Gold and silver prices got walloped yesterday when “the usual not-for-profit seller(s) showed up at the Comex open,” says Ed Steer at Casey Research. Ed says two of the day’s news stories stand out as possibly having a big impact on gold and silver prices.

The first story today is from Reuters filed out of Beijing. The headline reads “China paper urges new currency order after “financial tsunami”. They would like the currency order to be “no longer dependent on the USA.” The story is linked here.The next story is the latest offering by silver analyst Ted Butler. In this essay, Butler points out that “the ‘raptors’ (the commercials other than the eight largest traders) have not only built up a record or near record net long position in both gold and silver futures, they have established a record long position in call options for the first time in memory.”

His conclusion is, that “not only are the near-always-correct raptors positioned for an upside move in gold and silver, they are positioned for it to occur soon.” Let us all fervently pray that he is correct. The story, entitled “Welcome to the Jungle,” is linked here.

All we can do is sit here and watch with a combination of amazement and disbelief at the speed of what’s happening around us…as all the power and all the money in the world go at it hammer and tong. You couldn’t make this stuff up.

The whole world has become a fool’s paradise…as sooner rather than later it’s all going to end very badly…and it’s only just begun.

Source: And Then There’s This Wednesday, September 17th, 2008