We didn’t have to wait long for that engineered price decline by JPMorgan Chase et al that I spoke of in yesterday’s column

The gold price was pretty flat up until noon in London.  From there it got sold off a few more bucks, but recovered a hair going into the 8:20 a.m. Eastern time Comex open.

And that, as they say was that.  A bit more than thirty five bucks got peeled off the price between the Comex open and the open of the equity markets at 9:30 a.m. about seventy minutes later.

The low price tick…$1,704.80 spot…came about one minute before the markets opened…and the subsequently rally gained back about half the original sell off…before the gold price began to trade sideways starting late in the New York lunch hour.

Gold closed at $1,719.80 spot…down $22.00 from Tuesday.  Gross volume was an off-the-charts 486,000 contracts…but after the roll-overs were removed, net volume came in at a very low 66,000 contracts.

The silver price struggled throughout the entire Far East and London trading sessions…making it back to almost the $34.00 mark by 11:00 a.m. in London before it, too, began to head south…running into the same 8:20 a.m. Eastern time not-for-profit seller.

Silver’s low…$32.83 spot…came at the precise same moment as gold’s low price tick…but the recovery off that low was far more dramatic.

This subsequent rally ended at the same moment that gold’s rally ended…about 12:40 p.m. during the New York lunch hour…and from there it traded sideways into the 5:15 p.m. electronic close.

Silver finished the Wednesday trading session at $33.77 spot…down only 28 cents from Tuesday…but had an intra-day price move of 3.6%.  Ted Butler was very impressed by silver’s strong recovery after such a battering.  Silver’s gross volume was around 163,000 contracts, with net volume only about 16,000 contracts.

It was the same not-for-profit seller story in both platinum and palladium yesterday as well.  Palladium actually finished positive on the day…and platinum would have too, until it obviously got capped at the same 12:40 New York time as gold and silver did.

You have to be pretty much brain dead not to recognize Wednesday’s price activity at the Comex open for what it was…a blatant engineered waterfall decline by JPMorgan et al…precisely what I wrote about in yesterday’s column about five hours before it happened.  That’s the second time I got that lucky this year.

Even the pros weren’t taken in by the fat finger/short seller b.s. that was circulating in the main stream media yesterday…and I’ll have more in the ‘Critical Reads’ section…and in ‘The Wrap’.

The dollar index opened at 80.35…and traded flat right up until mid-morning in London.  It then rallied a bit up to the 80.57 mark between 8 and 10 a.m. in New York…and then at 10:00 a.m. Eastern time precisely, the index got sold off…and lost all of its gain.  The index closed the day at 80.30…down an insignificant 5 basis points.

There was obviously no co-relation at all between the precious metal prices and the currencies yesterday.

I was expecting the worst in the precious metal equities…and was quite taken aback by what I found when I clicked on the HUI link late yesterday morning.  Not only did the gold shares finish in positive territory, they closed on their absolute high tick of the day, as the HUI finished up 0.85%.

The silver shares didn’t do as well as their golden brethren…but it could have been worse…much worse.  Nick Laird’s Silver Sentiment Index closed down 0.31%.

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The CME’s Daily Delivery Report showed that only 5 gold contracts were posted for delivery tomorrow…and that will just about wrap it up for the November delivery month.  First Day Notice for delivery into the December gold and silver contract will be posted on the CME’s Internet site late this evening Eastern time…and I’ll have all the details in my column on Friday.

The GLD ETF reported receiving 38,750 troy ounces of gold yesterday…and SLV went in the other direction, as an authorized participant removed 483,966 troy ounces and shipped it off to parts unknown.  Since its peak on November 9th…SLV has had almost 8.8 million ounces of silver withdrawn from it.

Over at Switzerland’s Zürcher Kantonalbank for the period ending November 26th, they reported that 44,196 troy ounces of gold…along with 227,177 troy ounces of silver were added to their respective ETFs.

I was amazed at what I found when I clicked on the U.S. Mint eagles sales web page yesterday, as an absolutely stunning 44,500 ounces of gold eagles were sold…along with 3,500 one-ounce 24K gold buffaloes.  There were no silver eagles reported sold.

Over at the Comex-approved depositories on Tuesday, they reported receiving 633,807 troy ounces of silver…and shipped 60,711 troy ounces of the stuff out the door.  The link to that activity is here.

Here’s a table of numbers from Washington state reader S.A. that needs no further explanation from me.

This chart, also courtesy of Washington state reader S.A., shows the sad state of affairs that exists on Toronto’s Venture Exchange.  I have an amazing story about this in the ‘Critical Reads’ section that’s more than worth your while…but if you don’t want to scroll down to find it, the link is here.

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Here’s a chart from Nick Laird that you’re more than familiar with…”Largest Traders Short vs. Days of World Production

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Here’s the other side of the coin that you never see…”Largest Traders Long vs. Days of World Production“.

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A couple of things about this chart. First is the much smaller ‘Days to Cover’ positions of the ‘Big 4’ and ‘Big 8’ in three of the four precious metals.  The second take-away from this chart is that the participants on the long side are not colluding to keep the price up, like JPMorgan Chase/Scotiabank et al are colluding on the short side to keep prices suppressed in all four precious metals.  The other point interest is that Ted Butler says that there are a couple of the largest traders on the long side of silver that hold more contracts than they’re legally allowed to…so the CFTC’s position limits aren’t being enforced on either side of the short/long equation in silver.  And lastly, palladium is market neutral at this point…the longs and shorts positions are identical…a situation that we can only dream about in gold and silver.

I have a lot of stories for you today, so I hope you can find the time to read the ones you find the most interesting.

The 21,000 additional silver contracts that JPMorgan shorted since July were sold to satisfy tech fund buying demand…and nothing else. I am also saying that without JPMorgan shorting COMEX silver so aggressively and exclusively, the price would have climbed much higher. There is no way that this specific set of circumstances is not price manipulation. This is what gives me the nerve to call the bank crooked.Silver analyst Ted Butler…28 November 2012

Well, we didn’t have to wait long for that engineered price decline by JPMorgan Chase et al that I spoke of in yesterday’s column.  Less than five hours after I filed it, down went the price of all four precious metals in unison.  Nothing free market about that.

As Lawrie Williams said in his mineweb.com commentary further up…”You probably shouldn’t let the manipulators, whether government-backed or not, put the frighteners on you but see such short-term price falls as an opportunity to buy rather than as a reason to get out of gold.”

Of course that applies to silver and the other two precious metals as well.

I should point out that “da boyz” pulled this stunt the day after the cut-off for Friday’s Commitment of Traders Report, so we won’t know what happened for sure until December 7th…and if you think that the choice of days to hit the precious metals was pure chance…I have a bridge I’d like to sell you.

And as Ted Butler said in his mid-week commentary to his paying subscribers yesterday, there’s no way of knowing if this sell-off has run its course, or whether there is more to come.  I don’t know the answer to that either, but nothing would surprise me…and as I said in previous columns, you should prepare yourself emotionally for anything that JPMorgan Chase/Scotiabank et al have to throw at you between now and the end of the year.

This evening the CME will post the deliveries for Day One of the December delivery month…and I must admit that I’m not sure to what to expect…but whatever the numbers are, I’ll have them for you in tomorrow’s column.

In Far East trading for most of the Thursday trading session, there wasn’t any price activity worth mentioning.  However a positive bias began to develop around 3:00 p.m. Hong Kong time…an hour before the London open.  This has continued for the first hour of the London trading session…and it remains to be seen how far this state of affairs is allowed to continue.

The gross volume numbers are very heavy…and there are still a lot of roll-overs out of the November contract…but there’s also a lot of trading going on in the next delivery months…which is February for gold and March for silver.

The dollar index, which had been trading pretty flat all through the Hong Kong trading session, began to head south about a half hour before London opened…and is down about 11 basis points as of this writing…4:04 a.m. Eastern time.

And as I hit the ‘send’ button at 5:15 a.m…gold and silver prices [along with platinum and palladium] are continuing their smallish rallies…volumes are very decent…and the dollar index is down about 17 basis points.  The Comex trading session in New York could prove interesting today.

Before heading off to bed, I’d like to take this opportunity to mention the fact that Doug Casey has a new book coming out very soon…and it would be my guess that it’s a must read.  It bears the title “Totally Incorrect“…which pretty much sums up Doug’s persona in two words.  The cost of his new tome is US$14.95…46% off the retail price…and a pittance in the grand scheme of things.  If you have any interest at all, you can find out more by clicking here.

See you on Friday…Saturday west of the International Date Line.

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