Tuesday, January 4, 2011

Huge raid by the cartel..gold and silver fall on massive volume - Harvey Organ's Daily Gold & Silver Report

Huge raid by the cartel..gold and silver fall on massive volume

Good evening Ladies and Gentlemen:

Usually the first week of January one has to expect volatility in the gold and silver comex and the cartel did not disappoint us with their usual shenanigans. Gold finished the comex session at $1380.00 down$ 42.60 from Monday's close. Silver saw a further percentage decline falling by $1.59 to$ 29.50 at the comex close. For the past week, we have seen an equilibrium between buyers and sellers in gold at around 75,000 contracts. Today the estimated volume at the gold comex was 240,871 and when the confirmed volume comes in I can assure you it will be much higher. The modus operandi of the crooked bankers is simple. They withhold all bids to buy as they tell would be purchasers to hold off as they will get their metal cheaper. Then they bombard with over 100,000 contracts that are totally un-backed and they trip some of the longs who have stop losses below the spot price. This trips other stop losses as the price goes lower until it reaches its nadir and the bankers slowly try to cover all their shorts. This is collusion, as all the bankers are told in advance when the raid is to be expected. Then they supply paper with no backing to gold or silver whatsoever. And our regulators just stand there and do absolutely nothing with this blatant manipulation.

As I tell many of you, when a raid comes, do the following:

1. turn off the TV as the pundits will offer stupid explanations for the event which is nothing but garbage.

2. take an aspirin

3. get a good times sleep as tomorrow is another day and the banking cartel need to cover the huge shortfall that they have created.

Let us go to today's comex trading:

First gold:

The total gold comex open interest rose by 1514 contracts to 586,628 from 585,114. The bankers were certainly not nervous about the gold open interest.

The front options delivery month of January saw the open interest fall from 46 to 38. But get a load of this...there were no deliveries. .

The front delivery month of February saw its open interest rise from 345,930 to 346,860. The banking cartel did not like that. They want to see the gold open interest for the front month decline. This may be one of the reasons for the decision to raid. The estimated volume today as I explained above was a very robust 240,871 with no switches yet. The confirmed volume yesterday was 86,306.

And now for silver:

The total silver comex open interest rose by 316 contracts to 136,286 from 135,970. The bankers are not happy campers seeing such a high total silver open interest and this is probably the primary reason for the raid. They are continually trying to shake the silver leaves from the comex tree. The front delivery of March which is still almost 2 months away from first day notice was its open interest rise by 400 contracts to 78,658. The estimated volume today was a very robust 86,787 whereas yesterday the confirmed volume was 44,305.

So you see, if you want to raid all you need to do is supply massive amounts of paper and the price falls. The problem is the regulators do not ask if the selling paper has an metal backing these sales.

As for deliveries, gold saw zero deliveries and silver saw zero deliveries.

I would like to go to inventory changes and then calculate the number of oz of gold and silver that are standing:

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