousands as a result.
Also as I type this Silver and Gold are sliding downward. Perhaps the rise in Gold and Silver in recent weeks had more to do with a possible Euro Collapse then a QE announcement.
The retrace turned into a full raid smack down going into the London PM Fix.
People like Dan Norcini have been correct to point out the hedge fund roll in price movements over the last month. But I hope Norcini hasn’t turned dogmatic on that point. He correctly noted that not all price declines are the product of manipulation, and he took some flack for that view. But now is the time he and others need to call today’s price action for what it is. With today’s London PM Fix, we are seeing a classic example of manipulation — “running of the stops.” There’s no two ways about it.
I wonder if the direction the price of silver will indicate what Ben & company have already determined? To drop the price to so degree so friends and family can get in just before launch date would reward me and mine a nice quick profit.
Let’s wait and see if Mr. Murphy’s information of JPM getting caught with their hand in the cookie jar shakes up the market. This paperchase will have to end eventually. In for the long haul.
Even if there is a stacking opportunity thanks to the low price within the next two days, it’ll be harder to acquire some physical silver. My local coin shops ran out of silver and junk silver. So now, we have to wait for tomorrow to see if QE3 announcement.
Stack the dips, don’t play the paper game is my strategy. Don’t play the fiat game either right now, convert fiat to hard assets or food/guns/ammo. Sooner or later JPM will get caught red handed by someone leaking things or they will get caught by a sudden market jump and increase in demand for physical they have no chance of ever delivering.