Fund Manager Dave Kranzler: PMs Raided to Prevent Feb Delivery Run on COMEX Gold!

by The Doc and Eric Dubin, Silver Doctors


With Silver enduring the largest 1-day smash in 18 months Thursday, PM Fund Manager Dave Kranzler joined the show this week discussing:

  • Gold & silver take-down on options expiration/ First Notice Day- Cartel had to force selling of 3 million oz of Feb gold contracts to prevent a potential run on delivery in Feb gold!
  • With the cartel desperate to prevent a delivery run on Feb gold, are fireworks looming for April delivery? 
  • Kranzler explains why One of these months a high percentage of longs will finally stand for delivery, & its LIGHTS OUT for the COMEX!
  • Is the End Game in progress- Could the long awaited Economic Armageddon finally arrive in 2015?
  • The Indian Physical Giant is stirring- Kranzler explains why data out of India indicate a BIG move is imminent
  • Gold & the Dollar rising in tandem- why this might foretell one of the largest bull moves of the secular bull run!

The SD Weekly Metals & Markets With The Doc, Eric Dubin, & PM Fund Manager Dave Kranzler is below: 


 2015 Silver Maples As Low As $1.99 Over Spot!


Source:  William Banzai7

On last week’s show we talked about a number of factors pointing to the high probability for a cartel raid coming during the time-frame encapsulating the policy statement from the FOMC.  The cartel almost always manages bullion prices downward during an FOMC week, but this week’s release also came at the end of the month, and far too many options were in the money to let go unpunished.The cartel was also keen on slowing down the upside momentum.  That’s one of their prime goals while operating their “managed retreat” strategy.  Bullion banks also wanted to “paint the tape” going into Friday’s first notice day for the Feb. 2015 contract, and the precarious low Comex inventory going into expiration this week was also a problem.  Dave discusses this in detail on this week’s show.gld-jan30-2015To top things off, we had a modest level of speculative burst coming into the precious metals market this month.
I’d hardly call it frothy, but we did see it expressed very clearly in two key areas:  1) a burst of buying from the North American and European “conventional finance world,” which can be seen with the short-term peak of GLD accumulation (check out that on balance volume);  2)  the precious metals community has been upping their expectation for the brown stuff hitting the fan and even a full system reset as early as February, which is not likely.    I first made public my expectation for a takedown during the FOMC window back on Jan 21st  with Rory at The Daily Coin and took some flack for my pointing out what was going on within the precious metals blogosphere.

When the mining shares turned in a negative signal during the second half of last week and a huge increase in bullion bank short positions was reported in last Friday’s CME Commitment of Traders report, the stage was set for a raid.

The good news is that we’ve rebounded with fantastic speed.  Dave and I agreed that the odds were good for a quick rebound on Friday (we recorded the audio Thursday evening and I’m writing the this article after the close, Friday).  But next week is where the real test is going to come.  I’m of the view that we’ll see a two steps forward, one step back sort of pattern as the damage to the precious metals sector repairs itself.  That process should complete by Monday, Feb. 9th – the same view I’ve talked about on SD Weekly Metals & Markets with Rory back on Jan 21st.  Dave thinks we might see even faster recovery.

Friday’s rebound speaks to how strong the precious metals market remains, even with the CME hiking silver margins by 11%.  The fast rebound speaks to how much trouble the cartel is having keeping a lid on prices.  Keep in mind the cartel was naked shorting pretty much all month, trying to slow down the big move in gold and silver, and the dollar was rising during much of this period as well.

Nevertheless, we can always be sure the clowns on CNBC and many within the conventional wall street community remain totally blind to gold and silver fundamentals and price manipulation.  Rather than reporting what was an obvious orchestrated take-down, the ever shrinking CNBC audience is served up garbage like this:

Will gold ever top $1,300 again? – CNBC

In the wake of a sharp drop Thursday, gold may struggle to see heights over $1,300 an ounce again as the tailwinds from central banks on an easing bent stalled when faced with the Federal Reserve’s resolve. “Gold is set for another bearish year,” Howie Lee, an analyst at Phillip Futures, said in a note Thursday before the metal’s decline in U.S. trading hours. He cited a “strong signal” of interest rate hikes ahead based on changes in the U.S. Federal Open Market Committee statementWednesday.

Howie Lee would be better off killing a goat and playing with entrails.  For starters, the FOMC announcement was made during regular New York market session hours on Wednesday and gold and silver didn’t start their downtrends until the next trading day in London, with the smash hitting well after the COMEX open and when the dollar was declining.  The “strong signal” of tightening wasn’t what traditional equities traders took from the FOMC announcement either, and it was only after Yellen made dovish remarks on Thursday that US equities were rescued.  How many times have we seen that movie?

fed reserve members jawboning market higher

For your weekend reading, be sure to check out:

Have a great weekend — Eric Dubin

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