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…

41 thoughts on “More Corruption On The Comex

  1. Dave,

    I’ve been at this for over six years now, and the ups and downs are kind of in the noise at this point — I have the metal positions I want, and really do not even bother much with the day to day gyrations.

    However, I’m not sure it does any good to beat the drums all the time that the declines are always due to manipulations and the increases, which do happen as well, are always due to some real world event.

    I think it is hypocritical to have it both ways. You recently responded to a poster that the increase in one instance was due to Ukraine bombing a Russian convoy.

    Today’s drop could just as easily be stated to a news item this morning that cost of living has increased at its slowest pace in 5 months, couldn’t it?

    I am not a gold bug, yet gold and silver are a significant part of my portfolio. I believe I have a better understanding of things nowadays, and just get disappointed at posts on sites that portray every drop as a manipulation and every rise as having a justified reason.

    Regards,

    Mike

    1. My goal is to get the truth out for anyone interested to see. If you want to believe that today’s daily Comex smashing of silver was due to some bullshit story about the cost of living, then that’s your business. Funny because I was just chatting with someone who has kids and he told his wife they can’t afford to buy meat anymore. I wonder what he would say about that retarded media bullshit.

      The spike up in gold occurred because of a legitimate geopolitical event. The almost daily smashing of gold/silver on the Comex is well beyond a random probability event. If you want to look at today and believe that it’s random or its because there were more sellers than buyers, that’s fine. But then you have to explain why gold and silver rally or remain basically flat every day after the Comex closes and the eastern physical buying markets open for the day and then get hit almost every day at or around the time the Comex floor opens.

      Oh ya, explain why the U.S. Govt won’t let anyone independently audit the gold that the U.S. supposedly owns that is held by the Fed…

      1. Dave, The comment above by Mike embodies certain themes that seem to be in play as a form of sophisticated form of anti-PM propaganda.
        1) Appealing to your sense of fair play… i.e. you can’t call every spike down manipulation and then call every spike up as being news/fundamentals driven.
        2) I (the messenger) have (enough) Gold and Silver… I am like you!

        If you buy what’s being sold here, you will stop trying to bring attention to the obvious manipulation, and sit tight with whatever metals positions you have rather than backing up the truck for these sales…. exactly what the cartel would like you to do. I know I don’t need to say so, but please Dave, don’t stop doing what you do.

        Your friend, 1Kg Lunar Dragon, aka Jim H.

  2. Dave — do you ever see this ending? I see nothing on the horizon that would suggest this kind of manipulation is going to end. As someone who drank the Silver kool aid back in 2003 this has been beyond frustrating. Perhaps I was given my one chance to sell in April of 2011 and I didn’t take it. Now I pay the price. Personally, I blame the morons in the silver mining industry for continuing to produce silver for these prices. Until they wake up, the price will languish.

    1. LOL. The management team at CDE scoffs at the idea that the market is manipulated. I think the Hecla people know but it’s politically incorrect to talk about it. I don’t know what will end it. It’s emblematic of the fact that the banks know that the Government won’t stop them. It is part of just how corrupt our entire system has become.

    2. I know how you feel. I have been invested in physical gold/silver since 2004 (so 10 years) and I am beginning to regret my decision to invest in the metals.

      I am beginning to think that everything I have read about PMs has been wrong and has just been a pump and dump scheme up to 2011 when the price spiked.

      I don’t see the price going higher from here, sorry I just don’t. In fact I see silver (and gold) gradually going down as the months and years go by.

      1. Sell and buy AAPL. Don’t just whine about it. Walk the walk. Sell your silver. You’re missing out on stock market gains. Buy SPX long-dated calls.

        1. Wow Dave.. you have really invited a shit show of anti-PM propagandists today! You must be doing something right.

          All that I can say is this; I started buying in 2009, and I have never felt any regrets for any of the physical ounces I have bought over the years. I continue to research the economic fundamentals daily, and as an engineer, I can say with certainty that the paper system upon which everything we do today is built is highly unstable due to the fundamental nature of debt-based money, and the nature of humans when they have a (digital) printing press in their hands.

          I have little pity for those who hear the truth but refuse to wake up… I really do though feel bad for those who have an inkling, but don’t have the strength of intellect to wade through the misinformation, MSM blathering, and efforts like those above to push them off their positions on the eve of the collapse.

        2. Yeah, I plan on selling my PMs. I’m just waiting for a short term bounce in the price (hopefully as PMs are so bearish right now) so I can sell at a slightly higher price.

          I won’t be investing in AAPL but definitely be looking to invest in investments outside of the PM sector (physical and/or stocks).

          PMs peaked in 2011 and are now in a bearish trend. Don’t shoot the messenger, I’m just calling it like I see it. This is coming from someone who has 65% of his entire net worth in PMs!

          1. Ah, but there’s a third way, and it’s confiscation of wealth. Don’t think this is impossible, because governments will do whatever they have to to remain in power. How about confiscating all individual wealth above $200,000, for which the government will give you stubs which will say IOU. This will be a switch on the 1933 confiscation of gold. This time it may be confiscation of cash. Finally, something new to worry about.”
            http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2014/8/20_Richard_Russell_-_New,_Terrifying_Confiscation_To_Worry_About.html

            good luck after you liquidate

        3. exactly…
          all of these no conviction, no courage commentors have to be those who thought in buying real money they were “investing”, instead of saving their most valuable resource (the consideration received in exchange for their time and energy) in that which HAS and will CONTINUE to stand the test of time as – wait for it……..REAL MONEY…
          u’ve given up of Physical Gold and Silver – ok cool…
          go get a CD…put ur debt coupon dollars to work in a MM fund…
          by Stawks at the all time fucking highs in a rigged casino u aint never gonna win in let alone get out of when the MoneyChangers flip the script…
          did anybody out there ever believe that they would let go of their debt based currency paradigm without a fight to the last piece of worthless green paper…
          sorry…aint happening…
          forever stackin’ til the day i D I E……..

          1. Exactly. We are fighting the most powerful people in the world (for now). The PM doubters actually believe that they’re just going to roll over and admit defeat? Give me a break, they are going to fight it till the end and then position themselves to gain the most when the system crashes. I think that when they realize the end is inevitable and near, they will crash it themselves to try to have a controlled crash.

            I seriously think that many of the PM doubters here are agents of the masters planting themselves here to see doubt. They provide no fundamental analysis to support their positions, only “oh the metals have been in a downtrend for a few years. Guess I should get out…”

  3. Like that of a marriage , paper and physical silver are locked together , today.
    Like that of a bad marriage , one party is clearly taking full advantage of the other
    through lies , manipulation and down right disrespect.

    Like all divorces , there has to be a clean cut. One which has NO ties to the other.
    Otherwise the bad tricks will continue.

    What this will take is an incredible force of will and independent action on the physical silver ???’s part. Where and how a centralized forum like the Comex
    can be established to determine true physical silver prices has to be determined. Perhaps the open market will call that shot.

    1. we have seen Enron, Bear, Lehman and recently BES in Portugal. We have more of the same.

      The deck has been stacked against metals with paper shorts, bs accounting, media bs, bs govt data and spin.

      right now they are saying no inflation and the economy is recovering.

      Well outside of food and energy and stocks and healthcare we do not have much inflation.

      And stocks are dicey due to buybacks and non gaap accounting and mark to fantasy bank accounting and autos where last month inventories were built which was good but BS for auto sales and good but BS for gdp even though making inventory is usually not good at all.

      “they” are pulling out all stops not just to cap pm,but to fool the population.

      Think Joseph Goebbles and his role as Minister of the Ministry of Propaganda where if you tell a lie often it for all purposes becomes the truth.

  4. Dave,

    I am simply trying to tell you my mindset. If it all is propaganda, and I am sure some of it is, they are doing a good enough job on me that I have slowed my gold and silver purchases drastically in the past year.

    And I have slowed not because I believe the prices can go much lower, only that they can languish at these levels for a very long time.

    For example, I had SLV 2015 leaps bought 1.5 years ago, at a price I considered ridiculous, I mean, c’mon, two years out, of course silver is going to be >$30. Well, what I had to do a few months ago is roll those to 2016 calls and hope another year buys enough time. Stuff like that wears on a person.

    And for those who may question my sincerity, I have 30% of my net worth in physical.

    I have kids who will be in college in the next few years and put a good chunk of their savings in physical too. But the powers that be are making me feel like that investment, even though needing it is 5 and 9 years down the road, may have been a bad move.

    Mike

    1. Don’t use options except for short term trading. Unless you really know what you are doing, trading options is nothing but donating money to your brokerage firm. You own physical, you don’t need SLV. SLV is a fraud anyway. Pick out a couple of good mining stocks, buy them and don’t watch them every day.

      The banks are engaged in an oppressive psychological warfare operation against the metals. They can do that right now because no one is around. This is why they can’t hit the metals until the Comex opens.

  5. I think the audit the Fed’s Gold is a joke because the Fed owns like 86% of Nevada and all the Gold is hidden all there. 🙂

  6. Does anybody really believe the numbers coming out of the MSM ? The Dow could go to 30,000 and the MSM would be touting a recovery. In the meantime unemployment will be at 50%. Name me one asset class that you can buy today at the same price or lower as in 1980 ?

    Silver.

  7. GATA posted this interesting article: http://uk.reuters.com/article/2014/08/19/uk-gold-china-imports-idUKKBN0GJ0IS20140819
    The first few short paragraphs admit of changing price mechanisms or resets. Afterwards, it’s slanting data in the wrong context and skewing fundamentals.
    And serious inquiry into malfeasant regulators, banks and exchange operators… NOT.

    Koos Janson covers similar ground: http://gata.org/node/14343
    Koos Jansen: East Asia geared up for renminbi gold trading
    Submitted by cpowell on Tue, 2014-08-19 12:44. Section: Daily Dispatches
    Dear Friend of GATA and Gold:
    Gold researcher and GATA consultant Koos Jansen reports today that offtake from the Shanghai Gold Exchange has been flat for four weeks. Meanwhile, Jansen writes, “China is developing its market infrastructure not only for physical gold trade but also to expand paper trading to steal pricing power from the dominant forces in the West and to promote the internationalization of the renminbi.” His commentary is headlined “East Asia Geared up for RMB Gold Trading” and it’s posted at Bullion Star here:
    https://www.bullionstar.com/article/east%20asia%20geared%20up%20for%20rmb%20gold%20trading
    East Asia Geared Up For RMB Gold Trading | Koos Janson
    Published: 18-08-2014 22:57
    Excerpt: ” …But will the western paper markets be able to stay in the driver’s seat of the gold market? We know China is developing it’s market infrastructure not only for physical gold trade, but also to expand paper trading to steal pricing power from the dominant forces in the West and to promote the internationalization of the renminbi.
    Bloomberg recently reported the SGE will launch gold trading in the Shanghai Free Trade Zone (FTZ) on September 26. From what was disclosed previously by the SGE this will likely be a gold-backed spot contract traded through the SGE’s subsidiary the Shanghai International Gold Trading Center. The next step would be the launch of gold derivatives. According to Bloomberg the FTZ hosts a vault capable of storing 1,500 tonnes of gold. If this vault is in addition to the 2,000 tonnes vault opened in the FTZ by precious metals transportation and storage company Malca-Amit I do not know. Approximately at the same time as the SGE’s international board will go live, the kilobar gold contract will be launched in Singapore.
    The SGE international board will allow investors worldwide to trade gold in renminbi, which undoubtedly will lead to higher trade volumes on the SGE. The gold industry is fully prepared in East Asia for what might be a pricing shift, following the great physical shift of recent years – most notably 2013. According to analyst Kenneth Hoffman:

    Several massive gold vaults have already been built in Singapore, Hong Kong and China proper to house all the metal moving from West to the East. Funds, traders and analysts are all gearing up in the East to analyze and trade gold, with its center of movement now firmly in Asia…”
    Please note that though there are seven solid embedded links in the above excerpt, many of you have read them already and most will find them interesting but not necessary to peruse further.

  8. Some of the comments above have me thinking we must be close to the inevitable
    conclusion of this chapter in PM markets. When self proclaimed gold bugs write of
    their despair and look to sell because they are so pessimistic I feel confident blast
    off can’t be that far in the future. It is always darkest before the dawn.

  9. Dave, while the metals are definitely manipulated, I do think some are too quick to pull the manipulation trigger. I don’t doubt the NY Fed has minimal, if any gold left either. But these declines the past two days haven’t been that great, and volume is always highest at the open. On Friday, gold was heading down before the latest BS accusation with regards to Russia, which was proven to be BS over the weekend. Seems pretty fair to expect some selling at the open on Monday given that, with some follow through today. It seems a test of $1280ish is in the cards. Hard to see it going below $1250 though.

    1. Sorry, you are wrong. Yesterday’s Comex open and today’s were pure blatant in-your-face manipulation. If your theory on the geopolitical news is right, how come the metals didnt tank overnight? How come they only tank like that when the Comex floor opens? I know why. And it has nothing to do with mindless technical analysis or the vomit coming from the media and the “there is no manipulation” crowd. The Fed is in the markets every single day – all the markets, not just the metals.

        1. LOL. The funniest part of that is that they can’t manipulate interest rates and currencies UNLESS they keep a lid on gold. Think: Exter’s Pyramid – it all starts with gold.

      1. It went down $7 Sunday night breaking below $1300, and then did largely the same thing before the COMEX open Monday morning.

        It would help to know the number of sellers. When these drops happen because of just one seller, I agree that is pretty clear manipulation.

  10. I’ve been buying the shit out of silver. Its less then $20. Its a gift from God. This is arguably the most important metal in the history of the world. Thank you God for letting me take advantage of this wonderful gift. I didn’t know how I was going to be comfortably retired in my old age, but I do now. I feel blessed. Thanks Dave for providing a forum where I can show my appreciation. I love your site and your advice.

  11. With metal prices capped in this range, why don’t the producers withhold their production from the market until prices improve? The low prices must be hurting
    the producers. Does the law of supply and demand even work anymore?

  12. Rant and rave all you want, it still doesnt change a thing as far as the price goes.. I stack every chance I get not looking at the day to day manipulation or caring.. I just hope I live long enough to see it blast off because I think we are in for a long wait. . And if by chance I am alive I will have to buy some scuba gear and go looking for it after that unfortunate boating accident I had with it all aboard.

  13. I think this Fall the powers that be will lose control of the wicked lies and doctored data that has been keeping this leaking, rat-infested life raft of an economy afloat. Those in the stock and bond markets are going to get a surprise of their lifetimes and the bloated housing markets in Kalifornia and elsewhere are going to a kick in the nuts. A kick that only reality can give. I see one fairly safe investment and that is physical silver or gold held outside the banking system.

  14. If you sell your PMs at a loss now, then THIS is the confiscation (of your safety raft for the troubled waters that lie ahead). The bull will rage on when the last weak hand has sold, so do what you have to do. Good luck to ALL whatever you do, we’ll ALL need it now or down the road.

  15. It seems odd to me that an executive of any PM mining firm just caught on to this.
    Yes its odd, but old news. What has this executive been doing all of the time that has been going on? Please tell us what firm he is at so we can not invest in his firm.

  16. Joe ,You wrote “What has this executive been doing all of the time that has been going on? ”

    One way to look at it is that when times were hard for the mines to operate(even before) , the central banksters moved in , securing them(mines) with massive loans.
    This play was clearly a means by which the croany banksters made their moves locking in controls which helped to keep manipulated prices in check.
    There isn’t anything that this scum won’t do to help keep their agenda from running off track.
    Dave , if I may , Brother John’s site has an excellent piece that he’s just titled in his section Silver Update named “Just In Time ” . It precisely describes what will snap the backs of these bastards regarding the silver. Silver could be the Achilles heel for TPTB to have to contend with !

  17. Brother Johns mssg. has been taken off. What it defined was :

    Paper silver accounts for 1.6 trillion dollars per year.

    750000 ounces of physical silver is mined per year. 1/2 of that is used for industry accounting for 6 billion dollars.

    1/3 of 1 % is physical. 99.9% of the silver market today is paper silver.

    SOMETHING HAS TO SNAP AND SOON !

    Running out of physical silver will be that snapping effect.

    We will not know about how bad the shortage is until there is a crisis which will be ultra fast in it’s reaction time ! No slow go on this one !

    1. I think you have a typo with “750,000 ounces.” If it’s supposed to be tonnes, I think the number is more
      like 800,000,000 ounces. But it doesn’t change the math for anything else.

  18. Mr. Kranzler,
    Would you consider starting up a fund that issued new shares on a monthly basis, and used the proceeds to buy and take delivery of cold from the comex?

    1. I co-manage an accredited investor hedge fund in which 60% of the money is invested in physical bullion that we safekeep in a private non-Comex depository – the other portion is junior mining stocks. We have some gold and silver bars we’ve taken delivery of off the Comex. The Comex makes it very difficult to get bars delivered out of the Comex. The second time we took delivery of silver, it took HSBC 7 weeks past the final delivery day to get our bars to us.

      We buy more physical every time new investor money comes in. Right now, as you can imagine, money is not flowing into this sector or our fund. Ironically, now is the best time to buy in, especially to a fund like our’s because the junior mining stocks are beyond oversold.

      We also allow investors to receive their share of the bullion in the fund when they cash out.

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