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Showing posts with label Silver Price Manipulation. Show all posts
Showing posts with label Silver Price Manipulation. Show all posts
SGTbull interview of Bob Chapman on Metals and COMEX
I personally agree with Chapman that the JPM COMEX action is government directed.
Bix Weir -"I Want To Be Clear On Silver"
Bix sent this message out on Mar 24.
I have had many emails lately about the silver price moves and I just want to make it very clear to everyone where the silver price fits into the Road to Roota Theory. Here are a few issues that are important to understand as we ease into the chaos...
1) Only physical silver in your possession will survive the global fiat monetary meltdown.
2) Using computer trading programs "THEY" can place the COMEX price of silver ANYWHERE they want from $0/oz to $...infinity so count your silver in ounces and not fiat money.
3) If there is another silver price slam (to coincide with a global market crash) there will be no physical silver available for purchase at the lower prices.
4) Those looking for leveraged silver investments must understand that there is massive leverage in real physical silver as the Bad Guys have sold many times more physical silver than exists in the world.
5) The "New CFTC" is designed around a "post crash" market regulation regiment and will not be the CAUSE of the silver chaos so keep this in mind as they extend and delay any hard position limits that may cause havoc in the silver markets.
6) The end of silver price manipulation will mean the end of all un-backed fiat monetary systems as control of silver and gold is 100% required for an un-backed currency system to exist.
7) An investment in real physical silver can "Change Your Stars" in a way you had never dreamed possible...and you deserve to be rewarded!
All the best to everyone.
Bix Weir
www.RoadtoRoota.com
I have had many emails lately about the silver price moves and I just want to make it very clear to everyone where the silver price fits into the Road to Roota Theory. Here are a few issues that are important to understand as we ease into the chaos...
1) Only physical silver in your possession will survive the global fiat monetary meltdown.
2) Using computer trading programs "THEY" can place the COMEX price of silver ANYWHERE they want from $0/oz to $...infinity so count your silver in ounces and not fiat money.
3) If there is another silver price slam (to coincide with a global market crash) there will be no physical silver available for purchase at the lower prices.
4) Those looking for leveraged silver investments must understand that there is massive leverage in real physical silver as the Bad Guys have sold many times more physical silver than exists in the world.
5) The "New CFTC" is designed around a "post crash" market regulation regiment and will not be the CAUSE of the silver chaos so keep this in mind as they extend and delay any hard position limits that may cause havoc in the silver markets.
6) The end of silver price manipulation will mean the end of all un-backed fiat monetary systems as control of silver and gold is 100% required for an un-backed currency system to exist.
7) An investment in real physical silver can "Change Your Stars" in a way you had never dreamed possible...and you deserve to be rewarded!
All the best to everyone.
Bix Weir
www.RoadtoRoota.com
Silver "Scorched Earth" and The END of Market Manipulation
The Bixster says the River Card has been dealt and it may be time for the Morgues final silver bet. Are they all in, and are they holding the TBTF wild card?
http://www.roadtoroota.com/public/525.cfm
http://www.roadtoroota.com/public/525.cfm
A Conspiracy With a Silver Lining - Lame Stream Media: NY Times
Accusations that JPMorganChase and HSBC allegedly manipulated precious metal markets are worth looking into.
http://opinionator.blogs.nytimes.com/2011/03/02/a-conspiracy-with-a-silver-lining/?ref=opinio
SILVER ARMS - Your ACTION requested! - An appeal from Bix Weir
I'm making it my mission for the next 30 days to MAKE SURE that EVERY silver investor that has ever been ABUSED by the Silver Market Riggers post a comment on the CFTC website regarding Position Limits.
In the last 24 hours we've gone from 80 comments to over 600!
We need to FLOOD the CFTC with our comments.
PLEASE take a moment to submit your comment. Here's something you can copy and paste:
"Fair and appropriate position limits in silver should be NO MORE than 1,500 contracts or 7.5M ounces. The current proposed limit of over 5,000 contracts WILL NOT SOLVE THE PROBLEM OF MANIPULATION IN SILVER! The 1,500 contract limit is the correct amount and is STILL greater than any other current concentration in physical commodities traded on the COMEX."
And here is the link to the form:
It will take less than a minute and it WILL make a HUGE difference. The CFTC WANTS to implement the 1,500 contract limit BUT they can only do it with the support of WE THE PEOPLE!
One more thing...
I have heard that a few of the bigger "mainstream silver analysts" commented that it won't make a difference and the COMEX will stay rigged forever so why bother.
THIS DOES MATTER AND IT WILL MAKE A HUGE DIFFERENCE!
This is just one of many battles going on behind the scenes so PLEASE join the cause.
Right now it's just Ted Butler and myself blowing this horn. I ask everyone to enlist the help of their favorite silver Guru, youtube sensation, economic newsletter writer, conspiracy website...you name it. Ask them to join us in this campaign. Send them this article and beg them to spread the word to their followers.
A SILVER INVESTOR'S CALL TO ARMS
Next week I will start targeting specific people with a global audience like Max Keiser and Alex Jones who both want to take care of this little silver manipulation issue ASAP...
How about this slogan...
"CRASH JP MORGAN...POST A COMMENT!"
You get the idea...if we go into the March 28th Position Limit Meeting with 1,000's of comments all demanding position limits in silver of 1,500 contracts there is NO WAY they could turn us away.
So go out there and spread the word!
and THANK YOU for supporting the cause.
Bix Weir
JPMorgan, HSBC Silver Futures Cases Consolidated
JPMorgan, HSBC Silver Futures Cases Consolidated
JPMorgan, HSBC Silver Futures Cases Consolidated
A judicial panel on Tuesday consolidated class-action litigation alleging that JPMorgan Chase & Co. and HSBC Holdings PLC violated antitrust laws by manipulating the silver market and potentially reaped billions of dollars while keeping the price of silver artificially low.
The U.S. Judicial Panel on Multidistrict Litigation on Tuesday consolidated the seven class-action lawsuits pending against the two banks in the U.S. District Court for the Southern District of New York.
"A majority of the domestic defendants are located in that district, and thus many witnesses and discoverable documents are likely to be found there," the panel ruled. "In addition, a substantial majority of the constituent and potential tag-along actions are pending in that district (including the first-filed action)."
The MDL has been assigned to Judge Robert P. Patterson Jr.
According to the order, six of the seven cases pending against JPMorgan and HSBC were filed in the Southern District of New York, while the seventh is pending in the U.S. District Court for the Eastern District of New York. The panel found that consolidating the litigation would "eliminate duplicative discovery; prevent inconsistent pretrial rulings on class certification, discovery, and other pretrial issues; and conserve the resources of the parties, their counsel and the judiciary."
The suits were spurred in part by a statement in October by Commissioner Bart Chilton of the U.S. Commodities Futures Trading Commission saying there had been "repeated attempts to influence prices in the silver markets."
The CFTC has been investigating the silver market for two years, and Chilton said the "fraudulent efforts to persuade and deviously control" silver prices should be prosecuted.
The suits, which specifically allege violations of the Commodity Exchange Act and the Sherman Act, claim that the banks collaborated to suppress the price of silver futures and options contracts by amassing "enormous" short positions in Commodity Exchange Inc., or Comex, beginning June 1, 2008.
Many of the allegations in the suits come from information provided by a whistleblower who used to work in the London office of Goldman Sachs Group Inc., the suits say.
The whistleblower is not named in the complaints, but in testimony before the CFTC in March, Bill Murphy, chairman of the advocacy group the Gold Anti-trust Action Committee, said it was a metals trader in London named Andrew Maguire.
After Maguire went public in March, the defendants began to unwind their positions in Comex, the suits claim.
Since then, the net short position of silver futures that are held by commercial banks -- the vast majority of which are made up of JPMorgan and HSBC -- has dwindled by more than 30 percent, the suits say.
As that happened, the price of silver skyrocketed, reaching $24.95 an ounce in October, its highest level in 30 years, the suits contend.
JPMorgan and HSBC declined to comment on the suits.
Cleary Gottlieb Steen & Hamilton LLP is representing HSBC.
Counsel for JPMorgan was not immediately available.
The MDL is In re: Commodity Exchange Inc., Silver Futures and Options Trading Litigation, MDL number 2213, in the U.S. District Court for the Southern District of New York.
Silver ETF (SLV) Bar List Analysis
Silver ETF (SLV) Bar List Analysis
COMEX Deliverability
This week there was a very interesting development in our SLV bar list analysis. This week, about 6Moz of silver was withdrawn from SLV, more than any week since we started analyzing the lists in early July.
What few people realize, though, is that there is a significant difference between the bars removed last week, versus other withdrawals since July. The 5.8Moz removed in December, that seemed like it was going to COMEX, most likely was not. This 6.3Moz, though, appears to be mostly headed to COMEX, probably withdrawn by JPM. Let me explain.
Most of the silver that has been added to SLV since the beginning of July has been from Chinese and Russian refineries (we suspect that one of the SLV AP's has contracts with those refiners). That works fine, since these refiners are LBMA Good Delivery approved. And most of the silver that has been removed from SLV since July has been from these refiners (which makes sense, as it would be awkward to remove silver from the back of vaults, that had been put in there long ago). The problem, though, is that the Chinese and Russian refiners are not on the COMEX list of approved refiners.
For the week ending 03 Dec 2010, when 5.8Moz was removed, roughly 90% of that silver was from those non-COMEX-approved refiners (674,010oz was from Nippon Mining Japan, which is COMEX approved; Nippon Mining Japan has been supplying SLV with silver recently as well). That makes perfect sense, as they were some of the bars most recently added to SLV. However, these bars cannot be used to satisfy COMEX short positions, as they are not from COMEX approved refiners. In order for them to become COMEX approved, they would have to be melted and re-made by an approved refiner, and shipped from London to the U.S. That's a lot of expense and time to get the bars into COMEX.
However, for the week ending 14 Jan 2011, when 6.3Moz was removed from SLV, about 95% of the silver came from COMEX-approved refiners -- and most of those bars were not added to SLV in the past 6 months. It came from 2 separate vaults (the 2 JPM vaults), so it isn't likely that there just happened to be some pallets of older silver sitting nearby in one of the vaults. It definitely looks like the AP that removed the 6.3Moz this past week cherry picked the bars, making sure to get ones from COMEX-approved refiners.
We believe the AP involved in this was JPM. As custodian, they would have an easy time cherry-picking bars without anyone noticing (as far as we know, there is nothing preventing them from doing so). And all the bars removed were from the 2 JPM vaults (there are 3 other vaults, 2 run by Brinks, and one run by Via Mat). And they could do this without having to ask anyone for permission (unlike the other APs, who would have to specifically request the bars, and convince JPM as custodian to let them have the bars they want).
So if we see about 6Moz added to COMEX warehouses very soon, we'll know why.
COMEX Deliverability
This week there was a very interesting development in our SLV bar list analysis. This week, about 6Moz of silver was withdrawn from SLV, more than any week since we started analyzing the lists in early July.
What few people realize, though, is that there is a significant difference between the bars removed last week, versus other withdrawals since July. The 5.8Moz removed in December, that seemed like it was going to COMEX, most likely was not. This 6.3Moz, though, appears to be mostly headed to COMEX, probably withdrawn by JPM. Let me explain.
Most of the silver that has been added to SLV since the beginning of July has been from Chinese and Russian refineries (we suspect that one of the SLV AP's has contracts with those refiners). That works fine, since these refiners are LBMA Good Delivery approved. And most of the silver that has been removed from SLV since July has been from these refiners (which makes sense, as it would be awkward to remove silver from the back of vaults, that had been put in there long ago). The problem, though, is that the Chinese and Russian refiners are not on the COMEX list of approved refiners.
For the week ending 03 Dec 2010, when 5.8Moz was removed, roughly 90% of that silver was from those non-COMEX-approved refiners (674,010oz was from Nippon Mining Japan, which is COMEX approved; Nippon Mining Japan has been supplying SLV with silver recently as well). That makes perfect sense, as they were some of the bars most recently added to SLV. However, these bars cannot be used to satisfy COMEX short positions, as they are not from COMEX approved refiners. In order for them to become COMEX approved, they would have to be melted and re-made by an approved refiner, and shipped from London to the U.S. That's a lot of expense and time to get the bars into COMEX.
However, for the week ending 14 Jan 2011, when 6.3Moz was removed from SLV, about 95% of the silver came from COMEX-approved refiners -- and most of those bars were not added to SLV in the past 6 months. It came from 2 separate vaults (the 2 JPM vaults), so it isn't likely that there just happened to be some pallets of older silver sitting nearby in one of the vaults. It definitely looks like the AP that removed the 6.3Moz this past week cherry picked the bars, making sure to get ones from COMEX-approved refiners.
We believe the AP involved in this was JPM. As custodian, they would have an easy time cherry-picking bars without anyone noticing (as far as we know, there is nothing preventing them from doing so). And all the bars removed were from the 2 JPM vaults (there are 3 other vaults, 2 run by Brinks, and one run by Via Mat). And they could do this without having to ask anyone for permission (unlike the other APs, who would have to specifically request the bars, and convince JPM as custodian to let them have the bars they want).
So if we see about 6Moz added to COMEX warehouses very soon, we'll know why.
CANARY ALERT! Physical silver shortages confirmed by US Government!
According to the US Mint:
American Eagle Silver Uncirculated CoinProduction of United States Mint American Eagle Silver Uncirculated Coins continues to be temporarily suspended because of unprecedented demand for American Eagle Silver Bullion Coins. Until recently, all available silver bullion blanks were being allocated to the American Eagle Silver Bullion Coin Program, as the United States Mint is required by Public Law 99-61 to produce these coins “in quantities sufficient to meet public demand . . . .
”Although the demand for precious metal coins remains high, the increase in supply of planchets—coupled with a lower demand for bullion orders in August and September—allowed the United States Mint to meet public demand and shift some capacity to produce numismatic versions of the American Eagle One Ounce Silver Proof Coin.
However, because of the continued demand for American Eagle Silver Bullion Coins, 2010-dated American Eagle Silver Uncirculated Coins will not be produced.
The United States Mint will resume production of American Eagle Silver Uncirculated Coins once sufficient inventories of silver bullion blanks can be acquired to meet market demand for all three American Eagle Silver Coin products.
Massive Silver Withdrawals From The Comex - Harvey Organ
We witnessed a massive withdrawal of silver unprecedented in the history of the comex. First there was a smallish 6507 oz of silver deposited to two customers, one being 497 oz and the other 6010 oz). But just look at the huge withdrawals:
Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.
The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz (there were 2 dealers involved removing 102,866 and 667,875 ozs). When you see this massive drain of silver, the fire is raging. The total silver withdrawal
by both dealer and customer totalled an astronomical 1,789,251. The Brink's trucks must have been very busy yesterday.
The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver. The total number of silver notices sent down so far total 323 or 1,615,000 oz. To obtain what is left to be served, I take the open interest for January at 153 and subtract 85 deliveries leaving a total of 68 notices or 340,000 oz left to be serviced.
Thus the total number of silver ounces standing in this non delivery month of January is as follows:
1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal.
Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.
I hope everyone caught the Eric Sprott story on Kingworld news that he is having trouble locating silver. I would also like to report that it has now been several months that the Central Fund of Canada has not added to its inventory of silver and gold.
It looks to me like these 2 ETF's have done considerably damage to our banking cartel by removing valuable physical metal from the market and out of the reaches of these greedy fraudsters.
Four customers (not dealers) withdrew a total of 1,019,310 oz from the comex vaults. This is real silver leaving from 4 registered vaults. The individual withdrawals are: 579,081, 30,380, 399,994 and 9855 oz.
The dealer (our bankers) also were involved in the withdrawal of silver to the tune of 769,941 oz (there were 2 dealers involved removing 102,866 and 667,875 ozs). When you see this massive drain of silver, the fire is raging. The total silver withdrawal
by both dealer and customer totalled an astronomical 1,789,251. The Brink's trucks must have been very busy yesterday.
The comex folk notified us that an amazing 85 notices were sent down for servicing for a total of 425,000 oz of silver. The total number of silver notices sent down so far total 323 or 1,615,000 oz. To obtain what is left to be served, I take the open interest for January at 153 and subtract 85 deliveries leaving a total of 68 notices or 340,000 oz left to be serviced.
Thus the total number of silver ounces standing in this non delivery month of January is as follows:
1,615,000 oz + 340,000 = 1,955,000 oz (Thursday total = 1,625,000). As promised to you, this number is rising and will continue to rise until the end of the month as our banker cartel scrambles to get any morsel of silver to satisfy the massive demand for this metal.
Our bankers are stunned to see such a huge amount of silver options in a traditionally slow month.
I hope everyone caught the Eric Sprott story on Kingworld news that he is having trouble locating silver. I would also like to report that it has now been several months that the Central Fund of Canada has not added to its inventory of silver and gold.
It looks to me like these 2 ETF's have done considerably damage to our banking cartel by removing valuable physical metal from the market and out of the reaches of these greedy fraudsters.
Silver | |
Withdrawals from Dealers Inventory | 769,941 oz |
Withdrawals from customer Inventory | 1,019,310 oz |
Deposits to the dealer Inventory | zero |
Deposits to the customer Inventory | 6507 oz |
No of oz served (contracts 85 | 425,000oz |
No of notices to be served.68 | 340,000 oz |
Gold | |
Withdrawals from Dealers Inventory | zero oz |
Withdrawals from customer Inventory | 997oz |
Deposits to the dealer Inventory | zero oz |
Deposits to the customer Inventory | zero |
No of oz served (contracts 5 | 500 oz |
No of oz to be served 23 | 2300 oz |
The silver bears are back and there's gonna be trouble.
Comments by MrSilvergoldSilver:
[
Price] Might go down, yes, maybe-no. Buy lower if you can. Buying physical silver is different from buying silver stocks or ETF's. Physical "investments" serve a totally different purpose. In the end, I would never accept a fiat 'price' in paper back for the physical.
Chinese have mass us fiat, chinese want physical, to perform a short chinese borrow silver (paper silver I presume), sell it on the open market, this drives price down temporarily, chinese take delivery of phys silver. Now what happens when chinese have to buy the silver back to cover the short? will they just say f off?
100% correct. They will just keep rolling the shorts to infinity to the entire thing blows up, while taking the physical all along at cheap prices.
Fiat Money IS Gold Manipulation TTFMjock
The global monetary conspiracy for your enjoyment from TTFMjock:
JP Morgan Silver Price Manipulation Part 2
Phase two of the JP Morge xtranormal series...
From Mr. Silvergoldsilver:
"It seems like the JP Morgue and the BIS have been dabbling in God's work. These bankers are in trouble in the physical silver and gold market, and they know it. The manipulation is going to be end in 2011 after a default of epic proportions, and it will be from their own stupidity."
From Mr. Silvergoldsilver:
"It seems like the JP Morgue and the BIS have been dabbling in God's work. These bankers are in trouble in the physical silver and gold market, and they know it. The manipulation is going to be end in 2011 after a default of epic proportions, and it will be from their own stupidity."
Silver manipulation moving offshore? Letter to CFTC from GATA
Letter To CFTC Commissioner Chilton On Trends In Bullion Bank Gold and Silver Short Positions
TO: Bart Chilton, Commissioner of the CFTC
From: Adrian Douglas, Director of GATA
Date: Dec 13, 2010
I would like to bring to your attention some very disturbing trends in the BPR before your meeting on December 16th regarding position limits.
In figure 1 below I have charted the silver short position of the US banks (blue line) and the non-US banks (green line and right hand scale) and all reporting banks, US + Non US (red line)
Figure 1
Looking at the trend of the US Bank silver short position it shows that it peaked at the end of 2009 and has been on a declining trend as shown by the blue arrow. At the same time the short position of non-US banks has been declining as shown by the dashed green arrow. But look what has happened since July 2010. There has been a massive increase in the short position of non-US banks. It has increased almost 1000% from 614 contracts in July to 6,329 contracts in December (delta + 5,715). This increase is so large it has more than offset the decline in the short position of the US banks over the same period which has reduced from 31,803 contracts to 26,332 contracts (delta -5,471 contracts). The combined US and Non-US bank short position is shown by the red line and this is now on an increasing trend as shown by the red arrow.
Which non-US bank(s) has increased its short position in silver so massively? What is that entity’s relationship to the US Bank mega-shorts, JPMorgan and HSBC? I know you can’t answer those questions publicly but these are questions the CFTC should be looking into. It looks suspiciously like the US Bank silver short position is being shifted to a bank or banks that are out of the jurisdiction of the CFTC. To further add to my suspicions the Financial Times has out-of-the-blue published an article that declares that JPMorgan is reducing its silver short position on the Comex.
http://www.ft.com/cms/s/0/7d699ca4-06ea-11e0-8c29-00144feabdc0.html#axzz1834JpsKS
That is impeccable timing don’t you think? And this newspaper has never once mentioned that JPMorgan Chase even holds a massive short position in silver but now confidently declares it is reducing it!
But the irrational exuberance of non-US Banks to suddenly massively short precious metals is not limited to the silver market. They have felt a similar compunction with respect to gold also.
Figure 2
Figure 2 shows the gold short position of the US banks (blue line) and the non-US banks (green line and right hand scale) and all reporting banks, US + Non US (red line). The blue arrow indicates that the US bank gold short position appears to have peaked in July 2010 and has declined from 161,378 contracts to 135,602 contracts (delta -25,776 contracts). However, we see that non-US banks after having been gradually reducing their short position from March 2009 suddenly in July 2010 aggressively increased their short position by more than 200% from 16,798 contracts to 53,120 contracts (delta +36,322). This more than offset by 40% the reduction in the short position of the US banks. As a consequence the short position of all reporting banks (US and Non-US) is now on an increasing trend as indicated by the red arrow.
Again I urge the CFTC to investigate which non-US bank(s) has increased its short position in gold so massively? What is that entity’s relationship to the US Bank mega-shorts, JPMorgan and HSBC?
A review of historical data indicates that non-US banks have not been major participants in the precious metals markets and have generally held fairly balanced positions between short and long holdings. The sudden and massive increase in their short positions in both metals is conspicuous when compared with historical trading patterns. The fact that it occurs at a time when the US banks that are mega-short appear to be covering makes it doubly intriguing. It looks like a strategy to shift suppression and manipulation of the market to banks that are not under the direct supervision of the CFTC. Will these non-US banks be expecting to receive an exemption to position limits where US banks might not be successful?
I consider that these trading patterns warrant investigation by the CFTC.
Best regards,
Adrian Douglas
More from Chris Powell HERE
TO: Bart Chilton, Commissioner of the CFTC
From: Adrian Douglas, Director of GATA
Date: Dec 13, 2010
I would like to bring to your attention some very disturbing trends in the BPR before your meeting on December 16th regarding position limits.
In figure 1 below I have charted the silver short position of the US banks (blue line) and the non-US banks (green line and right hand scale) and all reporting banks, US + Non US (red line)
Figure 1
Looking at the trend of the US Bank silver short position it shows that it peaked at the end of 2009 and has been on a declining trend as shown by the blue arrow. At the same time the short position of non-US banks has been declining as shown by the dashed green arrow. But look what has happened since July 2010. There has been a massive increase in the short position of non-US banks. It has increased almost 1000% from 614 contracts in July to 6,329 contracts in December (delta + 5,715). This increase is so large it has more than offset the decline in the short position of the US banks over the same period which has reduced from 31,803 contracts to 26,332 contracts (delta -5,471 contracts). The combined US and Non-US bank short position is shown by the red line and this is now on an increasing trend as shown by the red arrow.
Which non-US bank(s) has increased its short position in silver so massively? What is that entity’s relationship to the US Bank mega-shorts, JPMorgan and HSBC? I know you can’t answer those questions publicly but these are questions the CFTC should be looking into. It looks suspiciously like the US Bank silver short position is being shifted to a bank or banks that are out of the jurisdiction of the CFTC. To further add to my suspicions the Financial Times has out-of-the-blue published an article that declares that JPMorgan is reducing its silver short position on the Comex.
http://www.ft.com/cms/s/0/7d699ca4-06ea-11e0-8c29-00144feabdc0.html#axzz1834JpsKS
That is impeccable timing don’t you think? And this newspaper has never once mentioned that JPMorgan Chase even holds a massive short position in silver but now confidently declares it is reducing it!
But the irrational exuberance of non-US Banks to suddenly massively short precious metals is not limited to the silver market. They have felt a similar compunction with respect to gold also.
Figure 2
Figure 2 shows the gold short position of the US banks (blue line) and the non-US banks (green line and right hand scale) and all reporting banks, US + Non US (red line). The blue arrow indicates that the US bank gold short position appears to have peaked in July 2010 and has declined from 161,378 contracts to 135,602 contracts (delta -25,776 contracts). However, we see that non-US banks after having been gradually reducing their short position from March 2009 suddenly in July 2010 aggressively increased their short position by more than 200% from 16,798 contracts to 53,120 contracts (delta +36,322). This more than offset by 40% the reduction in the short position of the US banks. As a consequence the short position of all reporting banks (US and Non-US) is now on an increasing trend as indicated by the red arrow.
Again I urge the CFTC to investigate which non-US bank(s) has increased its short position in gold so massively? What is that entity’s relationship to the US Bank mega-shorts, JPMorgan and HSBC?
A review of historical data indicates that non-US banks have not been major participants in the precious metals markets and have generally held fairly balanced positions between short and long holdings. The sudden and massive increase in their short positions in both metals is conspicuous when compared with historical trading patterns. The fact that it occurs at a time when the US banks that are mega-short appear to be covering makes it doubly intriguing. It looks like a strategy to shift suppression and manipulation of the market to banks that are not under the direct supervision of the CFTC. Will these non-US banks be expecting to receive an exemption to position limits where US banks might not be successful?
I consider that these trading patterns warrant investigation by the CFTC.
Best regards,
Adrian Douglas
More from Chris Powell HERE
Water, Meet Blood - JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct
Water, Meet Blood - JP Morgan Admits To, Reduces Massive Silver Short Position, Proves Millions Of Conspiracy Theorists Correct
ZERO HEDGE
In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JP Morgan, the firm targeted by thousands of "tin foil hat" wearing, conspiratorially-oriented "gold bugs", has cut back on its US silver futures. "JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal." And in what can only be considered an unprecedented victory for all those who have over the past year agitated to putting JP Morgan out of business, most recently spearheded by the likes of Mike Krieger and Max Keiser, by forcing a massive short squeeze on its commodities trading desk, we learn that "the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past." Of course, the latter is pure and total bullshit: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught. Either way, we are confident that this first unprecedented confirmation that a) JPM is indeed massively short silver and b) that it is hurting bad, will merely redouble efforts to put the world's biggest financial company out of business. Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.
From FT:
The US regulator, the Commodity Futures Trading Commission, announced in September 2008 that it was investigating complaints of misconduct in the silver market, although it did not name specific entities.
However, JPMorgan said in a statement: “It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position.” The bank declined to comment on whether it had reduced its position in the silver market.
The price of silver has risen more than 70 per cent since mid-August to hit a 30-year high of $30.68 a troy ounce last week on the back of a surge in investor buying and a rebound in industrial silver consumption.
In two previous reviews of the silver market, the CFTC has dismissed claims of manipulation. Most analysts say there is little reason to believe the price of silver is being systematically manipulated.
But Bart Chilton, a CFTC commissioner, said in October that he believed there had been “fraudulent efforts” to “deviously control” the silver price. He did not name any party.
Publicly available data on individual traders’ positions are sketchy. In a speech last Wednesday, Mr Chilton said that “earlier this year, one trader held more than 40 per cent of the silver market”. He declined to identify the trader.
The CFTC’s Bank Participation Report shows that one or more US banks held a gross short silver futures position equal to 19.1 per cent of the total number of outstanding contracts in early December. In January the share was 30.2 per cent.
The CFTC only reports data for the US silver futures market, a small corner of the global derivatives market for the precious metal, which is centred in London and largely traded via private over-the-counter deals. The data also do not cover transactions in the physical market.
Analysts and traders said that JPMorgan’s large short positions on New York’s Comex exchange, a division of Nymex, were hedges for the bank’s long positions in physical silver and London’s over-the-counter market.
JPMorgan has invested nearly $3bn over the past two years in its commodities business led by Blythe Masters.
And while we revel in the knowledge that the short squeeze is causing massive pain for JPM, we are far more overjoyed that the days of Blythe Masters as head of JPM's commodities desk is coming to an end: any comparable massive admission of weakness by a trader is always and inevitably followed by some very high profile terminations.
ZERO HEDGE
In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JP Morgan, the firm targeted by thousands of "tin foil hat" wearing, conspiratorially-oriented "gold bugs", has cut back on its US silver futures. "JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal." And in what can only be considered an unprecedented victory for all those who have over the past year agitated to putting JP Morgan out of business, most recently spearheded by the likes of Mike Krieger and Max Keiser, by forcing a massive short squeeze on its commodities trading desk, we learn that "the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past." Of course, the latter is pure and total bullshit: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught. Either way, we are confident that this first unprecedented confirmation that a) JPM is indeed massively short silver and b) that it is hurting bad, will merely redouble efforts to put the world's biggest financial company out of business. Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.
From FT:
The US regulator, the Commodity Futures Trading Commission, announced in September 2008 that it was investigating complaints of misconduct in the silver market, although it did not name specific entities.
However, JPMorgan said in a statement: “It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position.” The bank declined to comment on whether it had reduced its position in the silver market.
The price of silver has risen more than 70 per cent since mid-August to hit a 30-year high of $30.68 a troy ounce last week on the back of a surge in investor buying and a rebound in industrial silver consumption.
In two previous reviews of the silver market, the CFTC has dismissed claims of manipulation. Most analysts say there is little reason to believe the price of silver is being systematically manipulated.
But Bart Chilton, a CFTC commissioner, said in October that he believed there had been “fraudulent efforts” to “deviously control” the silver price. He did not name any party.
Publicly available data on individual traders’ positions are sketchy. In a speech last Wednesday, Mr Chilton said that “earlier this year, one trader held more than 40 per cent of the silver market”. He declined to identify the trader.
The CFTC’s Bank Participation Report shows that one or more US banks held a gross short silver futures position equal to 19.1 per cent of the total number of outstanding contracts in early December. In January the share was 30.2 per cent.
The CFTC only reports data for the US silver futures market, a small corner of the global derivatives market for the precious metal, which is centred in London and largely traded via private over-the-counter deals. The data also do not cover transactions in the physical market.
Analysts and traders said that JPMorgan’s large short positions on New York’s Comex exchange, a division of Nymex, were hedges for the bank’s long positions in physical silver and London’s over-the-counter market.
JPMorgan has invested nearly $3bn over the past two years in its commodities business led by Blythe Masters.
And while we revel in the knowledge that the short squeeze is causing massive pain for JPM, we are far more overjoyed that the days of Blythe Masters as head of JPM's commodities desk is coming to an end: any comparable massive admission of weakness by a trader is always and inevitably followed by some very high profile terminations.
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