"Will Sprott's Brand New Physical Silver Trust Become JPMorgan's Biggest Nightmare?"

Gold did nothing in Far East trading on Wednesday… but was up a few bucks going into the London open.  However, about an hour before New York opened, gold got sold off… and it was down about five bucks when Comex trading began.  From that point it did nothing until the very second that London closed at 11:00 a.m. Eastern time. 

Then, within fifteen minutes, gold blasted up to its high of the day of $1,219.20 spot.  At that point, the usual suspects showed up and capped the price… and, within two hours, had sold enough paper gold to drive it all the way back down to its absolute low of the day… which was $1,201.80 spot.  Another day where closing above gold's 50-day moving average was not allowed by JPMorgan et al.  Volume wasn't overly heavy.

The silver price was as quiet as a church mouse during Far East and early London trading on Wednesday.  But that all changed at the London silver fix… which was high noon local time… 7:00 a.m. Eastern.  And then, like gold, silver got sold off right into the Comex open in New York.  The New York open for silver was also its low of the day at $18.10 spot.  From there it picked up a dime… but once London closed for the day, the silver price blasted up to it's high of the day of $18.49 spot before suffering the same fate as gold… and at the hands of the same '4 or less' traders, I would suspect.

This high price was above silver's 50-day moving average, of course… but the technical funds can't [and wouldn't] react that quickly… and JPMorgan et al made short work of the price before they did… driving it down below its 50-day moving average in no time at all.

One has to wonder how long they can keep this B.S. up.  Silver's trading volume yesterday was average.

The world's international reserve currency didn't do much of anything yesterday… and here's the graph to prove it.

The precious metals shares pretty much followed the gold price moves all day long… and the shape of the graph looks very much like the gold and silver charts above.  The HUI was down miniscule 0.04%.

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Wednesday's Comex Daily Delivery Report from the CME showed that 27 gold and 8 silver contracts were put up for delivery on Friday.  Nothing to see here, dear reader… but if you want to look anyway, the list of issuers and stoppers is here.

There were no changes in either GLD or SLV… nothing from the U.S. Mint… but over at the Comex-approved depositories, they reported that a further 300,001 ounces of silver were withdrawn from their collective inventories on Tuesday.  This withdrawal was all from Brink's, Inc… and here's the link!

Here's a short piece on yesterday's gold price action that was posted over atJesse's Café Américain yesterday afternoon.  There's a great graph… and the whole thing will take less than a minute of your time… and, in my opinion, it's a minute well spent.  The headline reads "Gold Has a Determined Seller Over $1,215: the Pressure Under the Price Capping Continues to Build"… and I thank reader Scott Pluschau for sending it along… and the link is here.

Here's another short piece that was posted over at Jesse's Café Américain earlier this week.  It's an article that was lifted from the South African websitetimeslive.co.za… and it bears the headline "Silver Robbed of its Lustre".  I thank reader Randy Paddock for sending it to me yesterday… and the link ishere.

Here's my two non-precious metals related stories today.  The first is a piece sent to me by reader Kevin Cassidy… and is posted over at investors.com.  The headline reads "Idled Gulf Rigs Head for Africa"… and the link is here.

The next item is a Bloomberg piece headlined "U.S. Stock Bears Outnumber Bulls for First Time Since April ’09".  It's only a handful of short paragraphs… and I think it's worth your time.  I thank reader Scott Pluschau for sending it along… and the link is here.

The next item is your first must read of the day.  It's a GATA release headlined "Reg Howe: BIS swaps seem meant to stretch out paper gold".  Nobody on Planet Earth is more qualified to speak to the BIS gold swap situation than my good friend Reg Howe.  Also worth reading is Chris Powell's preamble to Howe's commentary.  Please give this rather short article the time it deserves… and reading it twice wouldn't hurt either.  The link is here.

Eric King over at King World News has another Jim Rickards offering.  Rather than write my own preamble to this… I'm stealing Chris Powell's… "Writing at King World News, James G. Rickards of Omnis Inc. writes that rebalancing world gold reserves away from the West and toward China is the world's biggest financial problem but can't be discussed openly by central bankers. Rickards' commentary is headlined "China, Gold, CNBC, and Wilbur Ross".   Needless to say, I consider this a must read… and the imbedded CNBC interview regarding China is worth a listen as well… and the link is here.

Today's last story I found out about when I was having my usual chat with Ted Butler on Wednesday.  He sent me the story, as posted in Canada's Financial Post yesterday, which bore the headline "Sprott has new silver trust".  But the coverage of this event that I really want to bring to your attention was sent to me by North Carolina reader Bob Dillon.  It's a piece posted over atzerohedge.com by Tyler Durden that's headlined "Will Sprott's Brand New Physical Silver Trust Become JPMorgan's Biggest Nightmare?"  What Durden has to say about it is worth the read… as is the original article from the Financial Post that Ted sent me yesterday.  That article is embedded in the zerohedge.comoffering as well… and the link to this absolutely must read piece is here.

I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. – Thomas Jefferson

One has to wonder how long the bullion banks… especially JPMorgan… can keep up this gold and silver market rigging in broad daylight… and in full view of everyone.  One also has to wonder whether the CFTC will move against them in light of this… as the congressional investigations that will most surely follow the explosion of the silver price, will certainly bring to light the fact that the CFTC has know about this for more than 25 years… thanks to the work of Ted Butler… and all of us who have petitioned the CFTC on his [and our own] behalf.

This new Physical Silver Trust that Sprott just announced, will certainly hasten the end of this price management scheme.  One can't know for sure when the end will come, but when it does, it will be with a bang… not a whimper.  Stories like this make me want to run out and buy more physical silver… which is exactly what I'm going to do when I get up this morning.  And, if you have a few dollars laying around, I might suggest you do the same.

As you know, I'm 'all in'… and that means that I have 100% of my net worth invested in the precious metals in one form or another… physical metal and the shares.  I certainly don't suggest that you do the same dear reader, as everyone has their own particular comfort level when it comes to this sort of thing.  Besides which, I'm not an investment advisor.  I just want to survive [and hopefully prosper greatly] when all is said and done… and this is the path I've chosen.

All was quiet in Far East trading earlier today… but there was a slight up-tick in silver and gold prices at the London open.  It will be interesting to see how long that situation is allowed to continue.  Volume was very light in both metals as 5:18 a.m. Eastern time.

Not that I wish to beat this particular horse to death… but there's still time [how much I don't really know] to invest in the precious metals sector… so if you're seriously considering making an investment in the precious metals, I urge you to step up to the plate and purchase a subscription for either Casey's Gold and Resource Report… or Casey Research's flagship publication… the International Speculator… which also includes Casey's Gold and Resource Report for free. Consider it an investment in asset protection and wealth accumulation. I certainly do… and our 100% money-back guarantee is always there.

It should be another interesting trading day when New York opens later this morning… so we'll just have to wait and see what JPMorgan and the rest of 'da boyz' have in store for us today.

See you on Friday.