OASIS FORUM Post by the Golden Rule. GoldTent Oasis is not responsible for content or accuracy of posts. DYODD.

Fron last night’s le Met

Posted by Scruffy @ 12:51 on January 31, 2015  

Silver must be terrifying to the cartel

With the CME’s outlandish 11% hike in silver margins (NOW? At $16.90?) we’re right back to 10-1 leverage, the bottom of the commodity heap.

Silver: The largest ongoing commercial short position bar none, combined with the lowest leverage bar none. They are terrified of a silver explosion, plain and simple.

The early range in gold was $1258 to $1268. For silver it was $16.70 to $17.04. Following a bout of margin call selling, both precious metals rebounded off their early lows to go right back up and register modest new highs for the day. Not bad at all.

Suddenly the FEAR TRADE disappeared, but what about the cumulative reasons which gave impetus to that trade? The only thing which has really changed is the air has been temporarily let out of the gold balloon. Upside momentum was crushed. The norm is for both gold and silver to take some time to regain their composure again. Then again, what is normal about these markets? Just about EVERYONE (to a man and to a woman) expected gold to correct from its $1300+ highs, and that is just what happened … and right on cue going into first notice day for the February contract.


On a positive note, it would be most rare for the precious metals to do just what they did last year … and that is to start off with a fury to the upside, only to fall apart as the year went on. Worth a repeat: NO ONE is bullish in the mainstream investment community. They are in for a big surprise.

Make that two positive notes. The gold/silver share action, which was so poor most of last year, continues to impress. The HUI is up on the day, with no net losses for the past two trading sessions. If they remain a lead indicator, as they have been of late, this correction in the precious metals could be much more short-lived than usual.

Well what do you know! Make that 3 positives. Both gold and silver continued to make a series of new highs as the day wore on. Any dips were bought instead of all rallies getting sold, as mentioned earlier. Can’t stress enough how unusual that is following a debacle like we had on Thursday. What a pleasant surprise to take into the weekend.

Silver did sell off late relative to gold due late day margin call selling, exacerbated by the CME sticking it to the longs.

Spoke with Bo Polny on Wednesday and again this morning. He suggested to his followers to buy the precious metals on last night’s close … and that yesterday would be a down day. He was all smiles this morning and is looking for both precious metals to explode soon … with silver shooting for $50 in a couple of months. If Bo is even close to being correct, it will be high five times all the way around.

Something else stood out today, and that was the yield of the 10 yr T note made new lows for the move down, falling to 1.67%. Not long ago it was a big deal when that yield breached 2% on the downside. Talk about a serious lack of confidence for future U.S. economic growth.


No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Go to Top

Post by the Golden Rule. Oasis not responsible for content/accuracy of posts. DYODD.