Another Criminal Bank Participation Report
I like that title. Why call this the BPR when you can, instead, be more accurate and call it the CBPR...The Criminal Bank Participation Report.
Before we begin, the usual background:
- The CFTC's Bank Participation Report is issued monthly from a survey taken at the Comex close on the first Tuesday of every month. The report summarizes the combined positions of the four largest U.S. banks (primarily JPM, MorganStanley, Citi, Goldman but occasionally others) and the twenty largest non-U.S. banks (Scotia, HSBC, DeutscheBank, UBS, Barclays and others).
- These reports might be utter nonsense and complete falsifications, designed to mislead you and get you leaning the wrong way. Just last year, JPMorgan was fined by the CFTC for "repeatedly submitting inaccurate reports relating to the required reporting of positions". See here: http://www.cftc.gov/PressRoom/PressReleases/pr6968-14
I will leave it up to you, dear reader, to assign or withhold legitimacy to/from the data. My job is simply to report to you on what the data shows...and, once again, it's sickening.
As we've often reported, most recently with these three posts...
...the Bullion Bank fingerprints are now so obvious that it seems they hardly care if anyone notices anymore. The Banks apply heavy, naked shorts to any rally and they then use the price weakness that inevitably follows their capping to cover their tracks. And what has happened over the past four weeks? Just more of the same. Another "wash cycle" and full price suppression move by The Bullion Banks. Why are they so desperate to cap at these levels? Please go back and review the first link above entitled "How They Did It" for your explanation. For today, let's just concentrate on this latest travesty and blatant price suppression/manipulation.
Recall, first, the price action over the past month. In case you've forgotten, below is a visual aid:
As you can see, for the CBPR period, price was almost completely unchanged. However, during the month, price actually spiked by nearly $40 or 3.5% to a high of $1232.80 on May 18. After being effectively capped near the 200-day moving average and $1225, it has been nearly straight down since.
We know from the Commitment of Traders Report, published by the criminally-complicit CFTC on May 22, that the "Gold Commercials" were active in capping that $40 rally. The report, linked here (http://news.goldseek.com/COT/1432323507.php) shows these "commercials" added a record 50,754 naked short contracts in just one week (between May 12 and May 19) in their effort to cap and contain price below $1225. That's the paper equivalent of over 5MM ounces of gold or about 158 metric tonnes...more than the total holdings of Thailand and about 5% of total annual global mine supply.
Until last Friday, we didn't know how much of this criminal manipulation could be laid at the feet of The Banks trading desks and how much could be assigned instead to their hedge funds and offshore shell accounts. Well, here you go. Back on May 5, and again with price at $1194, here's how the CBPR looked:
5/5/15 GROSS LONG GROSS SHORT TOTAL NET
U.S. Banks 6,966 29,851 -22,885
non-U.S. Banks 29,748 63,682 -33,934
And now, one month later, with price having round-tripped $40 and closing back at $1194, here's your current CBPR:
6/2/15 GROSS LONG GROSS SHORT TOTAL NET
U.S. Banks 8,246 45,090 -36,844
non-U.S. Banks 30,194 78,300 -48,106
So, there you have it. While price was rallying, The Bullion Banks were desperately issuing and selling naked paper gold contracts in their attempts to cap and contain price. Even after undoubtedly using the price weakness on the way back down to cover some of these ill begotten contracts, The Banks still show an increase in their NET SHORT position of over 28,000 contracts...ALL WHILE PRICE RALLIED, WAS CAPPED, AND THEn CLOSED UNCHANGED.
WHAT FURTHER PROOF DO YOU NEED TO SEE THE BANKS' NEFARIOUS INTENT?
Of course, the standard Cartel Shills and Apologists will argue that these altruistic Banks are just performing a public service. They're "making an orderly market" and simply "providing needed services" for miners wishing to "hedge and forward sell future production".
Eh bien, excusez-moi pour mon mauvais français. Ce sont des conneries complète.
At $1200, which miners suddenly decided to sell forward 160 metric tonnes of future production at $1200/ounce? And don't give me this garbage about "making a market". No other "markets" in the world operate this way...where extra paper supply is created from thin air whenever paper demand materializes.
But that's what we have to deal with as long as paper gold and silver trading is allowed to set "price". The Criminal Bullion Banks, aided by the criminally-complicit CFTC and supported by the central banks and BIS, will continue to actively and severely manage, manipulate and suppress precious metal prices until the simply no longer can. When and how this moment arrives remains a mystery. Perhaps a renewed financial crisis. Maybe the Chinese announce a new gold-backed trading system. Maybe someday, the leveraged and rehypothecated London system simply collapses.
I don't know what it will take to finally crush and destroy this current, fraudulent system. I just know that the day is coming...and not a moment too soon.