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2 Reasons Silver & Gold Were Crushed Yesterday…

September 13, 2013 8:51 am est

The Mission Of The Silver News Surfer Has Always Been & Will Always Be – To Preserve Your Wealth, Protect Your Purchasing Power and Create Generational Wealth!

May Health Wealth And Success Be Yours!

On to the business of protecting your wealth…

I love it when gold & silver get smashed for no reason! I know you don’t want to hear that, but its true. If there was a reason (like China dumped all their gold on the free market), we’d all be in big trouble, but to see a Vicious Gold Slam-down Shut Down Gold Market Trading For 20 Seconds for no apparent reason is remarkable – and with that said, it’s giving the people who have been on the sidelines another chance to buy.

The reason for my comment above is it boggles my mind about what short term memories these traders have – Do you see it?

Wasn’t it just last week when the prior weeks jobs report came out well below expectations and the market shot up?

Wasn’t it a week ago today that the NFP report came out for August and showed dismal prospects?

So yesterday, the jobs report was released and Initial Jobless Claims Plunge Due To “Computer Upgrades” And “Faulty Reporting By States” and the market continues in free-fall from the previous night?

This is just traders looking for something to trade on, it’s not in any way shape or form a change of trend.

In fact, if you read They Denied That We Were In A Depression In 1933 And They Are Doing It Again In 2013 you will get what I’m saying.

If I’m wrong, I’m wrong, but I would expect to see a short covering rally today after another orchestrated smash-down like we saw this week.

Remember a couple weeks ago I brought you this story from a “Gold Trader” who said this:

When you have a bear market like we did, people are very nervous and as we come up off that bottom, they’re afraid to [buy]…and so they wait until we start going up again, exactly like what has happened this time—we go up very aggressively, get overbought very quickly—and then they ‘can’t’ buy because it’s overbought…[then] as soon as the dip comes, it looks like the bear market is [returning]. So they ‘can’t’ buy again, and they continually miss this move.

Damn was this guy spot on! Does this seem familiar to you? Although I think you know that I take this business and my position very seriously, I was driving home in my car last night giggling because I was thinking about the calls I had yesterday and how everyone of them resembled the paragraph above… just saying – People want to buy low, but when the price is low they don’t buy… it’s just funny (in an interesting sort of way)

In other news, (courtesy of SD) Pan American Silver (PAAS) announced out of the blue yesterday that just THREE weeks after it announced that it had implemented hedges for a significant amount of its gold and silver production, it had decided to remove them.  This was a stunning and rapid reversal of a big financial decision.

One of the primary Wall Street firms that “advises” PAAS is JP Morgan.  JP Morgan has spent the better part of the last 9 months eliminating its massive, manipulating short position in Comex gold and silver contracts and has actually amassed a considerably large long position in gold contracts.

My bet is that JP Morgan advised PAAS that, based on what it knows as an insider to the precious metals market worldwide, putting on those hedges was not a good idea.

This latest move by PAAS further confirms my view that the metals are marking some time here – ostensibly until after the next FOMC meeting next Tues/Wed – before they begin to make a move to the upside that will take everyone except the hardiest of precious metals investors by surprise.

Allow me to assist you in understanding these ever changing and challenging financial markets and more importantly, how you can profit on the upside potential and protect yourself from the downside risks….

Now, onto the breaking news that matters…

The following two posts are two reasons the metals were crushed this week. These are different perspectives from two well respected, seasoned investor powerhouses and people who have a lot of credibility in this industry…

This Is Why The Price Of Gold & Silver Was Crushed Yesterday – The capping strategy is in place.  There is no evidence as of yet that the Fed and the BIS, who I am certain are behind all of this, have the capability, even if they wanted to, to push things much lower because they don’t have the physical gold that would be necessary to be delivered.

But they do have the ability in markets that still aren’t quite as liquid as they are normally, to push prices around a bit and create some downside volatility. We haven’t quite gotten to the point where liquidity on the buy side is enough to defeat the entities on the paper gold sell side.  This is why we have seen prices track lower today, but I think this is just temporary.  We should bottom shortly.  We will then track higher into the end of the year, and 2014 will be the launch pad for gold and silver.

We are very close to the point where the entire paper market facade ends, and the physical market takes reign over the paper market.  The paper products have been created by all of these bullion banks, some of whom have already defaulted on those paper promises and have demanded settlement in cash because they just don’t have the physical metal to deliver.

The bottom line is the price of gold and silver will be much higher 1, 2, 3, and 5 years from now.  I’ve never been more confident of any forecast in my life.

Read More Here

Billionaire Sprott Issues Warning To Western Central Planners – We have the Fed decision coming up next week, and you and I are starting to believe they are not going to taper.  In that environment you (as the Fed) wouldn’t want to have gold launch from higher levels.  You would have to smash it (gold).  That’s exactly what we’ve seen.

 so this decision that will be made next week is going to be very critical as to where rates go.  And if it (the taper) is either really small, or it’s not done, then I think that the gold price will just move right back up here.  They had the excuse of the non-Middle East war to bash gold here, but the fact is the physical demand is every bit as strong as it’s ever been.  So, I think we will see prices go back up, and I’m still very confident that within the next year we will see record highs in the price of gold.

Read More Here also, read this from Sprott

Signals Are Strong That Metals Bottom Is Here – This chart takes the ratio of the U.S. Treasury yield (as a funding cost proxy) and the silver price (most sensitive to economic activity) in predicting metals price runs. Based on the current read, we think the bottom is in.

We returned to their chart idea in response to recent changes in silver prices, gold prices, and bond yields, and in keeping with our penchant for monitoring the supply of currency and credit based on those bonds. After all, borrowing cash into existence against collateral reserve-able or otherwise DOES matter as shown prior to the Great Depression (and pointed out by David Stockman):

Read More Here 

 Get ready, the silver price is heading upInterview with David Morgan – A must-see interview for the informed investor! David Morgan from The Morgan Report chats with Vanessa Collette at Cambridge House’s Toronto Resource Investment Conference 2013 about the price of silver and what’s happening in the mining sector.

Read More Here

 Also view The Federal Reserve Run By Cartel Of The Big Banks 

Also view The Men Who Stole $16 Trillion From America

Gold price: ‘Last hurrah’ may be on its way – A new report by Thomson Reuters, argued that the price of the metal has been supported in the first half by “Chinese aunties” buying up jewelry in response to falling prices. The amount of gold being made into jewelry soared by 41 percent or nearly 100 tons, to a record of 345 tons, in China in the first half of the year.

The gold price could have a “last hurrah” in the last three months of the year, to hit $1,500 again in early 2014, before falling to an average $1,350 per ounce in 2014, according to Rhona O’Connell, head of metals research and forecasts at Thomson Reuters.

Read More Here