Gold and silver precious metals dealer Monex is facing a legal suit filed by the CFTC last week, but there have been legal problems before, for both the company and the founder…
The CFTC just sued a California gold dealer in what is reported by Reuters as the “biggest ever retail precious metals fraud enforcement action brought by the regulator“. The action taken yesterday is a reminder for everybody about what to look for in a gold and silver dealer…
First Majestic Silver’s CEO Keith Neumeyer (who advised SD readers in a 2012 interview that “I am a TRIPLE DIGIT silver guy“) has just stepped to the plate as the first major player in the silver market to call out the CFTC on massive silver manipulation by commercials acting as speculators.
In an open letter to CFTC Chairman Timothy Massad, the CEO blasted the CFTC:
“Something is wrong with the price discovery process, since real producers and consumers of silver don’t appear to be represented…”
The silver market is broken and has been broken for a long, long time.
It is silver derivatives and computer trading models introduced in the 1970’s that really started to distort the market value and it has never been more distorted than it is today.
Hundreds of Billions of silver derivative ounces are transacted by the bullion banks every year to steer and control the price of silver. This volume of silver trading dwarfs the tiny physical silver market that only provides a few hundred million ounces of physical silver to the market annually for investors to buy.
Those of us who know this to be true have tried to position ourselves such that the wide ranging price dynamic would not effect the position we took to take advantage of the inevitable price spike that must happen AFTER price manipulation ends… Because we knew the price riggers could place the price of silver derivatives at $0/oz or $1M/oz with a click of a mouse it was the only way to ride out the manipulation.
So that’s what we have done and now we sit and await the END of this manipulation. We all knew it would be chaotic and produce very extreme pricing swings (as we are seeing now with sub $20 silver) but we knew it must end.
That is were we are now:
“Commodity pricing is vastly more important than most people actually realize,” explains former CFTC Commissioner Bart Chilton, warning that “beginning around 2007 the rise of computer driven trading algorithms changed the rules, and the markets have not been the same since.”
In the MUST LISTEN interview below, the former CFTC Commissioner is asked POINT BLANK if there is a manipulation problem in the precious metals market-silver, especially:
Well it appears nothing has changed at the CFTC. Less than two weeks ago we learned that former CFTC commissioner Scott O’Malia, who had fought hard against any new rules intended to reign in Wall Street practices, was leaving the CFTC to head one the biggest bank lobbying groups in the world, the International Swaps and Derivatives Association (ISDA). This is the exact lobbying group that had been pressing against new CFTC rules.
So the CFTC claims it will be vigilant.
Like, for example, allowing JP Morgan to continue to issue fraudulent reports for well over a year despite repeated warnings, and then ultimately settle for a dollar amount that is probably equivalent to the Dimon family’s annual budget for toilet paper? Yeah, that’ll show ‘em who’s boss!
You gotta love American justice. JP Morgan gets off with another slap on the wrist.
As Glenn Greenwald noted, it’s Liberty and Justice for Some.
Myself and a few others – primarily GATA – have been suggesting for quite some time that
While certain newsletter peddlers adamantly maintain the reports are accurate and honest in order to preserve their franchise, there’s nothing like the CFTC imposing a fine on JP Morgan for fraudulently reporting “large trader” data: CFTC Charges JP Morgan With Reporting Fraud.
JP Morgan has finally been caught and sanctioned for playing games with its position reporting in gold and silver in order to hide the true magnitude of its unhedged short positions on the Comex.
In a recent column, silver analyst Theodore Butler presented information that leaves him somewhat optimistic that the Government Accountability Office (GAO) is looking into the possibility that the silver markets might be rigged or manipulated.
In the column, Butler labels as “phony” a prior “investigation” conducted by The Commodity Futures Trading Commission (CFTC).
According to Butler and the CFTC itself, this “investigation” lasted five years and included “7,000” man hours of work on the part of CFTC employees doing the investigating.
I too believe this alleged exercise in fact-finding was either bogus or clearly not worthy of the label of “investigation.”
As it turns out, I even have evidence to support my skepticism.
In December 2012, I received a phone call from the Government Accountability Office (GAO), and that led to me providing documentation about the silver manipulation and the CFTC that led to a number of conference calls with the GAO. The GAO’s mission is to make sure that all federal agencies are conducting their missions appropriately.
I kept my contact with the GAO private so as not to jeopardize any action by the agency, although I must tell you that I was quite excited about the situation. In time I was informed by the GAO that as the one government agency that reports directly to Congress that it needed to be directed by Congress to look into the matter. In May 2013, I sought to stimulate action by writing publicly about the matter and asking readers to write to their elected officials to urge the GAO to pursue the matter. A good number did just that.
Several months passed and, once again, I grew weary about any follow up by the GAO. I had heard nothing and assumed the matter was dead.
As it turns out, I was dead wrong.
Do you know this man?
You should… he is now in charge of the CFTC, the government agency that “regulates” gold and silver futures trading, now that our buddy Gary Gensler has retired.
His name is Tim Massad and he will do absolutely nothing to enforce the rule of law or ensure fairly traded markets.
- Blythe Masters joins the CFTC for 12 hours to advise on Swaps regulation- TF lets loose on the audacity of the criminal banksters
- Price trends in precious metals and fundamental underpinnings going forward
- The Doc’s retail market report– big money is buying physical with both hands
- Turd Ferguson on the “end game” of the “Great Keynesian Experiment”- TF calls for gold to break its 100 DMA to the upside next week, gold & silver to challenge $1525 and $26 in 2014.
Turd Ferguson discusses market manipulation & his outlook for the metals on the SD Weekly Metals & Markets!
In perhaps the most bearish news for paper gold & silver prices of the year, the head of JPMorgan’s Commodities division (and the face of the bank’s alleged manipulation of the gold & silver markets) Blythe Masters, has just joined the CFTC in ad advisory role for swaps regulation.
No, this is not April 1st, and yes, you read that correctly. Blythe Masters, welcome to the CFTC.
Our talented Pining caught up Bart Chilton on his way out the door at the CFTC today…
Is it Mission Accomplished for the CFTC’s “Good Cop”?
In a statement just released by the CFTC, Bart Chilton has sent President Obama notice that he will be stepping down from his position as a CFTC Commissioner.
Chilton’s full statement on position limits & resigning from the CFTC is below:
Criminal enterprises the world over are tied together by a particular conduct so endemic to organized crime that it might accurately be referred to as Mafiosi Best Practices. It is based on the very common-sense principle that one should never, ever leave a paper trail of one’s criminal activity. Any document, from notes at a meeting to a list of goods, is a tangible piece of evidence that could be used against you at some future date. The Sicilian Mafia, renowned for their “code of silence”, had an old saying which sums this up perfectly: Never write when you can speak, and never speak when silence will do.
What does this have to do with Gold and Silver? Perhaps a great deal.
The CFTC has announced Wednesday evening that it has settled with JP Morgan for $100 charges that the bank violated prohibition on manipulative conduct in connection with the London Whale swaps trades which saw the firm lose nearly $9 billion.
In the settlement, JP Morgan admitted that its traders (no mention of Mr. Dimon, who assuredly approved his traders actions removing IG9 swaps delta hedging interest rates) acted recklessly, and agreed to the $100 million penalty.
Precious metals markets are now the Wild West: a lawless territory where the Judges are bought and paid for, and where brutal and rapacious men are allowed to pillage the populace at will, unchecked by the rule of law. The Sheriff is too cowardly to emerge from his office, let alone do anything to go after the bad guys. He slumps impotently behind his desk, mourning his receding hairline and hoping against hope that nobody brings in more evidence of wrongdoing- not because he would then have to do something (there is no crime so egregious to cause him to bestir himself) but because such revelations make his inaction and cowardice even more publicly humiliating than they already are.
Meanwhile, the townsfolk are realizing they are completely on their own. They stay inside and keep their heads down, trying not to get preyed-on by the gangs of sanctioned looters roaming the territory. The smart ones are quietly stacking all the gold and silver bullets they can lay their hands on, knowing that they and they alone are responsible for their own safety.
Bart Chilton provided Friday humor a little early yesterday on Bloomberg: “If you don’t want consumers protected, fine, fire us all, shut us down.
If you want the markets safe, secure, efficient, and effective, that helps markets and consumers, you’ve got to keep us on the job.”
Chilton’s full Bloomberg interview on why strong regulators (an oxy-moron if we’ve ever heard one) are needed is below:
The WSJ is reporting that Goldmanite Gary Gensler has declined an invitation from President Obama to serve a second term as CFTC Chairman, and will leave the CFTC by the end of the year.
Apparently Goldman no longer needs their man at the CFTC now that the agency’s 5 year “investigation” into silver market manipulation has been put to rest.
David Morgan joins Elijah Johnson to discuss the Federal Reserve’s recent decision to continue printing $85 billion each month to “stimulate the economy.”
Morgan declares that the truth of the matter is, the Fed continues their printing to “keep the banking system, the ‘Too Big to Fails’ intact.”
Morgan also discusses his view on the recent announcement by U.S. Commodity Futures Trading Commission (CFTC) regarding silver market rigging, and whether the US will raise the debt ceiling and re-open the gov’t, or whether the US will default for the first time in history.
David Morgan’s full interview is below:
Bart Chilton on today’s metal’s smash: You’re on your own.
Chilton’s prediction that the “do-badders” would attack due to lack of any gov’t oversight of the markets in light of the gov’t shutdown is below:
This morning’s trade in silver demonstrates a pattern regular observers of this market will instantly recognize.
This pattern happens so frequently that any claim by the CFTC that they couldn’t get to the bottom of this sort of crap is just nonsense.
But we have a pretty good idea why the CFTC closed it’s investigation. How can you bust the government that your agency is a part of?
We see the firm control of manipulation algo patterns operating in the early morning hours both yesterday and today. Then, we have a flash crash running of the stops going into the COMEX open, which has been a one-two punch set-up we’ve seen countless times. The only thing different today is that there was more low hanging fruit to harvest on account of gold and silver speculators fearful of what a government shutdown could mean such that these speculators were operating with tighter stops.
This was furthered by the fact that support levels informing the views of these technical analysis dependent speculators were targeted and blown out of the water by the fast crash algo manipulation.