Thursday, August 26, 2010

From Bill Murphy: "What it all means…

From Bill Murphy: "What it all means…

*Mitchell is correct. Yesterday’s sensational moves off the lows was initiated by some BIG player, or players, who appear to be taking on The Gold Cartel.

*JPM had to be very surprised (to say the least) see silver go bonkers going into an option expiry. While surely they did some covering this week on the dips below $18, yesterday had to be a Pearl Harbor for them.

*The fact that silver could do what it did, with outside market conditions being what they were, remains astounding and a BIG, BIG deal. The large player wanted silver in the most urgent way. Price was not the issue yesterday, securing supply was.

It was not panic shortcovering, but buying of a panic nature.

*The extraordinary silver move suggests the physical market is seizing up, confirming what Adrian has been pounding the table about.

*Had a conversation with the erudite Jim Willie this morning. His sources tell him that the Chinese and Arabs are going after the gold and silver markets in London … with buying sprees every ten days. If so, the prices of gold and silver ought to go parabolic in the months ahead and probably much sooner. There is no way the LBMA crowd can cover their Ponzi-like fractional gold/silver exposure. If they have sold the same gold and silver to many multiples of parties, as we think they have, the LBMA bankers are going down … should the Arabs, Chinese, or anyone else be going after their physical holdings. They will be doomed. Jeff Christian will have to go into hiding.

*The odds are favorable that GATA’s testimony, and subsequent revelations (including the Adrian/Christian exchange) at the March 25 CFTC hearing was a game changer.

*The likelihood of gold/silver defaults and force majeures are increasing. Expect the CFTC and LBMA to come up with phony reasons as to why they occur.

*Holders of physical gold and silver in unallocated accounts could be in a real pickle. From what I know, if there is a default, owners would get cash at the price of the day of the default. But the price will really go bananas after the default, leaving gold and silver owners without any physical and not participating in the really big move up, which is why they wanted to own the stuff in the first place. The lawsuits will be MEGA.

*It confirms yesterday’s early surge and capping the rest of the day was vintage Gold Cartel.

*Friday’s Commitment of Traders Report, which is calculated at yesterday’s Comex close, will be most interesting this week and ought to be very telling." ... Le Metropole Cafe

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