Tag Archives: Comex fraud

Gold & Silver: Light At The End Of The Tunnel

Gold and silver and the mining stocks still have tremendous YTD gains despite the highly manipulated take-down that has been orchestrated since early Wednesday morning.  The smash has been executed entirely in the paper derivatives in London and NYC.   De rigeur for the Central Banks.

Eric Dubin discusses why we’ve probably seen the last of the downward manipulative pressure on gold and silver:  Gold and Silver Decline Is Fading, Dow Rolling Over  and Rory Hall published an article on Trump that accompanies the precious metals analysis and our Shadow of Truth episode to be released later today:  The Trump Trojan Horse

I moved checking account cash into my Bitgold account on Saturday, Sunday evening and this morning.  I shorted Capital One at the open today and added to my First Majestic calls. At least I put my money where my mouth is, unlike most of the alternative fear porn promoters…

Japan Is Signalling The End-Game For The U.S.

On a side-note, it’s important to know that late July/early August is seasonally the most quiet part of the year for the biggest eastern hemisphere gold accumulators. And we’re going into the “roll” period, when the bulk of the massive blob of August paper gold “rolls” into December, the next “front month” for Comex Paper gold. Having said that, China has actually slightly increased its gold imports this month. India has been in hibernation since March 1 but it’s biggest seasonal buying period starts in about four weeks. Unless smuggled gold into India is significantly greater in volume than anyone understands, India’s demand will be somewhat price inelastic and its elephantine appetite for gold will have a big impact on the price of gold.

This leads us to Japan. Curiously, Japan announced announced last week that its TOCOM Untitledcommodity exchange (Japan’s less corrupted CME-equivalent) would begin trading physical gold – like the Shanghai Gold Exchange – on July 25th – TOCOM Physical Gold.  It also announced that it would be introducing a delivery-at-settlement option for its current-month gold futures contract. That is, TOCOM gold futures buyers will now have the ability to take delivery of physical gold via TOCOM’s paper gold.

The news of this event was largely muted in the western financial media and even the alternative media blogosphere largely seems to have overlooked the news release. But this is a highly significant development because it signals a subtle shift in Japan’s economic and monetary focus from west to east.  It will also create an big upward price-readjustment in gold and silver.

The significance of Japan’s TOCOM exchange shifting from all fiat paper contracts to a physical gold trading and settlement operation is reinforced by the fact that two days ahead of the announcement it was reported that Tanaka Kikinzoku Group – Japan’s leading precious metals trader, refiner and manufacturer – acquired Swiss-based Metalor Group, one of the world’s largest refiners and supplier of precious metals-related products – Tanaka Buys Metalor.   Furthermore, in March 2015, Japan’s Asahi Holdings – a collector and refiner of precious metals – closed its acquisition of Johnson Matthey’s gold and silver refining business.  JM is one of the leading producers of refined precious metals products, including LBMA-quality 400 oz gold bars.

Now that Asia and Russia are no longer funding the U.S. Treasury debt printing press, the Fed will be forced to begin hyperinflating the money supply to keep the Government funded.  This fact is underscored by the Cleveland Fed President’s – Loretta Mester, a voting member of the FOMC –  recent comment about “helicopter money.”

While the Japanese continue to endorse the U.S. Government’s  use of the yen as a de facto printing press which enables the Fed to manipulate the U.S. stock market and to fund U.S. Treasury’s unrestricted  issuance of debt, they see the proverbial writing on the wall for the western monetary and financial system.  Japan has been quietly pivoting economically toward China for a couple years.

This abrupt transition into the physical precious metals market signals Japan’s move to integrate its financial markets and economic system into the developing eastern bloc monetary system, which appears as if it might eventually be seeded in gold.  It likely signals the end-game for the United States.

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GLD/SLV Ponzi Scheme – GET Physical Gold/Silver

A lot of investors have invested in GLD and SLV under the mistaken assumption that they are investing in “gold.”  In the latest episode of the Shadow of Truth, we discuss why GLD/SLV are Ponzi schemes created as a mechanism to control the price of gold/silver.  We also report the latest on China’s massive investment in the new Silk Road and why it will change the world – The Daily Coin published and extensive article on this topic:  Silk Road. Investment Research Dynamics explains why the Central Banks are losing control of their precious metals price control scheme:   LINK.

Bullion Banks Are Starting To Lose Control Of Silver

The Open Interest in silver is close to the new all time record high – set just last week – and gold’s Open Interest is at the same level as 2011 when gold hit it’s all time high in value. As you know the acquisition cost of gold is about $600 less than in 2011 which makes the Open Interest all the stronger. What will it be when gold really starts moving again?

In this episode of the Shadow of Truth’s Market Update, we dig into the signals being given by the market which indicate that the silver manipulation scheme is becoming unmanageable.  In addition, we discuss the ongoing global systemic financial and economic collapse.

Comex Silver Futures Open Interest Is Equal To Total Silver Produced In 2013

 The short position in Comex silver futures alone is almost equal to all the silver  mined in a year  – James Turk, King World News (Link)

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:

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With scrap recycling, total silver supply in 2013 was 978 million ounces.  So, the Comex paper silver futures equals 83% of the total amount of silver available for industrial users, jewelry buyers and investors.

Does this make sense?

To add to the absurdity of the Comex operations, as of today there were 57 million ounces of silver registered for possible delivery to holders of silver futures contracts.  Yet, for the next big delivery month of July, there’s a total of 348 million ozs worth of open interest.   That’s 6 times the amount of silver registered for possible delivery.  There’s 176 million ounces of total silver on the Comex.

In theory, if ALL of the July silver longs stood for delivery, there’s enough silver to fill half of them.

Up to this point in time, there’s no risk to the sellers of the silver futures that anywhere close to the amount open interest right now will stand for delivery.  That doesn’t mean that it can’t happen.

The point of this is to highlight just how fraudulent the Comex is.  There is no other commodity market in the world that allows the futures open interest in relation to the available underlying  deliverable commodity to get anywhere close to the ratio that exists in Comex gold and silver.  When oil and gas get a bit out of whack, the CFTC cracks down on the “manipulating” bank.

This will eventually resolve itself with much higher prices for gold and silver.  Mining stocks will go parabolic.  To see a couple of good ideas to take advantage of this market dislocation see this link:   Stock Research Reports.    I will be adding a least one more this week.   AAU in particular has a heavy concentration of silver in its big Mexico mine project.

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…