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.
Maguire continues:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
What really pisses me off is the Cartel are just laughing in our faces and they are protected by our crooked politicians and the Elite. Grrrrrrrrrrr
A very complex series of maneuvers. Calling Sheriff Bart, you’re up..
riiiight.
*sigh*
I am not new to silver I have been buying and saving for a long ,long time. I follow every article I have access to.I am finding it harder and harder to read these articles on what silver should be priced at. I have begun to believe that the manipulation will never be stopped as the fed (govt ) is behind the banks (manipulators) and we read these articles and believe them to no avail whatsoever. We are going to be the only losers as we will ride the price up and down until it is too late for us to recoup. We cannot beat the banks(the like of JPMorgan) ever,so all your price forecasts are for not as I feel they will not happen,ever. Thanks for listening to my opinion. JP in Canada
JP I can understand your thoughts and feelings on the matter. I have gone thru the same mental process and come up with similar views. I have worked my way thru to realizing that we are not buying silver (or gold) to come out on top of the current financial system. Trying to do that is pointless for the reasons that you mentions.
No, we are buying silver for the day that there is no longer a JPMorgue or Fed (and possibly no federal government of any note). Only at that point will silver be valued correctly.
Will we ever see that day? I am not certain. If one is a Bible reader, the more likely outcome is a digital money system run by one single entity that promises to solve all of our problems. At that point silver and gold will be outlawed and we will be called “traitorous horders” (btw check out who came up with that term – it will surprise you).
Having said all that, there will always be those who understand and seek the value of PMs and we will need to seek out and trade with those people. Even if the system doesn’t evolve the way I think it will, the value of PMs against fiat over the long term still makes it worth accumulating. As has been pointed out many times, in 1963 you could buy a gallon of gas with a quarter and you can still buy a gallon of gas today with the same 1963 quarter (and have change to spare). That is the value of PMs whether they are manipulated or not.
Just my 2 cents
PhilAZ
Well I believe it all ends when the physical allocated metal is drained from the LMBA and Comex. The good news is that this is happening. Per Jim Willie, China is raiding the western vaults on a daily basis. Jim keeps mentioning 5000 metric tons of gold. That seems like a huge number but his source has been spot on about other topics like interest rate swaps. The Libor scandal of rates are a huge story for the metals. Please watch Max Keiser’s new video about the Libor rate mess.
Also, the leasing rates of the silver has been going up. Harvey Organ does a fantastic job of keeping track of the leasing rates. The higher the rate, the shorter the supply of silver. It is starting to show tightness in the physical market. This makes sense since the prices have been smashed so much and demand has stayed strong. The supply is only for huge lots of silver not just your average coin purchase at a shop. You can find silver but not in size. Also, the net short position of JP Morgan has decreased in a huge way. Silverdoctors is easily the best site when it comes to the COT report and keeping up to date of the net short positions. What happens when JP Morgan goes neutral on their short position? Do they give up suppressing the metals? I can’t figure this out. I think their next short positions are coordinated with the timing of the possible Comex default. When JP Morgan goes neutral, expect a default on the Comex. This is just a hunch and I have ZERO facts of this. It just makes sense. Then the Chinese will have a huge stake and control of the metals markets. The timing is hard to figure out but the JP Morgan short position has decreased in dramatic way in a short amount of time. At this rate, 2013 could be a realistic time table.
Thanks for the reply PhilAz it is good to hear other peoples opinion rather than the pro’s on this topic. I have been buying silver for many reasons,one of which is appreciation of my capital. Protection of my financial position is another.It would be nice to be able to sell a few bars and enjoy some profit as this also is a reason for buying AG.I am in Canada so confiscation is not a consideration at this time. What bothers me the most is that the power houses ,the banks are getting away with all the manipulation. You (Americans) as a group should be lobbying your congress members to do something about it all. I spend part of my winters in Arizona (and love it) but cant believe how few people know anything about this topic at all. I talk about this problem with the local people and most of them don’t know what I am talking about. A reply to duckvisions comments would be as long as JP Morgan can sell paper shorts in silver there will be no day of reckonning until someone insists on taking delivery of a huge amount, in which case it would have to be sometime in the future and they ( jpmorgan or the comex) would be able to get that amount together. There is no winning on the horizon as far as I can see. The Silver Doctor site and the Silver Bear site are by far the most interesting to read. I just don’t believe all the info from some American sources on Silver, I think their figures are just plain wrong. Thanks for listening JP up north
Well I believe it all ends when the
physical allocated metal is drained from the LMBA and Comex. The good
news is that this is happening.
…
The supply is
only for huge lots of silver not just your average coin purchase at a
shop. You can find silver but not in size. Also, the net short
position of JP Morgan has decreased in a huge way. …
What happens when JP Morgan goes
neutral on their short position? Do they give up suppressing the
metals? I can’t figure this out. I think their next short positions
are coordinated with the timing of the possible Comex default. When JP
Morgan goes neutral, expect a default on the Comex. This is just a
hunch and I have ZERO facts of this. It just makes sense.
I agree. We are stuck with the manipulations until the physical runs out. And JPM is going to make sure they are flat before that happens. But like you say, they are working hard to get neutral. I don’t think we are that far away. Maybe 6 months.
JP in Canada:
Sometimes the most simple analysis is the best. Just pull up a 10+ year chart on silver and smile. The cartel is not winning the war, just many individual battles. Meanwhile, the price of silver and gold remain considerably undervalued even though they both continue to rise (other than over the last few months).
If you’ve been in the market for many years, you have all the more reason to smile. Don’t let the bastards get you down.
JP,
Duckvision….. does a great job citing his sources….. very refreshing……… thanks and keep up the hardwork.
JP-Canada. I must agree with the excellent replies by PhilAZ, duckvision and ich1baN. It is easy to loose faith because a system is rigged; however by the very same fact that the system is dishonest and rigged, it is doomed to failure. Artificially manipulators of natural market forces of “Buyers and Sellers” are doomed to destruction. It is not the metal that is destroyed.. the metal will skyrocket in response to the liquidation of the paper seller market, which uses its artificial weight in paper to drive down real prices of precious metals. How can this liquidation occur? Well there are many triggers to this Silver Gun, one of the biggest being Barricks 200 million ounce silver problem, as reported here on SD 2 weeks ago. (http://www.silverdoctors.com/barricks-200-million-ounce-silver-problem/). Barrick owes 200m Ounces in futures, if they cant pay this back, it will detonate the Silver market, as reported in the article. SP
JP all you need to know is the one constant throughout history is that all empires fall… and yes it could be a very long game!!! be prepared to pass the baton to your kids…
The Libor scandal is very interesting and could be a potential black swan event. So the Libor rate is the interest rate banks use to lend to each other. The Libor rate (London Interbank Offered Rate) has been manipulated and controlled by the major banks. Barclays just got fined millions of dollars which is a joke. They have been siphoning billions and they get fined millions. Max Keiser said the Libor market pool is over 300 trillion dollars. Libor controls interest rate swaps,currencies, loans, mortgages, and leasing rates. Now, the manipulation in the metals happens because of naked shorts from JP Morgan but also from leasing rates. This is why the Libor scandal is important to the metals.
This is from Harvey Organ:
The
following should also bring to light the gold manipulation as libor
rates are critical in the determination of lease rates for gold. The
rigging was necessary to keep gold from going into backwardation as
Europe and the USA went into ZIRP (zero rate interest policy)
This is from Jim Sinclair and posted by Hunkered Down last week:
A major international financial auditing firm is currently involved in a
massive project on Wall Street that presently has over 900+ consultants
involved, which is massive and beyond even the size/scope of the Fannie
Mae restatement several years ago. They’re grabbing any senior
financial analyst and software expert that they can to help this
“unnamed” major Wall Street bank calculate valuations for a suddenly
devaluing portfolio of Credit Default Obligations that they have heavily
invested in. This auditing firm is charging nearly double their normal
billing rate and is getting it, no questions asked.
This is from Jim Willie:
The much juicier story pertains to 600 highly paid accountants on a Wall Street assignment.
It is too large to be kept a secret, since it is draining the sector of
its accounting staff for hire. The rumors are as thick as black clouds.
They are busily attempting to determine the financial status of
a large Wall Street bank loaded with a mountain of complex derivative
contracts.
I thought Jim Willie and Jim Sinclair was talking about the interest rate swaps but it’s the Libor scandal that is making the interest rates swaps show cracks. This could literally take down Morgan Stanley. I believe behind the scenes, there are some major problems going on. This is why the leasing rates have been going up slowly which is showing tightness in the physical metal in size. The Libor rates has been suppressing the leasing rates during this huge smash down of price in the metals. It will be interesting to watch the leasing rates as the Libor scandal gets more exposed. I believe if they keep smashing prices of the metal, the leasing rates will continue to go up in a big way. Harvey Organ almost daily makes a point that the weak leaves can’t be shaken out of the silver tree. They keep smashing prices but it’s not making the long’s pitch their contracts even during this huge spike down. This is telling us that the longs are big time players and have huge amounts of capital behind their positions. They can take a loss and just shake it off. If the banks in London have a problem in the future to manipulate the Libor market and now JP Morgan short position is at all time lows, you could have a potential huge move in the metals. JP Morgan going neutral in their shorts, Libor rate manipulation slows, and a possible default on the Comex and LMBA is all coordinated in timing. All these factors can happen all at once and then the prices will shoot to the moon. China will then control the metals market soon after with their exchanges ready to roll soon after the Comex and LMBA defaults.
Like I said, I have no insider info and these are just thoughts. It’s fun trying to put information together and try to figure this out. If you have any thoughts, please post them. I could be wrong on everything I just typed. I am more then interested in hearing others opinions.
BANKING NEWS BLACKOUT?
The JP Morgan loss goes from 2billion to 9billion and will continue to go higher. The problem with that IG-9 trade is that JP Morgan has to eat it and try to unwind their position. It’s such a huge position and they are having problems limiting their exposure. More and more losses will occur. On Friday with a 277 pt move in the market, JP Morgan stock went down. That was under reported. Not only the loss of 9billion but they have taken a ass beating on their stock price. That trade is toxic and will continue to wreck the stock price as the loss gets bigger.
ukpyscho…. very good point. JPCananda you need to re-avaulate why you are in the metals game. Me personally, I’m following the late Bob Chapman’s therory. Have an iron stomach and purchase physical when you can. JP, you might want to take some profits off the table and enjoy today. This great wealth transfer may never happen in our lifetime. I personally believe in the PM’s. Co-existing in this fiat paper ponzi scheme is very frustrating. You said you’ve been in the metals for awhile, your dollar cost average should be pretty good. Don’t let the system get you down thats what they (cartel) wants. Good Luck to you…….
Here is another story about the Libor scandal by Matt Taibbi from Rolling Stones.
Another one bites the dust. The Royal Bank of Scotland is about to be fined $233 million (£150
million pounds) for its role in the Libor-rigging scandal. It joins
Barclays as the first banks to walk the plank in what should be, but so
far is not, the most sensational financial corruption story since the
crash of 2008.
Many of the banks implicated in the Libor mess have also been
targeted in the various municipal bond bid-rigging investigations, and
RBS is no different – its subsidiary Natwest is also a defendant in the major civil lawsuit
in the bid-rigging case. The cases aren’t related, except in the sense
that they both involve manipulation and anticompetitive cooperation.
It’s going to be harder and harder to make the case that the major banks
do not routinely cooperate at the expense of the public when it serves
their purposes to do so.
The news that RBS is involved comes with a perverse twist. This is from the Times UK:
Libor manipulation is a crime that already robs the public to create
bonuses for bankers. By artificially lowering interest rates, the banks
caused cities, towns, countries, and other public entities to receive
smaller returns on their variable-rate investment holdings. If it turns
out that taxpayers end up paying the fine for RBS’s crime of robbing
taxpayers, how perfect would that be?
So another bank gets fined. This story was swept under the rug last week. With the Obama care debate, EU so-called agreement, JP Morgan 9billion dollar loss, the Libor gate scandal should have been front and center. I said the market cap was 300 trillion. It’s actually 350 trillion. Sorry, I short changed this fraud of a market. I’m sure it’s no big deal. Only the largest banks of the world has been in the manipulation of the Libor rates. Move on, nothing to see here.
Thanks guys for all the info and encouragement. I have never stopped adding to my hoard. When it was in the 40′s I did lighten up but since have added all the new series of wolf, bear, cougar and moose silver dollars,. We can buy from the mint and dealers and there is not much difference in price and now some of these silver dollars have appreciated in coin value also. When I was in Az last winter I bought some old US silver dollars.All in all I am hooked and can’t see changing. Rule changes and using silver as currency again as Mexico is contemplating with fluctuating values of silver coins may make a large difference also. Keep in touch JP
Another great read on zerohedge about Libor gate. This story is going to blow up.
http://www.zerohedge.com/news/bank-england-about-be-dragged-lie-borgate-and-which-us-bank-next
A little piece of the article:
If, and this is a big if, the SEC does for once do
something proactive in its illustrious career of corrupt, incompetent
complacency and co-option, not to mention pornoholic hypnosis, the next
and final question becomes: will it be Bank of America, or JP Morgan…
and just how will the market react to the knowledge that two of the
world’s biggest non-nationalized banks participated in what as many have
been warning for years, the biggest market manipulation fraud in
history.
I believe it’s going to be Morgan Stanley or Deutschebank. There collateral and capital is much lower then BOA and JP Morgan. Morgan Stanley has over 50 trillion in swaps. Jim Willie said Morgan Stanley increased their swaps by 8 trillion this year alone. Morgan Stanley’s stock has been hit hard this year and it’s exposing their weakness. Deutschebank has a huge derivative book and I believe this is why Merkel could cave in with the bailouts for the EU. If Merkel allows Greece, Spain, Italy to default, it could spark all these derivatives and swaps. Deutschebank would go down instantly if this happens. Germany can’t have that happen. Merkel keeps saying she is against the eurobonds and bailouts but she also understands the exposure of the major banks in the sovereign bonds and derivatives. Tough call on the EU but I’m starting to believe Germany is in a no win situation. They will be forced to bailout Greece, Spain and Italy again and again. Merkel’s re-election campaign will be done. That is why we are seeing these baby bailouts like the Spain deal of 125 billion. This isn’t close to what the banks in Spain needs to recap their banks. Mark Grant has said 350-400 billion euros will be needed to recap the Spanish banks. They will just keep the bailouts coming in short amounts. I don’t think we will see a bazooka bailout. Politically, that would be suicide and it would also be very inflationary. Anyways, this Libor gate scandal ties in everything with the derivatives, interest rate swaps, loans, bailouts, and central bank interventions. It goes into the core of the manipulation of the global financial world. This is a huge story IMO.
JP,
When TSHTF it’s not much going to matter. The Fiat will be gone and you will be king of your own future with the silver you have stacked. Done. Finished. Bitmished. Period.
JP
I hear ya !
The cognitive dissonance that can come from trying to figure out what the f**k is going on in the minds of the bastards that currently run this planet and what their gonna come up with next to keep us enslaved can be very taxing on ones mind.
It’s pretty clear that you’re a critical thinker and that gives you an edge over the masses. Trust your gut instincts and never forget why you started stackin and you’ll come out of this grand human experiment OK.
On a lighter note…..
Happy Canada Day! from the west coast of the greatest country on earth.