Daily Silver Blog: June 26, 2017 - Bankers are getting desperate!

Folks, I had warned all of you to not to have any open positions till June 26. If you followed my advice then you saved yourself from a lot of pain today in the precious metals market. During the pre-market, someone dumped $2 Billion worth of notional contracts for gold, soaking up the entire liquidity and triggering all the limit orders that were open overnight. This action also dragged silver down. This can't be a fat finger error as it was intended to bring the prices down due to expiry morning.

Net-net, gold closed $10 down at $1,243 and silver closed 8 cents down at $16.59. Both of these levels though subdued are providing very strong resistance and that means that they will go up when they go up. Only, thing that worries me is that Goldman Sachs is now bullish on gold which based on their past calls would mean that in the very short term it may go down before exploding higher.

Cryptos had a worst day. The entire crypto market lost about $20 billion of market cap and the crypto board is just a sea of red.

Ethereum is hit particularly hard. It is not clear if it can be associated with the EOS ICO or the rumors (now proven false) that Ethereum founders (both of them) were killed in a crash. I would expect Ethereum to go just a tad below $200 before rebounding. Bitcoin on the other hand might have a little bit more to go. I wouldn't be surprised if this shakes off all the weak hand who got into the game thinking of getting rich quickly without doing their due diligence. So overall, it might be a good sign that the cryptos are maturing now and soon can be considered a sound investment for a long term. I don't know for sure though.

Dollar was up by 19 cents and oil was up by 42 cents - this just can't happen, so market was clearly propped up. Why I say is clear from the decline in the consumer durable goods order. Oil just can't go up without economy growing.

Elsewhere, the yield curve continues to deteriorate that this is the single factor that all of you should be watching. As the yield curve inverts, all hell is going to break lose. On war front, while the US continues to waste time on trying to pin something on Russia, Russia on the other hand fired a submarine based ICBM that hit "all" the targets. I have put "all" in quotes because unlike the ICBMs of the USA which are a single target, Russians have developed ICBMs and missiles capable of hitting more than 20 targets simultaneously. This is in addition to the deflectors that gets deployed should the missile be targeted.

Last but not the least, I am watching the development of Indian Prime minister, Mr. Modi and Mr. Trump's meeting today at white house. With Lockheed agreeing to manufacture its F-16 fighter planes in India, alliance between the two countries is critical. I am sure Mr. Trump would be in a good mood after Supreme court unanimously handed the victory to Trump's travel ban.

As always, be prepared and be safe!