"The Battle of May Day"

Wow! "The Battle of May Day" is in full motion today with gold dropping below $850 and silver crashing below $16. There are blood stained bodies lying all over the Comex trading floor with margin calls and fresh shorts being laid by the tech funds. "Shock and Awe" as the bad guys have surely named their latest attack on gold and silver.

EVEN OUR FRIEND JON NADLER IS DECLARING VICTORY FOR THE CABAL WITH HIS PIECE..."MAY DAY, MAYDAY" (..a line I think he stole from my email to you yesterday... can you say "Homeland Security Surveillance"?!)

http://www.kitco.com/ind/Nadler/may0...

BUT WAIT!

I am declaring a MAJOR victory for the good guys in "The Battle of May Day"!

As only we at GATA know, there are TWO battlefields in the gold wars. The first is a virtual battlefield of paper gold (COMEX, LME, ETF's, etc). These are the battles seen and reported to the public. It is impossible for the good guys to win the paper battles because, just like fiat currency, the supply of paper ammunition for the Cabal is unlimited. They can, and do, manipulate and naked short those markets into oblivion! GATA will NEVER win the war on the paper markets.

The second battlefield is known as the physical market. This is were the war will be won. Real metal being taken off the market never to return to the hands of the cabal. The physical market is ON FIRE right now with reports coming out of India of major buying, the US mint in a "silver rationing" mode, retail shortages and the best of all TODAY'S COMEX SILVER DELIVERIES TOTAL 21,370,000 OUNCES!

http://www.nymex.com/media/delivery.pdf

Over 21M oz is an exceptionally large amount to be called for delivery in a month much less a day. Unfortunately, I do not have historical data on COMEX silver deliveries to compare to but I did search the Cafe and only found a few times this has happened on a monthly basis in the past 10 years. Large deliveries in the past have not necessarily translated into silver leaving the warehouses but it is more likely now that there is evidence of shortages on the retail markets.

I think it is also interesting that this amount is just below 50% (49.8%) of the total registered silver available in all the COMEX warehouses. (http://www.nymex.com/warehouse.aspx) It very well could be that certain groups of delivery takers did not want to show their hand too visibly by calling for delivery of over 50% of the physical silver available in one day. We should keep a close eye on further delivery notices as the month progresses.

Not that it may mean much but Tulving.com sold out of all their COMEX good delivery silver bars yesterday. http://www.tulving.com/goldbull.html...

There is one other thing we should keep our eyes on and that is the silver and gold ETF's. GLD has already tipped it's hand as a tool of the cabal by dumping 60 tons of gold on the market in a matter of a few days. It is interesting that SLV "claims" to have not shed an oz in the fall from $21 to $16. Those who do not see the problem with this should not be wearing their "Tin Foil Hats"!

From my correspondence with David Kass of the CFTC, I would expect to see physical silver start leaving the SLV inventories on their way to cover the COMEX physical withdrawals. Whether or not those movements will be visible to the public from the SLV warehouse data or the COMEX warehouse data is unknown. I do think that the SLV inventories are pledged against the silver short position on the COMEX.

So that's my take on "The Battle of May Day".

Another loss on the virtual paper battlefield but a MAJOR victory on the physical battlefield.

WE ARE MUCH CLOSER TO WINNING THE WAR AFTER TODAY.

Bix