The CFTC IS the watchdog for abuse in the options and futures markets and Friday April 12-Monday April 15 were beyond obvious as to what was done. Reportedly 1,000+ tons of paper Gold were sold in less than 8 hours of trading. This is 32 million ounces. This is 40% or more of ALL Gold produced on the planet in 1 ENTIRE YEAR! “Who” in their right mind would sell in this fashion? Who in the world even holds this amount of Gold? The answer in case you are wondering is NO ONE (other than central banks and THIS may not even be true any longer)!
Forget completely the nuts and bolts, look at this through the eyes of an 8 year old. The price of the physical metal is different than the futures prices. ONE of these two must be wrong by definition as they cannot both be correct. The “price” is and has been “set” by the paper markets. The “tail is wagging the dog”, this is more than obvious. The futures markets were set up originally to create liquidity and facilitate suppliers hedging and speculators speculating. This has gone on for years now (at least since 1996). Obviously “something” isn’t right when one market has one price and the other another price so …what to do? Just sit back and wait…for the inventories to be wiped bare.
Submitted By Bill Holter, Miles Franklin Ltd,:
I wrote yesterday about how the CFTC would look into Bitcoin yet nearly 5 years after the Silver investigation we have heard nothing. In a roundabout way I saw a reply from Bart Chilton this morning to several writings yesterday (I suppose my own also), he states:
Over the years, I have been particularly concerned about precious metals. Even though I can’t say anything based upon confidential information, I can say that at times over the years I believe—based upon public information—that there have been efforts to manipulate the markets (silver and gold).
That is about all I can tell you now. Hope it was somewhat useful. We will keep at it and hopefully catch he bad guys when we find them.
P.S. maybe they will tell us that the physical markets are tight because the largest open pit mine in North America collapsed which obviously has no effect on the paper price…only the real supply!