Over the past year, SilverDoctors has documented several cartel raids in which the bullion banks dumped over an entire year’s global mining output in silver during paper raids.
Many have doubted the validity of these claims, as the official open interest reported by the CME the next day is often less than the reported volume of paper contracts dumped during the raid.
Andrew Maguire has released an excellent commentary dissecting the 515 ton paper ‘gold’ raid launched by the bullion banks immediately prior to the Fed’s release of the June FOMC statement. Maguire clarifies how the cartel can accomplish the raid and yet not have the occurrence appear in the CME OI report.
Andy states that of the 165,000 paper gold contracts dumped on the market: ‘Almost all these contracts were subsequently covered by the bullion bank into the days pit close thereby not showing up in the closing OI #.This is a standard MO. ‘Through concentration, creating sufficient new supply at commonly watched pivots in a very short period of time to swamp any bids distorting true supply demand fundamentals, then once the momentum is turned down, to buy back all originating short positions into freshly pitched longs and a whole array of freshly invited new shorts.