Friday AM Once again we are starting the day with the "usual" Muppet-beating in the CRIMEX paper spot markets for Gold and Silver. - The 'beatings' will continue until the lower 'stops' are run, more Muppets are 'scared' out of their positions, and the elevated Open Interest (which has so far stubbornly refused to cave-in, which is tremendously annoying AND concerning to the Cartel) falls. Ignoring for a moment the criminal collusion and paper market manipulation on the CME, consider this. - Central Banks have bought the most Gold since 1964. In 2012 Central Banks bought 17% more Gold than they did in 2011...the 8th consecutive quarter of Central Banks being net buyers of Gold. - Silver bullion shortages continue to be rumored. First it was Apple production being delayed, then the US mint halted production of Eagles, and now Germany's largest automaker is hoarding physical Silver in a Swiss vault because 'there is no just-in-time' delivery of physical anymore. Makes you go "hmmmmmm..." does it not? - It was no 'accident' that Rick Santelli recently said from the trading floor of the CME that it was 'impossible to be a trader' in this market today. One would think that the 'invisible hand' and friends do not want anyone else to hold bullion, wanting it exclusively for themselves. - I think this is the "big flushout" of weak hands and newcomers, and after this dramatic drive-by Muppet-shooting is over there will be a big rally...once the big boys figure they stand to gain the most from it (and enough of the Muppets do not).
Eliot A. Cohen, Conquered Into Liberty
10 minutes ago