London Trader - Big Money Lined Up To Buy Gold & Silver
Ahead of the World Economic Forum at Davos we have seen gold and silver under pressure. One trader out of London commented, “It appears certain interests are trying to give the appearance of technical weakness, so all of the banks have sold. That tells me we are at a bottom because they are always wrong in their call. Remember they are telling their clients to sell here, and they are on the other side of the trade.”
“On the 17th of January as an example, Lloyds Bank told all of their clients to sell gold based on a head and should pattern. Lloyds first target was said to be $1,148, then below that $841 to $875, and I have never seen that from them.
What is a big sign of weakness is that these operations creating the appearance of technical damage are being done in the thinly traded access market when the majority of traders in the UK and Asia are not even in the market.
The technical watchers are so myopic, they see this pattern that is being orchestrated and go on the sell side of the market. The banks are bidding on the other side of the trade buying.
Meanwhile physical demand is incredibly robust from the eastern hemisphere creating a floor on the downside preventing a further breakdown. There are certain banking interests which have been making an effort to keep a lid on prices of gold and silver, and as I mentioned they are being met by intense Asian demand as well as savvy traders lining up to buy this drawdown in both gold and silver.
Big money is lining up to buy into any attempts to flush the price lower in both metals.”
Ahead of Fed meetings we are used to seeing gold and silver under attack. It makes sense that on the eve of the World Economic Forum in Davos we would see similar pressure on precious metals. It sounds like large interests are taking advantage of the markdown in prices.
JP Morgan is UNSINKABLE - no silver short positions : Jim Puplava Kathryn Derbes
marcchabotyt | 30 January 2011 | 30 likes, 2 dislikes
Jim Puplava and Kathryn Derbes came close to call Max Keiser a liar and say that JP Morgan Chase has no such silver short positions.
buy silver crash jp morgan : Max Keiser
recorded on January 29th 2011
The contact out of London has updated King World News on the massive Asian buyers which have been accumulating both gold and silver. The London source stated, “What we’ve been talking about for the past few months, the Asians, particularly the Chinese buying staggering amounts of physical gold has just gone into the mainstream media. The Financial Times was months behind King World News in reporting this information.”
The London source continues:
“The Asians, particularly the Chinese, want physical gold and they want it tomorrow. So the Chinese have a new method. They are now planning to buy tremendous amounts of the ETF GLD. They will then tender the GLD shares for immediate delivery of the gold. This bypasses all of the rules of places such as the Comex limiting delivery. There is no limit as to how much you can buy from the ETF GLD.
Mainstream media and some pundits have been pointing to drawdowns in GLD and saying there is liquidation of tonnage and that it is bearish for gold. They are ignorant and don’t understand what is happening is large buyers are tendering shares for delivery, and this is extremely bullish for the gold market.
This gets around the delays, delivery problems and any form of limitation.
The Asian entities are essentially looking for ways to get hold of physical gold because they are having trouble procuring gold in large quantities.
Those short of gold have been trying for some time to cap the price of gold. As far as the price of gold, it has not yet taken off to the upside, but it is just a matter of time before the paper market is overwhelmed by these physical purchases. Keep in mind these paper games are allowing the Asians to buy at lower levels so they are not complaining. We have made our lows in both gold and silver and all dips should be bought going forward.”
When asked about silver the source responded, “There is no metal. Asia as you know has opened the market to the retail public and there are massive fresh new orders to buy both silver and gold coming out of Asia.
There is going to be pressure on the only source available to meet Comex demand. By the way, these sovereign sources through their buyers can also purchase shares in SLV and stand for delivery, and it is possible you may see that in the future. We will have to wait and see.”
The bottom line as King World News has been reporting is that the massive buying out of Asia will continue in the gold market. The Asians also have a huge appetite for silver which is an extremely tight market. It will be interesting to see how the paper markets trade in the next few months with the tremendous physical demand in both metals.
King World News has verified with the Perth Mint that they have run out of 100 ounce silver bars and they are not slated to be available again until the end of March. As of the close Thursday, 100 ounce silver bars were still unavailable at ScotiaMocatta as well.
KWN also reached out to one of the largest dealers in Australia where Peter August of ABC Melbourne stated, “Pamp was just approached by an unnamed Swiss bank and solicited for their entire one kilo silver production ongoing. They said, “Because of the high demand, we’ll take everything you’ve got in one kilo silver bars ongoing.” Peter August went on to say, “We already have a month’s wait for the silver we are buying and it’s getting much harder to find.”
August also remarked, “Gold is starting to get a lot scarcer. Apparently at one point Hong Kong basically ran out of physical gold for sale two weeks ago. We were told that there was no physical gold available for sale in Hong Kong with no timeline given as to when more would be available. Mitsui ran out and the large dealers in Hong Kong were short of physical gold as well. Wether that was just a one time situation remains to be seen, but cracks are starting to appear in the physical market.”
Multiple sources around the world have been confirming tightness in the precious metals markets. So far the market has reacted with higher prices. Silver is within striking distance of multi-decade highs, it will be interesting to see how it trades the next couple of weeks.
With gold recently strengthening and silver attacking multi-decade highs, today King World News interviewed James Turk out of Germany. Turk commented, “Eric, there are a lot of stories making the rounds talking about silver hedging. People should not be scared by them. When you actually analyze it and consider what is happening, the implications are bullish for silver.”
l was going to post the last few Silver replies in the Silver - Commodities forum, but it can't really be taken for fact.
There is a conspiracy around Silver in the fact that JP Morgan is/has been suppressing the price because they have huge Short Silver Positions. There is huge demand with countries like India and China buying futures/options and actually wanting to take delivery of the product at expiration; yet COMEX is having difficulty getting their hands on the product for the clients. Or so 'they' say.