Jeffrey Christian Slips Up Again, Inadvertently Proves Illegal COMEX Price Setting in Silver

Jeffrey ChristianHas Jeffrey Christian inserted his foot into his mouth once again, and for the second time inadvertently divulged information in a public speech proving that the gold and silver markets are manipulated?
While the end of Christian’s Silver Summit speech in which he attacked metals trader Andrew Maguire has received even MSM media attention over the past week, we suspect slandering Maguire will not be the only reason Christian will regret last Thursday’s speech in Spokane.

In a stunning admission last week at The Silver Summit in Spokane, Washington, CPM Group’s President Jeffrey Christian, a long time opponent of silver market rigging claims, admitted that the price of silver was being illegally set on the COMEX trading floor. This admission came during his attempt to prove that there was no silver market manipulation taking place.

 

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Submitted by Bix Weir, Road to Roota:

OPEN LETTER TO THE CFTC

October 29, 2013

Commodities Futures Trading Commission
3 Lafayette Center
1155 21st St. NW Washington, DC 50581

Re: Illegal COMEX Price Setting

ATTN: CFTC Commissioners:

In a stunning admission last week at The Silver Summit in Spokane, Washington, CPM Group’s President Jeffrey Christian, a long time opponent of silver market rigging claims, admitted that the price of silver was being illegally set on the COMEX trading floor. This admission came during his attempt to prove that there was no silver market manipulation taking place.

Christian’s assertion was that the wild swings in the price of silver were not being caused by rogue market riggers but by multiple computer algorithms and High Frequency Trading programs firing at the same time in the COMEX silver exchange based on the same program triggers. Christian claims that the simultaneous nature of these trades spring from all trading houses using the same algorithms they learned in the same colleges. Trading volumes on the COMEX supports this assertion as the COMEX is on track to trade over 80 B equivalent ounces of silver derivatives in 2013 which is 1,800 x the amount of Registered Physical Silver in the COMEX inventories(44M oz).

Unfortunately for Christian and the CME, what he describes is an artificial price setting mechanism for silver in an exchange that is specifically regulated such that it does not “set” silver prices but rather is a “price discovery” exchange. What Christian describes is ILLEGAL and the CME Group who owns the COMEX should immediately shut down all HFT’s and computer trading programs stopping this continued distortion of silver prices.

Regulating the futures and options markets such that they DO NOT set an artificial price of a commodity is specifically why the CFTC hires Economists to oversee the Silver derivative markets(futures and options are derivatives). Weighing the stable supply/demand dynamics of the silver industry(0-5% annual volatility range) against the volatile COMEX trading activity and price fluctuations(over 100% annual volatility swings) is the proof that the price of silver is being artificially determined by derivatives as Christian suggests.

The legal concept is fairly simple, the trading of futures and options should not be the overriding price influence in setting the price of any commodity as it does not reflect the true supply/demand dynamics of the underlying commodity being traded.

Jeffrey Christian is the leading authority on commodity derivatives with experience in advising the largest players in the paper/electronic silver space such as the IMF, World Gold Council, Central Banks, Bullion Banks and Global Mining Companies. Before CPM Group spun off from Goldman Sachs in the 1980′s, Christian worked with Robert Rubin who advocated and developed Gold Leasing Programs for Central Banks and National Treasuries(although Germany is still trying to unwind their leased gold). In the 1990′s Christian advised companies on how to properly hedge their gold production(although massive Billion dollar write downs were taken as the price of gold rose in the 2000′s). Christian is currently leading the charge to restart miner hedging programs as he advocates hedging once again to offset the price volatility on the COMEX…

WAIT! This silver price volatility is caused, according to Christian, by multiple computer algorithms and High Frequency Trading programs firing at the same time and is NOT a freely traded price of silver!

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Any hedging on false COMEX price discovery is an accident waiting to happen…AGAIN!

It is imperative that the CFTC investigate and stop such illegal price influencing actions on the COMEX as it is destroying the true price discovery mechanism for silver. Companies and individuals are making bad decisions based on faulty price data originating out of the COMEX.

Silver investors should demand an explanation from the CFTC and the CME as to Jeffrey Christian’s claim that price fluctuations in silver are being initiated and caused by computer driven trading that artificially influences the “Fair Market Value” of silver.

I want to thank Jeffrey Christian for bringing this to the attention of all who attended the Silver Summit as it explains WHY the price of silver is so volatile in an underlying industry that should, by all accounts present at the Summit, be stable and predictable.

Sincerely,

Bix Weir
www.RoadtoRoota.com

Comments

  1. If you looked at the silver action today, it already looks as if someone unplugged the ALGO’s.  Viola!  There you have the ACTUAL human trade action….. Zero. LMAO!

    • Shamus, whilst ‘normal’ in a market price chart is a cryptic concept to say the least, I’d agree with you here. Take the chart below – everything to the right of the spike that I’ve labeled ‘Bounceback’ looks quite natural.
       

  2. Nothing really matters, anyone can see,
    Nothing really matters,
    Nothing really matters to me. 
    (Queen- Bohemian Rhapsody)
     
     

  3. If you look up the compound word cocksucker in the dictionary, you will see a picture of Jeffrey!  Should you then query him about this, he would tell you he doesn’t suck them, he only holds them in his mouth and lets them soak!

  4. It’s always the case that if one pays close enough attention, given time, crooks and liars invariably hang themselves by their own rigging.

  5. [Comment removed by poster]

    • Ouch!

    • That’s a very insulting statement Speros, and I think a sincere apology would be nice.
      Getting back to the markets, who cares if “80 B equivalent ounces of silver” are traded this year?    Paper silver longs are NOT silver investors, they don’t buy and take physical silver off the market, so why should anyone expect this trading to move the silver price higher in the physical market?
      My suggestion, don’t even worry about the paper market, worry about investment and industrial demand for physical silver, that is what controls the price of silver.
      “futures and options should not be the overriding price influence in setting price of any commodity”   And it isn’t, physical markets dictate price.
      “as it does not reflect the true supply/demand dynamics of the underlying commodity being traded.”     If the price in the futures and options market gets too low, we would have physical shortages, problem solved, yet at $23 oz today, there are NO shortages. 
       
       

    • Zman, why this simple concept is refused by so many is nuts to me.
      pSilver is an inflation hedge and a good one, it is not a mystery product that is $100 undervalued today.  Maybe we’ll get there but today all the industry needs to pay is $23. 

    • [Comment removed by poster]

    • Lookee here, 2 trolls are pretending to have an online tiff, and then they pretended to make up, and another one is talking to them too. Waow, these guys are making such an effort for us silver-bugs … I find it really moving and ‘genuine’, sniff, sniff. Thanks guys.

    • [Comment removed by poster]

    • Who cares if 80b oz are traded, I do when the bulk  of it is paper and the physical market price is tied to that paper.

  6. collusion is illegal, independently trading using the same strategy as everyone else is foolhardy, but not illegal. Setting stop orders to minimize losses is not illegal, setting them at the same price targets as everyone else is foolhardy.

    A market sell order is not illegal.

    Why do we never see these arguments when silver shoots straight up? Big mkt buy orders triggers buy stops and the price rockets up. Same thing in reverse but everyone is thrilled. I want to see higher prices but you cant have it both ways.

    • So, are you saying using HFT platforms and algos with massive leverage is all legit? Selling 400-500 tons of gold in minutes to maximize selling pressure and trigger all stops benefits exactly who? The seller getting a terrible price? LOL, that is comical and childlike analysis. And when have we seen the gold price “rocket up”? I’ve been watching gold for 15 years and can count those days on probably one hand. It almost never happens.
      The historical record says you’re wrong mikey. Why you are still an apologist for the crooked banksters and their illegal, immoral and unethical activities is a mystery to me.
       

    • I’m apologizing for nothing. Just stating a fact. This article states illegal behavior. Trading is not illegal. Colluding with trading. partners is illegal, there was no argument about collusion, just that stops get triggered because people behave similarly. Saying trading is illegal is asinine. When this similar behavior gets out of control you inflate and deflate prices beyond reasonable levels (i.e. silver up to $45, or some perfectly sound banks down to $1). Those are great times to reflect on reality.
       
      As far as rocket up days, you are counting the one just the other day right?  I think you have selective memory here.

    • @Bay of Pigs … well said BOP. In answer to your question to the troll, the answer is ‘because he is a troll’, but, as you illustrate, it is infinitely more eloquent to point that out without using the word, ‘troll’.

    • Mikey, please don’t pull my chain. Reflect on reality? Seriously? You want to talk facts or your complete bullshit? Bring it on pal…be glad to smack you down.

    • I am still waiting to read an intelligent comment from you that doesn’t include bullying, abusive, or threatening behavior.
       
      Actually, I am still waiting to read an intelligent comment from you that DOES include any of those behaviors.

    • [Comment removed by poster]

    • Reflecting on reality.  When i traded my junk silver for premium proofs that was a no brainer.  When I bot gold at 1225 and sold at 1325 that was reflection on both counts.  When I bought 5/3 stock near $1 per share in the financial crash it was reflecting on reality, well capitalized bank, fear driving all prices lower.
       
      If you understand mass psychology you’ll be a better trader than many of the so called tech gurus.

  7. “Silver investors should demand an explanation…”
     
    Now that right thar is funne!!!
     
    Price is low, keep stacking folks, keep stacking.

  8. Yeah, like that will work. No change will happen without a tax revolt or actual violence, or Levin’s plan of a state convention. As for Jeffrey, I say it again, he looks like a pedophile.

  9. jeffy boy was recently sentenced to 100 hours community service after police caught him,sniffing bikeseats outside of a gay bar. he spent those 100 hours as a volunteer ass hole bleacher in that same gay bar.

  10. JEFFERY to get a bad spanking ,his azz will be the size of his mouth lol. grill the shill

  11. WAIT! This silver price volatility is caused, according to Christian, by multiple computer algorithms and High Frequency Trading programs firing at the same time and is NOT a freely traded price of silver!      jeffery the real shill  actually agrees with  Andy Mcqiure

  12. jeffery the real Deal shill ‘ shitstain christain  what you know about HFT ? LOL

  13. Will someone please contact Elizabet Warren exposing this will launch her to the presidency

  14. @Woolly:
    Whoa there my good man!  Freddie is dead.  Plus, Queen was/is one of my favorites. LMAO

  15. Why is it news when there is a little admission of what we already know?
     
    Andrew Maguire vs. Jeffrey Christian … it’s presented like so many other programming movies … good vs. evil.
     
    So boring.

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