Just a Minting Shortage? “There IS A WHOLESALE Shortage!” – John Embry

from Silver Doctors

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embryIn the wake of historic movements in the gold and silver markets this week, Sprott’s John Embry joined us for a power-packed show, discussing:

  • Metals Drive-By Shooting As $2.7 Billion Notional in Gold Dumped in Nanoseconds: “This is financial repression at its finest!
  • CAPITULATION Bottom In Progress– Absolute OBLITERATION in Mining Sector!
  • Manipulation & MOPE Went Into Overdrive! I’ve never seen such a coordinated attack on gold in the media!
  • Sunshine Mint SUSPENDS SALES OF ALL SILVER BARS AND ROUNDS, & the RCM SHOCKS Distributors Friday By Announcing 90% Decrease in Silver Maple Allocations! 
  • Embry Explains Cartel Gets Aggressive Because “We Are Getting VERY CLOSE TO THE END
  • Just a Retail/ Minting Shortage? “There is a WHOLESALE SHORTAGE!…There’s so much misinformation in the markets!

    Sprott’s John Embry Provides MUST LISTEN Analysis On Metals Capitulation & Shortage Below:

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Source:  William Banzai7

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The cartel followed last week’s Chinese gold holdings declaration with a massive raid last Monday morning, dumping over $2.7 billion in notional gold value, running the stops and generating an immediate 4.2% decline.  That sliced about $50 from the price of gold, broke technical support levels that traders pay attention to, and took prices to levels not seen since March, 2010.  Downside momentum continued for the entire precious metals sector throughout much of the rest of the week.  But we did bounce back on Friday, and mining shares participated.

It will take time to repair this damage.  But the metals did not fall for any fundamental reason.  This week’s carnage was initiated by the cartel, with copy-cat momentum chasing following Monday’s raid.  Amusingly, the financial press initially tried to blame this attack on a Chinese trader.  But the sell executions came out of NYMEX, forcing the financial press to backpedal.  Furthermore, a link between Monday’sdecline and China’s declaration is off-target, regardless of what initial Reuters stories reported.  The gold holdings declaration was made in the early morning hours on Friday and before Western markets had opened.  Reaction on last Friday was tame.

Many analysts and pundits will argue that we have yet to see a full capitulation in precious metals.  I believe we have had enough pain, and I expect metals to turn around in a similar fashion to how trading developed following the lows set last November.  Physical markets are tighter, and the certainty of further mine supply declines is now a given on a going forward basis.   August will mark the start of the Indian buying season and if we were looking at a non-manipulated market, the probability for a halt of this carnage would exceed 90 percent odds.  But we’re not in a normal market, so time will tell…

John Embry offers considerable insight on this week’s trading and we’re very pleased to have had the opportunity to interview him last Thursday.  With over four decades of financial market experience, Mr. Embry’s insight runs deep.

gold July 24 - 2015

 

Silver:

silver - july 24 - 2015

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