Right now most of the blatant manipulation appears to be connected to the London p.m. gold fix activity on the LBMA.
We believe it’s evidence of a growing shortage of physical gold available to deliver into India, China and other gold-buying countries
.  

PM Fund Manager Dave Kranzler Explains:

 

 

From PM Fund Manager Dave Kranzler:

The paper silver open interest on the Comex is at all-time highs.  The previous all-time high was 224k contracts when the price of silver was pushing $50 in 2011.  The current paper silver open interest is 229k contracts with the price of silver at $18.  At least the degree of fake silver open interest in silver was more appropriate to the price level at which silver was trading in 2011.

Having said that, the current paper silver open interest is entirely inappropriate relative to the amount of silver reported to be held in Comex silver vaults.  229 thousand silver contracts translates into 1.15 billion ozs of paper silver.  That number represents  about 37% more actual silver ounces produced by global by mining companies in one year.  Compare that paper representation of silver to the actual 193 million ozs of silver reported to be held in Comex vaults, primarily “held” by JP Morgan which is reporting nearly 102 million ozs of silver in its vault.

Notwithstanding whether or not those 101 million ozs of silver are actually sitting physically in JP Morgan’s Comex-designated custodial vault (and much of it has likely been hypothecated), the amount of paper silver issued primarily by Comex bullion banks is nearly 6x the total amount of silver reported to be held in Comex vaults.

But it gets worse.  The amount of silver that has been designated as available for delivery, or “registered silver,” is only 30 million ozs.  In other words, the amount of paper silver issued by the Comex is 38x greater than the amount of silver made available to be delivered to the holders of those silver contracts.

The point here is that the Comex is likely the world’s most fraudulent market. In fact, It’s inappropriate to refer to the Comex as a “market.”  The Comex is nothing but a mechanism by which the Fed, in conjunction with the Treasury’s Exchange Stabilization Fund and the Comex bullion banks, exerts control over the price of silver.

The degree to which the Fed et al has to exert fraud in order to contain the price of silver is reflected by the absurd imbalance between paper silver contracts issued in relation to the amount of the underlying silver available for delivery.   In any other commodity sector this situation would be labeled “criminal.” With silver and gold it’s labeled, “nothing to see here, move along.”

As with silver, the trading patterns in gold reflect a high degree of desperation by the bullion banks to contain the price and demand of physical gold.  Interestingly, right now most of the blatant manipulation appears to be connected to the London p.m. gold fix activity on the LBMA.  We believe it’s evidence of a growing shortage of physical gold available to deliver into India, China and other gold-buying countries.   We explain this view in detail in today’s Shadow of Truth episode:


 

    • It’s not a NEW magic bullet, it’s the same old, same old magic bullet and that is their ability to create paper Gold out of thin air by creating an infinite number of naked paper short contracts when there is high demand. This is also called “counterfeiting” for ordinary people but not for these Masters of the Universe. That, of course, prevents the basic laws of supply and demand functioning and of course holds down the price of PM’s. This would not be allowed for any other commodities because of position limits and concentration rules, which are overlooked in the case of the PM’s because the Central Banks, BIS and ESF are behind the manipulation. The Bullion Banks also have the ability to front run the PM “markets” because they have access to all the trading data and know where the stops are positioned.

      So as the price goes up, the Banks sell imaginary Gold to contain the rise, then they bpush the price down at critical technical levels (which they themselves “paint” on the Charts) and the Specs all sell, taking price down further as they they then cover their shorts and profit in both directions. This old game is known to those in the Gold game as “Wash, Rinse, Repeat” and it still works just the same way as it always has. It’s a fraud basically but, of course, the Gold futures “markets” were created with the sole intention of the Central Banks being able to manipulate PM prices via volatility (to scare away average investors) without risking too much of their own physical metal. This was recently confirmed via leaked Diplomatic cables from London regarding the setting up of PM futures markets as a way to prevent average investors from buying and holding physical metals.

      Such is the nature of the beast. It WILL end eventually when the physical demand becomes so strong as to swamp the Bullion Banks and forces them to cover their Shorts. But nobody can predict when that might happen or what will trigger it. So in the meantime, if you want to be in the metals game, you just have to accept the way it is because the “Regulators” aren’t about to fix it. And the manipulation in the last week has become so completely obvious that they WANT you to know that they are in control and they don’t care if it is obvious because nobody is going to stop them. They don’t WANT you buying PM’s because they want to be in control of the entire (fiat) system and they will not allow PM’s to represent a “way out” for the plebs.

      In the meantime, don’t pay too much attention to the pundits because their guess is as good as yours but they, unlike you, make money by selling metals.

  1. When you look at all the different investing choices that are available today & watch how the crooked racist globalist bankers are so very afraid of a tiny market like PM’s this shows how insecure & scared they are in allowing the truth that is the failure of their fiat money system & it’s failure as a reflection on them as a people. 

    When 

    The only way they can make a profit is by rigging & manipulation  & pure fraud  with the use & blessing of a corrupt political & media otherwise they all would be swinging from a lamppost if the GDP had a clue to how they have been financially  screwed. 

    • GDP?Rigging&manipulation& pure fraud?Isnt rigging considered manipulation.Then add in fraud.Its all the same thing OXYMORON.How dare the bankers rig,manipulate and then commit fraud.I guess that would make them RACISTS BANKERS.LOL

  2. As I’ve said 50 times on this blog.  Until they stop the massive 50:1 and 100:1 paper to physical this manipulation will not stop.  All they did this week was show they are still firmly in control despite the forecasts of the usual crew like Willie, Holter, Polney, Sprott, etc.

     

  3. “Massive Attacks On Gold Reek Of Desperation”
    The only desperation I see is on the part of gurus like Kranzler who presumably are desperate to explain to their subscribers and investors why they are always so wrong.

    Anyway I’m not desperate…. Clif High told us that Silver will be $600 an ounce this time next week.

    • I’m not sure he said $600 in April, but you’re right that he did say that he has a high degree of certainty from his “predictive linguistics” web bots that Silver would take off in April. Perhaps his bots were getting lost in transaltion and not speaking Bankster linguistics?

      He still has 9 days!! (But since we are now in a “Rinse” cycle from Record Commercial short positions, if I were a betting man, it’s not a bet that I would be taking)..

  4. Do the people who write these articles ever pull their heads out of the sand long enough to look at the empirical evidence all around them, and realize that the story they are telling is crap. What one thinks should happen, and what IS happening are not the same. “Hope” has never been a successful investment strategy. The clowns that write these investment articles should switch to writing fair tails. They would have a lot more credibility writing about unicorns than writing about the next “moon shot” in PMs. The articles suck, but the comments are always entertaining.

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