Perhaps this is why Deutsche Bank could not find a single buyer for its seat on the London Fix: the bank, along with HSBC have been officially accused on manipulating the silver fix in a new suit filed in federal court in Manhattan over the weekend. [Read more...]
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. [Read more...]
” The short position in Comex silver futures alone is almost equal to all the silver mined in a year.” - James Turk
I knew the silver futures open interest on the Comex was somewhere in the vicinity of the total amount of silver produced globally in a year. But when I saw Mr. Turk’s comments, I wanted to calculate it out for myself.
As it turns out, the amount of paper silver open interest based on yesterday’s total silver futures open interest of 163,592 contracts is nearly 818 million ounces of silver (Comex link).
As you can see from the table below from The Silver Institute, total silver mined globally in 2013 was 819.6 million ounces.
The Comex is is emblematic of the extreme fraud and corruption that is now endemic to U.S. political and economic system. The people who are really in control of our system have lampooned it into a complete joke.
This will not end well for most of us…
During this past COT period we see in silver that price flat lined during the first part of the period then on Thursday evening after hours there was an explosion upwards.
This is what I call a speculator short shakeout on the part of the commercials because price had been deteriorating more than they desired. Thus, we see in the COT the large speculators covered 4,526 shorts.
Simple, dear Watson…
Both the producer merchant and the swap dealers picked up similar amounts of shorts at higher prices after the short shakeout.
In gold, we see a very similar short shakeout...
Ted Butler recently theorized that JP Morgan is the entity that is the buying 1 oz. silver eagle coins in record quantities this year.
Think about this: bullion banks and large buyers of gold/silver deal in bars and tonnes. Think about how many silver eagles it would take to piece together enough to re-melt and fabricate into a meaningful quantity of marketable bars. Not-withstanding the expense of doing this, it is an absurd notion that they would even bother with it. Especially when the Comex and SLV have plenty of bars that are available for hypothecation.
The enormous quantity of silver eagle sales are going to the growing legion of individuals in this country and Canada who understand that the dollar is going to collapse sooner or later. It is poor man’s gold. It is more fungible as currency than 1 oz gold coins. Ultimately, it is a possible signal that eventually the people will rise up and overthrow a completely corrupt system of Government and banking.
I believe Butler turned his ability to analyze the silver market – and the fact that he was one of the few people doing it for a long time – into a newsletter selling juggernaut. Now the only evidence he looks at and evaluates is the evidence that supports and promotes subscriptions to his newsletter. I stopped “absorbing” his analysis about 5 years ago.
His COT and open interest analysis relies on the all of the data being honestly and accurately reported. But from where is the data sourced? It’s provided by the big banks who run the Comex.
Will 2014 go down in history as the year that the silver manipulation ended?
First JPMorgan exited their commodities business, and today, the London Silver Market Fixing has announced that effective August 14th, 2014, The Company will cease issuing daily the silver fix permanently.
1. What will happen after 14 August 2014? Will the Silver Fixing cease to exist?
With effect from the close of business on 14 August 2014, the Company will cease to administer a Silver Fixing, and a daily Silver Fixing Price will no longer be published by the Company.
4. What happens after 14 August 2014 for market participants with contracts referencing the Silver Fix?
The Company is not in a position to comment on such matters, but market participants can speak to their contractual counterparties.
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. [Read more...]
Currency historian Andrew Gause has informed me that one of his sources thinks the ratio of 100 pieces of paper to every real contract of (1) Gold is being expanded and could be up to as much as a 400 to 1 ratio.
With 80% plus of the products gone from the Comex warehouses since April of last year, the CMEGroup no longer guaranteeing the Comex inventory count, the constant buying from Asia, their (Singapore and Hong Kong) opening up of the warehouses that promise open disclosure, and the total lack of trust of the USA’s government both within and without, why not?
The real answers will come in time and most likely when the bank vaults are completely empty. What can we do as individuals? Take delivery of Silver and Gold and get it out of the system before China and India take it all with the approval of the western banking system! [Read more...]
The supply demand fundamentals of the gold market remain sound with the flow of gold from West to East.
COMEX gold stocks have fallen to new record lows, showing demand for physical bullion remains very robust. Indeed, the scale of the fall in COMEX gold stocks since 2007 and which accelerated in early April 2013 is important to note.
Conversely, on the Shanghai Gold Exchange (SGE), volumes surged in the year 2013, particularly since the peculiar, sudden price drop in April and volumes traded surged 61% year on year.
In addition, the London bullion market has seen intermittent shortages of 400 ounce gold bars. Traders said the shortage of London Good Delivery Bars was pushing premiums for physical delivery for 400 ounce bars as high as 50 cents! [Read more...]
As of Wednesday’s open interest report for Comex gold futures, there were a total of 403,947 open gold futures representing 40,394,700 ounces of gold. As of yesterday, there were 587,234 ounces of “registered,” available for delivery ounces of gold. That’s a mind-boggling 69x times more open interest of paper gold than available physical gold to deliver to the holders of those contracts. Think about that for a minute. If more than 1.4% of those longs stands for delivery, the Comex defaults.
Now we know why Germany wants its gold back, why the Chinese and other BRIC countries are loading up on gold and demanding delivery and why the owners of Comex gold are taking delivery off the Comex. The Comex is a giant Ponzi scheme. “In paper we trust” is the motto of anyone who has a long position in Comex futures OR who safe-keeps their gold at Comex vaults. [Read more...]
COMEX gold inventories are down from 11.059 million ounces at the start of the year to 7.034 million ounces today. This is worth $9.66 billion at today’s prices meaning that a handful of billionaires or just one powerful creditor nation state with large foreign exchange reserves, such as Russia, could corner the COMEX gold market and cause a default.
Russia’s foreign exchange reserves are at $508 billion . Mainland China still holds the largest foreign exchange reserves in the world, with US$3.4967 trillion at the end of June. It is followed by Japan, which had foreign exchange reserves of US$1.1876 trillion at the end of July.
The possibility of an attempted cornering of the bullion markets through buying and taking delivery of physical bullion remains real and would likely lead to a massive short squeeze which would see gold and silver surge to well over their inflation adjusted high of $2,500/oz and $140/oz.
In contrast to almost every other gold analyst, I do not believe that physical gold markets will overwhelm paper gold markets. The price-setting mechanism will remain with paper gold markets, but it will be overwhelmingly bigger Asian paper gold markets that set the price. Not the comex! The comex is akin to a rotary phone, in a world of iPhones. The comex won’t blow up, but it will become irrelevant. [Read more...]
I realized after assessing some comments posted on my Tuesday article about the fraud going on at the Comex that I did not articulate a key point about the credibility of bank financial reporting. It seems that there is still a contingency of people who are willing to believe that if a bank issues an accounting report, it must be valid.
Let me preface this clarification post by saying that given the long laundry list of charged and prosecuted high profile fraud cases against all of the big banks, I just assumed that everyone understood that banks can not be trusted at all. Here’s my Golden Rule: banks can not be trusted at all. Fool me once, shame on you; fool me twice, shame on me; fool me three times, I’m a moron. Got it?
This clarification is to explain exactly why bank-produced paper reports at the Comex are more than likely riddled with fraud and it clarifies the difference between owning physical gold in your own possession vs. owning a paper claim on gold sitting somewhere else and a claim which can be hypothecated such that you actually lose legal entitlement to that underlying asset.
With that in mind let me clarify how the Comex warehouse gold and silver stock reports are produced. [Read more...]
“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.”