Tag Archives: Comex default

The Precious Metals Are The Market Story Of The Year So Far

“Short gold on market overreaction”Jeffrey Currie on CNBC on Feb 16, 2016;   CNBC host:  “Is there any commodity that you can recommend to help our viewers make money?”  Jeffrey Currie:  “Short gold”CNBC on April 5, 2016;

Goldman Sachs’ Jeffrey Currie has become the “Jim Cramer” of the gold market (click on graph to enlarge).  When heUntitled issues a table-pounding call, do the opposite.  When gold was approaching its bottom around the $1050 level, Currie’s price target was $800.   Much the same way Wall Street banks like Goldman, with AAPL at $96 and down 27% since July have been forced to lower their price target from $200 to $150, Currie was forced to raise his price target for gold to $1080.  And he’s still pounding table with a “short gold” advisory.   I guess when he receives a taxpayer-subsidized seven-figure bonus every year, he doesn’t mind looking like a total idiot with regard to the market.

To be sure, there’s several developments that warrant designation as the market story of the year so far.  The shocking performance of the stock market would likely get the nod except for the now-obvious fact that the Federal Reserves continuous intervention is the force behind the stock market’s buoyancy.  In relation to the true underlying fundamentals, perhaps the only two markets in history that have been more irrational are the Dutch tulip bulb mania of the 1630’s and the Weimar Republic stock market from 1914 – 1923.

Without a doubt in my mind, the move up in the precious metals sector since January 20th is the market story of the year so far.  What makes this even more remarkable is the relentlessness of the move despite the obvious repetitious attempts by the Federal Reserve/bullion banks to push the price of gold/silver lower with fraudulent Comex paper derivatives, as evidenced by the rapidly escalating amount of paper gold/silver contracts printed and sold into the “market.”  The open interest of paper in relation to the amount of underlying deliverable physical gold/silver on the Comex has been multiplying recently at a geometric rate.

This rise in the price of gold/silver has ensued despite a plethora of skepticism from even the traditionally bullish precious metals-investing analysts.  Most market prognosticators – and I’m more less guilty of this myself – have been forecasting a sharp pullback/correction in response to market technicals which heretofore have signaled the imminence of a massive bullion bank price attack.

Further contributing to the surprising price-behavior of gold is the absence of Indian imports which push the market higher with elephantine seasonal demand at this time of year.  India’s import machine has been effectively shut down from a jeweler’s strike since March 1.  This source of physical demand has begun to stir, which could make the present build-up in the paper short interest in gold and silver particularly interesting to watch.

There’s a flood of capital on the sidelines that stands ready to move into the sector but that is waiting for a big price pullback before initiating or adding to position.  The “smart” institutional money has been unloading historically overvalued stocks and is loathe to buy near-zero yielding Treasuries.   Perhaps this dynamic in and of itself will pre-empt any meaningful price corrections for the time-being.  While it may feel like the metals and mining stocks have made an unsustainably large move since mid-January, these two graphs below provide some perspective on the “scale” of the current move (click to enlarge):

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As you can see, the two graphs of gold and the HUI index, while making a large percentage move since mid-January, have barely moved the needle in relation to their mid-bull market tops in 2011.

For as brutal and relentless as the manipulated price correction has been for the last five years, we can expect the next move higher to be a least as equally forceful in its power and durability.  Make no mistake, the underlying fundamentals which triggered the de facto financial system collapse in 2008 and drove the precious metals sector its peak in 2011 have become even stronger since the advent of QE – the money printing which further fertilized and enabled these systemically catastrophic inducing trigger-points.

The junior mining stocks are set up to provide life-style changing wealth creation.  But finding the ones that are bona fide companies is a challenge.  The Mining Stock Journal presents bi-monthly commentary and insight to the precious metals market plus a well-researched junior mining stock idea with each issue.   You can access the current report plus the back-issues (distributed via email) here:  Mining Stock Journal.   The issue that will be published today presents a relatively undiscovered and incredibly undervalued company.

Shadow of Truth: An Age Of Deception And Fraud

If you tell a lie big enough and keep repeating it, people will eventually come to believe it. The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth is the greatest enemy of the State.  – Joseph Geobbels,  Hitler’s Minister of Public Enlightenment and Propaganda

Put it on CNN and it’s true.  Perhaps one of the most baffling aspects of our system is the extreme dichotomy between perception and reality.  Anything reported by one of the major mainstream news sources is gobbled up and accepted as the truth by a majority of Americans.

Dr. Paul Craig Roberts wrote a brief commentary which describes how news reporting is used to control our perceptions in order to ensure the public acceptance of the Government’s agenda:  “Liberalism has helped to make Western people blind by creating the belief that noble intentions are more prevalent than corrupt intentions. This false belief blinds people to the roles played by deception and coercion in governing. Consequently, the true facts are not perceived and governments can pursue hidden agendas by manipulating news” – PCR, How They Brainwash Us.

The problem is, once you “see” the truth underlying the thick systemic facade of fraud and deception, you can’t “unsee it.”  The monthly non-farm payroll report will be released on Friday.  Every month market participants guzzle Maalox and sit on the edge of their seat in anticipation of the headline news release.  It seems beyond silly that the financial world spends an entire day discussing and analyzing the employment report, which is fictitious in its entirety.   Hell, the Government releases two different statistical versions of the employment report.  Which one is it – the Household Survey or the Payroll Survey?

It doesn’t really matter because once the unemployment rate metric hits the tape, that IS the number.  The truth is that the real unemployment rate is well over 20%.  But when everyone discusses The Number, they use the reported number which is currently 5%.  The process of reporting the monthly employment situation is extreme absurdity in its entirety.

In the Shadow of Truth’s latest “Market Update,”  we focus on the gold and silver market – or the fraudulent paper version thereof.  Like the monthly employment report, most market analysts base their assessment of the gold and silver market on the weekly Commitment of Traders report.  Of course, it makes no difference that the data in the report is already three days old by the time the report is released.  Neither does anyone seem to care that data in the report is compiled and submitted by three of the most corrupt banks in the world.  Another interesting misconception is the use of the gold/silver prices on Kitco as the “spot price.”  But that’s a fabrication as well…

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Silver Eagle Sales Set A February Record

Betting against gold is the same as betting on governments.  He who bets on governments and government money [fiat currency like the U.S. dollar] bets against 6,000 years of recorded human history.  – Charles De Gaulle

Silver, for 6,000 years of human recorded history, has been “poor man’s gold.”  In fact, based on everything I can find on the topic, silver was used as currency before gold. Buying silver with the gold/silver ratio at 80 is like buying gold on steroids.

Charles De Gaulle is the person who is credited with forcing Nixon to “close the gold window” in 1971.  De Gaulle had figured out the U.S. had issued far more debt to foreigners than it had in gold to back that debt, per the requirement of the Bretton Woods Agreement.  De Gaulle had been quietly exchanging Treasury debt purchased by the French Government for gold, per the terms of Bretton Woods.  Before De Gaulle had a chance to clean out the Treasury’s gold, Nixon unilaterally and illegally terminated that portion of Bretton Woods.  To this day I have not read a reasonable analysis which explains why the rest of the world enabled the U.S. to get away with this.

The massive issuance of paper claims on the  stock of physical gold and silver supposedly available to deliver into those claims should they be exercised has risen to proportions which would make the Johnson and Nixon Governments blush.  Meanwhile the visible inventories of gold and silver continue to diminish (see this, for instance:  Deliverable Silver Stocks At The Comex Reach Historic Low).

it seems a small portion of the U.S. public understands the reasoning behind  De Gaulle’s assertion above and has been converting fiat dollars in poor man’s gold, as U.S. minted silver eagle sales hit an all-time high for the month of February:  Sales Of Silver Eagles Smash February Record.

If the percentage of the public – currently estimated at maybe 1% – that is buying gold and silver were to increase by just a few percentage points, the monstrous paper gold/silver short position underwritten by the bullion banks and the entities standing behind the bullion banks will go from potentially unmanageable to catastrophic.

Many of us think silver will be the ultimate “Achilles Heel” of these entities who have been aggressively manipulating the price of gold and silver since 2011.  While the impending move by Governments to a “cashless” banking system will likely cause a run on cash at the banks by the public, I believe that the run on cash will be followed by a run on gold and silver.

Paper money eventually returns to its intrinsic value – zero.  – Voltaire 

Something feels “different” about the way the precious metals are trading. This is reinforced by trading action in the mining stocks. The silver junior stock I recommended inNewSSJ Graphic the Jan 10th issue of the Short Seller’s Journal is now up 50%.  It could easily be a 5-10 bagger from here.  I recommended another silver stock, an emerging producer, in the current issue. I also featured a short idea this week that could quickly shed 50% once this latest short-squeeze bear market rally subsides. Today might have been the start of that. You can subscribe to the Short Seller’s Journal by clicking HERE or on the image to the right.

They Don’t Bother To Hide The Criminality In Silver And AMZN Trading

When they’re trading 1.5 billion oz. of silver each day in London, the ‘silver’ fix each day is a complete sham. Now the fix has been found to be openly manipulated, it will be interesting to see what happens with the London silver market. – David Jensen, “Silver: Is It The LBMA’s Greatest Rig?”

Strange things are happening in the global financial markets.  Most likely evidence of a massive systemic earthquake starting to shake.  As many of you know, the LBMA price fix “fixed” the a.m. priceUntitled of silver 84 cents below the front-month futures price right before the price was “fixed.”   This graph to the right shows how the criminal activity went down (click to enlarge).

I awoke this morning and had an email from Bill “Midas” Murphy asking me if the $13.98 low print shown on Kitco was correct.  I responded that it looked like there were some “low hanging” stop loss orders that were attacked in an attempt to get the price of silver down.  This was before I had learned of the crime committed on the LBMA.

I would love to have an explanation from the committee in charge of overseeing the LBMA fix.  The fact that paper silver bounced back almost immediately is evidence that the a.m. fix was a fraudulent act in its entirety.  But for what purpose?  The price fix is supposed to be the price that balances out the amount of physical silver bars being offered for sale and bid to purchase during morning trading.

The entities selling silver on Thursday morning didn’t just get their faces ripped off, they had their entire head decapitated.  These are the entities who should be pressing for investigation.  It’s money out of their pocket or their clients’ pockets.

This was my final comment to Bill on this matter:   The insider elite are laughing at everyone spending so many calories and so much energy reporting, discussing, analyzing and agonizing over the paper vs. physical issue.  Meanwhile the biggest theft in history is taking place right under our nose as they pluck every ounce of physical gold and silver out of the system from the idiots and the idiotic mining companies who are willing to sell it at the paper price levels.  The biggest wealth transfer mechanism is the Central and bullion banks.  The banking system has been ripping us off in every aspect of our lives for decades. Why on EARTH would anyone question or doubt that they’re ripping us off in the precious metals market? Seriously. Everyone in their heart of hearts knows that gold/silver are the ultimate root of any monetary system.  Why would the banks rip us off using paper currency schemes and not touch the metal?  For God sakes, the metal is what they’re ultimately after.  That’s why the first thing any military does when they take over a country is it takes the gold.  The most recent proof of this Ukraine.  That practice goes back to at least the Romans.

Someone sent me an excerpt from Ted Butler’s “news” letter in which he rationalized away the reason why the registered gold vault account at the Comex was so low now.  Bill, I seriously think he was on LSD when he dreamed that one up.

I guess what’s most troubling about the above incident is the blatancy with which the LBMA crooks implemented their crime.  They made no attempt whatsoever to cover up the crime scene.  It’s almost like they’re taunting us.

This brings me to the issue of AMZN’s trading today.  AMZN stock ran up $52, or 8.9% ahead of its quarterly earnings to be released right after the NYSE close on extraordinary volume of 14 million shares – 2.4x more than its 10-day average daily volume.   After the market closed, AMZN’s stock plunged as much at $95 from the close on a disappointing report.  It closed out the after-hours session down $85.

I bring this up because there is no question in my mind that the stock was likely run up by one of the hedge funds with a big position in the stock (or possibly two or three in collusion).  The purpose of this would be to generate a frenzy of buy activity into which the hedge fund could unload a chunk of stock.  This also implies that one (or more) of the big funds was given a “heads up” from inside AMZN about the nature of the report.

The reason I am convinced this is what happened is because I was part of a junk bond trading operation in which this occurred all the time.  Back then we had to be more careful because laws were actually somewhat enforced, sometimes with vigor.  But if I had a big position in say, Trump Casino bonds,  occasionally I would get a tap on the shoulder from one of the Trump bankers in corporate finance who would whisper, “uh, I don’t like your Trump position.”

In present times, the laws and regulations designed to prevent/discourage insider trading are rarely, if ever, enforced.  Insider information sharing is almost as blatant as the London silver price fix today.   Of course, I have zero sympathy for any of the idiots who chased the stock higher today.  Anyone who goes near that stock without doing extensive analytic work will get what they deserve.  Some of these big hedge funds who have massive AMZN positions are eventually going to get impaled on their holdings (or at least the pensions they manage money for will).  Here’s an example of one of the retail trading oriented dopes who was giddy about AMZN stock before it reported – Timothy Collins of TheStreet.com’s Real Money:  I’m Bullish On AMZN Ahead Of Earnings.   Nice trade, Tim.

Speaking of AMZN’s numbers, I will hopefully get around to updating my AMAZON dot CON report with the latest information sometime in the next 5-7 days.  If you have already purchased the report, please email for the update.  If you have not yet purchased the report but have thought about it,  I am going to raise the price again (it takes a lot of time and energy to work on this Company’s numbers) once the full research report is published with the update.

Today’s after hours action was just the start of the AMZN bubble deflation process.  I don’t know what path it will take, but I know that AMZN’s stock will eventually fall from the $550 after hours close today toponzi_scheme below $100.   To be sure, there will be periods of time when the stock moves up sharply because Jeff Bezos is the king of highly misleading stock promotion and there’s plenty of idiots out there who lap up his drool with blind greed.  My stock report will help you understand why AMZN is one of the world’s greatest Ponzi schemes.

The Comex Is A Grotesque Comic Book

If you don’t want everyone to run out of the coal mine, hide the canary from everyone’s sight before it dies.  – Quote from a good friend and colleague

The story is getting old, but it needs to be shoved in front of us to keep the truth alive.  By now most of you have seen the incredible 325:1 paper gold to deliverable gold ratio on the Comex.   Let’s say the CME were to hypothecate ALL of the gold reported to be held in Comex vaults and used it to “back” the paper gold open interest.  It would require importing 6 times more gold, or 956 tons – more than 1/3 the total amount of gold mined globally in a year.  Just not possible.

It’s very important to keep in mind that the numbers that are reported representing the amount of gold held in Comex vaults are numbers that originate from the bullion banks, who generate the reports and send them to the publishing apparatus at the CME.  They are not audited.   Using those numbers as “the numbers” requires a leap of faith that could easily be betrayed.   This is a point fact – not opinion – based on the history of bank numbers reporting that gets lost on most people and market analysts.   Let’s put it this way:  If the Comex numbers are being reported accurately and honestly, it would be the only area of bank financial reporting that is not laced with fraud.  Are you willing to make that wager?

For the record, here’s what happened today:

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After trading sideways around the $1065 level in the overnight Asian trading session – the actual physical gold trading market – paper gold engaged in the now familiar “cliff dive” formation just after 8:00 a.m. EST. There were no news or events reported that would have triggered any type of market response from the price of gold.  And the trading “needle” didn’t move in any other related commodities market or in the stock market futures.

Just pure, unadulterated blatant manipulation of the price of gold using fraudulent electronically generated paper contracts.

John Embry emailed me this a.m. and asked me – rhetorically, of course – how come the U.S. Government is so insistent on the idea of raising rates and coming up with truly insulting economic numbers to allegedly justify it?  What is really going on behind the curtain?

The answer, of course, is that the Fed will not be raising rates. Especially now that the U.S. Treasury debt outstanding is a short chip shot away from $19 trillion and every privately compiled economic activity measurement index is now showing that the U.S. economy is in collapse.

But it’s the same game they are playing with the price of gold. If you are worried about everyone leaving the coal mine because people see a dead canary, take away the canary the before it dies and replace it with a happy fairytale.