The Attack of The Apologists

The Bullion Bank Shills and Apologists have begun a coordinated and orchestrated attack against anyone drawing attention to the scam and charade of their fractional reserve system. Rather than let their half-truths and distortions stand unanswered, we thought it best to turn the tables back on them, instead.

Here's the timeline of these latest events. In July and August, this site and others diligently chronicled the daily machinations of the delivery fraud of the Comex. The most recent article detailing the recent shenanigans can be found here:

Then, last Tuesday, the daily CME "Gold Stocks" report showed a significant decline in total Comex registered gold. Before we could post anything at TFMR, our pal Dave Kranzler had written a tremendous and detailed explanation. To save time, we simply posted Dave's excellent work as a guest post and you can find it along with some additional TFMR commentary here:

Other sites such as Jesse's Cafe Americain and ZeroHedge also chimed in...drawing attention to the ongoing charade of so-called registered and eligible gold:

And here's the thing....

As we've discussed here at TFMR for the past week, NONE OF THIS CME/COMEX DATA MATTERS! Heck, the CME itself began in 2013 to include this disclaimer on it's Gold Stocks reports:

"The information in this report is taken from sources believed to be reliable: however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only."

It simply doesn't matter what the Gold Stocks reports state, first and foremost because the party responsible for the reports disavows any claim of accuracy. But more importantly, even if the reports are accurate, it doesn't matter! As noted in the first post linked above, come the delivery month of October, JPMorgan and the other Bullion Banks will simply journal around some "gold" and reclassify a few ounces from eligible to registered. This will be done to create the appearance of "deliverable supply". And that won't matter either because, in the end, the vast majority of what gets "delivered" will be nothing but a handful of warehouse receipts and other paper claims to "gold". Barely any actual physical gold will change hands!

So, you must understand that isn't about "imminent Comex collapse". It never was. This is about public, market and media awareness, leading to a growing recognition of the level of fraud necessary to prop up and maintain the fractional reserve and paper derivative pricing scheme.

By drawing attention to the FACT that the current ratio of paper ounces to readily-deliverable registered physical is at historical extremes, it is hoped that even "mainstream" analysts will begin to question this "system". The questions we hope to inspire are:

  • How can 229:1 paper leverage create a legitimate physical price?
  • If 229:1 is deemed appropriate and fair, then at what level of leverage does the current system become unfair? 500:1? 1000:1? Does it even matter?
  • And if 229:1 seems grotesquely high, what is an appropriate level of leverage for a paper derivative market? 5:1? 10:1?

So, can you see what we're attempting to accomplish by drawing attention to the current extreme leverage as shown on the chart below?

The price of gold (and silver) has been artificially managed on exchanges like the Comex for over 40 years. These exchanges grant to the Bullion Banks the ability to create limitless paper metal. The only thing that gives this paper derivative price its legitimacy is the illusion of physical delivery. Therefore, any attempt to pull back the curtain and expose the delivery sham for what it is...a charade...must be met with full frontal attacks by The Bullion Bank Apologists. They will defend their beloved current system without regard to truth or accuracy, up to and including personal attacks and disparagement of motive.

Consider the events of the past few hours.

Earlier today, Bron Suchecki of The Perth Mint tweeted this:

The chart they don't want you to see: world didn't end in 1998 when TOTAL (not just reg) stocks v OI was this high

— Bron Suchecki (@bronsuchecki) September 10, 2015

Note the clever use of the word "they". This is typical of all Apologists and anyone arguing from a position of weakness. "They" (apparently meaning TFMR, Jesse, Dave and ZeroHedge) want to confuse you. Clearly "they" have an agenda. "They" want to scare and frighten you to the point of buying something from them.

Bron goes on to link his latest piece of "analysis" where he attempts to protect the fractional reserve bullion banking system by showing how total "leverage" vs total gold stock was even higher back in 1998. Take another look at his chart below (click to enlarge):

Again, as pointed out in the first link, it's utterly meaningless what the CME claims that the Comex vaults hold. Why?

  • The Banks will simply journal "gold" back and forth from category to category as necessary
  • The CME itself disclaims any accuracy in the reporting

Once more, who cares what the total stocks were versus open interest in 1998? It doesn't matter!! What does matter is the growing recognition that it's all a fraud and a charade and that this recognition presents a serious threat to the system that The Apologists strive to defend.

So now it's our turn to ask the questions. Why do Bron Suchecki and The Perth Mint care? Why are they such adamant defenders of the current system? If he's so concerned about the motives of TFMR and the rest, why can't we ask what his motive is? Could it be Perth Mint's maintenance of unallocated and/or pooled accounts that perhaps rely upon similar leverage? ( Central Banks conspired to construct the current fractional reserve system as a way to manage price, therefore, as providers of "Australia’s official bullion coin programme", does The Perth Mint seek or maintain a cozy relationship with the Australian government and/or the Reserve Bank of Australia? These are fair questions and, so long as Bron feels comfortable impugning everyone else's motivation, perhaps he can answer them.

However, the most prominent system apologist is undoubtedly Jeffrey Christian of the CPM Group. A former Goldman Sachs banker, ole Jeff is quick to malign anyone who dares question the fractional reserve system. In what is obviously an attack he  coordinated with his pal Bron and others...including bloggers KD and VtC, as well as some analysts previously considered allies of TFMR...Christian yesterday released a "market commentary" where he attempts to smooth over our collective concerns. His article can be found here:

The first thing that you should note is the use of the same tactics as Bron. Namely, deligitimize the opposing argument by disparaging your opponent and impugning his motives. From Jeff's piece:

"There are stories circulating among gold mining executives, fund managers, and other gold market participants at present that there is a backwardation the London gold forward market. The rumor is being promulgated by groups that market physical gold to investors based on conspiracy theories and fear..."

Again, the obvious implication is that any analysis from TFMR or Jesse or Dave or ZeroHedge is not be trusted because we are only trying to frighten people into buying gold. As if any of us sell gold. Sure, TFMR has advertisers that sell gold but to advertise here is their business and marketing decision. These companies are displaying their wares to a target audience in the same way Pfizer markets Viagra during broadcasts of golf tournaments but no one claims that CBS only broadcasts The Masters because they're trying to drive Viagra sales. That's ludicrous! However, that's exactly what Jeffrey is attempting to do.

As to the bulk of his "research and commentary", Sandeep Jaitly was quick to completely obliterate it with is own analysis earlier today. You can read it here:

Jesse also just posted his own rebuttal and you can read it here:

And isn't it time for someone question to Jeff's motives, too? Why is he so quick to disparage and impugn anyone who argues against the current system. Could one factor be CPM Group's relationship with The Silver Users Association? Perhaps Jeff could be upfront with everyone and explain what, if any, connection there is between his company and this industry group. The name "Silver Users Association" details what the group is...a lobbying/marketing consortium of silver users. You can read more about them here:

Is it not logical to assume that "users" of silver would like to have the lowest cost possible for the silver they "use". Lower costs of inputs mean wider margins and greater profits. So a silver "user" would very likely want to see low prices of silver continue indefinitely. And how are prices kept uneconomically low, bankrupting mining companies and impoverishing their employees in the process? Through the fractional reserve bullion banking and paper derivative pricing scheme! Ask yourself, who benefits most from the low prices? The silver "users". And who appears to have a long-standing and cozy relationship with The Silver Users Association? The CPM Group.

Again, just as with Bron and The Perth Mint, these are fair questions to ask and, so long as Jeff feels comfortable questioning everyone else's motivation, perhaps he can answer these questions for all of us.

Personally, I'm sick and tired of having to fight these battles. By writing this column, undoubtedly TFMR will once again become the target of Apologist attacks. We'll be disparaged and marginalized, consigned once again to The Lunatic Fringe of "conspiracy theorists" and "tin-foil hatters". Whatever. This doesn't matter, either. All that DOES MATTER is that we have The Truth on our side and that we are willing to wait as long as necessary for vindication. That day is coming and, if current global demand trends continue unabated, it will be here sooner than you think...regardless of the ongoing efforts of The Apologists and The Shills.





mike97's picture


Good article Turd. Rumor from a member at Silver Doctors site that -

Rumors are flying the U.S. Mint has cancelled all future orders for 2015 Silver Eagles.  

Sounds unlikely but anybody else heard anything?

LostMind's picture

Second :)

Hey Craig,

No need to apologize for being the butt of the apologist agenda! HA!!

Anyway, I came to this site because I read some of your public podcast and found them to be of great relevance to my intellectual needs and emotional dumps! You and the many posting contributors make this a great place to LEARN, SHARE, and occasionally be mocked <---- nooooooooooooooo!

Keep up the good work edumucating us and we will continue to buy, buy, buy, stack, and buy some more!

Also, God help us all if this charade continues for another few months like this, we will all need to be fitted with straightjackets!

LM <---- truly almost lost mind :)

waxybilldupp's picture

Paper gold ...

Now there's an expression that fries my logic chip every time I read it!

wax off

cashonly's picture

Me 4

Typing on my iPhone at eye dr.s officecool

ratioarbitrage's picture

An encouraging sign

I was a little encouraged today by signs of backwardation deepening in US silver futures.

But this shrill denial, this resorting to ad hominem nonsense and charts with misleading axes and ridiculous time-scales... This is clearly desperation, and that is VERY encouraging.

Cuzqueño's picture

Speaking of Silver availability

Taken from the IV PM BB:

Silver Report From The Far East

I have been following your commentary about the silver shortages, and wanted to let you know what is happening on the ground here in Singapore.
I work with two of the largest and best dealers here in Singapore. Both companies are pretty much completely out of silver coins and 10 oz bars. Silver Bullion has some Philharmonics in stock and a few 1 oz / 10 oz / 1kg Koala/Kookaburra in stock and nothing else. No 100 oz / 1kg bars in stock, all on pre-order. The owner told me that they have had thousands of Maple Leafs on order for 7 weeks with no delivery date commitment. Gold Silver Central has only single pieces of Philharmonics and Eagles. They have some 1 oz / 10 oz / 1kg Koala/Kookaburra. They do have 1kg / 100 oz bars. They will not take orders on Philharmonics/Maple Leafs/Eagles as they have no commitment time frames.
Both companies are worried as once their remaining few coins and then bars are sold they have no silver to sell. Thought you might find that interesting. It appears in the next week there will be no reliable silver available for sale in the country of Singapore.
And the second, from Australia – which not only is one of the world’s most mining-centric economies, but rapidly watching its “commodity currency” dissipate into the ether.
I hope you are having a good rest this long weekend. Officially now, the Perth Mint is out of all silver bars until further notice. They won’t tell me how long a delay it is, but will not take any orders. The dealers say 6-8 weeks, but they have no idea. Junk silver is gone, as is the case in the U.S. Bullion coins – no different; still a few 10oz koalas and kookaburras, and a few 1kg coins for sale at dealers. One oz is done except for the new bullion silver kangaroos out in 2 weeks. I hear 3 million + gone already on pre-order.

And by the way Fuck the banksters and keep the stack going vertical..

Turd Ferguson's picture

Following the continuing saga


Two very interesting developments on the latest CME Gold Stocks Report.

Once again, here's the report from one week ago today. Note JPM's reclassification from registered to eligible of 122,124.121 troy ounces.

And now look at today's report. JPM actually shows a withdrawal of the very same amount...122,124.121 ounces. Remarkable! Did an actual "delivery" occur today or are we simply seeing an extension of the same slow-motion bank run that has caused Scotia's TOTAL Vault to fall by over 60% in just the past six months?

First of all, that's almost four metric tonnes "worth" $135MM that was allegedly picked up by truck and hauled away.

Perhaps more importantly, look at the final NET number of the TOTAL Comex registered vault...just 163,334 troy ounces. Using yesterday's total gold Comex open interest of 411,141 contracts, this brings the total paper-to-registered leverage up to a new record of 252:1.

Simply put, this means that as of this moment, before The Banks can journal around some ounces from eligible to registered, The Comex is operating on a standard of 252 paper ounces for every one ounce of readily-deliverable physical. Stated another way, there are 252 kids paying musical chairs with only one single chair sitting in the middle of the room.

Mr. Fix's picture

The entire global monetary system is based on fraud

Why would anyone think such a puny little market such as silver and gold futures would be any different?

If it's publicly available information, it's a smoke screen. 

Question EVERYTHING!!!

At least a really good conspiracy theory makes  far more sense then any official source does.

Besides, I've already lined my yellow cowboy hat with tinfoil, so now it serves a useful purpose. wink

Keep swinging swinging at them Craig, even if they don't change a thing, their credibility needs to be seriously undermined.

You're doing great! yes

Thank you! angel

Search's picture

Silver and singapore

Check out in singapore. They are selling fast but they still have a decent amount of silver left in all forms

SS121's picture

TF - You're threatening their worldview

The Bullion Bank shills and Apologists believe that the "markets" are not manipulated.

You observe and point out multiple instances within the market data that proves it to be erroneous at best.  That threatens their current worldview and they take that very personally, even tho you are presenting analysis regarding the market data.

They do not refute your observations or even see and hear the information you present.   The reality of the situation is too far from their market worldview.

The Attack Of The Apologists... yeah, that does seem to be what's currently resonating. least they can't advocate banning you from TFMR! :-)

Joseph Warren's picture

Back in the U.S.S.R.

before the collapse in 1991, it seemed that just about everyone was cynical. Russian people didn't believe a damned thing that those in government told them. They knew it was all lies. When you asked them about the official story lines, they would just roll their eyes. Today's PM community, and some observers of the various 'markets' - remind me of those Soviet citizens from 25 years ago.  Skeptics for a very good reason.

When you're deeply immersed in this stuff everyday, it may be difficult to gauge the situation. But it is my sense that today's Americans are much more ignorant of relevant events and much more naive than those Russians from 25 years ago. And the Russians were much tougher - after enduring an out-in-the-open police state for 70 years. 

When the day of reckoning comes to Americans, it will hit them like an icy cold tidal wave. And many will freeze up, in total surprise & shock.

braincramps's picture


It won't change until the music stops because:

“It is difficult to get a man to understand something, when his salary depends on his not understanding it.”

― Upton Sinclair

lakedweller2's picture



indiana rod's picture

The Truth

I like what Winston Churchill said.

The truth is incontrovertible. Malice may attack it, ignorance may deride it---but in the end, there it is.

000's picture

Pleasantly Surprised


When GT announced that he was posting his "Final Warning" I relied on faith and hope that that would indeed be the last time we would have to read the vomit spewing from the Golden Tapeworm, and I am pleasantly surprised to have read your announcement in the previous thread that you took matters into your own hands in shielding us from any further GT bacterial exposure, and also prevent yourself from being found (as I previously described from Austin Powers) with your pants down with a 'Turd'le Head pokin' outta ya. As a follow up to Chiron from the last thread, if you could also "weigh in" on the two statements copied from last Friday's podcast thread from the source that Chiron seems to have referenced, it would be highly relevant to the past, present, & future utility & usefulness of YOUR market analysis that we all come to YOUR SITE to receive:

"They think the fiat silver market generates the chart's price data, but it does not. The silver chart price data is generated by one single program that has nothing to do with the trading of silver contracts...If the silver chart displays 15 bucks at high noon, it's because it was programmed to display 15 bucks at high noon."

Was it controlled then? If so, why did they let it run?

"The chart is more than "controlled", it's specifically programmed. it ran up to 50 in 2011 because it was programmed to run up to 50 in 2011."

infometron's picture

@Turd Re: possible FED rate hike

If the FED raises the base rate, EM countries and companies with USD denominated debt will take yet another big hit, so the rate hike will further exacerbate bankruptcies and further pressure EM currencies. This would not be good for the world economy, and there would be added incentive for EMs to sell off US treasuries.

Witness today how long term treasury rates went up, the thirty year piercing 3%, and the ten year heading fast toward 2.5%. As long term treasury rates go up, the collateral value of those treasuries goes down, and who knows what manifest ramifications that will have regarding derivatives, margin calls, etc. Not at all good, methinks.

I suggested a few days ago that it may be more important for FED to engineer some short term pain in the stock markets in order to fend off a more devastating sell off in the treasuries market. A further stock market 'correction' would presumably chase stockroaches into bonds, unless the FED is happy to covertly soak them up.

This seems like a crucial point to consider in the otherwise compelling scenario you've painted... Having said that, we sure got a good short squeeze today. I wonder why? Are the shorts anticipating a rate increase or not? Presumably, with the 'bad news is good news' type of day it has been, the shorts are anticipating there will be no increase.

But then how does that work? Stock markets go up either way, rate hike or not?

What kind of world is this?! It is all so confusing... dare I say, incoherent!

SteveW's picture

Kyle Bass and the

I noticed that Jesse has that video where Kyle, upon learning that "price will fix everything" with respect to leverage, decided to take delivery.

Until that bullion is removed from the HSBC vault in New York and rests on Texas soil I would not be quite so sanguine about delivery. After all "possession is nine tenths of the law" so they say.

The hoard has apparently been reduced by about a third due to the purchase of paper gold.

Gamble's picture

Such a farce

I managed to free up some cash to buy some metals tomorrow , hopefully we get a smash ( I love it when they discount on top of a discount !

gamble gamble

did notice over  1000 - 3.00 jan calls were picked up today on nugt! 

Fred Hayek's picture

Good work, Craig.

Isn't this just the sort of thing you wanted to be writing when you started this site?

Clarki Stomias's picture

Ken Hoffman from Bloomberg admitted the lack of physical

Lest the apologists forget, no less than Ken Hoffman of Bloomberg was talking about the actual lack of physical London inventory almost two years ago. He admitted physical was mostly gone even then (and it sounded like it was not just depleted stock, but tight flow as well - which translated to what seems to be now permanent negative GOFO.  Not that we can tell anymore.). I'm fairly sure the Street doesn't consider Bloomberg one of those crazy conspiracy outlets, nor is Hoffman considered a nut job.

That clip has been hashed and rehashed by we the alternative "conspiracy" PM community ad nauseam for the simple reason that it confirmed what our own investigation and reason had taken us to independently: that the data being produced in the Western precious metals markets and exchanges, even when admitted to be "for information purposes only", clearly indicate severe market strain at best and obfuscation & fraud at worst.  The recent spike in the paper contracts to actual ounces ratio merely confirms that the inventory trend that Hoffman noted almost two years ago has only intensified.  At this point, all that is needed to prove the thesis of scarcity correct is time.

Further character assassinations and straw man arguments will only serve as validation of that thesis and not legitimate, honest rebuttal.

mel's picture

Royal Canadian Mint....Plucked and Plundered!!

Why would you risk capture stealing from a bank when you can snatch gold from the Canadian Mint with little chance of getting caught??  And if you do then you may get 50 hours of community service to do. The security system in the mint works only occasionally....just like the staff...typical civil servants!!

The Canadian Courts are a laugh in terms of lax sentencing for even serious crimes....Hey, as a Canadian  I know and am embarrassed.. Here, in Canada, we call it the Criminal's Justice System...

silver66's picture

plucked and plundered

word on the street if you read the article,is the Mint got caught holding the old maid  of some Rubin tungsen bars and made up one of their big theft stories/sloppy accounting/sloppy refining process


mfields111's picture

Good Job Craig

But we may ask what does it take to produce the default that ends the charade?It appears that faile to deliver the metal to China may have already occurred. Yet the sham continues.  London appears to be out of gold and silver, so is the gld and slv and the comex is likely out.  So we all wait for when accounts will be cash settled on the comex for the end.We don't know when that will be because we have no idea if there is any inventory left at the comex or anywhere else.  Anyone have any answer to this?

arch stanton's picture


years ago when no one had ever heard of Craig Hemke, or Turd Furgeson for that matter, Bron Su suckass was a big shaker.  As the mouthpiece of the Perth Mint he naturally commanded respect as a representative of the purveyor of the Aussie's official coin.  Over time it became evident that he is just another official maggot, douchbag, creep, bitch, non-man, fuckstick, rat bastard, low life, bucket of spit.  Our guy, on the other hand , the guy with the funny hat, has gone from total obscurity to being the hot interview, and the guy who can interview the big dogs, because they know there are going to be thousands who hear their voice. He has achieved this because he stands on the firm moral footing of honesty, integrity, and loyalty.  He isn't always right, but being right, isn't why he has attracted the following he has.  He gives you his best shot.  His best shot based on long experience, and new revelations which have come because the game has changed.  It has changed from markets to a rigged shell game in which you and I are the marks.  It is our guys's job to figure out where the pea is.  Bron is a corrupt loser whose job is to make sure the fleecing of you and I continue as long as possible for the benefit of his handlers, and he is on his way out.  I honestly and a sincerely wish him the worst possible outcome for his life.  Our guy (the one with the funny hat again) is on his way up and commands more and more attention because he actually wants the best for his fellow man (we scum) and his subscribers.  When this horrible clown show finally takes a shit we will see who winds up where.

canary's picture

I amazed that with today's modern and global...

...spread of is so difficult to determine if there are real shortages of gold and silver. Everyday I get conflicting news on that subject.

In my younger days (somewhere between E. Berlin and Moscow) when information traveled super slow (if allowed to flow at all)....there were shortages of very much everything (but military uniforms and alcohol)...And I knew about them the next day!...In many cases days before....People queuing for the night in long lines (sometimes for days with relatives/friends taking turns) often pushing each other or fighting closer to the counter. Thriving black market and higher prices....The shortages were right in front of my eyes...without any need of modern information flow.  

Bohemian's picture

Times are changing, that's for sure... ;-)

Not that I would be paranoid. No... Not a chance. Yet, I feel like an idiot sometimes. I just spent one hour with a lady from the eBay, the international shipping, trying to figure out what the hell is going on. I was trying to tell her that I have seen something weird on the eBay, on pages of the metal dealers like APMEX, MCM, baypreciousmetals, and others, and I asked her to give me some explanation --

Check the Shipping. I don't know if you see it, but she didn't on her end. I do see this, since the last night --

"Does not ship to Czech republic," in RED. Considering all those countries (see exclusions), why would they put there the Czech republic for me, IN RED, in my face, if I am sitting in California with my iMac, that doesn't "travel" with me? ;-) I never saw it before, until the last night. All the major dealers on the eBay are serving me this weird note, like baypreciousmetals --

Why would they put there the Czech republic for me, MAY NOT SHIP to Czech republic, if they ship only to: United States?

She doesn't see it on her end, but I do. I asked her: How do you know that I have something to do with the Czech republic, too? Why would you serve me that note on my end? I never bought anything from these "baypreciousmetals" people. You can check my account. Yet, if they ship their metals NOT worldwide, just to the U.S., why is there that note for me? On the other hand, buying from APMEX on eBay for 2-3 years, all the shipments went to my U.S. addreess in California, nothing ever to the Czech republic; yet, since the last night, I see this note in RED...?

Strange times. What else do they know about us? :-)))

AlienEyes's picture

Quantum of silver hunting...

I hunt for small quanity deals in G & S during times like this. Last week I found a metals dealer in yankee land that was offering UK one oz. silver for just under $169 for ten with free shipping. I picked up 50 of the shiny little things. A few weeks ago, I found 10 oz. RCM bars for under $164 each with free shipping from a different dealer and out of the kindness of my heart I managed to give ten of the little beauties a warm home.

Personally, I never buy monster boxes. Too many eggs in one basket for me. I also no longer buy any eagles, (S or G) just in case our crack pot government decides it still owns everything that is "legal currency". Silver is still out there in smaller quantities, if you are willing to look for it. That could quickly change if the supply continues to tighten.


infometron's picture

well well well

Comexodus: JPMorgan's Vault Is One Withdrawal Away From Running Out Of Deliverable Gold

Joseph Warren's picture

@canary - Remember GUM Dept Store in Moscow then?

Huge place, with almost nothing to buy. And people waited in long lines everywhere. They bought/sold what they could in the real market. The govt types tried to demonized it by calling it the 'black market', of course. Just people freely trading value-for-value among themselves. Trying to survive.

There was a time when it was absolutely inconceivable that the Soviet Union would fall. And then, over a relatively brief time span, - it was no more.

A reminder of the past for you -

Markedtofuture's picture

Bankruptcy Misconduct

Interesting site for research. Check out the people tab for a variety of different issues.

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