Someone is sending me their newsletter. Not sure if it's proprietary stuff or not.
I'll post an extract...
Gold $1249.20 down $2.30 - Silver $19.91 up 27 cents
Silver Panic Intensifies … NO DELIVERIES!
"You can observe a lot just by watching." … Yogi Berra
GO GATA!
What a day! The US jobs report came in better than expected, which led to the usual Gold Cartel drubbing of the gold price. Gold was slammed down to $1237, a pretty good hit. Meanwhile over at the silver ranch, its price was hit pretty good too, down to $19.46. But, while gold struggled, silver popped right back to the $19.58 level, down only a handful of cents on the day.
About that time Adrian emailed me saying there were no silver deliveries yesterday, which had me instantly salivating. Twenty three years ago I was gearing up to make a play for the copper market after building a position for more than a year. The price had been stuck in a 55 cent to 60 cent range when the spreads between the contract months (contango) began to narrow. It might have even gone into backwardation, which means the front Comex months traded over the back months … indicating physical market tightness. Then one day in early May of 1987 there were NO deliveries, which got me jumping up and down and buying hundreds and hundreds of cheap copper options, as "the trade" thought copper was going to be dead price-wise because of the introduction of fiber optics. The Trade (the copper industry) forgot to take Asia into account. Well, copper roared from that day on, until the stock market crash, but then it went right back up, ending the year about $1.46 per pound.
I will never forget that day… NO DELIVERIES!
Adrian followed up shortly with this email…
Bill,
I sent this alert to Premium Subscribers of marketforceanalysis.com with silver at 19.54 this AM.
******************
There were ZERO delivery notices issued in silver yesterday. There were only 9 notices the day before. On First Notice day (Aug 31) there were only 292 issued against 3,002 contracts of Open Interest. This is VERY bullish.
This is another sign that a physical shortage is growing. The shorts have an interest to make deliveries quickly to stop paying insurance and storage fees on the bullion that they have sold through their short position. The fact that there is a dearth of deliveries is a big red flag. The price action is confirming this as silver is once again outperforming gold.
The cartel can not solve this problem with paper. A big move is close at hand.
Regards
Adrian Douglas
I am out west and left my laptop command post to get a quick breakfast. When I returned, the price of silver had rocketed to $19.93 per ounce, which took gold up close to $1250 in the process.
The operative word in yesterday’s MIDAS headline was PANIC! The frantic buying right on the bell was a precursor for today and what is to come. Odds are the news of no deliveries today leaked and really spooked a short or two … ones that knew how important this news really is.
Silver is a market in play…
Daily silver
stockcharts.com
The significance of what silver is doing regarding a big picture move can’t be overstated…
Weekly silver
futures.tradingcharts.com
Monthly silver
futures.tradingcharts.com
Both charts present a powerful base which can support moves to much higher levels. Think Silver The Mule doing its thing … with $30 as a target.
What fun … recent MIDAS headlines and the silver price at the time:
07/20/10 - $17.69
7/20 Gold, Silver REVERSE … Now Hear This!, Now Hear This!
07/23/10 - $18.11
7/23 This Is Just Silly/Silver Readying To Go Nuclear!
07/29/10 - $17.60
7/29 Quantitative Easing To Send Gold And Silver Prices To New Highs And WAY Beyond
08/05/10 – $18.31
8/5 Gold, Silver Advance/Big Trouble In Gold Cartel Land/The "Nitwit"
08/24/10 - $18.37
8/24 STUNNING Silver Rally Off Lows Sets The Tone For Precious Metals Price Explosion
08/25/10 - $19.02
8/25 YES!!! Silver Soars Again … Short Squeeze On/Gold Roars/Stop The Presses
08/26/10 – $18.98
8/26 STUNNING Backwardization/Gold, Silver Shares Stand Out BIG TIME
08/27/10 – $19.04
8/27 Silver The Mule Continues To Both Impress And Advance
08/30/10 - $19.04
8/30 Gold, Silver Appear Explosive/FT Story A Big Deal For GATA
0//31/10 - $19.40
8/31 Gold/Silver Rocket Higher … All-Time Monthly High Close In Gold! … Both Precious Metals Remain Explosive
09/02/10 - $19.64
9/2 A Stellar Gold Performance / Silver Roars, More Signs Of A Coming Panic
An encore from Adrian…
Bill,
You may want to re-run this commentary from 8/15. I speculated that the massive drop off in LBMA silver trading to the lowest level EVER indicated that investors were abandoning the unallocated paper silver and going to the physical allocated bullion. I think we are seeing the first signs of this.
Cheers
Adrian
Bill,
I always say there are no coincidences in the precious metal markets. Well, look at this "coincidence". ..
QUOTE
Ounces transferred in silver fell 32.7 percent to a daily average of 57.2 million. 'The substantial fall in silver ounces transferred, for the second month in a row, brought this measure to the lowest level since these statistics were first produced in 1996,' the LBMA said.
END
With all the smoke billowing out of the physical silver market and a drain of silver inventory on-going at the Comex and JPM & HSBC reducing their shorts as shown by the Bank Participation report I can only interpret that this massive drop off in silver paper trading has moved to the physical market. Could it be that we have exposed the LBMA unallocated bullion fraud to the extent that investors are ceasing their business there on a massive scale? How otherwise could the trade suddenly decline to the lowest level since 1996? There is also a big drop off in paper gold trading. Could it be that the GATA exposure of the LBMA fraud has hit the bull’s eye? Only time will tell but if this is true that will not be very much time!
CD |
