Massive movements in COMEX silver vaults again on Tuesday, with JP Morgan adjusting 51,401 ounces of their new registered silver into eligible vaults.
*Delaware received a deposit of 9,846 ounces into eligible vaults
*Delaware also had a withdrawal of 998 ounces out of eligible vaults
*No Changes for HSBC or Scotia Mocatta
*JP Morgan adjusted 51,401 ounces OUT of registered, and into eligible vaults
*TOTAL COMEX REGISTERED SILVER Inventories declined a net 51,401 ounces to 34,012,301 ounces
*TOTAL COMEX ELIGIBLE SILVER Inventories increased a miniscule 2k ounces to 78,835,183 ounces
*TOTAL COMEX SILVER Inventories declined to 112,847,484 ounces
Once again, NO MENTION OF THE CME OF THE MISSING 1.4 MILLION OUNCES OF REGISTERED SILVER, which now reportedly per Max Keiser was obtained from JP Morgan by Jamie Dimon threatening Jon Corzine with DEATH unless he turned over the MFG clients’ phyzz and funds!!!
As a strangely coincidental supply turned up in JPMorgan vaults almost simultaneously as the MFGlobal clients phyzz went missing, until the CME provides an update of what happened to this stolen inventory, The Doc will continue to provide the latest available info on this from the CME:
*Registered ounces of metal currently not available for delivery
as of 11/4/11 due to MFGI bankruptcy. Included in above totals.
CNN Money’s Nin-Hai Tseng (previously a reporter covering development and land-use policy…obviously an expert on gold!) today released a hit piece on gold filled with disinformation and flat out fallacies. Do you really think this is Nin-Hai’s opinion, or is she and others like her in the MSM being paid mega-bucks to produce fear-inducing articles on gold? Do you think there’s more money to be made in serving in the elitist banksters’ propaganda wing, or in valid thoughts on precious metals on a marginal blog called SilverDoctors?
Gold prices are nearing bear market territory, and yet the global economic fear that drove many investors to the metal remains. What gives?
For most of 2011, it seemed like nothing could stop prices from climbing — gold prices peaked in September at more than $1,900 an ounce.
But in recent months, many high-profile investors have sold their positions, suggesting that gold’s glory days could be coming to an end.
Billionaire investor George Soros, who called gold “the ultimate bubble,” cut his holdings in the SPDR Gold Trust (GLD) as early as May. Hedge fund manager and long-time gold bull John Paulson held tight for a few months, but eventually slashed his gold holdings by a third during the third quarter.
And last week, economist Dennis Gartman, who correctly predicted the slump in commodities in 2008, sold off the last of his bullion. He stresses that he isn’t bearish on gold, but thinks the precious metal isn’t exactly the safe haven that many investors have come to know it. And t-bonds are!?!
Admittedly, few are screaming bear in the gold market. But even the most bullish investors admit sentiments have changed in a noticeable way.
The last time gold went bust was in 1980, when prices dropped more than 60% in a single year. It wasn’t until 20 years later, in 2000, that investors saw positive returns. Is gold returning to a bear market?
The rest of the propaganda can be found at CNNMoney
Note how the author brings out big names that have sold a large portion or all of their gold holdings. (if Dennis Gartman just sold all of his gold, he must have been referring to his wife’s engagement ring that he just lost in a game of 5 card stud), suggests that gold is the ultimate bubble, and then attempts to invoke fear by stating that gold had a 20 year bear market at the end of its last bull run.
Please also note that Soros did not just recently make that “gold is the ultimate bubble” comment, the statement was in 2010 with gold around $1,200/oz, and Soros was stating that gold would be the ultimate bubble as a result of low real interest rates. Has that environment changed?
Did you think the troops were being withdrawn from Iraq so they could come home and bring official unemployment back over 10%?
WWIII is standing in the on-deck circle.
America’s most senior military official has indicated that the country is ready to engage in a conflict with Iran, if President Barack Obama were to give the signal.
Tensions have been growing in the region following international condemnation over Tehran’s growing nuclear ambitions.
Last month, Britain’s ambassador to Iran was expelled from the country following attacks on the British Embassy. The US is also involved in a standoff over a downed spy drone, which President Mahmoud Ahmadinejad has refused to return despite America’s requests.
General Martin Dempsey, chairman of the US joint chiefs of staff, said that the US military had reached a point where they were ready to execute force against Iran if necessary.
In an interview with US media in Afghanistan he said: “We are examining a range of options. I’m satisfied that the options that we are developing are evolving to a point that they would be executable if necessary.”
His comments come just days after Leon Panetta, US secretary of defence, said “no options were off the table” in stopping Iran develop a nuclear weapon.
Responding to a reader inquiry, the legendary Jim Sinclair has suggested that the grouping of cycles indicates that the time to consider taking profits in gold and silver may be 2015. Will we see the final, 3rd stage public mania in gold and silver play out over the next 3 years?
There is a question I would like to ask you about the current bull market in gold that you say we are in. As all bull markets eventually end, my question to you is not, “if” there will come a day to take profits, but when to take profits and what to do with those profits. For example, I would think of myself as a bad investor to ride the gold market from its lows clear up to its highs and back down to its lows again. If gold goes to $2,000 or $5,000 or $10,000 dollars per ounce at what point should one sell the physical metal? Hypothetically if gold were to go to $5,000 dollars per ounce or achieve a 1:1 price ratio with the Dow Jones Industrial Average, does one actually sell the physical coin for U.S. dollars (knowing the U.S. dollar is just another fiat currency)? Should one wait for an alternative currency to arise and sell the physical metal for that currency?
I hope I have been clear in what I am asking. Basically if one is holding wealth in gold/silver at what point does one take profits, and what does one roll those profits into at the end of the bull market in gold/silver? You might think my question premature as there are possibly years left in this bull market in gold, but I don’t want to be the last man standing who just watched the bull market profits disappear. (I call to your attention the gold price action of the 1980s when gold soared to $800 per ounce only to settle for the next decade between $200-$300.)
I would appreciate any advice and insight you might have.
You have presented the most difficult of questions. Last evening, I answered that via a graph of emotions that finds tops, but not necessarily with the definition of the long term top appended.
I do not think a ratio to the Dow is the answer.
The model answer is when gold sells (per ounce) at the value that equals the total dollar value of US foreign debt divided by the assumed number of ounces of gold the US government has, gold is full priced.
The reason for that is because at that price the international balance sheet of the USA and therefore the dollar is in balance. However, that number, which was $900 in 1980, is now slightly above $12,400.
If grouping of cycles is of any use time wise, that suggests 2015.
In true BLS fashion, the NAR today announced a major benchmark revision to existing home sales from 2007-2010. The NAR revised the 2010 sales down 15% from 4.908 million to 4.19 million. Over-reporting existing home sales by nearly 3/4 of a million units in a single year is no accident.
The entire 4 year period of 2007-2010 was downwardly revised by 14.3%!! Can you say MOPE!?!
Existing-home sales rose again in November and remain above a year ago, according to the National Association of Realtors®. Also released today were periodic benchmark revisions with downward adjustments to sales and inventory data since 2007, led by a decline in for-sale-by-owners.
Although rebenchmarking resulted in lower adjustments to several years of home sales data, the month-to-month characterization of market conditions did not change. There are no changes to home prices or month’s supply.
Also released today are benchmark revisions3 to historic existing-home sales. The 2010 benchmark shows there were 4,190,000 existing-home sales last year, a 14.6 percent revision from the previously projected 4,908,000 sales. For the total period of 2007 through 2010, sales and inventory were downwardly revised by 14.3 percent. The revisions are expected to have a minor impact on future revisions to Gross Domestic Product.
Read more MOPE here:
• Introduction – Gold in 2011
• Money Creating Central Banks May Push Gold to New Nominal Record in 2012
• Central Banks Will Continue To Be Net Buyers of Gold
• China Foreign Exchange Diversification Should Support Demand
• PIIGS Lesson: Iceland Shows How Gold Protects From FX Crises
• Currency Wars and Competitive Currency Devaluations
• Falling Confidence in Paper Assets, Bank Deposits May Prompt Physical Deliveries
• Gold Remains A Historically and Academically Proven Safe Haven
• Conclusion – Gold in 2012
With just a few trading days left in 2011, we can take stock of gold’s performance vis-à-vis other assets.
Gold is 13.7% higher in USD, 12% higher in GBP and 14.4% higher in EUR. Gains were seen in all fiat currencies and even stronger performing fiat currencies such as the CNY (yuan) and JPY (+9% and +8.75% respectively).
G10 and Gold in USD in 2011 (YTD)
Stock markets globally had a torrid year with the S&P500 down 1.3%, the FTSE down 8% and the CAC and DAX down 19% and 15% respectively. Asian stock markets also fell with the Nikkei down 17%, the Hang Seng 20% and the Shanghai SE down 22%.
The MSCI World Index fell 9%.
Thus, gold again acted as a safe haven and protected and preserved wealth over the long term.
While gold reached record nominal highs at $1,915/oz in August, it is important to continually emphasize that gold remains well below the real high, adjusted for inflation, in 1980 of $2,500/oz.
Gold today at $1,625/oz is 18% below the record nominal high of $1915/oz in August 2011. More importantly, gold remains 46% below its real high of $2,500/oz.
Since 2003, we have said that gold would likely reach the real high from 1980 for a variety of important fundamental reasons – such as global debt levels, global demographics and geopolitical, macroeconomic, monetary and systemic risk.
Money Creating Central Banks May Push Gold to New Nominal Record in 2012
Money Creating (Electronic and Printing) Central Banks Push Gold to Nominal Records (2008-2011)
Global money supply continued to rise in 2011 and helped push gold prices to all-time highs on the fear of currency debasement. If accommodative monetary policies continue as the dominant tool for central banks, precious metals will almost certainly continue to benefit.
Were this trend to turn, responsible monetary policy actions could hinder returns. We see no prospect of this in the short term – and little prospect in the medium term.
Central Banks Will Continue To Be Net Buyers of Gold
Gold Diversifying Central Banks Should Support Demand
Central banks have bought about 30 million ounces of gold since March 2009, about 12% of global demand on trailing 10-quarter basis. As central banks focus on stimulating growth, negative real interest rates in developing nations should continue to push diversification of foreign exchange reserves, which may encourage bullion purchases.
Central bank gold reserves are likely to return to the levels seen in the 1970’s and 1980’s due to a significant reappraisal of monetary risk and a recognition of gold’s increasing importance as a monetary asset.
China Foreign Exchange Diversification Should Support Demand
China Adds Gold in Diversifying Foreign Holdings
China, one of the largest buyers of U.S. Treasuries, has publicly said that it intends to continue to diversify its foreign-exchange holdings. The total volume of China’s Treasury holdings appears to be showing the first yoy declines in 10 years while gold reserves continue to increase by about 30% a year.
Creditor nation central banks gold holdings remain very small when compared to western debtor nation gold holdings which are generally well over 50%.
It is important to note that the People’s Bank of China’s gold reserves (officially at 1,054 tonnes) remain very small when compared to those of the U.S. (8,133 tonnes) and indebted European nations – such as Italy with 2,452 tonnes.
China’s growing gold reserves are miniscule when compared with China’s massive foreign exchange reserves of over $3.1 trillion. The People’s Bank of China is almost certainly continuing to quietly accumulate gold bullion reserves. Common sense alone strongly suggests that they are.
As was the case previously, the Chinese government will not announce their gold bullion purchases to the market in order to ensure they accumulate their gold reserves at more competitive prices. They also do not wish to create instability or falls in or runs on the dollar and or euro – thereby devaluing their sizeable reserves.
PIIGS Lesson: Iceland Shows How Gold Protects From FX Crises
Iceland Shows How Forex Crises Move Gold
The steep declines of Iceland’s krona in 2008 and Argentina’s peso in 2002 show how gold can outperform in a depreciating currency. As the likelihood of default increases, the bulk of the gains in gold priced in the currency are realized within the first few months.
The people of the so called “PIIGS” – Portugal, Italy, Ireland, Greece and Spain – are all at risk of currency devaluations. Some estimate the risk as high, others low but investors and savers in these countries should protect themselves by having an allocation to gold that will protect them from “bank holidays” and currency devaluations.
Currency Wars and Competitive Currency Devaluations
However, it is not just the “PIIGS” who are at risk. The risk in periphery European nations will likely be of a sharp overnight or weekend devaluation (or a series of such devaluations) and reversion to their national currencies. However all nations, PIIGS and non PIIGS alike, are at risk of currency devaluations and currency wars.
Currency wars and the debasement of currencies for competitive advantage poses real risks to the long term stability and prosperity of all democracies in the world and to the finances and savings of people in all countries.
Falling Confidence in Paper Assets, Bank Deposits May Prompt Physical Deliveries
Falling Faith in Currency May Spur Gold Deliveries (Charts Courtesy of Bloomberg Industries)
Current market turmoil is likely to continue and may even deepen. The prospect of sovereign defaults is real which could see confidence in paper assets, particularly sovereign debt, further erode. Contagion means that even AAA rated debt is no longer risk free.
Institutions and high net worth and retail clients taking physical delivery of gold given a decline in confidence would put pressure on exchanges to deliver because the amount of metal represented in open interest is nearly six times (5.8) the amount of metal in inventory.
Gold Remains An Historically and Academically Proven Safe Haven
Forgive us for continually emphasizing how gold is a historically and academically proven safe haven.
We feel it is very important that investors and savers understand this and are frustrated by the continuing significant degree of ignorance regarding the gold market and gold’s role as a diversification, a store of wealth and a wealth preservation asset.
Some of the media and some experts continue to focus solely on gold’s price and not its value as a diversification for portfolios. Many economists and other experts have been suggesting that gold is a bubble for a number of years and suggested that again at the beginning of 2011 and again recently.
The facts, the data and the charts strongly suggest that this is not the case. In August, we presented
‘Is Gold a Bubble? 14 Charts, the Facts and the Data Suggest Not’. Many of the charts were long term in nature (2000-2011 and 1970-2011) and remain important today.
Whether gold is a bubble or not is not the fundamental question. What is far more important is that there is now a large body of academic and independent research showing gold is a safe haven asset.
Numerous academic studies have proved gold’s importance in investment and pension portfolios – for both enhancing returns but more importantly reducing risk.
The importance of owning gold in a properly diversified portfolio has been shown in studies and academic papers by Mercer Consulting, Bruno and Chincarini, Scherer, Baur and McDermott, Lucey, Ciner and Gurdgiev and by the asset allocation specialist, Ibbotson.
An academic paper, ‘Hedges and Safe Havens – An Examination of Stocks, Bonds, Oil, Gold and the Dollar’ by Dr Constantin Gurdgiev and Dr Brian Lucey and was presented in November at a conference hosted by the Bank for International Settlements, the ECB and the World Bank.
This excellent research paper clearly shows gold’s importance to a diversified portfolio due to gold’s “unique properties as simultaneously a hedge instrument and a safe haven.”
Oxford Economics research on gold in July 2011, showed how gold is a good hedge against inflation as well as deflation.
Only last week, more excellent independent research was released confirming gold’s unique role as a diversifier and foundation asset in the portfolios of investors, especially at a time of heightened currency, investment and systemic risk.
The independent research once again confirms the importance of gold as a portfolio diversifier to investors and as a store of wealth.
Conclusion – Gold in 2012
Many market participants and non gold and silver experts tend to focus on the daily fluctuations and “noise” of the market and not see the “big picture” major change in the fundamental supply and demand situation in the gold and silver bullion markets – particularly due to investment and central bank demand from China, the rest of an increasingly wealthy Asia and creditor nation central banks.
Support for the price of gold should come from the rising global money supply coupled with increasing investor and central bank purchases which have been driven by falling real interest rates and concerns about the euro, the dollar and other fiat currencies as stores of value.
Tighter monetary policies, as seen in the late 1970’s, would likely help alleviate fears of further currency debasement but it is extremely unlikely that this will be seen in 2012.
Indeed, ultra loose monetary policies, debt monetization, competitive currency devaluations and global currency wars look set to continue – if not intensify.
Gold will likely reward investors internationally in 2012 as it did in 2011 and will again be an essential diversification for anyone wishing to protect and grow wealth in what will be a very volatile 2012 and in the coming volatile years.
Ann Barnhardt- MFG Bankruptcy Fraudulently Drawn Up as a Chap 7 for a Securities Dealer Rather Than Commodity Brokerage
Ann Barnhardt’s latest rant discusses how the MFG bankruptcy was illegally and fraudulently drawn up as a Chapter 7 SECURITIES DEALER bankruptcy, rather than a commodity brokerage- because in commodity brokerage bankruptcies, bankruptcy law places CLIENTS RATHER THAN JP MORGAN AT THE FRONT OF THE LINE!!
First, all notions of personal property rights were essentially destroyed when the MF Global “trustee” began seizing customers’ gold and silver bullion held in storage if that bullion was purchased through contracts brokered by MF Global. In case you’re not following, let me restate. MF Global customers who traded in precious metals and actually took delivery and OWNED bullion, as in outright, free and clear OWNERSHIP, complete with a warehouse receipt (aka title) with SERIAL NUMBERS designating exactly which physical bars they OWNED, and were PAYING RENT to STORE their own property in a “secure” VAULT, complete with statements indicating that these storage fees were paid in full, are having THEIR PROPERTY THAT THEY OWN AND ARE PAYING RENT TO STORE CONFISCATED by the MF Global trustee in order to feed the gaping maw that is the MF Global “estate”…
The MF Global bankruptcy was fraudulently, nefariously and illegally drawn up as a Chapter 7 BK for a SECURITIES DEALER and NOT a commodity brokerage as it should have been. Look, MF Global was the second-largest non-bank FCM in the United States next to NewEdge which is the old FIMAT. If MF Global wasn’t an FCM, then there are no FCMs. Of course it was an FCM. It had $7.2 billion in customer seg funds as of August 31, 2011. And yet MF Global was immediately, from the get-go, put into Chapter 7 BK as a SECURITIES FIRM. This is fraud. MF Global’s BK should have OBVIOUSLY been established under Subchapter IV of the Chapter 7 code as a COMMODITY BROKERAGE.
Why wasn’t this done? Because in a Subchapter IV liquidation of a commodity brokerage firm, guess who is absolutely and unequivocally at the front of the line? You guessed it: the CUSTOMERS. In the Chapter 7 liquidation of a securities firm, guess who goes to the front of the line? Uh-huh. The “creditors”, aka the counterparties on the firm’s proprietary positions. As in . . . J.P. Morgan, et al.
Now we know why this unprecedented action of raping the customers has happened. It was set up that way. Now are you telling me that NO ONE at the CFTC appreciated the difference between the BK subchapters? Are you honestly telling me that Terry Duffy and NO ONE at the CME understood the difference between a securities firm liquidation and a Subchapter IV commodities firm liquidation and the massive consequences to the customers? Not a single one of them understood this massive difference? Bullshit. Of course they knew. They set it up that way from day one. And they continue to know. And this fricking charade just keeps going and going, and the rape and confiscation of the customers’ property continues apace. The fix was in on the customers and J.P. Morgan was put at the front of the line willfully, intentionally and with extreme malice aforethought by all those parties concerned.
Barnhardt is so enraged over the fraud committed at MF Global that she has called for a General Financial Market strike- she is calling for “all decent people” to withdraw all funds from financial markets in support of MFG financial rape victims. We couldn’t think of a better idea- why not fight back and dump all of your paper assets in exchange for physical silver, and thrust a silver dagger into the belly of the dragon? A single dagger may not slay the dragon, but a million small ones just might do the trick…
Read Ann’s full rant here
We now know the first and likely only MFG employee to do a perp walk over the stolen segregated client funds.
Mid-level execs are collateral damage intentionally thrown under the bus by the regulators and the banksters who stole an estimated $5-$10 Billion from MF Global clients’ segregated funds. Details emerged today that email records indicate that MFG treasurer Edith O’Brien transferred $200 million of clients’ funds to JP Morgan on 10/28.
Federal authorities investigating the collapse of MF Global have uncovered e-mails that detail the transfers of money in the firm’s last days, including transfers that contained customer money, according to people close to the investigation.
One e-mail chain refers to the transfer of roughly $200 million that MF Global owed JPMorgan Chase on Oct. 28 — the firm’s last business day before it filed for bankruptcy.
In that chain, a senior official in the firm’s Chicago office was told to make the transfer, said the people close to the investigation who requested anonymity because the inquiry was still open.
That official, Edith O’Brien, a treasurer at MF Global, is considered a “person of interest” in the investigation, said two of the people, who added that authorities expected to interview her in the coming days. It was not clear who had directed Ms. O’Brien, whose job was to oversee the customer money, to make the Oct. 28 transfer. The roughly $200 million that JPMorgan Chase received is said to be entirely customer money.
Ms. O’Brien has hired a prominent criminal defense lawyer, Reid H. Weingarten of Steptoe & Johnson, according to one of the people.
Has The Morgue just been given a green light on a gold/silver manipulation frenzy until May 31st 2012 in order to allow the shorts ample opportunity to extricate themselves from their 15 million ounce short silver position?
And for those needing a refresher on Rule 559:
Chapter 5. Trading Qualifications and Practices
Rule 559. POSITION LIMITS AND EXEMPTIONS
A person seeking an exemption from position limits must apply to the Market Regulation Department on forms provided by the Exchange. In order to obtain an exemption from position limits, a person must:
1. Provide a description of the exemption sought, including whether the exemption is for bona fide hedging positions as defined in CFTC Regulation §1.3(z)(1), risk management positions or arbitrage/spread positions;
2. Provide a complete and accurate explanation of the underlying exposure related to the exemption request;
3. Agree to promptly provide, upon request by the Market Regulation Department, information or documentation regarding the person’s financial condition;
5. Agree to comply with all terms, conditions or limitations imposed by the Market Regulation Department with respect to the exemption;
6. Agree that the Market Regulation Department may, for cause, modify or revoke the exemption at any time;
7. Agree to initiate and liquidate positions in an orderly manner;
8. Agree to comply with all Exchange rules; and
9. Agree to promptly submit a supplemental statement to the Market Regulation Department whenever there is a material change to the information provided in the most recent application.
A person intending to exceed position limits, including limits established pursuant to a previously approved exemption, must file the required application and receive approval from the Market Regulation Department prior to exceeding such limits. However, a person who establishes an exemption-eligible position in excess of position limits and files the required application with the Market Regulation Department shall not be in violation of this rule provided the filing occurs within one (1) business day after assuming the position except in circumstances where the Market Regulation Department has expressly approved a later filing which may not exceed five (5) business days. In the event the positions in excess of the limits are not deemed to be exemption-eligible, the applicant and clearing firm will be in violation of speculative limits for the period of time in which the excess positions remained open.
The Market Regulation Department shall, on the basis of the application and any requested supplemental information, determine whether an exemption from position limits shall be granted. The Market Regulation Department may approve, deny, condition or limit any exemption request based on factors deemed by the Department to be relevant, including, but not limited to, the applicant’s business needs and financial status, as well as whether the positions can be established and liquidated in an orderly manner given characteristics of the market for which the exemption is sought.
Nothing in this rule shall in any way limit (i) the authority of the Exchange to take emergency action; or (ii) the authority of the Market Regulation Department to review at any time the positions owned or controlled by any person and to direct that such position be reduced to the position limit provided for in the Table.
A person who has received written authorization from the Market Regulation Department to exceed position limits must annually file an updated application not later than one year following the approval date of the most recent application. Failure to file an updated application will result in expiration of the exemption.
The Market Regulation Department may grant exemptions from position limits for bona fide hedge positions as defined by CFTC Regulation §1.3(z)(1).
Approved bona fide hedgers may be exempted from emergency orders that reduce position limits or restrict trading.
The Market Regulation Department may grant exemptions from the position limits for arbitrage, intracommodity spread, intercommodity spread, and eligible option/option or option/futures spread positions.
1. Positions to be Aggregated – The position limits in the Table shall apply to all positions in accounts for which a person by power of attorney or otherwise directly or indirectly owns the positions or controls the trading of the positions. The position limits in the Table shall also apply to positions held by two or more persons acting pursuant to an expressed or implied agreement or understanding, the same as if the positions were held by, or the trading of the positions was done by, a single person.
2. Ownership of Accounts – Except as set forth in Section E. below, any person holding positions in more than one account, or holding accounts or positions in which the person by power of attorney or otherwise directly or indirectly has a 10% or greater ownership or equity interest, must aggregate all such accounts or positions unless such person is a limited partner, shareholder, member of a limited liability company, beneficiary of a trust or similar type of pool participant in a commodity pool. The foregoing exception for pool participants shall not apply if the person is a commodity pool operator, controls the commodity pool’s trading decisions, or has an ownership or equity interest of 25% or more in a commodity pool whose operator is exempt from registration with the CFTC.
Positions carried for an eligible entity as defined in CFTC Regulation §150.1(d) in the separate account or accounts of independent account controllers as defined in CFTC Regulation §150.1(e) shall not be aggregated for position limit purposes provided that the positions are not held in the spot month during such time that a spot month position limit is applicable. If an independent account controller is affiliated with the eligible entity or another independent account controller, each of the affiliated entities must comply with the requirements set forth in CFTC Regulation §150.3(4)(i)(A-D).
Positions held by futures commission merchants or their separately organized affiliates in customer discretionary accounts or in guided account programs shall not be aggregated for position limit purposes provided that the accounts are controlled by independent traders and meet the standards set forth in CFTC Regulation §150.4(d).
Any person claiming an exemption from position limits under this Section must, upon request by the Market Regulation Department, provide any information deemed necessary to support the exemption.
Violations of position limits and approved exemption limits are subject to the provisions of Rule 562.
Unlike in the US, a criminal fraud conviction in China equals the death sentence. Those involved with the Silvercorp smash had best be investigating which countries do not extradite to China.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Dec. 20, 2011) - Silvercorp Metals Inc. (“Silvercorp” or the “Company”) (TSX:SVM)(NYSE:SVM) has been advised that Chinese law enforcement agents have opened a criminal case to investigate and find the creators of false and fraudulent reports by anonymous parties such as IFRA, Alfred Little and others, attacking Silvercorp and its Chinese subsidiaries.
In September 2011, the Company also filed a lawsuit in New York County Supreme Court charging defendants Chinastockwatch.com, Jerry Katz, Alfredlittle.com, Alfred Little, Simon Moore, and several “John Doe” defendants with spreading “false, defamatory and fraudulent” information about Silvercorp on the Internet and in letters to the media and regulators. It has also filed two separate actions in British Columbia, Canada.
Even with an independent KPMG forensic report reaffirming the Company’s business in the face of a short and distort attack, the Company is still receiving odd and disconcerting communications from anonymous callers.
On November 1, 2011, someone claimed to be Peter Li, representing a US based investment fund (who spoke Mandarin with a Cantonese accent), telephoned (using a Guangzhou phone number) sales department of Henan Found. From the caller’s odd and aggressive behavior, Silvercorp believes the caller was trying to falsify information that he could use to attack Silvercorp in an out of context audio recorded conversation; the Company understands that similar tactics were commonly used in Alfred Little and IFRA reports in attacking other Chinese companies.
In November 2011, a mining engineer at Silvercorp’s Beijing office received several emails from an employee of the Singapore branch of Guidepoint Global, LLC, who stated his name was “Hang Ming”. Hang Ming asked the mining engineer to work as their agent at RMB 2,000 per hour. Hang Ming wrote in his email that he received a request from an analyst named “Soldo Marko” who works for a US based hedge fund. Hang Ming asked the engineer to have a telephone interview with Soldo Marko in a way, we believe, to attain insider information on Silvercorp for trading. The Company understands that the FBI has previously investigated agents of Guidepoint Global and subsequently charged such agents for tipping confidential information of publically traded companies to hedge funds.
About Silvercorp Metals Inc.
Silvercorp Metals Inc. is engaged in the acquisition, exploration, development and mining of high-grade silver-related mineral properties in China and Canada. Silvercorp is the largest primary silver producer in China through the operation of the four silver-lead-zinc mines at the Ying Mining District in the Henan Province of China. Silvercorp recently acquired the XBG and XHP silver-gold-lead-zinc mines nearby the Ying Mining District in Henan Province, further consolidating the region. Silvercorp has commenced production at its second production foothold in China, the BYP gold-lead-zinc project in Hunan Province, and is currently constructing the mill and related facilities in preparation for mining at the GC silver-lead-zinc project in Guangdong Province. In Canada, Silvercorp is preparing an application for a Small Mine Permit for the Silvertip high grade silver-lead-zinc mine project in northern British Columbia to provide a further platform for growth and geographic diversification. The Company’s shares are traded on the New York Stock Exchange (symbol: SVM) and Toronto Stock Exchange (symbol: SVM) and are included as a component of the S&P/TSX Composite and the S&P/TSX Global Mining Indexes.
SD reader Mammoth has submitted a clipping of the 1963 AP article announcing President Johnson’s plan to demonetize silver.
Notice the gov’t stated they would circumvent Gresham’s law by fixing the price of silver at $1.29 an ounce, which would be effective at preventing the hoarding of silver.
Yup, that sure worked out well.
Study history and you will know what to expect when the gov’t soon demonetizes nickel and copper.