Silver Price Update 5/25/12: To The Tune of Dead Cat’s Bouncing
The silver and gold price drop was not unexpected as the paper cabal waded in the background for a moment in which they could use global uncertainty to put wind in the sails of their paper manipulation scheme. The Eurozone crisis has made for weakness of the Euro and colored the commodities complex.
It’s a suicide economy in Greece as that country comes apart at the seams as the ponzi scheme of the European Union comes unglued for the whole world to see. All the elitists have to do is sit back and watch the chaos tatter society and make way for a new world order. The Euro could fall and fall hard, but quantitative easing is surer bet for the demise-of-the-state globalists that their political tyranny will catch up with total economic austerity.
The Euro is currently at a 22-month low as it trades at just over 1.25. Gold and silver are both trading in the middle of their ranges for the week. Overnight, gold tested $1,550 and this time held it while silver broke below $28.00. The peak lows remained for only a short time and now both metals are in the positive on low volume.
The gold/silver ratio is currently 55.628 ounces of silver for every ounce of gold. Usually, the ratio moves up as bullion prices decrease and the ratio moves down as bullion prices move higher. The ratio recently rose to just shy of 58 and this morning is approaching 55. This could signify a bottom and if the ratio continues to fall could signal a rally in the cards.
What’s also bullish is news coming from the IMF that central banks have purchased gold on the recent dip in prices. There are also reports that Russia will be increasing its gold holdings and China, it’s been rumored, was also a buyer. As I will demonstrate soon, the commercial hedgers who seem to be bluffing a very long positions in the silver market via paper silver shorts have gone as un-short as they’ve been in the last five years.
The paper shorts are as unshort as they’ve ever been, sitting at around 10,000 contracts short, which is only 50,000 ounces of silver! This down from a cartel that is often raping the market at 250,000 ounces short. They are also getting aggressive in the copper market and going less short in the palladium market.
I would not be surprised, going into the weekend, if we have seen what we have seen a number of times before this last week; namely that, in the middle of the trading day or towards the end, all currencies go in the red compared the US dollar. This results in a stronger dollar and puts pressure on gold and silver. On into the long weekend, the paper cartel wouldn’t mind inspiring increased bearishness in the investing public, ending a week of disappointments in the financial, tech and commodities sectors with a red-day for money, gold and silver.
|(Exchange rates displayed are the middle point between bid and ask)||[details]|