Someone Dumped 70 Tons Of Paper Gold At 8:30 a.m.

At 8:30 a.m. this morning, 10 minutes after the Comex gold pit opens, over 70 tons of gold was dropped into the entire Comex trading system.  If this happened on the NYSE, one of the ECN’s (usually BATS) would have mysteriously “broke” and trading would have been halted – before the damaging effects of the systemic paper overload hit the market.

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From 8:30 to 9:30 a.m. EST, a total of 6,289,900 ozs of paper gold, or 196.5 tons was unloaded on the Comex.   To put this in perspective, the Comex is reporting 2.37 million ounces of gold in its registered account (the gold that can be delivered).  That amount of paper gold that would unloaded was 2.7x the amount of gold available to be delivered.   It represents 58% of the entire amount of gold reported to be in Comex vaults.

It’s hard to find any specific news trigger that would have motivated anyone to sell one ounce of gold, let alone nearly 3x the amount of physical gold available to be delivered.

Perhaps the worst economic news reported was retail sales, which dropped .3% in August vs. the expectation of no change.  This is the 4th month in a row retail sales have dropped on monthly sequential basis.  Retail sales have declined 6 out of 8 months this year.

There’s probably nothing to see in that chart above – just like the allegations of Hillary’s poor health…

 

20 thoughts on “Someone Dumped 70 Tons Of Paper Gold At 8:30 a.m.

  1. I’ve heard some say they are tired of hearing about manipulation of the PM’s, but someone needs to document and report it, so I thank you.

    I see a good rebound.

    Manipulation will continue until it can’t any longer. Rapid price recoveries portend that time is drawing closer.

    1. Yup, sounds like beatings will continue until morale improves.
      As long as the SOBs can get away with it, the dumping will never stop.

  2. Thanks for that graph! Can you go through the math — at what price were those contracts for 70 tons dumped and why would sophisticated speculators be on auto pilot such that it would then trigger their stop loss selling, when everyone should know by now that the market is being manipulated and the only way to beat the manipulation is to hold on to your positions (and even buy up those contracts for the 70 tons and then demand delivery at contract expiration). I just don’t get why the other market participants do not see the obvious — that it’s all part of a wash and rinse cycle where the bullion banks suppress the gold price and make a nice profit while they are at it. What will break this cycle?

  3. Maybe I’m just a cruel SOB, but frankly I’d take pleasure in seeing the people responsible for this kind of stuff given a fair trial and a fine hanging someday.

  4. Dave, when this was happening the Shanghai fix was about $15 higher per oz. That’s about
    $480,000 arbitrage per tonne. More metal headed east?

    1. But this is exactly what I gave heads-up about (in a comment around Monday, I think), based on Harvey Organ’s reporting.

      Has there been any public story reporting about arbitrage happening yet? I only heard heads-up story about possibility of arbitrage opening up. Not actual evidence of it. Searched all around for such news, but can’t find anything. I would think arbitrages happen with public visibility. Such story would be great interest for public consumption & not stay under wraps.

      Dave: If you hear stories with actual evidence of arbitrage happening, pls post about them….hopefully in a new blog post.

      1. Wish I had time to dig stories up like that. Doesn’t pay the light bills. Doesn’t matter anyway. Water eventually finds its level – the gold market will eventually find its level and it will be many multiples higher than where it is now

        1. Got it, n.p. Only meant, if anything like that passively scrolls across your radar. (Ahead of your readers seeing it, since you’re better plugged into the underbelly of the beast.)…..Not expecting or requesting you to actively search for anything, LOL!

  5. Pop quiz> in 2004 on the back of 7trillion $ of new credit, to enter world markets (thanks to a little bombing campaign in Iraq , Afghanistan ) which 2 companies were I.P.O’d? one which had been completely insolvent since 2001 & now has gone on to buy up the entire internet…then tell yourself you understand the problems of infinite credit..& how it is positive to grant people such power…Gee I dunno how cum such a small group of (maggots)people end up with all the stuff?

  6. The only true way to get the full value of your asset—dump it all at once. What scumbags and the CFTC just watches porn.
    The time will come when some big player actually scoops up all those bs paper contracts and demand delivery of phyzz.

  7. the CFTC deserves’lead’ instead of ‘coal’ in their stockings this Christmas season….maybe with the Donald we could give them a trip to ‘gitmo’ for their fine work as a bought and paid for commission…….imho

    1. Shorting paper gold and buying the real deal is actually a no brainer. Why? Because the intrinsic value of paper gold is zero. An empty promise without any back up (wtshtf) The enablers (and victims) of this game are those playing comex on the long side without any intentions to demand physical deliverance ie practically everyone. Stop buying papergold and let the shorters try to sell to each other. That would be interesting to watch. True pricediscovery on paper gold?!

    2. Holy crap, that’s some SERIOUSLY funky trip in that website. Thanks for posting this!

      Looking @ the numbers, it claims that paper gold in West is almost stable ($16.28 difference East to West) & paper silver in West is falling into caution zone ($0.73 difference East to West). If I didn’t know any better, these numbers by themselves seem very attractive to me for someone to jump into arbitrage. That is, to me personally both paper gold/silver in West seem like they’re in danger zone.

      But this is a great resource to be aware of, will keep it running in a tab on an ongoing basis.

  8. That’s about $3 BILLION dollars worth of gold from one seller. When we ask ourselves how many people have billion$ of dollars, and how many billionaires have $3 billion in gold, the list of who this party could be, even without examining the motivation for the sale, grows EXTREMELY short. This is a bank on behalf of the FED and USSA dumping paper gold to drive the price down, and likely bought with money given to them by the FED. Major illegal shit from a banana fascism. This kind of blatant crime in the open smells like sands are running out of the totalitarians hourglass and the end of the fiat empire is upon us.

    1. Does it matter? That’s why the cartel triggers the stops. They know where the stops are set because they operate the CME trading systems.

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