Last Chance to EVER Buy $16 Silver & $1100 Gold???

by The Doc and Eric Dubin, Silver Doctors


With gold & silver hammered yet again on options expiration this week, The Doc & Eric Dubin break down all the trading action, discussing:

Metals recover- Last chance to EVER buy silver and gold with $16 + $1100 handles? 
Why Gold & silver are likely headed to a FANTASTIC JUNE!
US Mint Ends Silver Eagle rationing– Implications & Ramifications
Risk of Greek default on June 5th- Is a derivatives induced meltdown of the Western financial system only 7 days away?

The SD Weekly Metals & Markets With The Doc & Eric Dubin is below:






Options expiration and first notice day has come and gone for COMEX gold and silver trading.  Goodbye and good riddance.  Two weeks ago I warned there was a high probability we’d see the shortened Memorial Day holiday week trade and this week’s trade succumb to the bullion bank goal of hosing profitable long positions, compelling the bullion banks to push gold below $1,200 and silver under $17.  Mission accomplished.


But here’s the good news.  Trading over the last three days clearly shows that the cartel was having one heck of a hard time pulling off this b.s.  Check out that failed smack-down on Thursday.  The cartel was trying to paint the tape for first notice day and they clearly failed.  Doc and I dive into further details on the show.

Historically, a “summer doldrums” period for gold and silver is common.  But my assessment of fundamental drivers, sentiment and the price action point towards a surprisingly strong summer, starting next week.  We’ll have the normal nonsense surrounding non-farm payroll releases, options expiration dates and the usual cartel favored capping events.  But this bear market ended last November, and the summer should be anything but a “doldrums” period.


Greece:  June 5th and beyond

Another week has come and gone, and the Greek saga continues.  The negotiating positions of the Troika and Greek government are rehashed each time a new deadline approaches, and similar statements are made.  You can take an article from April, flip a few dates and minor details, and it could read as if it was describing events this past week.

I can at least say with almost total certainty that June 5th isn’t going to be the start of a global meltdown because both the Troika and Greece have already approved that Greece can bundle all June debt service payments due to the IMF in one payment on June 19th.

Greek government officials are, of course, claiming that they can meet the June 5th deadline.  But even if they can’t, the can kicking option for that deadline is already set-up and ready to be executed.  All “alternative asset” analysts and pundits commenting about the fur starting to fly associated with the June 5 date have missed this important fact.  The Greek bond market didn’t, however.  Yields on the benchmark 10 year Greek government bond inched up to 11.25% (up 1.19%) on Friday’s close.  But that’s a far cry from the intraday yield high of 11.976% reached on May 26th, and the 13.641% yield reached on April 21, the peak for April.

I know I’m going to anger many expecting all heck to break loose given the June 5th deadline, but it’s going to be a non-event.  We’re talking about a piddly 300 million Euro payment and the ability to kick that can down the road is trivial.

One of these days, one of these deadlines WILL be the catalyst for “the big one,” but it’s not June 5th.  My best assessment is that we’re going to see the Troika and Greece move heaven and earth to extend and pretend for about 2 more months.  But Grexit is the end game, and it will cause major turmoil later this year, and massive market chaos in 2016.

Speaking of Greece, did you catch the goofy story about IMF Managing Director Christine Lagarde coming clean about the reality that Grexit is indeed possible?  Lagarde was interviewed by Germany’s most important financial newspaper, the Frankfurter Allgemeine Zeitung (FAZ).  She was reported as saying in regards to a possible Grexit, “But, you know, it’s a potential…”  It appears that someone leaned on FAZ.  They changed the transcript to read,”Nobody would wish a Grexit on the Europeans.”  You just can’t make this stuff up…

Worthwhile Weekend Links

Thanks for listening – Eric Dubin

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