Guest Post: "The MOAMOPE", by James McShirley

In this tremendous article, James McShirley exposes a small but extremely significant portion of the ongoing metals price manipulation scheme. It is reprinted here with the expressed permission of Bill Murphy at

This article was originally published back in late August and it's likely that some of you have already seen it. Regardless, the information and data provided by Mr. McShirley is so compelling that I wanted to bring it back to the forefront today. Please read this (again) and then forward it to any "ostriches" on your email list.



by, James C. McShirley

The advent of computer generated trading algorithms heralded a quantum leap forward in the quest for 24/7 control of markets. No longer were humans beings required to do such unseemly things as man trading desks or worry a whit if free markets were, if even infrequently, attempting to function. Algo precision has made even the blackest of black swan events seem to turn lily white in their utter non-eventfulness. No more significant Dow or bond crashes, and best of all, no gold rallies exceeding (exactly) 1.00%, or the occasional 2.00%. Algo sentinels now stand in a permanent state of vigilance, keeping MOPE alive. (MOPE is what Jim Sinclair refers to as "management of perspective economics".) Market manipulations and control of gold trading are what I have documented now for over 15 years. Many of these manipulations are well-worn, tried and true. Nearly all have intensified over the past 3 years. It seems as if one could throw a dart on a trading dartboard and hit an anomalous trading pattern nearly every time. Even with that said, I was stunned to stumble on to the biggest trading anomaly of all: the MOAMOPE - the mother of all management of perspective economics.

MOAMOPE is quite simply the stunningly high percentage of lower opens on the 6:00 PM silver access trade open. Perhaps some have noticed the oddity in the form of a Kitco 3 day chart.

Look familiar? It should, it’s happened 621 times in the past 3 years.

Virtually every evening for the last 3 years at precisely 6:00 PM EST something very odd has happened: Comex silver offers swamped the bids to the tune of a 3-10 cent decline. For this to happen for three consecutive weeks would be strange. If it were to happen for three straight months it would be bizarre. MOAMOPE can only describe when it occurs for three straight years. It's a veritable Algopalooza! Silver has had a near-iron clamp imposed on it commencing with the access trade reopen. How severe is this iron clamp? From September 1, 2011 to the present, 621 out of the 744 6:00 PM access trade opens have been lower. All manipulation denialists take note: that's an astounding 83.5%.

Legitimate hedging? Yeah, right. Ya think maybe deep pockets with algo sophistry?

The pattern is consistent, pervasive, and relentless. For 36 straight months not ONE month has had a greater number of higher opens than lower. Amazingly 35 out of 36 were between 80-95% lower, and the lone outlier "only" had 67% lower openings. The pattern was irrespective of rising or falling silver prices. From January 1st to February 28th of 2012, for example, silver rose $9.28, going from $27.86 to $37.12. That's a whopping 33% gain! During that time, however, 34 out of 42, or 81% of the 6:00 PM access trade opens were lower. It was a bull market in silver in the context of a raging bear market in access trade opens. The MOAMOPE was in all its glory!

Selling the 5:30 PM access trade close MOC and then covering 2-4 minutes after the 6:00 PM reopen has been a license to print fiat money for those willing to shadow cartel behavior. Even a 1-lot trade over 3 years could have netted someone $70-100k on a measly 3 cent scalp. The unusually high percentage of lower access opens is actually far worse than it looks, since the few higher opens for the most part faded as the evening wore on.

The trend of lower silver access opens has actually accelerated in 2014, with 134 lower openings vs. only 14 higher openings, a 90.5% probability. More recently 80 out of the past 84 have been lower, with the past 24 in a row having been lower. This despite silver being virtually unchanged from January 1st to the present.

Only 14 higher openings in all of 2014 - with silver virtually unchanged from Jan. 1!

There have also only been 4 significant gaps higher on the 6:00 access trade open since the beginning of 2013 - all of which quickly faded. Why the lockdown on silver? Why such extreme treatment for a seemingly minor commodity market? Why has silver been constantly bludgeoned to death with the CME’s margin hammer? Why the silence on such blatant manipulation? The only logical answer is that to NOT do it would be tantamount to disaster for “the force”, or the “resolute sellers”, or whatever the hell the polite crowd is calling it lately. Call me impolite, but I'll just call it the MOAMOPE.

Time researching the MOAMOPE: 20+ hours.
Compensation: Zilch.
Satisfaction proving once more that manipulation denialists are disingenuous phonies: Priceless.

A denialist reporting on gold and silver trading.

James C. McShirley

August 23, 2014


sierra skier's picture


Thank you Turd for all you do.

They must nickel/dime us to death to help keep their view of our markets contained.

TreeTop Dweller's picture

How Can you Argue the Numbers?

How can anyone deny the Manipulation!  I subscribed to Bill Fleck... for many years but could not understand how he would look like that ostrich when ever metals manipulation was mentioned.  Actually he would get belligerent...  sometimes the smarter they think they are, strike that, he probably is well aware of the data but needs to draw the line to keep his club membership...

lakedweller2's picture


Two dolla down

ggnewmex's picture

Looking at it in print

is really amazing. While we always "know" this, seeing it in print at least makes one feel as though we 

are not losing our minds, but indeed, everything is a scam and crooked.

Great article, thanks for posting!

silver66's picture

Thurd(fifth--edit) and I think the manipulation

will end like this

Everything will be "normal" until it is not, then there will be a big bang


vonburpenstein's picture


So now what..?

vonburpenstein's picture



Safety Dan's picture

From Silver Doctors

In this excellent interview with Finance & Liberty’s Elijah Johnson, GATA Chairman Bill Murphy discusses the latest gold and silver smack down, which Bill states proves that gold and silver manipulation more obvious than ever!
Murphy discusses the evidence why he believes that JPMorgan has run out of physical silver with which to suppress the PM marketswhich Murphy believes makes the current sell-off an amazing buying opportunity in gold and silver.
GATA Chairman Bill Murphy’s full MUST LISTEN interview is below: 


Safety Dan's picture

The Beginning Of The End Of

The Beginning Of The End Of Precious Metals Manipulation ...

Great history outlined of the ending process. From the article:

This huge loss for precious metal manipulators fixers was amusingly "explained" by the FT's John Dizard as follows: "The field may be more level, but there are not enough players left for a game." Mocking those who prefer unmanipulated markets, he said:

... once that satisfying self-righteous feeling passes, the dwellers on BaFin Island might want to consider whether they have helped create a level playing field without enough players for the game. So far, it would appear the significant beneficiaries of BaFin’s persuasion have been the less-than-systemically important dealers in international silver markets. While there will still be four participants in the London gold fix, the similarly structured 12pm London silver fix will now have only two participants, which common sense tells us means no real market at all.

Actually, it will mean no manipulated market by a handful of participants. It will also mean that going forward a much more transparent pricing mechanism will have to be adopted: once which relies on, gasp, the entire market, not just legacy firms thatoperated for decades out of Rothschild's wood-panelled London basement.

Of course, for Gizard, there is no manipulation:

Deutsche Bank will have withdrawn from participating in the ritual of setting a standard price for physical gold. While no wrongdoing by any of the gold-fixing participants has been proven legally, or even, I believe, convincingly demonstrated in econometric modelling, Deutsche apparently came under intense social pressure from its home regulator to withdraw.

Correct, because banks withdraw from lucrative operations due to "social pressure", not because they know full well some legal arm is about to crush an existing arrangement with elements of criminality. While we are delighted that Mr. Gizard will disagree, we are confident that after August 14 the price discovery model, while certainly not free from manipulation, most certainly originating from the BIS' Basel Offices, will be a far better one.

One can only hope that in the future all vestiges of gold and silver manipulation will eventually disappear resulting in what may be the first real price discovery of precious metals, absent central and commercial bank manipulation. 

It is the same FT that we go to for some additional color on today's stunning outcome:

It was born in the late 19th century when a handful of London bullion dealers agreed to meet daily under a cloud of cigar smoke to set the price for the “devil’s metal”. But now, after 117 years of operation, the London silver fix – the global benchmark for the metal – is on its deathbed.

The three banks that run the auction announced on Wednesday that silver prices would be “fixed” for the final time at noon on August 14. The move follows increased scrutiny by European and US regulators into precious metals price-setting following the Libor scandal and probe into possible forex market abuse.

Deutsche Bank last month resigned its seats on the silver and gold fixes, after failing to find buyers. That left just two members on the silver fix, HSBC and Bank of Nova Scotia.

Market participants said the benchmark process, which occurs via teleconference and allows miners, financial institutions and jewellers to trade silver and value their stocks and contracts, could not function properly with fewer than three members. The UK’s Financial Conduct Authority asked Deutsche Bank to stay on for an extra three months to allow for the benchmark to be wound down smoothly.

“Deutsche Bank has postponed its resignation from the London Silver Market Fixing from 29 April 2014 to 14 August 2014, at which point the benchmark will terminate,” the bank said in a statement on Wednesday.

In other words, the FCA - undoubtedly in conjunction with the Bank of England - pushed hard to keep the existing manipulation structure in place for three months, effectively against the will of the German regulator, and of Deutsche Bank itself which wanted to get out as soon as possible.

As for what happens after August 14, when the London Silver fix is officially gone, we can't wait to find out.

In the meantime, we are confident the existing members of the mirror fix, that of gold, will be scurrying under rocks to avoid all public exposure. We plan to spoil their plans later today when we profile just who they all are.

Finally, a reminder of what the once proud tradition of gold price fixing looked like back in the day.


Safety Dan's picture

From my above posts - the

From my above posts - the manipulation is ending. But that too is a process, as was in the beginning. Soon, as it becomes painful and the banks loose money as others anticipate.. 

Will it take years? Likely, as it seems the world is alive with dishonest governments and Central Banks. Still, they are ending.

AGAU's picture

Manipulation denial

I also cancelled subscriptions (Doug Casey  int spec, big gold etc and stopped visiting sites  and listening to fleck, traitor dan  rick rule etc where they not only deny manipulation but out right denigrate those that do . I believe these guys are disingenuous or in denial either way I ain't giving them any more of my money or time , not that I do not want to hear the other side of the story but there is almost a venomous response to anyone who suggests these nefarious shenanigans may be deliberately controlling the pm prices  why would this be ? They must have a motive 

I believe this is because these so called experts would have to admit that most of their expert advice is worthless in many cases and there is no way to technically predict or explain these anomalies. For the average investor it's a rigged game and it chokes them to admit it  they have nothing to offer!,!  Bit like the pro horse race gambler they study form swallow countless stats and think they have an edge on the regular Friday night punter truth is most of them have no more overall wins than anyone throwing a dart at the starting line up, add in some race fixing, drugged horses etc and their chance of winning is no better than my grandma   - so who's gonna buy their tip sheet .?? 

I wonder how many millions have been siphoned off daily from pensions widows and orphans funds, 401k,s etc by these scumbags and the so called "experts"  deny it all and by default encourage it

rl999's picture

troll ftw

rl999's picture


I think most of those that deny manipulation do so for their less enlightened subscriber base. They don't want to risk alienating the many to gain the few, especially when the few are "die-hard" believers and don't need to be coddled or spoon fed. Those in the know have not sold any metals yet and aren't likely to in the future until they can establish generational wealth.

Such crass politicking used to bother me. It actually bothered me more during Dr. Paul's presidential campaigns as I saw how a man of convictions could have them twisted and used against him. Though I will never vote again it is interesting watching Rand Paul's metamorphosis on issues as he tries to become a viable candidate.

Given the speed and reach of the media it must be very difficult to do live interviews knowing that a few words can permanently change your current and future business and income. I'm sure there is evidence that would show that older people are less likely to believe in the outright manipulation of whole markets and other such things then young people are. I believe the generational gap and the mindset the older business people have, coupled with fear of losing business explains most of their stated resistance to manipulation.

Also consider that there are things going on behind the scenes that we won't know about until they are completed. Take Sprott's offerings for example. It seems reasonable that funds like casey's and other manipulation deniers are clued in to these things and are running cover for such. The best way to avoid being labeled by others is to label yourself right? At the end of the day they are going to do whatever makes them the most money with the least headache.

nadgeskaul's picture

Indian Sentiment Down

rl999's picture

Dutch professor's letter

Dear Mr. President Putin,

Please accept our apologies on behalf of a great many people here in the Netherlands for our Government and our Media. The facts concerning MH17 are twisted to defame you and your country.

We are powerless onlookers, as we witness how the Western Nations, led by the United States, accuse Russia of crimes they commit themselves more than anybody else. We reject the double standards that are used for Russia and the West. In our societies, sufficient evidence is required for a conviction. The way you and your Nation are convicted for 'crimes' without evidence, is ruthless and despicable.

You have saved us from a conflict in Syria that could have escalated into a World War. The mass killing of innocent Syrian civilians through gassing by ‘Al-­‐Qaeda’ terrorists, trained and armed by the US and paid for by Saudi Arabia, was blamed on Assad. In doing so, the West hoped public opinion would turn against Assad, paving the way for an attack on Syria.

Not long after this, Western forces have built up, trained and armed an ‘opposition’ in the Ukraine, to prepare a coup against the legitimate Government in Kiev. The putschists taking over were quickly recognized by Western Governments. They were provided with loans from our tax money to prop their new Government up.

The people of the Crimea did not agree with this and showed this with peaceful demonstrations. Anonymous snipers and violence by Ukrainian troops turned these demonstrations into demands for independence from Kiev. Whether you support these separatist movements is immaterial, considering the blatant Imperialism of the West.

Russia is wrongly accused, without evidence or investigation, of delivering the weapons systems that allegedly brought down MH17. For this reason Western Governments claim they have a right to economically pressure Russia.

We, awake citizens of the West, who see the lies and machinations of our Governments, wish to offer you our apologies for what is done in our name.
It’s unfortunately true, that our media have lost all independence and are just mouthpieces for the Powers that Be. Because of this, Western people tend to have a warped view of reality and are unable to hold their politicians to account.

Our hopes are focused on your wisdom. We want Peace. We see that Western Governments do not serve the people but are working towards a New World Order. The destruction of sovereign nations and the killing of millions of innocent people is, seemingly, a price worth paying for them, to achieve this goal.

We, the people of the Netherlands, want Peace and Justice, also for and with Russia.
We hope to make clear that the Dutch Government speaks for itself only. We pray our efforts will help to diffuse the rising tensions between our Nations.


Professor Cees Hamelink


rl999's picture




Quit trashing Obama’s accomplishments.  He has done more than any other President before him.  Here is a list of his impressive accomplishments:

First President to be photographed smoking a joint.

First President to apply for college aid as a foreign student, then deny he was a foreigner.

First President to have a social security number from a state he has never lived in.

First President to preside over a cut to the credit-rating of the United States.

First President to violate the War Powers Act.

First President to be held in contempt of court for illegally obstructing oil drilling  in the Gulf of Mexico.

First President to require all Americans to purchase a product from a third party.

First President to spend a trillion dollars on “shovel-ready” jobs when there was no such thing as “shovel-ready” jobs.

First President to abrogate bankruptcy law to turn over control of companies to his union supporters.

First President to by-pass Congress and implement the Dream Act through executive fiat.

First President to order a secret amnesty program that stopped the deportation of illegal immigrants across the U.S., including those with criminal convictions.

First President to demand a company hand-over $20 billion to one of his political appointees.

First President to tell a CEO of a major corporation (Chrysler) to resign.

First President to terminate America ’s ability to put a man in space.

First President to cancel the National Day of Prayer and to say that America is no longer a Christian nation.

First President to have a law signed by an auto-pen without being present.

First President to arbitrarily declare an existing law unconstitutional and refuse to enforce it.

First President to threaten insurance companies if they publicly spoke out on the reasons for their rate increases.

First President to tell a major manufacturing company in which state it is allowed to locate a factory.

First President to file lawsuits against the states he swore an oath to protect (AZ, WI, OH, IN).

First President to withdraw an existing coal permit that had been properly issued years ago.

First President to actively try to bankrupt an American industry (coal).

First President to fire an inspector general of AmeriCorps for catching one of his friends in a corruption case.

First President to appoint 45 czars to replace elected officials in his office.

First President to surround himself with radical left wing anarchists.

First President to golf more than 150 separate times in his five years in office.

First President to hide his birth, medical, educational and travel records.

First President to win a Nobel Peace Prize for doing NOTHING to earn it.

First President to go on multiple “global apology tours” and concurrent “insult our friends” tours.

First President to go on over 17 lavish vacations, in addition to date nights and Wednesday evening White House parties for his friends paid for by the taxpayers.

First President to have personal servants (taxpayer funded) for his wife.

First President to keep a dog trainer on retainer for $102,000 a year at taxpayer expense.

First President to fly in a personal trainer from Chicago at least once a week at taxpayer expense.

First President to repeat the Quran and tell us the early morning call of the Azan (Islamic call to worship) is the most beautiful sound on earth.

First President to side with a foreign nation over one of the American 50 states (Mexico vs Arizona).

First President to tell the military men and women that they should pay for their own private insurance because they “volunteered to go to war and knew the consequences.”

Then he was the First President to tell the members of the military that THEY were UNPATRIOTIC for balking at the last suggestion.

It’s hard to comprehend all this guy has gotten away with.  Any other president would have been impeached!  What in God’s name is wrong with our government that they allow this guy carte blanch.  It absolutely boggles the mind!

I feel much better now.  I had been under the impression he hadn’t been doing ANYTHING!!

Safety Dan's picture

High-end art is one of the

High-end art is one of the most manipulated markets in the ...

Jul 11, 2013 - A gallerist and an economist walked into an art gallery opening. The paintings on display featured the rape of dismembered corpses.

I thought it interesting to see another highly manipulated market. If rape and dismembered paintings are high end sales, then we might all learn something about manipulated markets.

I learned "Great art should communicate an idea.” , thus those that post here can become wealthy artist. Well ok, it was an idea.. From the article:

"There are probably worse injustices in the world than wealthy people paying too much for art, which explains why there hasn’t been more regulation in this market. Defenders of the price manipulation contend it’s to protect artists and it seems to be true, at least for the elite artists who work the gallery system. But it could be the manipulation necessitates more manipulation, which ultimately benefits the galleries, and results in fewer working artists."

joostb's picture


I wonder if JPM's sale of its commodity business to Mercuria( expected in the Q3 2014 to be finalized) will have any impact. According to:

It will keep on trading, vaulting and making what do they actually sell?

Markedtofuture's picture

Laurence Kotlikoff- SIPC Running a Ponzi Scheme

SIPC Insurance Scam from Fraud Street-Professor Laurence Kotlikoff

By Greg Hunter On September 7, 2014 In Market Analysis 16 Comments


BY Greg Hunter’s USAWatchdog.  (Early Sunday Release)

Renowned economics professor Laurence Kotlikoff says SIPC (Securities Investor Protection Corporation) is an insurance scam from Fraud Street.  Dr. Kotlikoff contends, “If you look at the history of their response as it’s been discovered, they (SIPC) have been fighting tooth and nail never to pay a dollar.  So, the situation is not that we don’t have any insurance for your brokerage account, it’s far worse. . . . There’s a Ponzi scheme discovered every four days, according to a recent New York Times article.  So, they can declare a fraud very easily.”  As an example, Dr. Kotlikoff gives someone who lost $2 million and is expecting to get back at least the SIPC insurance claim of $500,000, the maximum payout.  Instead of getting money back, SIPC expects money back from you!  Dr. Kotlikoff explains, “So, you are at double jeopardy here.  It’s not just that you can get totally screwed by a brokerage firm, which is happening every four days because a Ponzi scheme is being discovered, you can also be at great jeopardy by SIPC itself.”  Meaning, SIPC cannot only deny your claim, but it can sue you for any profits you made beyond your original investment if there are losses because of a fraudulent brokerage.  Dr. Kotlikoff adds, “So, they are running a complete insurance scam.  It’s a disgrace.  There is a bill in front of Congress that would correct this, but so far, members of Congress have not pushed it through.”

Dr. Kotlikoff goes on to say, “Earning a decent return on your investments is not being a winner; it’s just having a normal economic life.  That’s what you are supposed to do.  You are supposed to save and invest and enjoy the returns of your investments.  So, to be labeled a ‘winner’ and not be labeled a victim, and be told that your remaining balance is totally uninsured, and you have to pay back everything you took out over the last six years is disgraceful. . . . It’s also very, very dangerous.  Right now, nobody should have a brokerage account.  They should close them immediately and not spend your money for six years.  If you spend your money . . . they can sue you for every dollar of return, and that can be far beyond what you put in because of compound interest.  This is called a ‘net equity clawback,’and it’s a disgrace.”

Are any brokerages safe?  Dr. Kotlikoff says, “You are not safe in any of these companies. . . . You don’t know exactly what they are doing.  You don’t know if they are taking your securities and borrowing against them.  You may have signed something with fine print that allows them to hypothecate your securities, and then they could borrow money and put on a big bet . . . now, they lost all the money and the brokerage goes under.  That could be called a Ponzi scheme . . . anything can be called a Ponzi scheme.  Anybody who has a brokerage account should move their money out and contact their member of Congress and get them to pass this bill because it’s not going to be safe for anybody at any point in time to invest in a brokerage account unless this is changed. . . . The bill is called “Restoring Main Street Investor Protection and Confidence Act.”  SIPC has been engaged in such fraud that even the Securities and Exchange Commission has sued SIPC to get them to pay off the legitimate claims of the Stanford victims, the second largest Ponzi scheme after Madoff.”

Dr. Kotlikoff goes on to warn of massive and ongoing Wall Street fraud.  Dr. Kotlikoff says, “Every day we are reading about a big bank being fined billions of dollars.  Recently, Bank of America had a $16 billion fine the bank had to pay for selling fraudulent securities.  They know they are selling you snake oil, and they are getting away with it, and nobody is going to jail.  I call Wall Street, at this point, Fraud Street, and one of the biggest rackets is the SIPC brokerage account insurance–it’s not really insurance.  A fraud occurs and Wall Street, through SIPC, says we owe you nothing, and they sue you to get paid back.  That’s what we call an insurance scam.  Wall Street, through SIPC, has been running a massive insurance scam. . . . In many ways, you could say SIPC is running its own Ponzi scheme.”

Join Greg Hunter as he goes One-on-One with Boston University economics professor Laurence Kotlikoffand creator of

(There is much more in the video interview.)

After the Interview:  

If you would like to follow the work of Professor Kotlikoff, you can go to his free website  If you want to find out about the enormous debt problem of the U.S., please go  Other sites recommended by Professor Kotlikoff include: and

realitybiter's picture

Evidence based analysis

I think making statements like, "the market is too big.  no one can manipulate it", is naive, at best.  It could also be denial, because you are "in" on it.  The third option is just stupid.  Really stoooopid.  Equally stupid, is observing it, witnessing the price move against you, and not respecting that you are a pedestrian walking across will die- but you will be right!

You KNOW manipulation has already been admitted.  LIBOR, for one. Many stocks get shorted, with stock borrowed that is not for rent, counterfeiting shares into existence, via derivative schemes, or understandings from banks that "we'll figure it out later."  I have a CFO at a billion dollar hedge fund that tells me all the time, "they come back to cover their short, and the stock is not there to buy back, it never was.  So they take the order, hedge it with options, and then find the stock over the next few weeks....all for a price, natch..."

Naked short selling of stock is a undeniable fact.  In 2008, after the shitstorm, the chairman of the SEC acknowledged this and said that:  

"Cox said the SEC has adopted measures to strengthen investor protections against naked short-selling, which allows short-selling without owning or borrowing the stock.

He said he has also launched an examination "of the effectiveness of broker-dealers' controls on preventing the spread of false information." This appears designed to address concerns that short sellers, who seek to profit from declines in stock prices, may spread rumors about companies to drive down prices of their stocks. To top of page

The SEC was trying to stop naked short-selling, or at least stated so.

Clearly, an admission of its existence.  Why would you admit you need to fix a problem that does not exist?

Look at  Look at "Stock Shock".

It is all right there.

The kicker, though, is "so what?"  The SEC doesn't give a rip.  It happens.  It is on right now.  Prices are moving, via this manipulation (what else would you call counterfeiting - creating new stock without the companies approval?)  It happens in futures, options, equities, bonds.....if it has a value and can be made into a contract, it can be counterfeited.  

Getting ran over by thieves, with a complicit regulator, still leaves you busted, with no justice.

Name one naked short seller conviction with teeth.  One.  This is the only one I know of.  They were alleged to have made $17 million naked short selling, had to give back $14.5m and each were banned from exchanges for less than a year.  This is what they do.  "See, we are tough on crime, we got a meaningless conviction, of guys no one has heard of, and no jail time."

This is how 2008 happened.  Eventually, the value of all the counterfeited crap was realized, at multiples is a lock that it will happen again, because it has only gotten worse.

This is further complicated by the fact that many times, the illegal short sellers are actually RIGHT in their value analysis, because the underlying stock or commodity has been pumped up beyond even though their method of realizing the fair value is illegal, their analysis is spot on.....

It is all about credit creation, beyond available money supply.  Eventually, entropy happens and the books get clean.  Eventually can be a very long time.

I know, "crazy conspiracy theory....." (that even the SEC admits is fact)

zman's picture

How can anyone manipulate a

How can anyone manipulate a physical market?   If silver is so undervalued at $19 oz today, why are there NO shortages in the physical market?    The fact of the matter is, there's plenty of physical silver.

Traders that buy paper contracts are NOT silver investors, they are paper speculators and nothing more, if they don't take silver off the market it doesn't make them a silver investor.

Most of silver usage (70%) is for industrial, there have been NO shortages for industrial users, the left over is for investment, there are no shortages for investment.

Investment demand is just not that strong, if inflation takes off that could change, for now $19 oz is the real price of silver, paper markets can't stop higher prices.

nadgeskaul's picture

HUI Bloodbath!

I really hope some of you are taking advantage of this and shorting.  We are on the verge of a precipitous sell-off.  Capitulation time.

lakedweller2's picture


I must be on the wrong board.  Looks like this is the input board for the PPT.

DeaconBenjamin's picture

How can anyone manipulate a physical market


Lurknomore's picture

Back a couple of months ago...

I queried the board with this very notion of the 6pm smash (see below)...I never did see a response from any of the traders, but in light of the ongoing practice, the question stands...isn't there a way to sell short a contract just before the 5 o'clock'ish trading closing period of the day and then close it out after the 6pm "open" to ride this predictable plunge...and make a few coins??  I mean, surely somebody else, with trading smarts, has noticed the phenomenon.  I would think that you could trade on an 85-90% certainty

From my original post on June 2nd:

Like clockwork...

Submitted by Lurknomore on June 2, 2014 - 6:25pm.

Hat Tip!


I'm not a trader, and given the fraudulent nature of the market probably will not endeavor to be one, but how is it that EVERY single day when the NY globex market re-opens at 6pm EST the market price of silver takes an immediate plunge of 10 or 15 cents?  I've watched this fairly closely for months, and the consistency is, well,...consistent.  It will sometimes recover (although most often it won't) within the first hour or two, but only after the initial plunge.  My obvious question is:  even if you just relied on a ten cent move (down), isn't there a way a trader could play this, each and every day?  In and out? ....anyone?

Lamenting Laverne's picture

Contrarian thought on sanctions

"Under a modest expansion of sanctions introduced in late July, the three oil companies - Gazpromneft, the oil-production and refining subsidiary of OAO Gazprom, oil transportation company Transneft, and oil giant Rosneft - will be forbidden from raising funds of longer than 30 days' maturity."


My head is nothing more than a giant big ole wool ball when trying to understand the reasons for EU sanctions. They simply make no sense at all at face value. In fact they seem so daft that it hurts.

Then a thought popped into my head, while reading the above link: 

If we think about the sanctions in the context "all-interconnected, all-planned and all-Central Bank coordinated preparation" to deal with the inevitable massive disruption of the financial system. As in most of the presented controversy is merely theater to sell needed actions to the public, in addition to some degree of genuine in-fighting among cabal factions.

We know that the West has more or less willingly been sending gold and manufacturing capability to the East - because presumably the East has been deemed to be the growth engine for the next round - in order to be able to do the transition in an "orderly" manner, as Ron Paul is quoted to have been told at the Fed. 

And we know that one of the reasons for huge danger in the financial system is a complete interconnectedness and derivatives dependencies that will make contagion a real bastard to figure out and control, once the chips start falling.

And we know that they need continued justification for increased trade in BRICS currencies and also to encourage diversification in to same, before establishing a new weighting of the SDR basket in early 2015. (I am assuming that at least Yuan and Ruble will be included next time - but we will see.) 

Well, in this context, it suddenly makes more sense that:

1) Sanctions do not involve Gas, which will first of all be directly damaging to Europe, but which is presumably also traded on very long term contracts and therefore not as volatile in nature. (I am totally guessing, though)

2) Sanctions involving Oil is said in the above link to be related to funding duration availability. I would have thought that it would be "EU not allowed to buy Russian Oil - period!". That may still be the case, but the article emphasizes a maximum of 30 days maturity on loans provided FROM Europe TO Russian Oil companies. That struck me as a bit odd.

If I recall correctly, as per earlier sanctions, Russian banks can no longer use US correspondent banks and have thus had to organize payments to flow outside the USD and outside US banks. They have not yet been excluded from SWIFT, but calls have been made to do that too. Now, Russian Oil companies will be "forced" to reduce risk-exposure to European turmoil by relying on short term debt only. Because of the short term they can always let the paper mature and pay back at par, and then refrain from refinancing, if the conditions have deteriorated too much. Long term financing (presumably larger) will now probably be done only with strategically important partners or maybe the BRICS development bank.

What if all these sanctions are more or less just theater to reduce the risk-exposure of important resource providers to the western banking system ahead of inevitable turmoil, so some of the world will continue working when the chips start to fall.

matt_'s picture

Re: HUI Bloodbath!

Unfortunately, I am all in on the long side.  Depending on how low things go, I might do some tax loss selling.  I was suckered into thinking the bottom was in.  This blows.  I've been heavily betting on mining shares for years, and it has been a disaster. It has taken a cast iron stomach to continue investing in mining companies month after month. More than once I have thought about throwing in the towel, and totally selling out is quite an attractive idea this morning.

I think people buying physical metal are getting a much better deal.

nadgeskaul's picture


I am a trader and have been shorting rallies all year.  You can play the open/close game, but the market is often very thin during those hours (which is why it's best to smash price).  Literally 10-15 ticks wide at CME.

The real opportunity lies in the guarantee that every rally fails.  This will continue until daily trading patterns cease their current overwhelming, continuous sell action.  

If they're giving it away, why not take it?  Use proceeds to buy physical. 

Kansascrude's picture

Zman Seriously?

Its real easy you sell paper at 100:1 the physical inventories and overwhelm the physical buyers.  Then you borrow from SLV and use their physical inventory to overcome any physical shortages.  Then you sell/borrow other physical inventory that you promise to pay back....Then you run the scam over and over and sucker folks into believing your lies about no shortages and scare them into giving up and selling.  That way you even further limit demand.You do this with the full complicity of the regulators and Banksters.   Obviously the sheep will always look at physical supply and how available it is at retail.  So the last thing you can let happen is no physical at retail.  Hence the huge supply of Maples and Eagles in spite of record demand.  Finally you hire trolls to cast additional doubt to the wavering.  Its a full scale propaganda war masterfully laid out and executed.

It doesn't matter how many companies you bankrupt, how many employees you deprive of jobs, or how many citizens you steal wealth from......The Ponzi must prevail.

Dr Jerome's picture

How can anyone look at thsese

How can anyone look at thsese charts and say technical analysis accounts for these paterns.

Yes, we are in a bearish trend, but its not the self- fulfilling prophesy of traders all seeing the same TA signals that supports and sustains that trend. This is a managed market. The best trading tactic is to predict where the manipulators want it to go next. In my view, Turds manipulation based forecasting is the most accurate way to approach it, but even then, calling the timing is clearly problematic.

Rant off

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