Midas on yesterday's PM action
posted on
Sep 02, 2009 08:16AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
I've cut and pasted this together from different paragraphs of Midas.
The Gold Cartel showed up for work in London following their holiday and put Plan A into action. At around 3 AM NY Time they began to pressure gold gently and the AM Fix came in at $949.75. However, as evidence this market is sold out except for the desperate cabal forces sitting on the price, the new buyers were there to greet the sellers with palms and wiggling fingers pointing to themselves (that means buying in the trading pits). Despite a stronger dollar, gold rebounded to $956.60. It was physical market buying which did the trick as the PM Fix rose to $955 even though the dollar retained its early modest strength.
The dollar began to rally sharply with the falling DOW and gold and silver took heavy incoming barrages and fell too … and then A Funny Thing Happened On The Way To The Forum … gold and silver began bucking the higher dollar/lower DOW pressures … with both rallying, falling back a bit, rallying further, etc. The locals on the floor must have been caught massively short in both the gold and silver pits on the Comex. Both gold and silver LURCHED higher right on their respective bells … with silver closing above The Gold Cartel’s Maginot Line. It is a stunning blow to JP Morgan Chase and their allies. It also gives huge credence to yesterday’s remarkable silver performance. This makes two stunning silver days in a row, which is more than unusual. It’s hard for me to recall silver acting like this on back to back days in which it would have been slaughtered in past years.
Yesterday was 1st Notice Day, so that means anyone who wasn't funded for possible delivery had to be out of Sept silver by end of day on Friday. Yesterday there were 3846 contracts open for delivery, it looks like 965 were delivered or tendered yesterday. I'm not sure how determine how many took actual delivery vs. tendering their contracts for cash. As of end of day yesterday there were 2421 contracts open for possible delivery. Comex is reporting 247 delivered or tendered. If they were all delivered, that's 6 million ounces. Then the question is, do the parties taking delivery take custody off-Comex or do they trust the Comex to safekeep their silver for them. I personally would recommend anyone buying Comex silver to take delivery into their own custody into an independent depository. At the extreme, and I preface this by saying that this event is highly unlikely, if all 3846 contracts take delivery, that would be 19.23 million ounces. The Comex is purporting to have 61.6 million ounces registered and available for delivery. 19.2 million ounces is 31% of that alleged inventory...I think people can understand why silver popped hard into the Comex close both today and yesterday. We may be on the verge of Midas' commercial signal failure in silver...could the Chinese be behind this?
The dollar closed up .62 to 78.74, which gives us a fabulous gold close too and puts us a stone’s throw away from blowing through $960. As we know, gold has been stopped at that level some 7 or 8 times, which means an explosive move awaits us when this level is breached. The more a market is halted at a certain price level, the more explosive the move when the dam breaks and that level is finally taken out.
That said, the European central banks are mending their ways and withdrawing their selling. Russia and China are buyers. There is very little new hedging occurring and the gold producers are net buyers too on balance. So who is selling and keeping the gold price below $960? There is only one major group left: The Gold Cartel. You would think someone in the mainstream gold world might address this issue. But nope, it is business as usual for the lamebrain ones … See No Evil, Hear No Evil, Speak No Evil rules the day for these mental midgets.