Jamie DimonSilver trading over the last 24 hours shows signs of a cartel capping, High Frequency Trading algorithms and actual humans going long.
Real accumulation started at the New York open today and yesterday, only to be met with a capping effort as the London PM Fix approachedwith today’s downdraft representing a classic smash down against stop loss orders, resulting in quick downward price spikes.
To most observers paying close attention to paper market silver trading, these shifts are old news.  But the stark contrast between these trading phenomenon over the last 24 hours are so clearly visible it’s worth pointing them out.

 

 Silver Buffalo Rounds As Low As
$.99 Over Spot At SDBullion!

 

 
By Eric Dubin:

Spot prices are derived from futures market trading and Kitco’s 72-hour “spot” charts have always been helpful when attempting to see shifts between regional paper trading centers.  The last 24 hours offer a classic example:

 

silver

 

 

Notice the tight trading band maintained for most of June 17th (red line)?  That’s the sort of trading typically seen when High Frequency Trading algorithms comprise the majority of the volume on futures exchanges.  Given the downward bias, this week’s example shows what most likely are HFT algos run in service of the cartel’s interest.  But check out both the regular and after hours trading in New York for both June 17th and June 18th.  There are visible buy-side upswings at the open of New York trading that deviate from the tight algo-dominated pattern encapsulating New York trading.  Real accumulation started at the New York open today and yesterday, only to be met with a capping effort as the London PM Fix approachedwith today’s downdraft representing a classic smash down against stop loss orders, resulting in quick downward price spikes.  

 

Keeping tame price trends for the London PM Fix is one of the prime objectives of the cartel.  More physical bullion deliveries are tied to the London PM Fix than any other paper-based price.  But it’s noteworthy that this week shows new long-side interest coming out of New York, and we need to keep an eye on this to see if the trend continues.

 

It’s also worth pointing out the contrast Kitco’s 72-hour gold chart provides.  It lacks the tight algo-driven pattern the silver chart demonstrates.  This suggests silver algo-trading management by the cartel outside of New York hours executed to cap silver and, in turn, guide gold downward.

 

gold

 

Just another day of bogus price discovery…  But fear not.  Bart Chilton is on the case and is “looking at the trades”. 

 

2013 Canadian Maples As Low As $2.29 Over Spot!

  1. short sweet and to the point. Thank you Mr. Dubin! Yes boys and girls  fix is in and we aint invited to the party. They know we know and they know we dont have the juice to set it right. Its their game, thier rules… we just get to watch. Someone once proclaimed that life is what happens when you get busy making plans then the other guy said the best laid plans are oft to go aawrought. They do what they must, we do what we will. peace

  2. Sorry to post this in a non-geo-pol post, but seeing as everything in the world is inter-connected, I thought this might interest some:
    So, somebody apparently didn’t take too kindly to Tsar Vladimir KGB Putin arming Assad and helping Iran/Hizbullah: Here are a few videos of a massive arms depot in Russia that has gone haywire (maybe divine intervention, maybe Russian blunders a la Ukrainian Chernobyl, or maybe special ops like SAS, Sayeret Matkal, or CIA, MI6 or Mossad [in which case, congrats to them, so there are bad Masonic leaders, I 100% support whoever successfully blows up Putin's weapons.. hoowaaa!]).
    Doesn’t matter, Tsar Putin, that Israel is not yet close to her God, her God still loves her, and when you touch her, it will be like touching the pupil of God’s eye (Bible says that btw).
    So, Mr. Putin, if you were smart you’d read Ezekiel 38 and 39 and let some future Russian leader make the mistake of trying to crush Zion, but my guess is you want to leave behind a legacy… God will turn you into a legacy not to be repeated when you dare touch Israel. It’s been prophesied, Russia and Iran (and Damascus) will get crushed.
    http://rt.com/news/ammunition-depot-blasts-russia-888/  Second video is interesting: got to love those Russian peasants though, I say we should send them boxes of Bible… and toys for those cute little guys running around. Too bad they have the leaders they have.

    • Do you really want to peddle that pathetic zionist nonsense in this forum? Please be so kind as to refrain from interjecting that hogwash here or i can assure you the facts will surely depress you.

    • This kind of political and religious gibberish isn’t even entertaining. let alone informing.
       
      Written by someone in deep dark ignorance of history and the scriptures. A very bad combination. 

    • so you  support the US arming Al-Qaeda? That is who the Lebanese “rebels are.  I am a Christian. and you are just one more brainwashed, brain dead fool who does not know what is truly going on. So you say you are Christian? go look and see how many Christians these so called Syrian freedom fighters are killing and EATING. yea your Christian brothers and sisters. You are a pathetic puke.

    • Oh sorry, I am a very foolish man, and because I honestly do not understand what the difference is between the Assad regime in Syria and the regime of Karzai in Afghanistan?
      I also do not understand what the difference is between Afghan rebels and Syrian rebels?
      I do not understand why Washington has the right to support the Syrian rebels via its arms deliveries, but Moscow does not have the right to support Afghan rebels via its arms deliveries?

      I know only one thing: Democracy – is just such a regime, which is beneficial for the United States. If the United States is beneficial mode of terrorists and cannibals, it is of course a realy democracy!

      And if the U.S. is advantageous to have and to support in any country of gangsters and terrorists with machine guns and rocket-propelled grenades in hand, it is always and of course only “very peaceful local people!”  LOL
      The best Democrat – is a terrorist and cannibal, which kills the local women and children in the interest of Washington, is not it?
      And Obama – it is of course a “white dove of peace”! LOL!! :-))

    • Only in America, the bible is used as a weapon. Do you actually read your bible? If so, then I strongly suggest to just go with the flow, if god has plans, then they are his alone to act upon, not us.
       
      He does not act through us, he acts alone and without prejudice. The acts of man are mans act, and he acts in his own interest using religion as an excuse to do appalling things to his fellow human and animal alike.
       
      If you really believe that god cares what men do in a corner of gods sandpit, then I am afraid your sadly mistaken. 
       
      You can listen to god anywhere, anyplace, anytime, you don’t need a two way radio, you don’t need the holy land, a church or even a Pope to talk to him. Just go for it. If he’s got the time and inclination, he might listen to you, but hey, who are we? we are nothing, less than nothing.
       
      Black holes are something.

    • @JonL
       
      That ‘Drutter’s Divergence’ IS a fascination observation. Thanks from me too for bringing it to our attention. One point a poster on Drutter’s page raised was that the charts only studied the Mint production-demand data against the paper ‘price’, omitting industrial factors. Still Sprott HAS considered tyhat totality and deduced that both sectors together far exceed current mine output and THEIR divergence is also widening.
       

    • @TheDoc noticed this divergence too and we talked about it in one of the Metals & Markets shows last month — don’t recall which but it was near the start of May.      Drutter took it a step further by graphing the data.  But if I’m not mistaken the primary bullion dealers are no longer on tight allocation, if at all.  Doc can verify.  
       

    • Question should be, why Silver dollar coins? Is it because they are deemed as legal tender? does this mean that “Big players” think that the price of silver could go below the price of the coins, that is $1 dollar. 
       
      May hap its because the figures are easy to obtain. I know as a bullion dealer, that the price of coins compared to bars is massive. If you deal in 1 kilo or over, the price of silver is dramatically less than the price of silver coins.
      *Update*
      I just called one of my Bullion suppliers, they say that production has been decreased, they are manufacturing less bars, but are creating smaller bars, 50 gram and 100 gram bars are the best sellers. People are moving away from the larger 1kg bars.
       
      I think this means that they are thinking about either a slow down in the market, or that the price of silver is going to go dramatically up, therefore 1kilo bars are going to be hard to sell.
       
      I don’t know. could go either way.
       

    • The Canadian and US Mint are both still allocating their supplies to the primary dealers (12 for the US Mint) last I have heard- however the retail demand has eased considerably over the past 4 weeks so that the allocation is sufficient to meet US retail demand for the time being.
      -Doc

  3. SilverTongueDevil – Why don’t you take your neo-Nazi and anti-Semetic diatribe somewhere else. 

    << Genesis 12 >>
    New International Version
     

    The Call of Abram
    1The Lord had said to Abram, “Go from your country, your people and your father’s household to the land I will show you.

    2“I will make you into a great nation,
    and I will bless you;
    I will make your name great,
    and you will be a blessing.a
    3I will bless those who bless you,
    and whoever curses you I will curse;
    and all peoples on earth
    will be blessed through you.”b

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