Bill Murphy writes......................From lemetropolecafe.com:
Not bad at all. As suspected, and brought up in yesterday’s MIDAS, the groundhog on our team came out growling and we had an up day with gold coming in more than $5 higher on the opening. Right on cue. However, not to be completely outdone and humiliated, The Gold Cartel’s groundhog capped gold after its initial $8+ surge early on and then instituted the usual $6 rule for the close. Incredible! What is that, 3 times in less than two weeks? The good news is our groundhog is bigger than their groundhog and The Gold Cartel keeps getting pushed back.
Since the cabal capped gold after the initial, early strong gains, the expectation is they will go after gold this evening and try to take it down again for tomorrow. This drill is getting too pat. One day, gold is going to unexpectedly roar and soar after a day like this, and GATA will have to mobilize our stretchers for the shattered crooks.
Was the Blanchard suit against Morgan and Barrick the reason for the price surge? Hard to say, but gold did start moving last evening after GATA got the word out. Another coincidence? The following was taken directly from my presentation at Joe Martin’s investment conference in Montreal early this year.
"It seems every time GATA pops off about the real gold story, gold bolts to the upside. It happened at GATA's Gold Summit in Durban, South Africa on May 10, 2001; again when Reg Howe and I spoke at the Mining Analysts Association Seminar in London on May 23 of this past year; then right after Howe’s Checkmate report was released on December 4th; and now today after GATA put out the Portuguese gold loan/swap story. COINCIDENCES ALL!!"
Gold has now clearly broken out from a powerful base:
https://futures.tradingcharts.com/chart/GD/C3
Silver closed in new high ground and has done the same:
https://futures.tradingcharts.com/chart/SV/C3
The DEC/DEC silver spread came in at 90 cents today. Very bullish. Would not take much to put silver in backwardization.
The gold open interest fell 2478 contracts yesterday to 281,748. Small liquidation on the setback. Should have gone up today. The shorts are really backpedaling.
Gold’s opening surge was one of the strongest in years. We finally got our long awaited breakaway gap. Will it stay that way?
The CRB keeps moving higher, closing at 244.38, up 1.04. Rising commodity prices adds to gold’s luster.
Steve Smith's quote above is most appropriate. Never in all my 27 years of working commodity markets have I seen a market do so well and create so little interest and excitement in the retail and general investing sector. The Café Sentiment Indicator is about a 4 (scale is 1-10 with 10 representing maximum gold enthusiasm.) Early this year when gold ran up to these levels, it was a 10. On this run-up, it has been 6 or less the entire move.
It’s not only The Café. Our gold options man has continuously asked as to where the retail gold option player is. A well known and substantial commodity broker I know has almost no retail gold book. My brother Tim at Swiss America says the gold coin market is very quiet.
Bottom line:
RARELY HAS A RISING MARKET BEEN SO BULLISH FROM A SENTIMENT STANDPOINT AS THIS ONE!!! Especially since we are two years INTO the bull market! There is almost no understanding out there in the investment world why gold is rising and where it is going price-wise. GOOD FOR US! We’ve got a whole bunch of people to sell to down the road. However, with sentiment numbers like I’m seeing, no need to even contemplate selling gold or the shares for some time. I thought we would be getting close to a gold buying panic soon. Not even remotely close. Investors still can’t spell gold shares yet.
While there is not much gold interest by Joe and Jane public, there is enormous interest from the biggest players in the world. As discussed for many weeks, this move up has been orchestrated by some very deep pockets and some very smart traders. As The Gold Cartel gets their lunch handed to them on a weekly basis, it looks more and more like my information about a $4.6 billion physical market buyer is for real.
The specs are way in the money now. Many have substantial cushions to weather setbacks. The cabal is going to have to do an awful lot of huffing and puffing to shake them out. For the most part gold has moved up on its own. If the dollar were to really tank (the euro is 7 points off its highs), the stock market were to crack, or there were some serious derivatives disaster out there, gold could go bonkers very easily. The coming Commercial Signal Failure is not far off.
One more thing. We are in a bull market, as you all know. What you may not have thought about is that bull markets receive POSITIVE SURPRISES. In part, it’s what makes a bull market. Aside from the Blanchard court decision, we have not had many yet. We are due.
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More comedy from Norman. Got to keep this guy around for laughs:
Mike Norman
Gold is a currency nonsense
9/09/03 02:30 PM ET
Funny, don't remember the last time I saw someone paying for groceries with gold bars, or booking a plane reservation over the Internet with gold and not the gold card. This gold is a currency talk is nonsense. Nowadays it is a simple thing to move money into other highly liquid and interest paying real currencies with the stroke of a keyboard. Even backward Saudi Arabia puts money into bonds and other currencies rather than gold these days. Gold is about as much a currency as horse and buggies are good transportation. None
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To think Fox news puts that guy on TV every week to inform their viewers about the markets! Good grief!
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I just spoke to a very good and long time friend of mine who is a trader at the COMEX. He's been a trader there for many years. Told me tonight that for the past week or so, there's been chatter on the floor about a absolutely massive buyer working the pits as quietly as possible, probing the market to see if there is any size offered and at what levels. His instinct is that the buyer behind this is possibly the largest the floor has seen in years. He spoke with several floor traders representing commercials today and the word is going around that the commercials are getting quite nervous because they sense that the dynamics of the market have changed due to the persistent massive buyer. He said the tension is extremely high on the floor and he can't remember when things have been this "interesting" in many years. He said that he and some other smart traders he knows are playing things close to the vest at this level and taking advantage of dips to buy common stocks in the $HUI especially the smaller cap names, as well as buying long contracts on the metal on short-induced dips.
Thought the board would find this interesting.
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Sure IS interesting. Fits right into my MIDAS commentary for weeks. Love that one!
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Here is gold at its highest close in 7 years and the shares are a big yawn. The HUI closed at 204.08, up 5.31. The XAU only managed a 1.17 gain to 94.53. Lot more action coming our way with these babies. The gold shares are only getting to the launch pad. Lift off and rocket ride still to come.
GOT TO BE IN IT TO WIN IT!