Tag Archives: Comex

Trump Fiddles While The United States Burns

If history is any guide, global changes of this magnitude mean that the entrenched systems run by central banks and Deep State politics are set to be destabilized on a level we may have not witnessed in our lifetimes, which means assets like bitcoin, gold, and silver could become the safe havens of choice for investors.  – Mac Slavo, SHTFplan.com

Mac’s comment above was in response to the news that First Majestic CEO, Keith Neumeyer, is prepared to join the legal battle being waged against the world’s largest banks for manipulating the gold and silver markets.   Good luck with that.

But even if the plaintiffs make some headway against the banks, this fight will take years to wage and it will likely do little more than provide some temporary relief from the financial market’s equivalent of pancreas cancer.

While the precious metals community engaged in a celebratory end-zone dance when Deutsche Bank admitted to malfeasance in its paper silver trading business, the insolvent bank coughed up a fine that was mere pittance of the billions it made over the years rigging the LBMA.

To make matters worse, JP Morgan was mentioned nowhere in Deutsche’s testimony.   JP Morgan has by far the largest silver vault on the Comex, with an alleged 82 million ozs in its custody.  The next largest is Brinks with 25 million.  I say “alleged” because it’s quite doubtful that a large portion of JPM’s reported holdings exists anywhere other than as an entry on its daily vault report.  Ask Germany about that…

JPM also happens to be the largest market maker in Comex silver futures, it’s part of the bank cartel that fixes the price of silver on the LBMA everyday and it’s the vault custodian of the alleged silver that is supposed to belong to the SLV trust.   Does it make sense that JP Morgan went unnamed in the Deutsche Bank confessional?   If that happens to pass your smell test then we would suggest that you blow your nose thoroughly and take another sniff.

With regard to the manipulation of precious metals, if you want to kill a snake, you have to cut off its head. Similarly, if you want to end precious metals manipulation, you need to destroy the BIS.  The directive and authority to manipulate the metals comes from the mother of all Central Banks.  JP Morgan is the BIS’ chief agent in executing the directive. Deutsche Bank was given explicit instructions to omit all references to JP Morgan from its superficial mea culpa.

Mac is correct in his assertion that systems run by Central Banks are becoming destabilized.  And he is correct in his implied assertion that this will lead to much higher precious metals prices.  Bitcoin?  Who knows?  Bitcoin is a de facto digital currency and thus yet another fictitious form of money with a computer system as its counterparty.

The problem is that as the destabilization process unfolds, the Establishment will fight back hard in an effort to maintain control.   This blow-back will be in the form of a further advancement toward Governmental totalitarianism. With the geopolitical and economic wheels beginning to fly off rails, at this point it’s fait accompli.    In today’s episode of the Shadow of Truth, we discuss the general systemic decay of the U.S. and Trump’s role as the modern day Nero:

CONFIRMED: Big Banks Rigging The Silver Market

According to the plaintiffs, records surrendered by Deutsche Bank show traders and submitters coordinating trades in advance of a daily phone call, manipulating the spot market for silver, conspiring to fix the spread on silver offered to customers and using illegal strategies to rig prices.

“Plaintiffs are now able to plead with direct, ‘smoking gun’ evidence,’ including secret electronic chats involving silver traders and submitters across a number of financial institutions, a multi-year, well-coordinated and wide-ranging conspiracy to rig the prices,” the plaintiffs said in their filing. The new scheme “far surpasses the conspiracy alleged earlier.” – Bloomberg.com, December 7, 2016

Anyone who denies that gold and silver are manipulated either has not spent time examining the evidence or is financially incentivized to refute all allegations. In other words, they are either ignorant or willfully corrupt. This includes the entire universe of politically corrupt western Central Bankers and professionally criminal Wall Street bankers. But first and foremost it includes all three branches of Government.

Traders discussing on recorded lines ways in which to rig the silver market? Imagine that. Lost in the smoke of the latest revelations about the big bank silver market manipulation is the fact that Andrew Maguire presented evidence of this at JP Morgan over six years ago. Perhaps the most shocking aspect about the latest revelations is that JP Morgan was not cited in the Deutsche Bank court filings.

Although summarily dismissed by the Commodity Futures Trading Commission and mainstream financial conspiracy, JP Morgan has been the “ring leader” in the silver market manipulation scheme for years.

The latest revelations will never be accepted as truth until CNN or CNBC reports on them to “verify” for the zombie masses that the big banks are indeed corrupt beyond the imagination of “conspiracy theorists.” It will be interesting to see if this will lead to RICO prosecution, which it should:

RICO law refers to the prosecution and defense of individuals who engage in organized crime. In 1970, Congress passed the Racketeer Influenced and Corrupt Organizations (RICO) Act in an effort to combat Mafia groups. Since that time, the law has been expanded and used to go after a variety of organizations, from corrupt police departments to motorcycle gangs. RICO law should not be thought of as a way to punish the commission of an isolated criminal act. Rather, the law establishes severe consequences for those who engage in a pattern of wrongdoing as a member of a criminal enterprise

The threat of RICO was used to pry open the truth at Drexel Burnham in order to bring down what was, at the time, one of the biggest – if not the biggest – financial market corruption schemes in U.S. history.

The latest revelations are hard evidence that GATA has been right since 1998, when it was founded by Bill “Midas” Murphy and Chris Powell in order to document and expose the gold and silver market manipulation for the world to see. GATA’s evidence has been written off for over a decade as “conspiracy theory.” Now it is confirmed conspiracy truth. In fact, Murphy was banned as a guest on CNBC after he discussed gold market manipulation.

“Fake news?” Hardly. Proof is now in court documents. In today’s episode of the Shadow of Truth, we discuss the latest court documented evidence which confirms that silver market manipulation is standard operating procedure at the big banks who are supported by the taxpayers:

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Physical Gold Buying Soars In Asia

Gold was pushing $1230/oz overnight, as the methodical take-down of gold and silver in the NYC and London paper markets has triggered an avalanche of demand for physical gold in the eastern hemisphere.

Last night ex-duty import premiums in India were $14 over spot gold.  In Shanghai the premium to world gold was $9.76.  Delivery volume into the Shanghai Gold Exchange rocketed to an extraordinary 86.55 tonnes (it was 35.9 tonnes on Wednesday).  The open interest on the SGE was 807 tonnes.  To one observer’s recollection, John Brimelow of John Brimelow’s Gold Jottings, this is the first time the open interest has been over 800 tonnes.

In Viet Nam the premium paid by the public was $90 over world gold.  The spread has been wider over the last 15 years, but not much and only during times when there’s been high “backwardation” between the physical delivery bullion markets in the east vs. the fraudulent paper gold markets in London and NYC.

To reinforce this nebulous idea of gold flowing from west to east, and unusually high amount of gold was shipped out of the Comex kilo bar vaults yesterday.  320,434 ozs left the Comex.  Over 12,000 kilobars have left JP Morgan’s kilobar vault account in the last two days.  This is being attributed as evidence of Asia’s voracious demand right now, as NY and London – when those two conduits actually clear real metal – trade 400oz LBMA grade bars whereas Asia prefers kilobars.

The price of gold is being attacked right now in a manner that is quite reminiscent of the way it was attacked in the summer of 2008, right before the global financial markets collapsed, led by the fall of Lehman.

Something really ugly is coming toward the global economic and financial system.   The dollar index soared from 72 to 86 between June 2008 and October 2008, while gold and silver were systematically taken a lot lower.   We know how that played.

Similarly, the dollar has gone parabolic in the last week without any visible news or events that would have triggered this move.   Too be sure, if Trump implements his borrow and spend program for infrastructure projects, the Fed will have to print a lot of money to monetize the avalanche of Treasury debt issuance, given that the rest of the world is now dumping their Treasuries.

Both of those factors should be dollar-bearish and gold-bullish.  In good time that’s how this will play out.

In the latest episode of the Shadow of Truth, we discuss the extraordinary “backwardation” that has developed in the price of gold between the west and the east.  We also discuss evidence of the ongoing collapse in the U.S. economy.

Is Bottom In For The Latest Gold Market Paper Attack?

The move by Modi to eliminate large-denomination cash bills from India has set off an unanticipated physical gold buying frenzy that has driven Indian ex-duty import premiums in the mid-$30’s.  It’s the widest I’ve seen in them in the many years I’ve been tracking that data (via John Brimelow’s Gold Jottings report).  “”I’m getting non-stop calls from unknown numbers from people asking for gold,” the jeweller told a Reuters reporter in an interview inside his shuttered showroom..”

Ditto for China.  The SGE premium last night was $12.59 to spot gold.  As Brimelow describes: “In this case the high premiums probably simply reflect capacity constraints among Chinese import dealers. Possibly there is a Trump/devaluation effect boosting local appetite, besides of course the price decline.”

My personal view is that, given the extreme amount of paper being launched at the LBMA and Comex right now, and given that the price of gold seems averse to going any lower (at least for now), the worst of the beat-down is over.  Too many people are looking “down” right now…Eric Dubin has also called a “double bottom in gold.”   He and Jason discussed the precious metals market, among many other topics in their lates Welcome to Dystopia episode, which you can access here:   The Bottom Is In.

 

Fundamentals Will Take Gold & Silver Higher Now

In the absence of the extreme degree of price intervention being conducted by the western Central Banks and bullion banks in the paper gold and silver markets, the price of both precious metals would be several multiples higher.  That this intervention occurs not only has become overtly visible to all market participants, but recent prosecution/settlement events have rendered this assertion indisputable.

After a massive move that started in mid-December 2015, the sector began selling-off in early July.  This correction was a function of both characteristic market technicals and conspicuous paper market manipulation in the New York and London paper gold/silver “markets.”

But after nearly five years of oppressive, unfettered market manipulation, the physical market has put a floor beneath the market.  After a price “correction” of 8% in gold and 16% in silver, the metals are now ready to go higher from here.  This was “telegraphed” by the recent price-action in the junior mining stocks as represented by the GDXJ junior mining stock index:

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The junior mining stocks – especially the smaller exploration companies – similarly signaled the move higher in the metals ahead of the rest of the sector beginning in early December 2015.

While the Central Banks would love nothing more right now than to take gold and silver down to zero, the markets – driven by the physical deliver bullion markets in the eastern hemisphere, appear to want the market to move higher.  The sequence of trading events beginning yesterday through today illustrates this dynamic.

After a big rally in the mining stocks and metals in the first half of the trading on Wednesday, the miners slammed after the FOMC meeting statement was released in the afternoon.  The HUI was taken down from its high of 226 (up 7 pts) to close down down 4 points at 215.   This signaled a likely price ambush in the metals, which occurred just after midnight EST, taking December gold down $14 from $1301 to $1287 – silver was taken below $18.

The mind-set going into the NYSE was that the HUI would get slammed again.  But the market had different ideas.   The HUI began moving up at the open.  It’s been up as much as 2.5% from yesterday’s close.  Shortly thereafter, the metals began to rally as well. Historically, after a reversal like yesterday, the metals and miners typically continue lower for at least few days.   But with the mining stocks leading the way, it is highly probable that the next move from here will be higher (with plenty of manipulated volatility, of course).

In today’s episode of the Shadow of Truth, we explain why the precious metals sector has shifted into a trend in which every price pullback should be used to accumulate and add to positions in gold, silver and your favorite mining stocks.

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Bill Murphy: The Fundamentals Will Push Gold & Silver To Spectacular Levels

“Some sort of Black Swan event will come out of nowhere and cause an explosive move in gold and silver” – Bill Murphy on Shadow of Truth

In the absence of intervention, gold and silver would be trading at a level that is a few multiples higher from they “trade” now. At some point, some entity will want to take possession of a big “chunk” of gold or silver and will stand for delivery of the physical with the intent to remove that gold or silver from Comex vaults.

For now the big accumulators of physical gold (China, Russia, India) are content with the current rigged market price of gold as long as the west can continue to make deliveries into these countries. But at some point the west’s “cupboard” will be bare and big buyers will see what the Comex really has in its vaults. It’s at that point when the precious metals market will become interesting.

There is always the threat that the Shanghai Gold Exchange begins arbitraging out the price difference between the physical market (eastern hemisphere) and paper market (Comex, LBMA). Currentlysilver trades in China’s physical settlement market (Shanghai Futures Exchange) at a significant premium to the price on the COMEX paper market. The week of October 17, 2016 the average difference was well above $0.80 per ounce. This represents approximately a 45% difference. How large must the difference become before the physical market naturally overwhelms the paper market? The difference in the physical gold market is not quiet as dramatic as the physical silver market, but it seems a natural progression will occur in the not too distant future. The physical market is filled with people that are not interested in paper contracts. These people are in real markets located in the eastern hemisphere – China, India and other countries. In these countries gold is either part of the culture or there is an understanding of gold’s role as a currency.

In today’s episode with GATA/LeMetropolecafe.com’s Bill “Midas” Murphy about the extreme intervention in the precious metals market and the catalysts that will eventually override the Central Bank intervention.

Silver Refuses To Buckle – The News Doctors

Something interesting and unusual has been developing in the silver market for several months.  The Comex operators have been throwing a record amount  of Comex paper silver at the market in an attempt to control the price.   The last time the silver futures open interest was as high as it is now, silver was about to bust through $50.    Eric Dubin of The News Doctors published  a news brief today on the topic, reprinted below.

When we were laboring through the 2011-2015 bear market cycle, constant snap backs the likes of which silver is producing were never to be seen.

Last Thursday, I published, “Silver, Gold, Miners: Everyone, Back In The Pool.”  Mining shares witnessed a bit more pain than I had expected, but silver bottomed off the ~$19.20 level, as discussed. Even with Comex options expiration and central bank meetings this week, speculators taking on the bullion banks are buying every cartel smack-down, yesterday offering the latest example: Untitled

When we were laboring through the 2011-2015 bear market cycle, constant snap backs the likes of which silver is producing were never to be seen.

Today, the Japanese yen is appreciating relative to the US dollar as speculators – largely, algorithm-based trading – react to a Nikkei news report that fiscal stimulus plans will be smaller than expected.  The dollar fell as much as 1.4% in the early market session.  This is an ironic case where the short-term impact of the yen carry trade flow and long-term yen debasement from continued fiscal and monetary stimulus are Untitledboth positive catalysts for precious metals.

Taro Aso, Japan’s finance minister, talked down the report, saying that the government had not yet decided on the size of the package.  But the report was enough to send the FX algos into a frenzy, which spilled over into other markets.   Japanese policy makers flip-flop, ‘jawbone’ and massage the media just like the Federal Reserve.  The BOJ might announce smaller stimulus measures than expected, but Japan’s fate is sealed, and the helicopters are on the tarmac.

U.S.: Corrupt Money, Corrupt System

It looks like the Democratic Convention is getting off to a disastrous start after it was revealed that Democratic leaders, including DNC Chairman Debbie Wasserman-Schultz – along with, make no mistake about this, Hillary Clinton – conspired with the maUntitledinstream media to smear Bernie Sanders and perpetrated the civil unrest disruptions at Trump campaign rallies.

Can it get any more corrupt than this? In this episode of the Shadow of Truth, we connect systemic corruption to its root – a corrupt monetary system. We also explain why Hillary Clinton is probably the most corrupt public figure in history.

 

Buy Every Price Hit In The Metals And Miners

Eric Dubin (The News Doctors) and Doc or Silver Doctors, SD Bullion invited me on to their weekly Metals and Money Wrap last week.  We discussed signs that show the gold/silver manipulators are losing control of their ability to control prices, the record amount of paper being thrown at gold and silver on the Comex, the current seasonal “lull” in the precious metals market and the latest developments on Japan’s TOCOM futures exchange which could have a big effect on the price of gold and silver.  In short, we discussed why investors should be adding their positions on every price drop:

In fact, silver and gold were hit hard overnight last night (Sunday night, early Monday morning) and silver is now 40 cents off its low of the day and green vs its Friday close and gold is $8 dollar off its low of the day. Click on the link below to find underfollowed junior mining stock ideas with huge upside potential:

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They’re Making It Easier To Buy Gold Cheap

To begin with, this statement by the Bank of Japan’s Kuroda validates my blog post yesterday about Japan’s monetary pivot to gold and to the east:  “no need and no possibility for helicopter money.”

My best guess is that the only productive activity for Bernanke on his last trip to Japan was eating blowfish sushi and hitting the teenage stripper establishments.

The manipulators are making it easier for us to accumulate gold at a cheap price.  I moved money from my fiat checking account into Bitgold every day this week and twice yesterday. I managed to catch what looks like the low of this latest manipulated pullback.  Every time they hit gold I buy.

I exchanged emails with Dr. Paul Craig Roberts yesterday about the  sell-off of the price of gold this week caused by the obvious “invisible” hand of the Fed.  Note this was a week in which Japan was supposedly going to drop $100 billion in helicopter money at Ben Bernanke’s behest – an announcement which should have sent gold soaring:

Me:   I agree this was a manipulated take-down of the price but,  you know as well anyone, markets never go straight up except the Dow/S&P 500 when the Fed wants to make those indices go straight up – like now.    Gold was overdue for a trading correction. I agree there’s some idiots out there who think the Fed is powerless now over gold – that’s ignorance or sensationalism.

Dr. Roberts:   Is there such a thing as a trading correction when the price is controlled and manipulated? Is it a trading correction when the bullion banks dump, as we have shown numerous times, massive paper shorts in the futures market?

Me:  I agree with your point there – but to be honest, I like to see any market pullback after it has the type of run that gold has had since early February. Should it be pulling back from a much higher price platform? Yes.  But gold was on the verge of going parabolic, which is never healthy in any market. The Fed is doing us a favor. I have been moving a lot of money from my checking account into my Bitgold account this week every morning. If gold was not being pushed down, I might not have added any.

The other interesting aspect of your point there is the amount of paper the Fed is needing to throw at gold to keep the price down. The open interest has been more or less at an all-time high on the Comex for a few weeks now. The last time the open interest was this high was when gold was pushing $1900.

In other words, it is requiring a much bigger relative effort for the Fed to prevent the price of gold from spinning out of its control now than it did when gold was about to launch over $2000.

They have not lost complete control yet, but they are much closer to that event now than they were in 2011.

On another note, the fact that the SPX spiked higher on the original Japan helicopter money announcement but has not sold off on the withdrawal of that threat underscores that fact that the Fed is pulling out all stops to push the market higher

But this is just the “marquee” indices – the Dow, SPX and Naz – as plenty of stocks have been and are heading lower because the core economy in the U.S. is falling apart.