• Gold: 1,326.32 5.18
  • Silver: 15.80 0.01
  • Euro: 1.131 0.001
  • USDX: 96.775 -0.129
  • Oil: 56.44 0.54

How much longer can this historical aberration...

In the aftermath of yesterday's faux "tapering" announcement - following a miserable +0.1% GDP reading, which per today's revised durable goods figure, was actually negative - PMs have been attacked with impunity; on this, the third annivesary of the 5/01/11 "Sunday Night Paper Silver Massacre." With most of the world closed, TPTB have bulled up stocks and bonds despite the so-called "tapering" increase; and amidst a flood of horrible global economic data, particularly in the U.S., have taken gold down $30 from Friday's highs, and silver to near its multi-year lows.

Silver on the verge of a 'sharp and swift...

"Right now, we're expecting that the FOMC will continue to taper," said Sanchez, founder of Chantico Global. "If that happens, you'll see a downtick in silver, not an uptick. I think that the trend and even the fundamentals would suggest that silver is headed down, not up from here."

When, oh when?

On a weekend featuring dramatic escalation of the Ukraine crisis; and now, further collapse of the 1999-valued tech stocks propped up by the latest Fed equity bubble, PMs experienced, the 38th “Sunday Night Sentiment” PM raid of the past 39 weeks; as well as the 211th “2:15 AM” EST raid of the past 238 trading days; the DLITG, or “Don’t Let it Turn Green,” algorithms that stopped gold and silver from turning positive just after the COMEX open at 8:20 AM EST; and the prototypical 10:00 AM EST waterfall decline; i.e., the second global PHYSICAL markets closed.

It's just a matter of when

It looks like another COMEX options expiration day to me; as with 500,000+ ounces of gold still standing delivery from prior months' contracts - and (if you believe it) just 820,000 ounces of registered inventory, you can bet the Cartel is terrified of a major delivery demand. Meanwhile, gold has never been in such backwardation, and PHYSICAL demand is surging -with the US Mint rationing silver Eagles, and on pace to shatter last year's record level.

The historic game of can-kicking

The historic game of can-kicking continues, with the cataclysmic news that last week, the Japanese 10-year Treasury bond had ZERO bids for 36 straight hours. In other words, QE has so horribly distorted valuations, there are literally no buyers left; or sellers, for that matter, in fear that Abenomics will be increased. The same has occurred in essentially all the world's paper markets, as this historic, Frankenstein-like game of money printing and market commandeering plays itself out.

"Sunday Night Sentiment" attack

Another weekend, and another "Sunday Night Sentiment" attack to calm budding PM sentiment in the week's early hours - in fact, the 35th in the past 36 Sundays; the 203rd “2:15 AM” raid in the past 229 days; and additional raids each and every time PMs attempt to increase - particularly at "Battlefield $20/oz silver," which is exactly where it is trading as I write. With the Ukrainian crisis on the verge of dramatically escalating, and global economic weakness practically begging for "moar" QE, it's only a matter of time before PM prices escape the Cartel's clutches; and at the least, rise to levels well above the cost of production.

They WILL lose

The global equity crash continues, notwithstanding this morning's blatant PPT efforts to staunch the blood flow. Worldwide, economic data is collapsing, whilst inflation is surging. Watching oil surge whilst stocks plunge should scare the heck out of anyone believing in "deflation and recovery." But then again, we have been saying this all along.

The big one

Amidst surging global “horrible headlines,” of all types, physical PM demand is surging. Cartel efforts to cap at $1,300 and $20, respectively, are failing in light of major gold backwardization, and gold’s “golden cross” last week has been substantial technical support into a market screaming “double bottom.”

"Whirlybird Janet" joins the party

As I predicted earlier this week, the NFP report was "weaker than expected." All NFP reports are horrible - and rigged - but with interest rates having crept back up, the government knew it had to get them back down again. And hence, today's near "death cross" in the 10-year Treasury yield - to the downside - just as gold made its own death cross - to the upside earlier this week, with silver soon to follow.

The "duh" statement of the century

Frankly, not more to add to that - on a day when Michael Lewis is being feted for claiming the "duh" statement of the century, that markets are rigged. Of course, they are not rigged - as he claims - primaily for the benefit of HFT traders (who are simply leeches to the cancerous system), but the government and TBTF banks that control the markets.