adrian douglas comments on today's activity in silver and gold. it's not often you see gold and silver taken down while silver standard is up nearly a dollar on the day:

Yet another day of zero silver movement into or out of the dealers’ inventory, AND just for more comic relief ZERO gold moved into or out of the dealer inventory and the customer inventory. If only they were in the entertainment business it would be commendable but as the world’s largest precious metals futures market one would expect more serious fare!

There were a very significant 277 delivery notices issued in the DEC gold contract. The DEC gold contract total for the month is 6,643 contracts or 664,300 ozs. Yesterday was not a one off event of the Cartel Honchos showing up in the delivery note business. JPM issued no notices but stopped 132 of them and Goldman Sachs issued none and stopped 88 notices and issued none. BNS issued 2 notices. Yesterday I said “whenever something changes in the gold market one has to pay attention”. And guess what! The gold market was bludgeoned and raped today. It was clearly done by the Cartel because the HUI was up BEFORE gold and silver recovered. That is a clear sign of insider trading (hello SEC, CFTC! Where are you?), I wouldn’t mind betting that the entities selling gold and silver contracts on the COMEX were the same ones buying mining stocks. What a coincidence that happened a day after JPM and GS show up as BIG stoppers of delivery notices!

There were 23 delivery notices issued in the DEC silver contract. The total delivery notices for the month in silver stand at 2,178 or 10.9 Mozs. JPM issued 15 notices and stopped 15. BNS issued none and stopped 4.

There is only 0.7 cent of contango in silver DEC/JAN contracts and only 1.5 cents DEC/FEB contracts. The contango in gold dropped again and DEC/JAN is only $0.1 and $0.5 for DEC/FEB. This is razor thin contango. Gold is almost in backwardation which implies a very tight physical market. That jives with what we are hearing about delivery difficulties on the LBMA and the government suspending gold coin minting. The market is getting ready to blow skywards.

There are still 4,225 contracts of OI in DEC gold and there are still 661 contracts of OI in DEC silver. Have you ever seen a dog chase a rabbit? When the dog catches it by the neck it shakes it around like crazy to break its neck. That’s what the gold cartel did to the weak longs today while they were no doubt buying the HUI! That was the clean out. The market is going higher and the cartel knows it. This was a little sideshow on the COMEX for the paper shufflers but the main event is the London LBMA where the smoke is billowing on physical delivery issues.