One/some/several “entities” decided at 9:38 a.m. this morning that it was necessary to dump 14,315 contracts of paper gold. This is just the August contract. In total a lot more was unloaded. This represents 1.43 million ozs of gold. The Comex is only showing 900,000 ozs of “gold” as “registered,” or available for delivery in June, July and August (assuming all of that gold is actually sitting physically in the Comex vaults as reported). If we make that generous assumption, 531,000 ozs of paper gold was naked shorted.
The news report or event that triggered this sudden need to unload / naked short 40.5 tonnes of paper gold beginning at 9:38 a.m. EST is not clear. The mainstream financial media is attributing the dump in gold to the “anticipation of Comey’s testimony.” But this is patently absurd, if not a complete insult to the public’s intelligence. The market has known all week that Comey was testifying this morning and it was generally know what he would say.
This is what the price action in the gold market looked like before the huge paper dump onto the Comex – Asia/India buying physical gold and driving the price higher, London/LBMA selling paper gold and driving the price back down:
With all the frenzy connected to the parabolic rise of cryptocurrencies, one has to wonder why the western Central Banks are concerned with controlling the price of these block-chain based digital currencies. If the Comey testimony was a reason to push down the price of gold, why were the “flight to safety” cryptos left alone?
This is a rhetorical question, but the relative threat – and therefor the legitimacy as a competing form of money – that each represents to the dollar-based reserve currency system is a hint. For some reason the “wizards” behind the BIS curtain are not concerned about the cryptos…
Let’s call it out; if the PTB really were afraid of crypros, they would have already crushed them by now in ways that would be ludicrously easy compared to the physical markets. In the end, it’s always been about getting something for nothing and ,more likely that not, the PTB view the crypros as just another source of taxable revenue like casinos are to debt-inflicted states. Why should they discourage them? As long as people don’t raid a vault of any kind, they’ll be more than happy to let the cryptos blow up…then die and re-invigorate confidence in state ones and zeros again. Delay the redemption for reality as much as it takes.
PMs, on the other hand, are tethers to the reality that we were robbed of. Reminders that the world we know is an illusion, and a source of cognitive dissonance for those hopelessly addicted to the greatest con on Earth.
My thinking is that the manipulators don’t respect the crypto currencies enough to fear them as a legitimate threat. Once Bitcoin and others really start to move this summer, they’ll see their error and try to crush the cryptos by switching the manipulation machine away from gold and silver. This will allow the metals to trade freely long enough to escape manipulation and collapse their debt based money system. One can only hope.
I think Martin Armstrong has it right when he says the Government is watching and waiting – just like they did with “Tax Straddles” back in the 1970’s.
They will wait, and then find who has made big money on Bitcoin. Then and the IRS will come into the picture and hit these people with HUGE judgements for unpaid capital gains taxes, late fees and fines.
Just a little bit of history repeating.
I agree – these people are also reactionaries and behind the curve. At some point, real capital will chase cryptos and then they will try to bring down the hammer. The problem is, a lot of other countries are embracing these, and the decentralized nature is going to be a bitch for them to stop. My guess is they use episodic leverage to scare people away and create more volatility, i.e. through shutting down exchanges, passing legislation, etc.
Cryptos can be decentralized…but only at great cost to convenience since it could take between minutes to hours, even days, for a transaction to clear the blockchain, depending on a particular crypto’s adoption. Hence, they’re very dependent on exchanges that have ready-access to more liquid fiat.
Mind you, these exchanges could easily be forced to disclose user-accounts to the IRS. The feds are already eyeing your retirement accounts; the exchanges will just be easy picking for them.
“…… by switching the manipulation machine away from gold and silver. This will allow the metals to trade freely long enough to escape manipulation….”
They would just add cryptos to their manipulation. Why would they stop on PM’s? They have to manipulate PM’s. If they don’t the system crashes. That might be good for the 2% of the population holding them, but at the same time they will suffer the consequences of a collapse including “social unrest”
It goes on because it can. T.P.T.B. duped the public
into believing that stocks, bonds and green paper are
stores of value. Those that understand paper is trash
are buying gold, silver and Bitcoin. Ask the average person
on the street about P.M.’s or Bitcoin and you get a deer
in the headlights stare back at you. I no longer try and
talk to people about markets or how to financially protect
ones self from paper investments. Bought a shack with no
one around me. There is no street just a rocky trail and
yes only a four wheel drive get you up to the shack.
Jail these bastards! Sadly, this will never happen. I don’t know why anyone would promote gold and silver, given the fact that both are manipulated and the manipulation will never stop. It’s obvious they will not let the price get to $1,300.
There are no paper futures markets for cryptos to be naked shorted into, so please explain HOW “they” will manipulate them? With the cryptos, if you want to sell them you need to own them and an entry will be recorded on the blockchain. This is actually why “they” should very much fear the cryptos. I am guessing that there response will be along the lines of capital gains taxes; but if the gains are spectacular, that is not necessarily any deterrant?
There’s no limit to the amount of cryptos that can be created. It’s another source of “counter-party” risk, if you will. Cryptos can be created like fiat currency. It’s why the elitists are not opposing them. Compare that gold. Gold cannot be created by a computer or a printing press. It’s expensive to produce gold, which exists in a finite supply.
What Dave said, but seriously…how hard is it to imagine a phony crypto-futures-contract? It’s simple “I promise to pay you this many Bitcoins in, say, two months. It’s just as good as the real…digital…thing, so trust me!”
“Oh, and this contract isn’t binding…and I can pay you in fiat if I want to. Hey the COMEX does it all the time!”
Hey Dave, you know that the U.S. is almost at full employment.
Take a look at this site as many corporations are laying people
off. Just not making it broad public knowledge. Got to keep those
unicorns and rainbows front and center.
Hey that’s a cool website. Most of the layoffs are people who are not qualified to file for jobless benefits so they just disappear from the Labor Force. The more people who get laid off, the lower the unemployment rate goes. Orwell’s “the opposite of truth is the truth” theorem.
Maybe They are not concerned about the cryptos… because they owe a lot them , that is why bitcoins going up. They don’t have to worry about storage of gold and it’s not about good or bad but only about making money, nothing else.
Small investors can’t push prices of shares , futures only “big” investors , plus it’s good for Manipulators , many gold investors getting more upset that price of bitcoin going up not the gold and many of them will quit gold and move to bitcoin or stock market.
We must remember , we dealing with crooks.