GOLD, SILVER, PLATINUM, PALADIUM AND URANIUM

Gold had another stormy day on Wednesday, down $0.20 to $757.00 and silver rose $0.12 to $13.65. Copper fell $0.05 to $3.60. Overnight in Asia gold was up about $6.00. Early in the morning it was up $1.90 and after the Comex opening it rose $7.00. Then the cartel attacked and a volatile session followed. Gold open interest fell 5,272 contracts to 483,372. Silver OI went down 63 contracts to 124,780. As we have said over and over again the gold suppression cartel, the Illuminati, the elitists have lost control of the gold market. The gold call options for December have reached massive proportions or about 130,000 contracts. There are some 13,000 contracts at $700, 11,000 at $750, 15,000 at $800, 6,000 at $900 and 6,800 at $1,000. Some 74,000 are now in the money about 20,000 more than a week ago. These pros are telling us they see no correction, and we agree, and they have taken the cartel on head to head. There is only clear sailing ahead. That is in spite of the fact that ECB data tells us that two central banks sold 6.7 tons of gold last week, following 8.8 tons in the prior week. It looks like the Swiss under order from the Illuminists are still aggressive sellers. The Tocom shorts are still going at it. On Tuesday, they increased their shorts by 1,704 contracts to 54,694 as Goldman covered 2,320 shorts to be net short 10,438. The same group increased silver shorts by 98 to 2,054 contracts. Russia re-priced their gold to the market as reserves rose 13% to $10 billion, a new high. The Dow was 13,893 -20, S&P rose 25 and the Nasdaq rose 173 Dow points. The yen was +.43 to $1.1660, the euro +.29 to $1.4203, the pound +.84 to $2.0395 and the Canadian dollar +.15 to 102.66. The 2-year Treasury yielded 3.98% and the 10’s 4.56% down 8 bps. Oil fell $0.21 to $87.40, gasoline fell $0.03 to $2.15 and natural gas fell $0.09 to $7.46%.

Early Thursday the markets were almost unchanged. The Dow was unchanged, S&P +7, Nasdaq +4 and FTSE was -22. The CAC was -18 and DAX +8. The yen was +32, the euro +.43 and the pound +53. The 2-year was 3.98% and the 10’s 4.54%. Oil was -.07, gas was -.01 and natural gas was -.07. Gold was unchanged, silver +0.02 and copper-$0.02.

The cartel on Thursday pushed the market up 100 points and then let it ease off over the day, the Dow ending at -4 at 13,889. The S&P was -12 and Nasdaq +42 Dow points. The market news was not good. Bank of America’s earnings fell and the Beige Book translated into another interest rate cut as the dollar was abandoned to save the crooks on Wall Street and in our banks. The elitists won’t let the market correct. This has to be costing taxpayers a fortune. When Ron Paul is elected president this will all come to a halt along with the Federal Reserve.

Gold rose $4.00 over night, but it was unchanged in the wee hours. On Comex gold opened up and never looked back, but the Illuminists capped it again, probably via shorting. Gold closed up $6.90 at $763.90 and it was up $4.00 additional dollars in the access aftermarket. Silver rose a paltry $0.04 after being up $0.10 early on, closing at $13.69. Copper fell $0.05 to $3.54. The shorts get deeper into trouble every day as gold rises. There are already massive losses. It is hard to use technicals in rigged markets, but silver looks ready to catapult. When $14 is broken it is up, up and away. Yesterday gold open interest  fell for the second day in a row, down 1,484 contracts to 482,388 as silver OI rose 361 to 125,141. Platinum hit another record high at $1,443.

Really the biggest story of the day was the dollar. The yen rose .84 to $1.1561, the euro +.79 at $11.4289, the pound +.44 at $2,0434, the Canadian dollar up .16 to 102.67 and the dollar index hit a new low, off .52 at 77.52. It’s in freefall now to the 72 to 75 area. No one is holding the dollar up. Another gold, silver assist came from oil that rose $2.07 to $89.47, gas was +$0.04 to $2.19 and natural gas was -$0.08 at $7.37. If all the above happened in 1979-80, gold would have risen $50.00 and silver at least $1.00. We have some catching up to do. We will catch up we promise. The 2-year Treasury was 3.93% and the 10’s 4.50% as investors stampeded to what they believe is safety.

Wednesday Tocom cut net shorts 7,548 contracts to 47,146 as Goldman increased their shorts by 87 to 10,624. Silver shorts increased 103 contracts to 2,157. The XAU rose 4.13% to 176.87 and the HUI gained 9.19 to 411.15.

Gold imports to Turkey rose 24% to 192 tons for the first nine months, matching the total for all of last year. Turkey is the world’s third biggest consumer of gold bullion.

          The rally-crash failed, so it looks like we may just get the crash.  The dollar has collapsed and gone down in flames based on negative forecasts from Helicopter Ben and Hanky Panky Paulsen regarding the real estate subprime and credit-crunch debacles.  These forecasts have been viewed as a set up for further rate cuts to bail out the Fed's Wall Street buddies, and have converted gold from the solid state into the plasma state.  In order to avoid being vaporized by gold, the cartel has substantially strengthened the yen overnight into early Friday morning even as the dollar is simultaneously making new all-time lows in the 77.4 area on the spot USDX.  The cartel thinks they are going to punish the large specs for running up the metals instead of just running up the stocks when they weakened the yen last week Thursday and this week Monday.  If the large specs have been listening, they should be ready for this, and they will now use their protective derivatives to provide the necessary liquidity to cover margin calls, and then stuff the cartel with a pile of bullion purchases instead of caving in by liquidating PM positions as the cartel is expecting.  With gold setting a new 27-year high late on Thursday, kissing 770 for the first time in almost three decades, the mountain of shorts is on the verge of turning into a commercial-short-incinerating volcano.  A lava flow is imminent.  The cartel is now desperate because gold is on the verge of going totally ballistic.  We continue to suspect that those who have been screwed by the CDO contagion are behind the scenes counterpunching the cartel's blows on the precious metals.  Ah, sweet revenge!  The commercial shorts are about to become crispy critters.

          The yen stood at 117.897 yen per dollar and 167.673 yen per euro at 9:25 am on Monday, and as of 2:05 am on Friday, the yen has now strengthened to 115.022 yen per dollar and 164.573 yen per euro, a whopping 3-yen against both the dollar and the euro in only one week.  That's almost a 2% move against the euro and almost a 3% move against the dollar.  How absurd is that.  That is preposterous for a currency move in one week.  Annualized in rough terms, that kind of move is an equally absurd 100% against the euro and 150% against the dollar.  When is this kind of blatant manipulation going to be stopped?  How long will investors tolerate this monkey business without complaint?

          And then, of course, there are the gold and silver lease rates, which have reached absurdly low, manipulative levels again.  Gold lease rates are in the +.16% to +.32% range while silver lease rates have been lowered to laughable negative rates for shorter term leasing, now being in range of -.20% to +.35%.  So we now have to use + and - signs to describe lease rates.  Truly unbelievable!  And everyone wonders why silver is under-performing.  They are actually paying people to lease silver because everyone is afraid to lease it and then sell it lest they be annihilated by the coming explosion in silver.     

          Our most recent IF issue must have touched some nerves, because it almost seems as though the dollar is being sold off with a vengeance.  The spot USDX has dropped a staggering .60 to .70 points or so from Wednesday's close to late Thursday.

           While gold has gone plasma, oil has become naphtha, flaming on like The Torch to kiss 90 for the first time ever late Thursday and is still hanging on firmly to the 89 handle in the early going on Friday.  We are seeing some moves in financial markets that appear to be orchestrated for the sole purpose of destroying the short positions held by commercial shorts in precious metals, and it could not happen to a nicer group of financial and moral reprobates and sociopaths.       

Early Friday was good for the good guys. The Dow was -16, S&P -38, Nasdaq +35 and FTSE was -7 Dow points. The CAC was -3 and the DAX was +19. The yen was -.03, the euro -.05 and the pound +.41. The 2 year was 3.91% and the 10s were 4.48%. Oil was +31, gas +.02 and natural gas -.08. Gold was +$4.40, silver +$0.11 and copper +$0.02.

Perth, Australian based Paladin Resources, which plans to produce 900,000 pounds of uranium this year, sees a $110 per pound uranium price in the first quarter of 2008.

Newmont sees gold prices continuing to strengthen in a golden bull market that will continue to run for a number of years.

          They allowed gold to rally $3.00 after the Comex opening after having been up $4.40 early Friday morning and it then plunged $9.00 before recovering. We had to settle for a -$0.30 and close at $763.60. Silver fell $0.20 to $3.49. The Dow lost 367 to 13,552, S&P -360 and Nasdaq lost 445 Dow points. Oil lost $0.87 to $88.60, gas lost $0.02 to $2.17 and natural gas fell $0.33 to $7.04. The flight to quality to US Treasuries was the talk of the day. The 2’s were yielding 3.78% and the 10’s 4.39%. The yen rose 1.06 to $1.1450, the euro rose .13 to $1.4302, the pound rose .60 to $2.0510, the Canadian dollar fell .09 to 103.46 and the spot dollar fell .20 to 77.39 and the December dollar fell .17 to 77.35. Another very bad day for the dollar. Copper rose $0.01 to $3.55 and all the base metals were higher. Gold open interest rose 4,820 contracts to 487,208 and silver OI fell again 1,275 contracts to 123,866. When the market has fallen, gold and silver have usually fallen over the past several months, irrespective of a falling dollar. That didn’t happen today. Again, the cartel is in serious trouble and we see much higher prices immediately ahead. The cry now is $1,000 by New Years. The COT report was no surprise. The large specs increased net longs by 11,163, which have to have the commercials furious. The commercials again went net short 12,075 to take recent 8-week short additions to about 125,000 contracts. Every one of those contracts is a loser and unless there is massive selling and or leasing of gold this freight train is going to pick up steam. The Tocom on Thursday saw the big shorts add 6,000 new net shorts for a total of 58,797 gold shorts. The big shorts increased their silver shorts by 21 contracts to 2,178. Goldman increased their gold shorts by 817 to 11,441. The XAU lost 3.54 to 173.81 and the HUI fell 6.33 to 404.82.

          What a great day for gold!  A yen-hit on gold took the Dow down almost 250 points, and gold barely budged!  After setting a new 27-year high of 770 late Thursday, only 80 bucks away from the all-time high, gold was trading at just over 769 when the cartel attacked with a classic yen-hit on gold, which we saw coming last night as the yen strengthened.  Gold was driven down to about 758, and then the moment we have waiting for came to fruition.  Gold just laughed and rocketed back up to its previous high of 767 before settling in at about 764.  We wanted to hug every one of the investment strategists at the large specs like they were one of our children who had just given an outstanding performance at some sporting event.  Unbelievable job fellas!  The protective derivatives worked, eh!  The commercial shorts are about to be vaporized by gold plasma after being turned into crispy critters by molten gold lava!  Perhaps they haven't yet noticed the cauldron that is developing in their mountain of shorts that is full of molten gold lava that is about to erupt.  Not much chance to cover your mountain of shorts today, you devilish gold-suppressing reprobates!  Go ahead and try it again, we love it when our protective derivatives go nuclear along with gold.  Ha!  As Johnny Carson's character, the Great Karnak, once said, upon hearing resounding applause as he announced that he held in his hand the last envelope: "May the fleas of a thousand camels infest your armpits!"

          We have just received some unconfirmed reports that priests have been ushered onto the trading floor of the COMEX to read gold bears their last rites.  Some of the priests were apparently reluctant to go in due to the searing heat caused by the roiling gold lava in the gold cauldron that has developed in the mountain of shorts which now threatens to blow up skyward and split, releasing the golden lava on the gold bears.  Perhaps the Fed and the Treasury might use the current situation to refine some of their Depression Era coin melt, which is about all they have left.  It's time for the commercial shorts to bend over and kiss it goodbye!

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-- Posted Sunday, 21 October 2007 | Digg This Article | Source: GoldSeek.com

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