Animated Metals Update: Chilton Denies FT Report on Silver, Interview With ECB’s Draghi

After a long hiatus, the RNN Animated Metals Update returns discussing the FT article claiming the CFTC is dropping it’s 4 year silver investigation, and Bart Chilton’s strong denial stating the the FT report is ‘premature and inaccurate‘.
RNN also interviews Mario Draghi of the ECB to try to get a handle on the banks plans for further quantitative easing.

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1.3 Million Ounces of Registered Silver Withdrawn From Brink’s, 1 Million Show Up in JPM Eligible Vaults

Absolutely massive inventory volatility continued in COMEX silver warehouses Friday, as 1.3 million ounces of silver were withdrawn from Brink’s REGISTERED vaults, and JP Morgan and Scotia Mocata reported 1 and 2 million ounce deposits respectively into eligible vaults.

If you aren’t already long Post-It-Notes, you’ve likely already missed the trade.


Bart Chilton: FT Report That CFTC to Drop Silver Investigation is ‘Inaccurate & Premature’, ‘There Have Been Devious Efforts to Move Price of Silver’


When we first learned Sunday night that the FT was reporting that the CFTC was dropping their 4 year silver investigation, The Doc contacted CFTC Commissioner Bart Chilton for his take and role in the decision.

Just like Usain Bolt at the 2011 World Championships, it appears that the FT has jumped the gun.
Commissioner Chilton has informed us that ‘The Financial Times report related to silver is not only premature, but inaccurate in several respects‘.
As to whether Chilton believes the silver market has been manipulated the Commissioner informed us:
I continue to believe, consistent with my previous statements to which you referred, and based upon information from the public, that there have been devious efforts related to moving the price of silver. Incidentally, I also believe there have been silver and gold market anomalies outside of the silver investigate window that have raised, and continue to raise, market concerns.

The Doc’s full correspondence with Commissioner Chilton is included below: [Read more...]

Eric Sprott: Suppression Game Cannot Go On Forever, Gold Will Go Crazy with War in Middle East

Eric Sprott of Sprott Asset Management is one of the best performing money managers with returns topping 20% for more than a decade. He has $10 billion under management, and it’s no secret Mr. Sprott is a long term bull on physical gold and silver. It looks like other big money men like “Bond King” Bill Gross are also thinking about going long on the yellow metal. Sprott points out, “When the Bond King goes to some sort of physical asset, I think you can see some kind of sea change.” So, why aren’t gold and silver prices higher? He says, “I can make a compelling case the price has been suppressed.” If it wasn’t, Sprott says, “Gold would be $2,500, and if the ratio was 15 to 1, the price of silver would be $150 an ounce.” The suppression game cannot go on forever. Mr. Sprott also says, “The economy is already taking a cliff dive and that is before we hit the cliff. . . . It’s hard to imagine anyone being optimistic going forward here.” If there is war in the Middle East, Sprott says, “Oil would go crazy, gold would go crazy, anything physically real would be in demand.” Greg Hunter goes One-on-One with Eric Sprott. [Read more...]


Submitted by SD Contributor SRSrocco:

I wonder if we as a species will ever wake up from our current delusion.  That being said, last week Visual Capitalists came out with a huge graphic showing the top gold mines and reserves.  In it they listed the ALASKA PEBBLE PROJECT as the future mine with the largest gold reserves on the planet.  Here is part of that graphic: [Read more...]

Silver in Tight Range in Wake of ‘Premature & Innaccurate’ FT Report Sunday & Reduced Margins

On the heels of Sunday’s FT report that the CFTC is dropping their investigation of silver manipulation- a fact Bart Chilton refuted as ‘premature and inaccurate, silver has traded in a tight range overnight and early in today’s COMEX session- with a range of $27.70 to $27.90.
The tight range and lack of volatility is particularly surprising with the CME’s reduction of both initial and maintenance silver margins by 11%, which goes into effect today.

The critical question now is if the FT’s report that the CFTC is dropping the silver investigation is indeed false, and the CFTC’s conclusions will be publicly released in September as The Doc was advised by Commissioner Chilton last night, what was the purpose of the false propaganda released by the FT? [Read more...]

FT: CFTC to Drop Silver Investigation

At the end of May, the CFTC’s Bart Chilton informed SD that the CFTC’s 4 year silver investigation would likely be concluded by September.
Chilton informed us that the silver investigation would be concluded in the ‘next 2-3 months‘ and that ‘there has been a lot of action in silver markets for the past several months. We have a new individual with lots of experience (former silver trader and regulator who caught manipulation before at FERC). He, and his staff, have been looking at trades in detail each time some potential anomaly occurs. There has been more staff hours dedicated to looking at silver in the past few months than anyone would believe.

Apparently all of those new CFTC employees were watching online porn like their counter-parts at the SEC rather than investigating silver anomalies, as the FT reports tonight that the CFTC is set to drop their investigation into silver market manipulation after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation.’

Does anyone think it is a coincidence that news that the CFTC is dropping their 4-year silver investigation is leaked the day before the CME’s newly announced 11% reduction in silver margins goes into effect Monday 8/6?

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Silver Update: FTT Kills HFT

BrotherJohnF’s latest Silver Update:
FTT Kills HFT [Read more...]

India Blackout & Knight Algo: US-India CYBER WAR Over Iranian Oil Purchases in GOLD

India without electricity, without computers, without light, without trains, without industry …
Main stream medias, as usual, are telling fairy tales to the public.
A lack of rain, which forced farmers to pump into the groundwater, triggering an over-consumption of electricity, which has unbalanced the Indian power grid. Then, dominoes fell bringing the country into darkness.
India is the 6th largest electricity producer in the world, but its population and economic growth are such that production is struggling to meet demand. India knows an energy deficit of 8 to 12%. This is probably India’s Achilles’ heel.

India recently defied US Iranian oil sanctions by purchasing Iranian crude with GOLD.
On the night of Sunday to Monday, from 29 to 30 July, a giant power outage blocked much of the country. 48 hours later, a new black-out created a real chaos….. Pure chance?


SILVER COT REPORT 8/3/12: Commercials Increase Net Shorts By 30 Million Ounces!

Submitted by SD Contributor Marshall Swing

Commercials sold off  -3,500 longs on the week and added 2,407 shorts to end the week with 44.64% of all open interest, up only 0.22% in their share since last week, and now stand as a group at -106,810,000 ounces net short, an increase of almost 30,000,000 ounces net short from the previous week!

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GOLD COT REPORT 8/3/12: Commercials Increase Net Shorts by 2 Million Ounces!

Submitted by SD Contributor Marshall Swing:

Commercials sold off a massive -11,093 longs and purchased an almost equally massive 8,674 shorts to end the week with 57.85% of all open interest, a huge increase of about 2.04% from the previous week in total open interest, and now stand as a group at -15,601,200 ounces net short, a dramatic increase of almost 2,000,000 ounces net short from the previous week!

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Obama Campaign Sues to Restrict Military Voting in Ohio

The Obama Campaign is suing to restrict military members from voting in Ohio.  The military has strongly supported Ron Paul.
So let’s get this straight.  According to Mr. Obama, illegal aliens have the right to vote in US elections, BUT NOT ACTIVE DUTY SERVICE MEMBERS!?!
Got fascism/ socialism/ communism?

On July 17th, the Obama for America Campaign, the Democratic National Committee and the Ohio Democratic Party filed suit in OH to strike down part of that state’s law governing voting by members of the military. Their suit said that part of the law is “arbitrary” with “no discernible rational basis.” [Read more...]

Q&A With The Doc: Should I Do My Part & Buy a Good Delivery Bar to Drain the COMEX?

Michael writes:

Hey Doc, I am seriously considering doing my part of removing physical from the cartel by buying a 1000 “COMEX Deliverable” bar.  I already have a good stack over 1000 oz’s which includes a number of 100 oz, 50 oz, 25 oz, 10 oz, 5 oz bars along with Maples and Constitutional Silver.
So my question is, how difficult do you think it would be to sell “When needed” this size bar if and when sh*t hits the fan.
Thanks for the feedback and keep up the great job of keeping us informed!

Michael, great question. [Read more...]

Turd Ferguson: The End of the Great Keynesian Experiment

TF Metals Report’s Turd Ferguson and GoldMoney’s Alasdair Macleod talk about the end of the “Great Keynesian Experiment”, and how precious metals will serve as your best protection against the adverse outcomes that will result from this paradigm shift.

Ferguson explains that Keynesian ideas have dominated economic policy for over 70 years, and contributed massively to the global explosion of debt levels. The thinking was that debts don’t matter as long as the economy keeps growing. We have reached the end of this road now, because the debts are being recognised as unsustainable and the debt service can only be guaranteed by the production of unlimited amounts of new fiat currency.

Talking about the metals, Turd thinks that the price declines in gold and silver have been manufactured to allow bullion banks to reduce their short positions — which threatened them with serious losses during 2011. He points out that the silver short position of bullion banks is down by 80% from its April 2011 level, and that these banks are almost at a 1:1 long/short net ratio. Most of these short positions have been taken over by managed money, which is certainly a very bullish contrarian indicator for future gold and silver prices.

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Jim Willie: Conflicts & Pressure Points

By Jim Willie,


-The Euro Central Bank has problems with margin calls against the collateral it holds
-The LIBOR bank victims are aligned to seek justice, much like Lilliputians
-Bankers from the three zones of USA, London, and Europe are pitted in a war against each other
-The USFed must contend with constant demands and pleas for intervention to rescue faltering financial markets
-The JPMorgan derivative operators are in a struggle to keep the Interest Rate Swap machinery in place
-The JPMorgan gold office gamers are losing their game, reliant upon naked shorts and GLD inventory raids
-The USGovt propaganda artisans are fighting a futile battle in promoting the story of USEconomic recovery

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