Tag Archives: Comex futures

Gold And Silver Are Paper-Slammed – Is The System Collapsing?

When a thoroughly corrupt Government wants to try and hide something from the public, they exert an all-out effort to mis-direct and cover-up.  The financial markets are no different.  It’s been obvious to anyone with one good eye and one brain cell that the puppet-masters behind the Wall Street/DC “curtain” have been propping up the Dow/S&P 500 and exerting forcefull downward pressure on the price of gold and silver.  Why gold and silver?  Because gold and silver, for 5,000 years, have been the world’s “alarm system” alerting everyone when something is terribly wrong.

I remember vividly 2008.  Many of you were not involved in the precious metals markets. Inexplicably, the manipulators smashed gold and silver down from their bull market highs in March 2008 very quickly.  Silver was smashed down to $8 after hitting $21 in March.  I remember staring at the futures screen wondering what would stop JPM from taking silver down to zero?

Shortly thereafter AIG and Goldman de facto collapsed and the rest is history, including the fact that former Goldman CEO, Hank Paulson, was “coincidentally” sitting in as Secretary of the Treasury and “coincidentally” came up with a plan for the Taxpayers to bail out Goldman Sachs.  Paulson, after all, was still sitting on about a quarter of a billion dollars worth of warrants on Goldman stock.  This, after he was allowed to sell his GS stock worth $100’s of millions on a tax-free basis.  Just a little “benefit” the elitists bestow upon themselves when their brethren appoint them to a Government post.

Here’s graph that shows the similarities between what happened to gold in a short period of time in 2008 and what has happened since peaking at $1900 in 2011 – click to enlarge:

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It’s pretty easy to see the similar trading pattern with gold in 2008 comparted to the period the summer of 2011 through the fall of 2012.  The only difference is that there was a massive rise in the use of OTC precious metals derivatives that began a couple years ago which has enabled the Fed/Treasury/banks to keep a tight lid on the price of gold and silver and has enabled the criminals running this country to promote a “narrative” of economic recovery.  It’s been nothing but one big lie.

Here’s what happened today with gold and silver – click to enlarge:

Goldsilver

How is it that day after day gold and silver get smashed when the NY Comex floor trading opens?   Does it seem odd that, nearly everyday for the last 4+ years, that at 8:20 a.m. EST all of a sudden the world decides to unload paper gold and silver positions?

How is it at all possible that the price of gold and silver are collapsing like this when China has imported a record amount of gold in the first half of 2015?  China and India combined are importing more gold than is being produced on a daily basis.  India is importing by far a record amount of physical silver.   These countries require the physical delivery of the metal they buy.  It’s not good enough for the bullion banks to offer free vault storage in London or NYC.   The misrepresentation of the true, intrinsic price of gold and silver by the NY and London paper markets is perhaps the greatest fraud in history.

The criminality operating in the U.S. financial markets has become all-pervasive.  The markets just ooze with unfettered theft and wealth confiscation.   The Government doesn’t just “look the other way.”  The Government is the criminal cartel.  Just look at where all the key appointees in a position to enforce the Rule of Law come from.  The Treasury, Justice Department, the SEC – they all come from Wall Street firms or the law firms that make $100’s of millions defending Wall Street firms.   It’s the American version of the Sicilian Mafia running our system!

It’s obvious what is happening to anyone who cares to look at the truth.  This is the end of the end-game. Perhaps Greece has triggered it but it’s irrelevant.  The entire world is over-bloated with catastrophically unpayable amounts of debt.  The IMF has told us that Greece can’t possibly repay its debts.  Huh?   Does the IMF really think the United States can repay its debt load?   Greece has $350 billion of sovereign-issued debt.  The United States has over $18 trillion in “on-balance-sheet” sovereign-issued debt.  It has at least $200 trillion of contingent sovereign-issued liabilities.

The only difference between Greece and the United States is that the United States can unilaterally print its own money.  Literally in unlimited amounts.   Ben Bernanke stated that fact in 2002:  “But the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”  LINK

The system is collapsing.  It has been collapsing.  I believe it’s quite possible that we are seeing the final stages of the end game.  China’s stock market is down 30% since early June.  The prices of oil and copper are crashing.   As I wrote yesterday, oil and copper are the quintessential beacons of relative economic activity.  If their prices are crashing, so is economic activity.

After trading in positive territory overnight, the S&P 500 suddenly plunged shortly before the NYSE opened:

SPX

China suspended trading in its stock market last night. But how is this any different from key HFT ECN’s “breaking” when the market is about to go off a cliff? As Zerohedge always tauntingly reports, the market “breaks:” Broken Market Ignites Momentum

Coincidentally, the market never seems to “break” when its spiking inexorably higher on some fictitiously prepared “good” economic report. Let’s  see if the market “breaks” today in order to stop that waterfall plunge at the open.

Of course, if it doesn’t, are you prepared for the devastating consequences of a collapse?

Precious Metals “Porn”

A nice way to start of Memorial Day Weekend is with some interesting thoughts about the precious metals.  The Shadow of Truth recorded a podcast with Craig “Turd Ferguson” Hemke yesterday  which will be released this weekend.

Craig and I both agree that the bottom is in for gold and silver and that the physical market demand from the east is just too strong for the BIS/Fed/Bullion Bank cartel to push the metals any lower than where they are now using fraudulent paper gold derivatives – at least for any meaningful duration other than intra-day paper dumps.  We also agree that Harry Dent is nothing but a snake-oil newsletter pimp.

The Scramble To Hold Physical Bullion Is On

Zerohedge has done a nice job finding an article from an Austrian paper which has reported that the Austrian Central Bank has repatriated 110 tonnes of gold from the Bank of England:  LINK

  • CENTRAL BANK TO BRING MOST GOLD RESERVES BACK TO AUSTRIA: KRONE
  • KRONEN-ZEITUNG REPORTS ON AUSTRIAN CENTRAL BANK’S GOLD PLANS
  • AUSTRIA TO TRANSPORT 110 TONNES GOLD BACK TO AUSTRIA: KRONE

Austrian central bank plans to keep 50% of its gold reserves in Austria vs 17% now, Kronen-Zeitung reports, citing governor Ewald Nowotny’s unpublished new “gold strategy.” Bloomberg adds,

  • 30% of gold reserves to be kept in U.K., down from 80% now
  • 20% to be kept in Switzerland vs ~3% now
  • Intention is “risk diversification:” Krone

I wanted to share some graphs with you that I think you’ll find interesting (click on them to enlarge).
15 year monthly silver 1This chart on the left shows 13-yr silver on a weekly basis.  You’ll note that on a weekly basis, silver has poked its ahead above the downtrend line going back to late 2011.   Many of us have been wondering why it’s so hard to get any data on China’s silver production and imports.   There’s a reason for that and I believer China has sucked most of the global supply dry.

This graph is pretty much self-explanatory.  It’s a 15-yr graph of the price of gold.  As you can see, it would appear as if gold has completed a multi-year bull market pullback and is consolidating for the start of the 2nd leg of the precious metals bull market. 15yrGold In general, the 2nd leg of a bull market tends to produce the best gains, especially on a risk-return basis.   It’s when the market goes parabolic because everyone including janitors and cab driver are jumping in to a market – like the current stock market – that a bull market becomes too risky for fundamentals-based investors. But we still have Stage 2 of the gold bull before we start assessing a “final blow-off” stage.

Finally, to circle back to the idea that there’s a scramble for physical bullion, here’s the latest graph which shows the accumulation of gold by the Russian Central Bank, which added another 300,000 ozs in April (source: Goldchartsrus.com):

Russian_Reserves

As you can see, Russian gold reserves have gone up more than 300% since 2006.  There’s a reason for this and I assume we’ll find out that reason a lot sooner than the corrupted, neo-con infested U.S. Government would like us to find out…

India’s Gold Imports Double In March: 125 Tonnes

It was only a matter of time.  The Indian population has been starved for gold and the United States Government has been working overtime to use fraudulent paper gold in order to drive the price of gold down to an economically unviable price level.

India’s gold imports in March more than doubled from March 2014 from 60 tonnes to 125 tonnes – Reuters.  125 tonnes is roughly 5% of the total amount of gold produced by all mines globally in a year.   YTD for India’s fiscal year, gold imports have jumped 31% over last year to 900 tonnes.  900 tonnes is 38% of total global gold mine production.

Folks, these are numbers that the World Gold Council will find impossible to refute or distort.

Zerohedge is attributing the pop in the price of gold to this Indian gold import report.  But Zerohedge is wrong.  This report was released about 2 hours ago.   The price of gold spiked up at 4 a.m. EST, around the time the London gold market goes into full swing.

I can’t find any specific trigger for the move.  Shadow of Truth (LINK) just did a podcast interview with James Turk that will be posted on Sunday.   He talks about backwardation in the London market.  I had him explain what that means for listeners – something no other podcast host has ever done.  At any rate, he thinks – based on his observations and business dealings in the London gold market – that London is wiped out of physical gold available for immediate delivery.

Whatever triggered the initial surge at 4:00 a.m. NY Time overnight probably triggered heavy short-covering.  We know from the COT report released last Friday that the bullion banks shorted massive quantities of fraudulent Comex paper gold last week.  Maybe they are starting to run from the physical shortage Turk describes.

Interestingly, Richmond Fed puppet Jeffrey Lacker is on the tape reiterating a call for an interest rate hike in June.  That should have caused gold to drop.  It did not.  Perhaps the market is finally catching on to this absurd good cop/bad cop Kabuki theatre being played out by the corp of wind-up toy monkeys often referred to as “Fed officials.”  Every one of them with just one brain cell in their skull – nothwithstanding my suspicion that Yellen’s skull is completely empty – knows that an interest rate hike will act like a financial nuclear bomb on our financial system.

Silver Eagle Sales Hit A One Day Record Two Days In A Row

The last day of September, the U.S. mint reported silver eagle sales of 750,000 coins.  One day later, they reported another 1.65 million.  Both were one day records.  The two-day total – 2.35 million – was more than the entire months of August and July:

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This is what happens when the Fed/Govt push the price of silver down using fraudulent paper gold and silver (Comex futures).  The Royal Canadian mint put 1 oz. silver maples on allocation.   90% of the silver on the Shanghai Futures Exchange has been removed this year.

William Kaye, a prominent hedge fund manager in Hong Kong:

This demand is what is now underpinning the precious metals markets. I can’t stress enough that there is very significant physical demand for gold as it trades near the $1,200 level. The physical market is what stands in the way of the manipulative trading algorithms from crushing the gold price.

The gold and silver being made available at bargain prices is having to be supplied to the ready buyers. And unlike the people in the West who are becoming bold in their short paper positions in gold, the Asians are becoming more aggressive in their buying in the physical market.

But we are now reaching levels where it will become increasingly difficult for this Western central bank manipulation to continue. It’s going to be very difficult for the bullion banks, which have calls for $1,050 gold, to push prices much lower in their attempt to achieve that kind of target because they are going to have to come up with the physical gold and silver.

Here’s the full interview link:  King World News

 

The LBMA Is Shutting Down The Rigged Daily Silver Price Fix

Unexpectedly, the LBMA announced early this morning that it would be closing down the daily silver price-fixing, effective August 14 (article link from Marketwatch).  While I’m sure the Ross Normans and Bron Sucheckis of the world will issue some kind of absurdly puerile rationalization full of empty rhetoric and shameless propaganda for this event, it is an unmistakable acknowledgement that the London precious metals price fix is rigged.

Recall that Deutsche Bank  recently gave up its seat on the price fix committees of gold and silver after trying hard to find a buyer for the position.  No bank wanted the seat because they all know that it comes with billions in potential liabiity.  The last time a gold fix seat changed hands, the Rothschild banking cartel sold its seat to Barclays for $1 million.  The Rothschild organization, which had been part of the fix since it was formalized in September 1919, offered no explanation for its sudden withdrawal from the fixing.

With formal investigations and oversight now occurring, and with Deutsche Bank’s resignation, the move to close down the silver fix is implicit confirmation that the London gold and silver markets are rigged.  Although the gold fix should be shut down as well, and both immediately, I believe that the western Central Bank/bullion bank cartel has no choice but to keep the gold fix going.   I suspect that short of an eventual default and collapse of the LBMA –  just like the London Gold Pools of the 1960’s defaulted and collapsed – will prevent the corrupt banks from maintaining the rigged gold fix.

WIth that in mind, however, the LBMA can do nothing to hide the deep red Scarlet Letter of admission which now marks the London gold/silver fix, which is perhaps why the news announcement came with no explanation.  To be sure, this event has also added confirmation to anyone with remaining doubt about the corrupt and rigged nature of the western precious metals markets.