Actually I am not surprised at all, we can expect these days until paper and physical become completely disconnected (and yes our little junior miner is basically physical as we "own" the company that will be pulling the silver out of the ground).
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I am not a technician like Turd Ferguson and other far more accomplished technical analysts so I'll leave it up to them to interpret the charts from a purely technical viewpoint.
But in my opinion, the low in silver has now been reached. I base this conclusion on the fact that Blythe could not puncture yesterday's low point. Not even close. Gold got blasted right through 1322 like a hot knife through butter yet silver stubbornly clung to the $27 level and was no where close to the $26.50 level. Believe me, if Blythe wanted silver to crack $26, she has the firepower to do it easily.
The reason that she didnt was because she must somehow realize that the people she was selling her Mar contracts to were going to be standing for delivery. Believe me she knows when these people are buying.
Which gets me to my original post. This whole slam down in precious metalsm was all about silver. Gold was just the unfortunate mechanism and instrument by which Blythe worked her magic. She slammed down gold because she knew eventually traders would not be able to stand for delivery in Feb. The gold market is just too big. But you can buy every ounce that the comex CLAIM to have with a mere $2.8 billion. Blythe has access to that type of money in the folds of her couch at The Morgue's HQ.
You can see clearly now why she needs to suppress the price of silver and force traders to cough up the Mar contracts. Once the slam down in gold no longer has the desired effect than it is time to abandon that strategy. My guess (and it is only that for now) is that we have seen the low for silver.
If she is at all competent, then she will be sending the price of silver up by at least $2 by Feb 8 to make it more difficult for hedgies to raid the Comex. But we'll have to see. Either way as long as hedgies and big investors cough up about $5 billion in Feb, then Blythe and The Morgue will be in a world of hurt.
I want to clear up another point. Some people are interpreting that I am predicting a default in March. That is definitely NOT what I am predicting. All I am predicting is that there will be massive contracts that will be standing for delivery and each one of these contracts will be offered a huge premiums which will be settled in cash. You see, it is always more profitable to buy the Mar contracts settle in cash and then buy the May contracts and do it all over again.
It is as if you buy $1 billion worth of silver, sell it for $1.2 billion and buy the exact same position for $1 billion again. You really don't lose anything and someone automatically gives you 20 percent and you get to keep your position exactly as it was before. Well not exactly because the equivalent May contracts are slightly more than the corresponding Mar contracts. It's up to you what you want to do with your money but since it was so easy in December, why not do it again in March and then again in May?
It's as if you show up with 1 ounce of silver, The Morgue pays you 120% of the value of your holding, and you go back into the pits and buy it back at face value. Nothing could be easier and they are defenseless to stop it.
I know for a fact that the silver shorters are desperately trying to come up with physical silver from anywhere they can get it--from the SLV, the US Mint, foreign ETFs, anywhere they can get physical silver. Too bad it still won't be enough.
So watch for February and see how high silver spikes up. This whole slam down was The Morgue trying to get people to stop hoarding silver, so keep buying physical silver and they will fail. Good luck to all physical silver holders. Our time is close at hand.
D
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