Tag Archives: silver manipulation

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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Gold/Silver Manipulation: The Foul Smell Of Desperation

Nearly 40 million ounces of paper silver were launched at the Comex yesterday in the space of seven minutes, which triggered a 92 cent waterfall in the price of silver; over 118 million ounces of paper silver were dumped on the Comex today (April 22) between 11 a.m. and noon EST.  This market intervention typically occurs after the bona fide physical precious metals in the eastern hemisphere have shut down for the day.

The baseline assumption of modern financial theory is that fiat money is sound and markets are efficient.  Neither of those suppositions are valid.  The markets have been completely stripped of any legitimate price discovery function.  You can’t tell me with a straight face that Tesla, which is now burning cash at a rate of half a billion a year is worth $33 billion – or 8x revenues – any more than you can tell me that junior mining stock with $500 million in proved gold/silver resource in the ground is worth only $24 million.

Gold and silver have been “climbing a wall of worry” for several weeks now.  The traditional signs of an imminent manipulative attack on the metals (open interest of shorts vs. longs on the Comex, chart formations, etc)  have defied the behavioral patterns of the past 15 years.   Several “chartists” and Wall Street analysts, notwithstanding their boorish market prediction revisionism, have been been humiliated by the price-action in gold/silver since mid-January.

Several of us who have researched, traded and invested in the precious metals markets since the inception of the precious metals bull market believe that the bullion banks may have a bigger problem with sourcing physical silver for deliveries right now than with gold.  The Comex bullion banks have been hitting the price of silver hard with paper contracts the last two days, in a desperate effort to beat down the price Untitledappreciation of silver during the overnight physical market activities of the eastern hemisphere bullion markets.
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Currently there are are 56,863 open May silver future contracts representing 284.3 million theoretical ounces of physical silver on the Comex.  Against this is 31.9 million reported ounces of physical silver in Comex vaults that have been designated as available for delivery against these open contracts.  In other words, the bullion banks have thrown nearly nine ounces of theoretical paper silver at the market for every ounce of alleged physical silver that could be delivered into these contracts.

Tuesday is options expiration day for May Comex gold/silver options.  Typically options expiry is one of the triggers for a heavy onslaught of bank manipulation on the Comex.  With a brief glance as the put/call open interest in May silver options, it looks like the bullion banks – i.e. the entities that are short May silver options – are motivated to push silver below $17 (based on the amount of open calls vs puts at $17) by the close of silver trading on Tuesday.

Similarly, “first delivery notices” for Comex gold/silver contracts go out after the close next Thursday.  With the paper open interest in silver as of today 900% greater than the amount of physical silver designated as available for delivery, the Comex bullion banks will make every effort to shock and awe the hedge funds into liquidating their long paper silver positions.  We saw this yesterday with the 92 cent silver smash going into the Comex open.  Silver open interest dropped over 14k contracts yesterday.  This is one of the many manipulation games the bullion banks have been playing with the hedge funds over the last 15 years.

Because the CFTC and the Justice Department look the other way when it comes to enforcing market regulations as they should apply to the Comex – because those same regulations are actively applied to every other CME commodity product – true price discovery in the gold and silver markets has become an impossibility.   But we have 5,000 years of historical evidence which suggests that market interventions always fail.  And when they ultimately fail, they fail spectacularly.

India’s jewelry industry is re-opening after a strike since March 1st that shut down India’s gold import machinery.  A sleeping elephant is waking up starved for metal as India heads into its second largest seasonal buying period of the year.  This will make it more difficult for the banks to manipulate gold/silver prices using paper, which means the illegal trading activity of the next few days may be the banks’ last opportunity to cap the metals until India goes back into hibernation in the summer.

I added to high octane junior mining stock positions in the fund I co-manage today and I will be presenting an insanely cheap junior mining stock with 5 million ounces of proved gold, have of which is in the form of gold-equivalent silver ounces in my next issue of the Mining Stock Journal next week.  For a limited time, all new subscribers will have access to the back-issues published since the March 4 debut.

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The Credibility Of Andrew Maguire

Andrew Maguire has been a controversial figure in the gold/silver world ever since he blew the whistle on JP Morgan’s silver manipulation.  The information provided by Maguire to GATA was presented by GATA’s Bill Murphy at a hearing held by the CFTC on the precious metals market manipulation in March 2010.  Maguire had originally sent an email to someone in the CFTC enforcement which detailed how the precious metals would be attacked two days later when the non-farm payroll report was released.  Maguire wrote to the CFTC after the attack:

It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.

GATA has detailed the entire event in this article:  LINK.

After Bill Murphy’s testimony at the CFTC’s hearing, Jeffrey Christian – a known shill for the bullion banks – publicly slashed and burned Maguire’s reputation with highly slanderous assertions about Maguire’s background and experience.  Christian’s remarks were intentionally deceitful, but the damage was done. The fraudulent attack on Maguire opened the door of doubt in the minds of many about the credibility of market intel delivered by Maguire to the public via venues like Eric King’s King World News.

I bring this up because a friend and colleague of mine – someone who has been around the precious metals sector longer than me, sent email to a myself and one other person asking for our thoughts on Maguire’s latest interview in King World News:  A Historic Event Is About To Shock The Gold Market

The interview is worth a listen and I believe there’s a high probability that Maguire’s insight and assertions are accurate.  Having said that, I wanted to share my response to the email, because it explains why I think Maguire’s intel is good.  The first part of my response references some comments made to my colleague from someone who expressed concern about the potential for Russia and China to unload gold like Venezuela did in order to avoid financial trouble:

Goldman has been working on getting Venezuela separated from its gold for over a year. Recall about a year ago that Goldman sent VZ a proposal for a leasing transaction. VZ was an easy prey. In my opinion, the way that VZ has been squeezed out of its gold tells us just how desperate the bullion banks are to source real physical gold. This move was analogous to taking Halloween candy from a little kid. But China/Russia are a different matter.

Russia running into financial trouble? Please show me any evidence of that OUTSIDE of western propaganda reports.  Russia continues to add a lot of gold to its Central Bank position every month. It that the behavior of an entity worried about liquidity? Have you looked at Russia’s debt/GDP ratio? As of 2014, the latest data available, Russia’s debt/GDP is 13%.  Russia is not in financial trouble. The western media wants us to believe that Russia is in financial trouble.

China? C’mon. China has $3.4 trillion in diversified FX reserves that needs to be netted against is sovereign debt position. China’s outright sovereign debt/GDP is 41% as of 2014. The number does not net out FX reserves.

As of July China’s household/corporate debt was 280% of GDP. The U.S. total debt (Govt + private sector) is 340% of GDP. The highest of any country in the world. US FX reserves are about $35 billion – i.e. nothing. Does the U.S. even have title to any gold that we use to add to its FX reserves? Doubtful. If any country is in danger of going insolvent, it’s the U.S if the rest of the world refuses to take any more paper dollars.

What if China were to include its true gold holdings at market in its FX reserves number?

As for Andrew, I had a long phone conversation with Eric King this past summer about Andrew. Eric is adamant that everything Andrew says is based in fact.  [note:  I came away from my conversation convinced that Maguire’s intel was bona fide.  As Eric and I discussed, the cartel has the backing of the U.S./British/EU Governments, which makes it impossible to predict the timing on actual occurrence of the events that we know ultimately will occur]

It’s hard to know for sure because Andrew references a lot of information that we have no way of verifying independently. For instance, he asserts that liquidity is leaving the Loco London market. Is there a way to verify this other than to have faith in Andrew’s assertions? If there is I’d love to see it.

Having said that, everything Andrew is talking about is exactly what Frank Veneroso said would eventually happen back in the late 1990’s. Frank never laid out “who and how” but he said eventually the western banks/CBs would be unable to contain the physical market with paper because the demand for physical would blow up the paper suppression schemes.

Here’s the other key assertion that we have no way of verifying: “the aggressive and predatory bullion banks that largely infest the swap dealer category of the COT report recognize the gold market has changed and are about to split ranks and reposition more bullishly, a position they would already have if they had not accrued such large underwater proprietary positions”

If you guys have any way of verifying that assertion, then we would know that Andrew is 100% bona fide.

At this stage, I have no reason to disbelieve Andrew based on my own observations and research into the precious metals market.  I really want to believe everything that he says is happening right now, but I’ve been taking a wait and see mind-set with regard to his assertions.

More Corruption On The Comex

Dave,  NOBODY IS TALKING ABOUT THIS!!! Everyday at 8 to 830am this happens… oh gold trades  fine all night and then Bang. We should short it at 745am eastern… HAha

That quote is from an email I received this morning from an executive at a gold/silver/copper mining company.

How come no one discusses that fact that, day after day, silver and gold trade flat to higher when the eastern hemisphere is open but, for some reason, as soon as the Comex trading floor opens, the price of gold and silver get demolished:

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It seems that the fine fellows at the Comex perceive some sort of trouble with the fundamental outlook for silver that no one in the rest of the entire world outside of the Comex silver trading pit is able to understand.

I will say that it is becoming more apparent by the day that some very smart, deep-pocketed money is accumulating the mining stocks, especially the juniors.  As I write this, with silver flat on its back, the junior mining stock indices are green and the large-cap indices are about to go green.

When I say “smart” money, I mean pools of wealth outside of George Soros.  Everyone knows he’s buying.  But Soros alone can not move the sector higher.   My
“Easy Trade” idea is green today…