All idea of there being any correlation between the action in the precious metals pits and any other particular market at this point is simply a guess.  There are obvious operations happening to manage the price of both metals for the purpose of saving the primary dealers and the COMEX while the physical markets for both metals continue to tighten.

At some point there will be a failure in these markets.  The Silver miners can no longer make any money at sub-$30 spot silver even though there are still pundits and CEO’s out there saying otherwise.  The earnings of these companies say differently however and that is the crux of the situation.  Silver as well as Gold are trading at close to their come to market prices.  We’ve been waiting for the metals to trade at a true monetary premium to their cost and so far the central banks have done a fabulous job of snookering the investment community into thinking that they have, when in fact they haven’t.

Where are the earnings?

So when we watch Gold be refused to rise above $1750 for literally no reason, even though there is every fundamental reason for it to do so, one has to believe that this is simply just another operation and even more people are bankrupted while waiting for the nonsensical to stop being the normal.

So, watching Silver lead Gold in these moves up tells me that we are much closer to the end of this manipulatory period of middling prices than the beginning.  Gold will not be held behind $1800 much longer, not without a severe contraction of the Fed’s balance sheet which is not practically possible unless the central planners no longer want to be the central planners.  And if you believe that then just remember that Santa will be visiting in 26 days.