Massive Attacks On Gold Reek Of Desperation

The paper silver open interest on the Comex is at all-time highs.  The previous all-time high was 224k contracts when the price of silver was pushing $50 in 2011.  The current paper silver open interest is 229k contracts with the price of silver at $18.  At least the degree of fake silver open interest in silver was more appropriate to the price level at which silver was trading in 2011.

Having said that, the current paper silver open interest is entirely inappropriate relative to the amount of silver reported to be held in Comex silver vaults.  229 thousand silver contracts translates into 1.15 billion ozs of paper silver.  That number represents  about 37% more actual silver ounces produced by global by mining companies in one year.  Compare that paper representation of silver to the actual 193 million ozs of silver reported to be held in Comex vaults, primarily “held” by JP Morgan which is reporting nearly 102 million ozs of silver in its vault.

Notwithstanding whether or not those 101 million ozs of silver are actually sitting physically in JP Morgan’s Comex-designated custodial vault (and much of it has likely been hypothecated), the amount of paper silver issued primarily by Comex bullion banks is nearly 6x the total amount of silver reported to be held in Comex vaults.

But it gets worse.  The amount of silver that has been designated as available for delivery, or “registered silver,” is only 30 million ozs.  In other words, the amount of paper silver issued by the Comex is 38x greater than the amount of silver made available to be delivered to the holders of those silver contracts.

The point here is that the Comex is likely the world’s most fraudulent market. In fact, It’s inappropriate to refer to the Comex as a “market.”  The Comex is nothing but a mechanism by which the Fed, in conjunction with the Treasury’s Exchange Stabilization Fund and the Comex bullion banks, exerts control over the price of silver.

The degree to which the Fed et al has to exert fraud in order to contain the price of silver is reflected by the absurd imbalance between paper silver contracts issued in relation to the amount of the underlying silver available for delivery.   In any other commodity sector this situation would be labeled “criminal.” With silver and gold it’s labeled, “nothing to see here, move along.”

As with silver, the trading patterns in gold reflect a high degree of desperation by the bullion banks to contain the price and demand of physical gold.  Interestingly, right now most of the blatant manipulation appears to be connected to the London p.m. gold fix activity on the LBMA.  We believe it’s evidence of a growing shortage of physical gold available to deliver into India, China and other gold-buying countries.   We explain this view in detail in today’s Shadow of Truth episode:

The next issue of the Mining Stock Journal, released this evening to subscribers, will have new junior explorer idea with 5-10x upside potential. It will also have an alternative explanation to the JNUG suspension of new unit issuance and why this could be very bullish for the sector. You can find out more about subscribing to the MSJ here:   Mining Stock Journal Subscription Info.

12 thoughts on “Massive Attacks On Gold Reek Of Desperation

  1. The shorts were smoked again today. Those markets took off
    like scalded cat. Just wait until the U.S. military launch’s an
    attack on fat boy Kim Chee. Then you will really see a rally.
    It is beyond comprehension how not only they keep this insanity
    going but also how many clueless idiots believe that this is all normal.

    1. The IS is only flexing its muscles, in any scenario involving some kind of attack on North Korea, guess who gets wiped… Seoul. Not going to happen unless the Deep State morons truly want a chaotic financial collapse and a chaotic global chain reaction… well, maybe they do.

    2. “The shorts were smoked again today. ”

      But they are very patient, and have very deep pockets. Either they have time to pay on losses…or they never pay.

  2. “As with silver, the trading patterns in gold reflect a high degree of desperation by the bullion banks to contain the price and demand of physical gold…”

    But I have to wonder if they [the folks orchestrating this] are actually feeling any desperation, or is it business as usual…just create more digital/paper contracts ad infinitum. You know the MSM won’t do any story on the number/percentage of short contracts versus other commodities listed on the Comex.

  3. Hey Dave how’s this for fake news.

    US home sales shoot up to 10-year high

    By JOSH BOAK

    From Associated Press
    April 21, 2017 10:17 AM EST

    WASHINGTON (AP) — Americans purchased homes in March at the fastest pace in over a decade, a strong start to the traditional spring buying season.

    Sales of existing homes climbed 4.4 percent last month to a seasonally adjusted annual rate of 5.71 million, the National Association of Realtors said Friday. This was the fastest sales rate since February 2007.

    The U.S. housing market faces something of a split personality: A stable economy has intensified demand from would-be buyers, but the number of properties listed for sale has been steadily fading. The result of this trend is prices rising faster than incomes, homes staying on the market for fewer days and a limit on just how much home sales can grow. It’s a situation that rewards would-be buyers who can act quickly and decisively.

    “The pace of sales we saw in March is unsustainable,” said Nela Richardson, chief economist at the brokerage Redfin. “Sales may be soaring, but inventory isn’t.”

    The inventory shortage largely reflects the legacy of a housing bubble that began to burst a decade ago.

    Foreclosed properties were snapped up by investors who turned the homes into income-generating rentals, depriving the market of supply. And many owners who escaped the downturn unharmed chose to refinance their mortgages at extremely low rates, possibly making them hesitant to move to a new house that could increase their monthly costs.

    This mismatch between supply and demand can be seen in two simple figures tracked by the Realtors.

    Sales have risen 5.9 percent over the past year, but the inventory of homes for sale has fallen 6.6 percent to 1.83 million properties. This means there are essentially more buyers chasing fewer properties.

    The consequences can be seen in home values and days on the market. The median sales price in March climbed 6.8 percent over the past year to $236,400, significantly outpacing wage growth. And it took an average of 34 days to complete a sale, compared to 47 days a year ago.

    In March, sales rose in the Northeast, Midwest and South but declined in the West.

    It’s possible that more Americans are devoting their incomes to housing as retail sales have struggled in recent months, said Jennifer Lee, a senior economist at BMO Capital Markets.

    “Although spending on doo-dads may have slowed, perhaps more of their funds are being directed towards housing,” Lee said.

    Demand might increase further as mortgage rates began to dip in recent weeks.

    Home loan costs had been climbing after President Donald Trump won the November election, under the belief that the government would engage in forms of stimulus such as tax cuts and greater deficits that could cause higher levels of inflation. But major initiatives such as tax reform have stalled in recent weeks as the administration has yet to put forward a proposal, prompting more doubts as to when and whether any stimulus might arrive.

    Mortgage buyer Freddie Mac said Thursday that the average interest rate on 30-year fixed-rate home loans declined to 3.97 percent this week from 4.08 percent last week. The average is now at its lowest level in five months.

    1. That’s all bullshit. Home sales increased on a SAAR basis because flippers are now dominating market share. We saw this in 2007…

      1. And not only are flippers buying like no tomorrow right now, they’re using debt as all cash sales as % of total sales dropped quite a bit. I’ve chatted with several flippers in Denver over the past two weeks. They’re coming out of the woodwork. Many will get stuck with homes – just like 2008…

  4. Really all BS! Gag me with a spoon. I used to detest ZOMBIE movies as trash….now I see people. Meanwhile back at the ranch the swamp creeps out as the CREEP STATE seems to claim subversion to the new.

    Sorry didn’t mean to not appreciate the post. If I don’t say effing p-ricks at least a dozen times a day I am not looking at screens. Orwell was better than just a good sci-fi read in HS. Dude was a prophet . Still a nice day to catch some more market pricing lunacy at SD Bullion. THANKS

  5. Rob Kirby is reporting that the Deep State is preparing controlled detonation testing of “Sterile” nuclear devices all the way from New York-Ontario border (perhaps Buffalo-Niagara Falls area?) to literally the city of New York (Manhattan) to New Jersey.

    Such tests will start on April 25, coinciding with:

    The date US Congress comes back from holiday recess (to a catastrophically dysfunctional Government Shutdown circus & theatrical fights regarding US Debt Ceiling coming to fore)

    AND

    The date on which Carl Vinson US Navy armada reaches the Korean peninsula.

  6. 6x or 38 x are nothing in comparison to over 100x which is the ratio of paper gold vs. actual physical gold held in COMEX a few years back.
    I wonder what that ratio is now.

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