Submitted by SD Contributor Marshall Swing:
Gold COT Report 9/28/12


Commercials sold off -4,296 longs and added 8,426 shorts to end the week with 56.32% of all open interest, a decrease of about +0.85% from the previous week in total open interest, and now stand as a group at 26,235,500 ounces net short, a significant increase of 1,272,200 ounces net short from the previous week. 

Gold and silver are selling off during early Monday Asian trading, which was expected after Friday afternoon’s announcement that a Federal District judge had struck down the CFTC’s position limits rule, scheduled to go into effect Oct 12th.

Silver gapped down on the 6pm EST globex open, and has continued to sell off nearly continuously in the Asian session, down to $34.28.
Gold is down a more modest $5 to $1765.
As we mentioned Friday night, the ruling explains why the commercials (cartel) have continued to massively increase their net short positions, adding another 6 million net shorts in silver this week, to a massive 258 million ounces net short!

A little over a year ago, SD published the 1st hand account of StackerX’s experience surviving the devaluation of the Mexican Peso in the late 1970′s. 

With The Fed now two weeks into it’s official QE∞ policy, and with calls this week by Fed Presidents Evans and Plosser for even further easing-bringing a devaluation/hyperinflation of the dollar one step closer by the day, we thought it apropos to republish StackerX’s account and experiences recognizing, surviving, and even profiting from a fiat currency devaluation.

Those who recall the account may benefit from re-examining the lesson, and for those unfamiliar with the account of the 1976 Mexican Peso devaluation, this is an ABSOLUTE MUST READ as the US is rapidly descending into full-blown Banana Republic status.

The market seems to have completely forgotten the fact that JPM’s massive CIO positions have yet to be closed.  Unfortunately for Mr. Dimon, at least $90 billion in potential losses remain, and the strategy of slowing unwinding the positions will blow up in The Morgue’s face and exponentially exacerbate JPM’s losses with any further downturn in the economy.

The JP Morgan (JPM) trading blunder could result in a $100 billion loss, a contagion of its massive portfolio, and even the wipeout of its entire asset base. Even worse, these extremely risky and potentially-illegal actions on behalf of the CIO office and the “London Whale” could be the unexpected “shock” that breaks the market, derails the Fed’s huge monetary stimulus, and sends us back into a global recession.

National Opt Out Day worked in 2010 as the Nazi SS shelved their radioactive scanning devices for the day.  Why shouldn’t it work again?

This Thanksgiving, is giving thanks for the First Amendment, by getting back in the faces of those who are attempting to abuse their authority to silence free speech and in turn conceal flagrant abuses of our rights and our basic dignity — with the launch of the national Opt Out and Film campaign.

*Updated with Gensler’s response

For anyone who wondered, the banksters are above the law- just ask Mr. Dimon and his Presidential cufflinks.

DC District Court Judge Robert Wilkins Friday threw out the CFTC’s position limits rule, scheduled to go into effect Oct 12th.
Naturally this was announced late on a Friday afternoon after the markets had closed, to insure as little to no publicity as possible.

The metals manipulation will only end when FREE MARKET FORCES OVERWHELM the bullion banksters.


(Reuters) – A U.S. judge handed an 11th-hour victory to Wall Street’s biggest commodity traders on Friday, knocking back tough new regulations that would have cracked down on speculation in energy, grain and metal markets.

Submitted by SD Contributor Marshall Swing:

Silver COT Report 9/28/12

Commercials were up 2,567 longs on the week and also accumulated 3,752 shorts to end the week with 45.27% of all open interest, an increase of -0.30% in their share since last week, and now stand as a group at 258,295,000 ounces net short, an addition of another 6,000,000 net short ounces from the previous week

In his latest update, Greg Mannarino discusses Fed Presidents Charles Evans and John Williams’ speeches this week calling for FURTHER quantitative easing. 

Williams stated the Fed can extend Operation Twist into infinity (which can only occur if the Fed goes out and PURCHASES T-BONDS DIRECTLY!!).   Mannarino states we are in the middle of an escalating GLOBAL CURRENCY WAR.  The petro-dollar is being threatened as China is colluding with the Saudi’s to bring the largest oil refinery in the history of the world in 2013.

By artificially suppressing interest rates, The Fed is causing massive inflation which will BLINDSIDE Americans.  Mannarino states we are in the CALM BEFORE THE STORM, and Americans’ cost of living is going to SKYROCKET!!  He claims massive civil unrest here in the US is imminent!!

Once the Federal Reserve becomes the lender of last resort, it’s OVER!


It’s the last Friday of the month, which at SD Bullion always means:


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In what could prove to be a game changer for the cartel, India’s Multi Commodity Exchange (MCX) announced Thursday the launch of 2 new silver contracts, including a contract for deliverable 1 kg silver bars.
No longer will Indian traders have to mess with Western futures exchanges where physical metal delivery is difficult and strongly discouraged for obvious fractional reason.

This could have MASSIVE implications on the extremely tight PHYSICAL silver market, as the Indian market will now begin to set the price for PHYSICAL SILVER…first in Asia, and then rapidly throughout the rest of the world as the paper futures markets fade into irrelevance as traders take their business to more open and honest exchanges.

In news that we wish was from The Onion but was an actual fine, the CFTC announced Thursday they have fined JP Morgan $600,000 for violating speculative position limits in cotton futures.

You read that correctly, six hundred thousand dollars.

In other news, Jamie Dimon made roughly $600,000 during the time it took to down his morning latte while deleting the CFTC’s memo.

Gold prices are up on Friday, as the new austerity budget from Spain was received favourably and it increased the appetite for higher risk assets, sending bullion, commodities – brent crude oil at $112, the euro and equities to rise.
Gold prices in euros held near the prior session’s all time record high of EUR 1,380/oz, hit after rising spot prices coincided with a weaker euro on Thursday.  Euro-priced gold was up 1.1% at EUR 1,375.48/oz.
US gold futures for December delivery were up $2.50/oz at $1,783.00 this morning.

Quarterly performance for, gold, silver and platinum were all up.  Gold is on the way for an 11.4% gain. Silver racked up the largest gain and rose over 25%.  Spot platinum and palladium were up 15.4% and 9.8% for the 3rd quarter. US gold American Eagle coins was improved from last quarter (138,000 ounces vs. 133,000 ounces) however still the lowest quarterly figures in over 2 years.
Gold reached highs in euros and Swiss francs yesterday, in London trading it hit EUR 1,379.60/oz compared to EUR 1,375/oz last September.  In Swiss Francs gold traded at CHF 1,666/oz.

The Doc and Turd Ferguson got together for a round-table interview with Thursday and discussed the ramifications of QE∞, Bernanke’s options and game-plan going forward, the recent tungsten-filled gold reports and the implications for precious metals investors, allocated/unallocated/rehypothecated metal concerns, and finally the end game for the Western fiat monetary system- are we headed back to a gold standard whether the Fed likes it or not?

The Doc & TF tag-teamed to address the pertinent issues facing gold and silver investors today.

Full interview below:

CNN Money has released a special recommending retirees avoid investing their retirement funds in gold, which is ‘far too volatile‘.
CNN says ‘gold isn’t a place to put money you can’t afford to take a loss on‘ and concludes by stating ‘Bottom line- we can’t wholeheartedly recommend gold for your retirement savings.  If you really feel that you must put some of your retirement savings into gold, make it a small bet‘.

So let’s get this straight: holding physical wealth is a ‘bet’, but purchasing government, state, and municipal bonds ahead of the looming fiscal cliff is a sound investment decision?