SoT – Bill Murphy: The Gold/Silver Manipulators Are At The End Of Their Rope

When silver breaks $18.50…it will then take out $50 and hit Eric Sprott’s number of $100-plus because since the last time it hit $50 they’ve gone through all that physical supply…this time they won’t be able to go to the physical supply well .  – Bill Murphy on the Shadow of Truth

A “commercial signal failure” occurs in commodities futures trading when the open interest in futures contracts exceeds the amount of the underlying commodity that is available to deliver into those contracts should enough entities that are long decide to demand delivery per the terms of the contract.  It is a rare event because the futures open interest in most commodities rarely exceeds more than 10-20% of the amount of the underlying available.

Except in the gold and silver markets, when the open interest in any other commodity wanders beyond that 120% level the Commodities Futures Trading Commission puts a halt to the entities which are responsible for what has been determined to be “attempted market manipulation.”  This has occurred in the past in the energy markets.

Too be sure, allowing open interest of futures contracts which exceeds the underlying availability of the commodity enables a higher degree of liquidity in the futures market. However, currently on the Comex the ratio of futures open interest to available gold for delivery is 174:1 – this is for the “registered,” or gold designated available for delivery.  In the silver market the ratio is 29:1. Given those absurd ratios, it’s safe to assume that the role of gold and silver futures trading is to enable the Fed and the U.S. Treasury, through their bullion bank emissaries (primarily JP Morgan, Scotia and HSBC) to use Comex futures as a tool for manipulating the market.

The Shadow of Truth hosted GATA/LeMetropole Cafe’s Bill “Midas” Murphy  to discuss some recent events which have led Bill to conclude that ability of the bullion banks to manipulate the precious metals has likely reached its end-game:  “eastern hemisphere demand for physical gold and silver is overwhelming the paper manipulators.”


The first event occurred the day that the HUI “gold bug” mining stock index was driven below 100 intra-day.  It closed over 100 that day and then proceeded on an 18-day tear through that took the index up 60%.  (click on image to enlarge)

The second event was the blatantly fraudulent LBMA silver fix which “fixed” the price at $13.58 despite the fact that external Comex futures were trading at $14.40.

They know they have an end-game coming, and it’s begun and those two events were signatures of that.  – Bill Murphy

Bill was particularly “fired up” today and we think you’ll find the discussion highly engaging and informative:

The longer they drag this out, the worse it will be when the market finally breaks beyond their ability to control the outcome. – Bill Murphy

7 thoughts on “SoT – Bill Murphy: The Gold/Silver Manipulators Are At The End Of Their Rope

  1. Your right Dave … the LBMA Silver fix blow-up didn’t get enough attention …. and what also hasn’t got enough attention is the fact that Rio Tinto dropped the LBMA like a hot potato – and that all the other MINERS NEED FOLLOW RIO TINTO’s LEAD … AND STOP SENDING ANY AND ALL METAL TO EITHER THE LBMA OR COMEX.

  2. Yes, Bill, the longer they drag it out, the worse the outcome… etc., etc. except you tell exactly what they have to lose by letting go of silver and gold now? Nothing!!! You can see from the day-to-day choreographed antics in gold and silver (esp. silver) that not only will they not let go, nobody seems to be able to control THEM. And I have got news for you about something even you aren’t aware of. They even control how the $silver price is expressed in other currencies. If you look at how £silver behaves, there are clear footprints showing, and going back YEARS, that when $silver threatens to breakout, the US$ magically goes ‘weak at the knees’ which renders the £silver move a faint shadow of the $silver move. I have seen this happen so many times I now laugh when it occurs. That is how bad it is – it is WORSE than even you imagine because they control silver (and gold) in vertually all currencies.

    Yeah, give me a call when this all ends because it is long past its bedtime as a very, very, very, very SICK JOKE!

  3. Edit:

    virtually, not ‘vertually’!

    And yes, I know that gold/silver are the anti-dollar trades but what I reported in my first post happens on a ‘micro-level’ almost every day and without fail: the prices have been programmed to react negatively to currency moves (esp., I would guess in those currencies which are part of the IMF’s SDR ‘basket’: US$, Euro, Pound and Yen) so that nothing makes the US$ look bad compared to gold and silver.

    I have grown so tired of all this that I don’t bother to follow it daily. It is a waste of time!

  4. Oh, one last point. The US$ fainting spell vis-á-vis GP£ was particularly noticeable in the final, ‘exponential’ run-up in April 2011. As silver soared, so did the pound – from something like its current cross-rate with the US$ (1.43 or maybe a little higher) to $1.67 to the £ when silver hit $49.75 at the end of April. Was this purely coincidence or a reining in of of the silver price in GP£ (and maybe other currencies, too?

  5. You see, it has just happened again! GB£ jumps 100 pips to 1.437+ against the US$ and silver doesn’t nothing! Silver has not moved one US cent! The result is that the price of silver in GB£ HAS GONE DOWN from £10.70 to £10.60! No one talks about this. Not Bill Murphy whom I’m sure does know or care, not Eric Sprott nor James Turk nor Jim Sinclair nor Bill Holter (who thankfully will disappear behind a paywall soon). Bix Weir never mentions it, neither does Peter Schiff nor Jeff Neilsen. And yet, this seems to be a MAJOR tool in the ‘tools’ tool box. Suppress the price of silver in other currencies when it is difficult to suppress the US$ price! All of the people mentioned above are North American-centric – with the possible exception of Jim Sinclair. They write about ‘Europe’ but don’t actually understand it. They conflate the concepts of ‘Euroland’ with the ‘European Union’. These things are not the same.
    So the same applies here: the response is – not interested because the only thing that is of interest to me is what the US$ is doing (to the price of silver. How parochial can you get?

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