Wow, what a great close yesterday! In spite of a massive, three straight days of EE raids, our metals held tough and even staged a powerful rally into the close. Support held beautifully on both of the PMs we follow and we are set for a great week next week. Monday brings a huge, $17B POMO. This is twice as big as any single POMO day we've had before. No wonder there was such strength and short-covering into the close yesterday! With the great support of last week, we could really strike some fear into the hearts of the shorts with a powerful rally early next week. Let's hope it develops! As mentioned yesterday, keep an eye on the USDX and crude. If they open Monday in our favor, we are going to have a big, big day.
Harvey just posted his usual Saturday comments. To save you having to sort through the entire thing (http://harveyorgan.blogspot.com/), here are three, main highlights:
1) "The entire silver comex open interest shockingly did not fall at all, it rose by 533 contracts. This totally annoyed JPMorgan and friends. With two consecutive raids they failed to shake any silver leaves. They probably failed again on Friday."
This is absolute proof of direct EE price suppression. To hammer silver in the fashion they did on Thursday yet see OI increase? Amazing!! Surely some weak-handed longs closed out their positions but OI went up. Where did these new contracts come from?? Brand spanking new paper shorts supplied by the EE, that's where!! Additionally, this indicates how few longs were actually spooked enough to be sold out. Our side is finally wising up to Blythe's games and refusing to be intimidated!!!!
2) "Herein is the ETF story for today:
Cannot quite figure this one out. Today the GLD added 15.18 tonnes of gold or 588,200 oz of gold!!!
A) where did they get the gold'B) with this demand how in earth did the clowns raid over at the comex?"
It kills me that there are still reasonably intelligent people out there that think GLD and SLV are legitimate investment vehicles that do, as they claim, own physical metal.
What a joke!!
3) "The trading of silver this past week has been breathtaking. Silver is now the least leveraged on any commodity on the comex. An investor needs a minimum of 20,000 usa dollars per contract. At 5000 oz at 29.00 per contract, if one were to take delivery, the total value of the contract is 140,000 USA dollars. The leverage is 13:1. For comparison gold is 22 to one; platinum is 17. to one;copper is 16 to one. JPMorgan had to be in serious trouble asking the CME to initiate another hike in margins with silver already below the others in leverage. They also initiated the margin requirements when silver was already hit instead of a few days ago when it surpassed 29.20. I strongly believe that JPMorgan and friends are in serious trouble over at the silver comex."
And just in case you're a CNBS lemming who thinks that margin increases in silver are warranted because of leverage and volatility, Harvey gives you this to chew on over the weekend. Clearly, the EE is begging the CME to increase margins because they know they are being routed! Does anyone have a better answer? Anyone? Anyone? Beuhler? Beuhler? I didn't think so. What a sham!
OK, lastly, a couple of long-term charts for you to ponder. Lots and lots of BS on CNBS yesterday about tops and bubbles in PMs. What disingenuous pricks these people are! Segments and topics on CNBS are set up by the producers anywhere from 2-7 days in advance. (Trust me on this. I've been a "guest" on that network four times in the past.) To have several segments within a couple of hours, where each of interviews discuss the idea that gold and silver are in a bubble, wreaks of spin, distortion and manipulation. Utter nonsense that should be ignored! For a better perspective I give you these three charts. No lines. No angles. Purposefully left blank for your own interpretation.
Have a great weekend. I'll update again tomorrow. Turd out.