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first_imgSponsor Advertisement MAX Resource Corp. (TSX:MXR) is focused on a newly-defined copper/silver/gold porphyry system at Majuba Hill in Nevada that is highly prospective for a bulk-tonnage, open pit deposit.  MAX recently completed a Phase II core drilling program and additional soil sampling in a step-out drilling program at the DeSoto discovery near the past producing Desoto silver mine at Majuba.Drilling earlier in the year encountered long intervals of high-grade silver and copper near surface in five of eight holes, as well as significant gold intercepts, such as 44.2 m of 71.0 g/t Silver, 0.15 g/t Gold and 1.14% Copper.  Further assay results and soil geochemistry are expected in February/March 2012. Permitting is underway for an extensive Phase III delineation drill program at Desoto to begin in the spring of 2012.For more information: www.maxresource.com or [email protected] You have to ask yourself why the precious metals are getting trashed in the face of one of the biggest financial crisis of our lifetimes.Gold set another new low for this move down about an hour before London opened yesterday.  From that low, the gold price rallied right a bit right up until the Comex open…and was under a bit of selling pressure from that point onward.But the major selling pressure came once the Comex was through trading at 1:30 p.m. Eastern time…with the low price tick of the day [$1,540.70 spot] coming just moments before 4:00 p.m. in New York in the very thinly traded electronic market.  From that low, gold recovered a few dollars going into the close at 5:15 p.m. Eastern.Gold finished the Thursday trading day at $1,544.30…down another $12.20.  Net volume was pretty decent at around 143,000 contracts.It was pretty much the same price pattern in silver…except the engineered sell-off was far more intense.  Silver’s low price tick [$27.51 spot] came at the same time as gold’s…and the silver price recovered about 20 cents going into the electronic close.Silver closed the day at $27.72 spot…down 46 cents from Monday.  Net volume was pretty high at 37,000 contracts, more or less.The dollar index traded in a narrow 10 basis point range of 80.60 for a goodly portion of Tuesday.  That lasted until shortly before 9:00 a.m. in New York…and then away it went to the upside until about 3:20 p.m. Eastern time where it traded sideways into the close.  The dollar index closed up about 65 basis points.The gold stocks started off in positive territory…and then got sold off…but recovered back to unchanged just before lunch in New York.  It was all down hill from there.  The HUI got smacked for another 3.83%.The silver stocks really got crucified again…and Nick Laird’s Silver Sentiment Index took it on the chin for another 5.95%.(Click on image to enlarge)The CME’s Daily Delivery Report showed that 1 gold and 123 silver contracts were posted for delivery on Friday.  The big short/issuer was Merrill with 113 contracts…and the short/stoppers were a mixed bag.  The link to the Issuers and Stoppers Report is here.There were no changes in either GLD or SLV yesterday.  Ted Butler and I were discussing the big 1.6 million ounce surprise deposit in SLV on Monday…and Ted figured it probably had something to do with covering a short position in SLV shares.  We’ll know more when the new report is posted over at shortsqueeze.com a week from today.The U.S. Mint had a sales report worthy of the name yesterday.  The sold 3,000 ounces of gold eagles…500 one-ounce 24K gold buffaloes…and 150,000 silver eagles.  Month-to-date the mint has sold 34,500 ounces of gold eagles…1,500 one-ounce 24K gold buffaloes…and 1,135,000 silver eagles.It was a busy day over at the Comex-approved depositories on Monday.  They reported receiving 1,526,942 troy ounces of silver…and shipped 305,421 ounces of the stuff out the door.  The link to that action is here.German gold analyst Dimitri Speck was kind enough to send me several of his excellent charts…and I’m more than happy to post them here.  I’ll post the gold charts today…and the silver charts tomorrow.The first chart shows the “Intraday Price Movements” in gold over about eighteen years.  The high at the London open…and the low at the London p.m. gold fix…are the most prominent features.(Click on image to enlarge)The second chart shows the intraday price movements for the first quarter of 2012…and there are subtle differences, but the overall price pattern is the same…and only the times of the highs and lows have shifted.(Click on image to enlarge)And lastly, here’s the chart for 2011 on its own…the same, but slightly different once again.  The negative price bias in London really stands out in this chart.(Click on image to enlarge)I have a lot of stories again today…and I hope you have time to read through most of themWhile the US Dollar and Treasury debt are the twin foundations of the system, the major modern indicators of how the system is functioning are the stock market and the precious metals, Gold in particular but also Silver. A stock market investment is a bet ON the system, a purchase of physical Gold and/or Silver is a bet AGAINST it. This is clearly shown by the lengths to which the financial powers that be will go to support the stock market – and to undermine the price of the precious metals. – Bill Buckler, The Privateer, 12 May 2012Well, the pain continued unabated again yesterday.  Everything that occurred up to and including the close of Comex trading at 1:30 p.m. in New York yesterday, should be in this Friday’s Commitment of Traders Report…and as I pointed out in this space yesterday, it should be a stunner.Unfortunately, ‘da boyz’ leaned on the precious metals particularly hard after the Comex close yesterday…and that data won’t be in Friday’s report.Here are the 3-year charts for all four precious metals, with the exception of palladium, which had a price bounce yesterday, every other precious metal is more oversold than its been in the last three years.(Click on image to enlarge)(Click on image to enlarge)(Click on image to enlarge)(Click on image to enlarge)As I mentioned further up in this column, you have to ask yourself why the precious metals are getting trashed in the face of one of the biggest financial crisis of our lifetimes.  One only has to read Bill Buckler’s quote above to understand.But once this engineered ‘correction’ has run its course, it’s my guess that JPMorgan et al will be nowhere to be found [fingers crossed!] on the next rally…unless it’s a short-covering rally that they themselves instigate.I’ve been watching the precious metals ever since they opened for trading in the Far East earlier today…and in London this morning.  Once again, the ‘salami is being sliced’ to the downside…as more new lows were set in all four precious metals shortly after the London open.  Net volumes as of 4:49 a.m. Eastern time were monstrous in both metals.  In gold it was 46,000 contracts…and in silver it was just under 10,000 contracts.  The dollar index rallied about 25 basis points overnight, but topped out shortly after the London open…and is now back to virtually unchanged from Tuesday’s New York close.One has to wonder just how much more ‘oversold’ this market can get, as we are already in record territory in that regard…and I’ll be watching the price activity during the Comex trading session in New York with great interest when I get out of bed later this morning.See you on Thursday.last_img

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