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first_imgSponsor Advertisement These guys sure are in a hurry. They might as well have hired a brass band and marched it down Wall StreetAll was calm in the gold market through Far East and early London trading yesterday…and the gold price was up about five bucks going into the Comex open.  But then “the seas boiled and the skies fell”…and by shortly before noon in New York, JPMorgan Chase et al had engineered a price decline of almost thirty-five bucks.  Gold’s low price tick checked in at $1,634.30 spot.The subsequent rally lasted until about 4:00 p.m. Eastern time…and from there the gold price traded fairly flat into the electronic close.Gold finished the Thursday trading session at $1,647.20 spot…down $18.70 on the day.  Net volume was a hair under 200,000 contracts.But, like every other day of this engineered price decline, it was really silver that “da boyz” were after…and they got it real good on Thursday.Silver was up nearly twenty cents going into the Comex open, but it didn’t take long for the high-frequency traders to do a number on silver as well.  The low price tick…$29.51 spot…came about the same time as gold’s low price…and then silver traded sideways until a smallish rally began that started just before the Comex close.  This lasted until 4:00 p.m…just like gold…and then traded sideways into the electronic close.Silver finished the Thursday session at $29.92 spot…down $1.06 on the day…but had an intraday move of more than $1.65.  Net volume was monstrous…around 92,000 contracts.Of course neither platinum nor palladium were spared, either. On the day, gold closed down 1.12%…palladium down 2.03%…platinum was down 2.52%…but silver closed down a monstrous 3.42%…and at its low tick was down 5.3% from its pre-Comex open price.The dollar index opened around the 79.41 level on Thursday morning…but by 9:00 a.m. in New York, the index had fallen all the way down to 79.06.  Then the index rallied back to 79.38 by around 11:20 a.m. Eastern.  From there the dollar index backed off a bit…and closed at 79.25…up about 15 basis points from Wednesday’s close.It nearly goes without saying that there was zero co-relation between the dollar index and the precious metal prices yesterday.Not surprisingly the gold stocks gapped down at the open…with the low of the day coming at the low price tick for gold…around 11:45 a.m. Eastern time.  But by the close of the day, the gold stocks had gained back virtually all their losses…and the HUI closed down only 0.49%.  The insiders with deep pockets were buying every share that the weak hands were selling yesterday.  I hope you were one of them, dear reader.  Remember that “blood in the streets” quote I’ve mentioned on several occasions this month?Even more amazing was the fact that the silver stocks closed mixed on the day!  Nick Laird’s Intraday Silver Sentiment Index closed flat…down only 0.01%…and was actually in positive territory briefly.(Click on image to enlarge)The CME’s Daily Delivery Report showed a fair amount of activity, as 134 gold and a chunky 382 silver contracts were posted for delivery on the day before Christmas.  In gold, Credit Suisse First Boston was the surprise short/issuer with 128 contracts…and our two favourites…JPMorgan Chase and the Bank of Nova Scotia were the biggest long/stoppers.  UBS was a distant third.In silver it was also Credit Suisse First Boston as the short/issuer on 259 contracts…and Jefferies was in second place with 99 contracts.  Not surprisingly, our two old friends were there as long/stoppers…JPM and the Bank of N.S….with 172 and 179 contracts respectively.  As you are already aware, I consider these two banks to be the #1 and #2 short holders in the silver price management scheme on the Comex.The Issuers and Stoppers Report is definitely worth a minute of your time…and the link is here.There were no reported changes in GLD yesterday but, surprisingly enough, an authorized participant added 774,096 troy ounces of silver to SLV.The U.S. Mint had a surprise sales report yesterday…and I triple checked the first sales figure, as it showed they sold 18,000 ounces of gold eagles…zero silver eagles…and 500 one-ounce 24K gold buffaloes.  My guess is that most, if not all, of that sale went to just one buyer.The data from the Comex-approved depositories didn’t disappoint on Wednesday either.  It showed that no silver was brought in…but 1,542,167 troy ounces was reported shipped out the door.  The link to that activity is here.Since yesterday was the 20th of the month, The Central Bank of the Russian Federation updated their website with their November data.  It showed that they added another 100,000 ounces to their gold reserves, which now sits at 30.2 million troy ounces.  I’m beginning to wonder if, like the Chinese, the Russians aren’t reporting all the gold they’re squirreling away.  I guess we’ll find out in the fullness of time.  Nick Laird’s most excellent chart below tells all.(Click on image to enlarge)I don’t have a lot of stories today, so I hope you can at least find the time to skim the ones that I do have.One of the saddest lessons of history is this:  If we’ve been bamboozled long enough, we tend to reject any evidence of the bamboozle.  We’re no longer interested in finding out the truth. The bamboozle has captured us.  It’s simply too painful to acknowledge, even to ourselves, that we have been taken. – Carl SaganThese guys sure are in a hurry.  They might as well have hired a brass band and marched it down Wall Street…combined with a front page ad in yesterday’s edition of The Wall Street Journal.  Talk about in your face!But, having said all that, it’s obvious that a major bottom is being put in at this point.  Whether we saw it yesterday…or it’s still to come…once this is done, I’d guess that somewhere in the not-too-distant future, a major rally will unfold in the precious metals…and for the first time in decades, JPMorgan et al may put their hands in their pockets and let her rip…at least for a little while.Ted Butler has been saying this for years…but that time might now be at hand.The share price action yesterday should be all the evidence you need that the insiders were buying everything in sight.  For silver to get nailed to the proverbial cross like it was…and have their associated equities finish flat on the day is one of the most astounding sights I’ve seen in the twelve years I’ve been watching the precious metal markets.  The same can be said about the gold equities.  And if they’re doing it, dear reader, I sure hope you’re following their lead.Today we get the Commitment of Traders Report for positions held at the close of Comex trading on Tuesday…so yesterday’s and Wednesday’s price/volume action won’t be included.  Too bad, as I’m sure that there was major technical fund long liquidation yesterday in all four precious metals…put particularly in gold and silver, as both metals had their 200-day moving averages taken out with real authority.Here are the 6-month charts for all four precious metals so you can see the lay of the land after yesterday’s price carnage.(Click on image to enlarge)(Click on image to enlarge)(Click on image to enlarge)(Click on image to enlarge)But is the carnage over?  I don’t know.  As Ted Butler has said over the years, when the final downside move comes, you can be sure that JPMorgan Chase et al will leave no stone unturned to get every speculative long they can to sell out to them…and to do that requires ever-lower prices.Of course that’s precisely what happened during early morning trading in the Far East on their Friday.  “Da Boyz” sent out their high-frequency traders to engineer the prices to new lows in both gold and silver…and that caused more technical funds to puke up their long positions, which allowed the bullion banks to cover more of their short positions, or go long themselves.  This has been their modus operandi for more than twenty-five years…and nothing has changed up to this point.  But it soon may.Not surprisingly, volumes in both metals are huge.  In gold, it’s 41,000+ contracts…and in silver it’s just over 11,000.  The dollar index moves are irrelevant…even though the index is up about 20 basis points at the moment.  In the past, the currencies have always been a convenient fig leaf for “da boyz” to hide behind when they were doing the dirty.  They could engineer the appropriate price moves in the dollar index just as easily as they could in the precious metals.  Now they don’t even bother. They just do what they want…and to hell with dollar index.  Like now, for instance.As I hit the ‘send’ button at 5:20 a.m. Eastern time, I note that all of gold and silver’s Far East losses are now history…and both metals are in positive territory in mid-morning trading in London.  How long this happy state of affairs lasts, or is allowed to last, is only know by the bullion banks…and Blythe Masters is not returning my calls.For the moment, all we can do is put on a pot of coffee and watch this unfold on our computer screens…which is basically what the CFTC and CME Group are doing as well…unless they’re orchestrating all this, which wouldn’t surprise me in the slightest.If you are in a position to take advantage of these deep discount prices in both the metal itself…and their associated shares, I would think that it’s in your best interests to do so.Today’s trading session in New York could be an education…as it’s Friday…and the last real trading day before Christmas.Enjoy your weekend…or what’s left of it, if you live west of the International Date Line.last_img read more