In the aftermath of today’s massive FOMC/Options expiry raid which saw silver smashed the most in nearly 18 months from $18 to a $16 handle, the CME announced after the close an 11% hike in silver margins:
JB Slear has issued a clarification for SD readers on the COMEX’ new rules for precious metals limits with options limits going into effect Sunday 12/21.
Are traders about to be locked out from exiting a position?
Gold & silver expert Harvey Organ joins us this week for an explosive and power packed show discussing:
- Criminal collusion by the CFTC officials– how CFTC knew what was going on with gold & silver manipulation, and wanted to keep the price suppression game alive while China corners the market
- More pain ahead for gold & silver? Why Harvey believes the whacking will continue until the last ounce of gold and silver are gone
- Shanghai silver drain accelerating- with stocks down 93% since 2013, Shanghai vaults will be BONE DRY by December!
- Harvey predicts the bullion banks are about to ATTACK THE COMEX– does the long awaited PM default loom in 2015?
The SD Weekly Metals & Markets With special guest Harvey Organ is below:
CME and COMEX are where the main action is; they have simply absorbed the old fix.
Overnight, CME Group Inc., the world’s largest futures market, halted all of its Globex electronic trading markets, including gold and silver, for four hours due to a “technical glitch.”
All other Globex electronic trading markets, including U.S. Treasury’s, oil, gold and U.S. stock indexes were affected with many markets having order routing problems.
“It’s so blatantly obvious that even a caveman can see it”
The front month silver contract on the Shanghai Futures exchange is currently trading at an 8% premium to the LBMA price and the futures curve there is in backwardation, indicating a very tight physical market.
Roughly 80% of the physical silver from the SFE vaults have been removed.
On the Moscow Exchange, silver trades at a 16.8% premium to the LBMA price.
But this is what we get in the lawless United States:
With gold & silver raided by the cartel coincidentally on the day the new Silver Fix was launched, The Doc & Eric Dubin break down the markets, discussing:
- Cartel raid on the metals: Is the worst over, or is another smash coming on the thinly traded Sunday night Globex session?
- On the brink: Ukraine/Russia escalation as the US continues to push Russia towards war while Putin works to DUMP THE DOLLAR
- Retail physical gold & silver explodes on price smash/end of London Fix: SDBullion sees heaviest sales volume in 2014 Friday
- Ferguson riots/ Martial Law- a sign of of most of American could look like in the wake of a financial collapse?
The SD Weekly Metals & Markets With The Doc & Eric Dubin is below:
The Battle Royale continues as the cartel has hammered gold back under $1300 once again with a last of $1293, and silver has been knocked under $19.50 to $19.45 on heavy volume the first day without an official London Silver Fix.
Physical silver bullion sales exploded at SDBullion Wednesday, hours before the London Fix price setting mechanism was set to end on August 14th.
The London fix, which has been in place for 117 years dating back to 1897, announced in April that the daily silver fix would end on August 14th, when Deutsche Bank, under investigation by Germany’s BaFin for market manipulation vacated its seat and was unable to find a buyer.
SDBullion trader Jennifer Linhart stated that physical silver sales were five times normal volume Wednesday, as investors scooped up bullion ahead of any market disruption the end of the fix might cause:
“The phones were ringing off the hook all day, and silver sales were about 5 times normal for the day. We didn’t see much of any change in gold, everyone was buying silver.”
It is one thing to label (libel?) the world’s most important precious metals exchange as the most corrupt; but perhaps quite another to prove it in terms beyond reasonable doubt.
First, let me be clear in what I am asserting – the Commodities Exchange Inc. (COMEX), owned and operated by the CME Group, has come to control and manipulate the price of gold and silver, as well as copper, for the sole benefit of certain exchange insiders, most prominently JPMorgan.
Perhaps the most unsettling recent event was the announcement by the CME that it was looking at putting daily price limit curbs on gold and silver futures. Why now? The daily volatility of gold is at a 4-yr low. Why were limits not in place a year ago when the bullion banks took the price of gold down $200 in a 24 hour trading period?
The only reason to put price limit curbs in is to prevent true price discovery.
Something is seriously wrong behind the scenes and I have a bad feeling – as do many of my colleagues – that we might find out exactly what it is before the end of the summer…
You have to give the Western bullion banking cartel credit. They are leaving no stone un-turned in their efforts to suppress precious metals prices and sentiment.
With gold and silver completing a 3 year correction, and both metals trading near multi-year lows, Reuters reports that the CME is looking to introduce daily price fluctuation caps (reportedly 1%) in gold and silver futures in a bid to “reign in wild volatility”.
It looks like GATA’s 2% rule in gold is about to be cut in half.
While many precious metals blogs and investors have proclaimed an imminent COMEX default since 2008, we have long maintained that the COMEX is more likely to fade into irrelevance than to outright default on gold or silver bullion as physical Asian demand would facilitate the development of physical exchanges in the east.
It appears that the CME decision makers have seen the light and agree with us, as Reuters reports this morning that the CME plans to launch a physically settled gold futures exchange…in Asia.
It is so obvious, and so apparent, that I wonder why commentators have only now seen fit to begin commenting.
“It” of course, being the pronoun referencing the gold spread and the insane, short-term profits the Wall Street Banks have been reaping right before our eyes.
“The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.”
Epic drainage of physical silver inventories continued Monday, as Brinks’, CNT, and Scotia all reported massive withdrawals of silver from their COMEX depositories.
The biggest withdrawal came in the CNT vault, where 1.138 million ounces (including 737k REGISTERED oz) were withdrawn- an astonishing 17.3% of CNT’s entire physical silver inventory vaporized overnight!
By SD Contributor Marshall Swing:
Gold & Silver COT Report 2/24/13:
Commercials added 2,026 additional long contracts to their total on the week after tremendous gains last week and covered a huge 6,815 shorts to end the week with 47.11% of all open interest, a huge decrease of 2.35% in their share since last week, and now stand as a group at 189,780,000 ounces net short, which is a decrease of over 44 million net short ounces from the previous week!!!
The CFTC Thursday filed suit against the CME seeking civil monetary penalties and trading and registration bans for to CME employees, William Byrnes & Christopher Curtin for allegedly intentionally disclosing material non-public information pertaining to specific customer traders.
The suit alleges that from February 2008 to September 2010, Byrnes & Curtin intentionally disclosed material nonpublic information about CME NYMEX trading and customers to a commodity broker on nearly 80 occasions.
Full complaint from the CFTC is below:
By SD Contributor Marshall Swing:
Gold & Silver COT Report 2/15/13:
Commercial gorged on 5,889 additional long contracts to their total on the week and a net modest 740 new shorts to end the week with 49.46% of all open interest, an huge increase of 1.76% in their share since last week, and now stand as a group at 233,985,000 ounces net short, which is a decrease of 25,745,000 net short ounces from the previous week.
Submitted by AboutAG:
Why Was 18.3Moz of Silver Deposited into the SLV Jan 16th?
The obvious answer is “JPM opened a new warehouse!”.
However, that does not answer the question, as only 10 Moz went into their new warehouse.
The experts seem to agree that one of the most plausible explanations is that JPM closed out their short position in SLV.
One or more people have 17,016,600 shares of SLV short (about 16,458,115oz) at last count (which could be a couple weeks old). It is believed that JPM is likely responsible for much or all of that short position. The unexplained addition of 17,410,210.4oz to SLV (remember, 967,881.6oz are considered a ‘normal deposit’) would cover the entire short position and then some. Or if another 967,881.6oz (1M shares) were a normal deposit, that would leave 16,442,329.4oz unaccounted for, almost exactly matching the short position.
It appears that JPM has found a way to bypass the COMEX re-entry process, making the transfer of bars from SLV to COMEX and vice-versa extremely simple.