A2A with Jim Comiskey of ADM Investor Services

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Please take the time to listen to this recording of today's A2A webinar. It's full of great information but the first 11 minutes, where Jim explains the massive purchase of Dec15 gold calls yesterday, is worth its weight in gold. (Pun intended.)

Two things that go along with this recording. First, Jim mentions a "great book", one that everyone should read called "Beyond Greed", the story of the Hunt's attempt to corner the silver market in 1980. Here's a link: https://www.rebelmouse.com/redyspverpleredic/beyond_greed-310170525.html

Jim also mentions the Relative Strength Index for gold. Here's a definition if you're not familiar with the term:

http://www.investopedia.com/terms/r/rsi.asp

And here is a daily Dec gold chart with the daily RSI. Note that it is washing out but could still get worse/go lower.

TF

31 Comments

StevenBHorse's picture

Thanks

For bringing him in.  Guy knows his stuff, and it's just awesome to listen to him talk about the mechanics of the market.  

ArtL's picture

2

From Wikipedia (the references are for the Wikipedia article, and may not work here)

There are several versions of the text of the Second Amendment, each with capitalization or punctuation differences. Differences exist between the drafted and ratified copies, the signed copies on display, and various published transcriptions.[10][11][12][13][14][15][16][17] The importance (or lack thereof) of these differences has been the source of debate regarding the meaning and interpretation of the amendment, particularly regarding the importance of the prefatory clause.

One version was passed by the Congress,[18][19][20][21][22]

As passed by the Congress and preserved in the National Archives:[23]

A well regulated Militia, being necessary to the security of a free State, the right of the people to keep and bear Arms, shall not be infringed.

As ratified by the States and authenticated by Thomas Jefferson, then-Secretary of State:[24]

A well regulated militia being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed.

The original hand-written copy of the Bill of Rights, approved by the House and Senate, was prepared by scribe William Lambert and resides in the National Archives.

Mr. Fix's picture

3rd

This blows away anything on the radio today.

Thanks Craig!smiley

Turd Ferguson's picture

More from Fitz

MODERATOR

Must read: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/21_4_Fantastic_Charts_Showing_Gold_Is_Nearing_A_Major_Turn.html

And then there's this. Where have you heard this before? He must be a closet Turdite.

At the end of the day, the bet I’ve made, and it’s a major bet, is that the forces of good will win.  But at the moment, the forces of darkness are still ruling the paper market.  I can assure you that even though these dark forces are winning some battles, they will definitely lose the war, and as they are defeated the price of gold will experience an enormous re-pricing to the upside.  We are talking about a move higher that will shock the world.”

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/11/21_War_In_Gold_Intensifies_As_Massive_Battle_Rages_In_London.html

Pining 4 the Fjords's picture

Thanks to Jim for a great interview

Another fine A2A- I love these things!  Jim knows his stuff, I learn something new every time. 

ray1268pt2's picture

Why did you have this crook on ?

I consider every trader on the Comex a criminal  ! They know what is happening and keep their collective mouth's shut . Any bets that he is piling on the short side and laughing at us.

Gundo's picture

book link

I am not familiar with this site. Is this e-book free to download?

Whitecastle123's picture

Crook?

Hit the deck everybody,  we've got incoming !!!

Turd Ferguson's picture

No and don't be a jerk

MODERATOR

I consider Jim a friend.

Turd Ferguson's picture

Woody in 2007

MODERATOR

Objecting to the potential use of "the nuclear option" changing Senate filibuster rules.

 

Turd Ferguson's picture

And here is The Idiot Biden

MODERATOR

SilverRunNW's picture

@ray1268pt2

Did you opt for the 1-year subscription, or just monthly?  Hearing how markets like the COMEX actually work, from an Insider, is hugely valuable information.  Where else are you going to find this kind of information on the net?  I'll answer that for you...  right here! 

There is actually a valid reason to have a futures market, especially for farmers.  Do you know why? 

Now having gold and silver traded on the COMEX futures is another story.  The banks want you to think it's a commodity, when in reality, it's money. It should not be traded on the COMEX, and maybe someday soon, it will not.

Lose the attitude, Ray.

Turd Ferguson's picture

And of course, the disingenuous liar, Harry Reid

MODERATOR

For non-U.S. citizens, Senator Reid is the Majority Leader of the Senate and the man responsible for today's vote to change the rules.

 

 

tyberious's picture

Paul To Obama: “Enough Is

Paul To Obama: “Enough Is Enough, We Want Our Freedoms Back”

by Steve Watsom, Prison Planet:

http://www.youtube.com/watch?feature=player_embedded&v=qVeAqXUILOQ

Kentucky Senator Rand Paul has issued a impassioned video address, slamming the surveillance state and demanding that freedom be restored.

We were once outraged and dismayed and spurred to resist when British soldiers came knocking at our door with illegitimate warrants seeking taxes on our papers.” The Senator notes, citing the American Revolution. “Today, your government responds that there is no expectation of privacy once you consign your records to a third party.” Paul continues.

Your government argues that the Fourth Amendment applies not at all to your bank records, your Visa bill, your internet searches or purchases or emails. If not resistance, shouldn’t there at least be outrage?” The Senator urges.

Adding that Orwell’s 1984 needn’t even be imagined in order to be alarmed, the Senator continued “Imagine for a moment what information could be gathered from your Visa bill,” he added, pointing to personal information pertaining to health and even politics.

“Are we so afraid of terrorists that we are willing to give up the very freedoms that separate us from them?” Paul asked.

Read More @ PrisonPlanet.com

ray1268pt2's picture

When there is a free market

   There are no free markets in USA . I am sure for farmers also .

The Comex is not called  the Crimex for nothing  . The world would be

a better place without the comex . Before the future market farmers  did okay .

Once the Comex is destroyed and democracy  restored there may be a place for a futures

market under strict controls .

Hagarth's picture

Jim is a heartfelt man

For 2 1/2 years Jim has been an almost daily source of information, I appreciate his willingness to share his views. 

Turd Ferguson's picture

EXCELLENT from Chris Powell re Armstrong

MODERATOR

Armstrong needn't research gold manipulation; he simply knows there isn't any

 

 
 Section: Daily Dispatches
5:50p ET Wednesday, November 20, 2013
Dear Friend of GATA and Gold:
The gold world is blessed with a few people who believe they know everything without having to do any research.
Of course there's Jeff Christian of CPM Group, who, no doubt pleasing the central banks and bullion banks among his clients, angrily denies complaints about manipulation of the gold market without ever addressing even one of the dozens of pieces of evidence.
Then there's Doug Casey of Casey Research, whose denials are starting to be contradicted by the grunt work of his own staff.
But the gold world's most convinced know-it-all may be market analyst Martin Armstrong, who lacks even an ounce of humility despite the ruin visited on him by years in federal prison on fraud and contempt charges.

In commentary about today's abrupt decline in the gold price, headlined "Gold Manipulation or Lack of Liquidity?" --

 
Armstrong writes:
"All such extreme selloffs seem to be accompanied by allegations of manipulations. But rationally looking at this, the sellers will actually hurt themselves because they are not achieving the best possible price. Every manipulation I have witnessed in the metals has been driving the price up and spinning the story of shortages to get the people to buy" as the manipulators "sell into every high, and then the market crashes. You would not shoot a market here in this manner to make money. This is more indicative of liquidation based upon price action without regard to liquidity."
Just amazing. It's as if the great expert Armstrong has never heard about gold's negative correlation with currencies, real interest rates, and government bond prices, long established by academic literature, or about the oft-admitted interest of central banks in suppressing gold to support their currencies and bonds.
Mr. Armstrong, of course the many recent dumpings of gold contracts in the futures markets seem like no way to make money from selling gold -- because they have not been meant to make money from selling gold. Instead the objective has been to support currencies and bonds. Good grief!
Armstrong continues:
"There is no 'manipulation' organized to force the price down. This is simply a bear market and there has been steady liquidation of commodities in general. A manipulation is apparent only when that single commodity is moving counter-trend to the group."
Really, Mr. Armstrong?
Central banks trade in the gold market every day, directly and through their agent, the Bank for International Settlements, whose only members and clients are central banks. Bullion banks also trade in the gold market every day, often using gold leased from central banks, which lease gold precisely to control the market.
As Federal Reserve Chairman Alan Greenspan testified to Congress in 1998 --
-- "Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over the counter, where central banks stand ready to lease gold in increasing quantities should the price rise."
Many other central bankers have publicly acknowledged surreptitious intervention in the gold market, and GATA has amassed much documentation of that surreptitious intervention here:
A recent summary of that documentation is here:
So did Armstrong survey the central banks and the bullion banks about their gold transactions today? Has he done so ever? Did they give him answers they were willing to have published and thus account for?
The staff of the International Monetary Fund conducted such a survey in 1999 and reported, if secretly, that central banks demand secrecy for their gold leases and swaps precisely to facilitate their surreptitious intervention in the gold and currency markets:
Maybe what happened today in the gold market was not surreptitious manipulation underwritten by central banks -- GATA certainly doesn't know particularly about today -- but on what basis does Armstrong know that itwasn't?
He doesn't say. He doesn't have to say. He's Martin Armstrong. As with Jeff Christian and Doug Casey, being Martin Armstrong is as good as knowing.
As for Armstrong's assertion that "a manipulation is apparent only when that single commodity is moving counter-trend to the group," Pacific Group's William Kaye quickly responded: "Gold is acting counter to its group, which would be other forms of portable wealth like rare diamonds, artwork, old maps, and even bitcoins. As a monetary metal gold often doesn't move in sync with industrial commodities."
Of course like Christian, Casey, and a few others, Armstrong considers himself too important to bother collecting and addressing evidence. He just pontificates -- and thus is useful only to his ego and those who profit from his spreading disinformation.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
 
SilverRunNW's picture

@ray1268pt2

I think I pretty much agree with everything in your last post.  Somehow, America and our farmers were able to survive without the futures market.  Now I'm not a historian, especially for futures markets, but we've had them for thousands of years, and they mitigate risk at the expense of the upside.  That's where the speculators come in, risk for the reward/upside.   I think it allowed farming in America to expand to a greater extent to what it could have without the futures market.  That's just my humble opinion, not fact I read somewhere.

Today's futures markets are a gross distortion of its' original intent and allows for position concentration and manipulation.  It's killing America.

Now as far as Jim Comisky goes, he's a guy who helps those (relatively small) investors that actually have a need to hedge crops, products, metals or small speculators that need or want to participate in the futures market.

So for you to say "I consider every trader on the Comex a criminal" is short sighted and/or at least naive.    Mr. Comiskey is a top notch guy! 

tyberious's picture

RE: EXCELLENT from Chris Powell re Armstrong

In a word scathing!!! Kudos to Mr Powell!

I'm glad those with the strongest voices and the courage of their convictions are willing to challenge those that claim there is no manipulation in the PM market!

Thanks Turd!

Plunjer's picture

@ray1268

Interesting take on JC. Personally I'm not inclined to think he's a crook but who the hell really knows? These days I wouldn't trust anyone farther than I could throw Eric Sprott.

whymenow's picture

ray1268pt2

ray1268pt2

ray1268pt2's picture

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Plunjer's picture

Sandeep Jaitly tweet

Feb #gold in #backwardation of 19c (0.05%) annualised - unprecedented...

https://twitter.com/bullionbasis/status/403715090584965120

drlinks's picture

UNCLEAR ON THE 18K OPTIONS CONTRACTS 2X @ $20 IF STRIKES $30

Great Interview...I have a question Turd.  I know the basics of options, HELL I TRADE THEM NOW AND AGAIN, and I don't understand how this clearly EASTERN HEMISPHERE purchase of 18,000 Spot Gold LEAP CALLS at a strike price of $3,000 can possibly yield the buyer a DOUBLE by spot gold going up to just $2,000.  I've always known and been taught that the derivative trade,which any option trade is, must go beyond the strike price if the buyer indeed bought calls, which simply give him the right,not obligation, to buy Gold at $3,000 upon its expiry, which must be of the new 2016 variety...  Am I missing something, or misunderstanding something, because I fully understand the fact that options have two areas of value, intrinsic and extrinsic.  Extrinsic value speaks to the time value or as the GREEK that was mentioed - THETA.  Because the metals are in the toilet right now, IV, or Implied Volatility is extraordinarily LOW, as mentioned with the LOW VEGA,which is really a corollary to the most often looked at GREEK, Delta, whch shows how much your underlying assets move will cause the price of your call or put to move.  In other words, DELTA and VEGA are both measurments of the underlying asset, each with a differing focus.  Delta measures the rate of change of option value with respect to changes in the underlying asset's price.  Delta is the first derivative of the value V of the option with respect to the underlying instrument's price.  It is also widely used as a proxy for probability that the option expires in the money becaue the absolute value of Delta is close to, but not identical with, the percent of moneyness of an option, i.e., the IMPLIED probability that the option will expire ITM.  Vega measures sensitivity to volatility and is the derivative of the option value with respect to the volatility of the underlying asset.  As I mentioned, because the metals are in the shitter, it's easy to spot some phenomenal option contracts BARGAINS out there amongst Miners or better yet Streamers like Silver Wheaton (SLW).  Given the fact that you'd WANT to buy LEAPS (Long Term Treasury Equity Anticipated Securities) in the Gold/Silver Realm, as they have phenomenally LOW IV (Implied Volatility) or VEGAs combined with 2+ years until expiry, thus the Supremely HIGH THETA,---BUT I STILL DON'T UNDERSTAND HOW ANYONE WHO BUYS ONE or 18,000 contracts can DOUBLE HIS MONEY if they're buying a call and they never reach their strike.  It's like me buying 100 LEAPS for JAN 2016 expiry for Organovo (ONVO),the 3D Bioprinting company [they're far from actually offering LEAPS yet but please stick with the example for my understanding.]  Say the Theta is super LOW on 3D printing stocks [it's actually explosively high], If the cost of [NYSE:ONVO] is $12.50 for arguments sake, and I buy 100 Calls for Jan 2016 Expiry for 1.00 each at a strike price of $30, how could I make a red cent, much less double my $10,000 invested if the price got up to $2,000????  Unless you meant that the value of the 18,000 gold contracts doubled in value once gold hits $2,000 and THERE'S STILL ANOTHER YEAR OF THETA LEFT ON THE 18,000 CONTRACTS.  I know fully well that options are liquid, and that the theta or time value brings the value of the option down everyday as you get closer and closer to  expiry, but that must be what Jim Comisky meant, b/c if you take my example, THE ONLY WAY I COULD MAKE A BIGMONEY BELOW THE $30 STRIKE ON MY PSEUDO TRADE WOULD BE IF I'M DEALING WITH AMERICAN STYLE OPTIONS THAT ALLOW ME TO LIQUIDATE AT ANYTIME AND WITHIN THE FIRST YEAR, ONVO GOES PULLS A DOUBLE AND GOES ALLTHE WAY UP TO $25 AND I'M JUST $5 AWAY FROM EXPIRATION OR SOMETHING WILD LIKE THAT OCCURS, OR, I'M HELLBENT ON HOLDING THEM UNTIL EXPIRY AND ON JANUARY 16, 2016, (ONVO) IS SITTING ABOVE $31, IN ORDER FOR ME TO MAKE ANY PROFIT AT ALL....

THANKS FOR YOUR HELP CLARIFYING.....

 
shorthand's picture

Good to be back

This place really makes my day. Thanks Turd and all.

Peoples Front of Judea's picture

Gold WTF

angry    Trading  in a two dollar range for 12 hours

looking for a further drop todayyes wanna  ADD TO THE STACK

Keg's picture

Gold chart

I'm not a great chart reader and I don't know how to get one to post here.  But if you look at the gold chart, there is a clear down channel starting 10/30.  We were at the bottom of the channel yesterday.  If the pattern holds we will see a bounce to somewhere in the 1255 area before dropping to 1220.

Turd Ferguson's picture

Yes. You answered your own question. :)

MODERATOR

The are American options so they can be liquidated at an time.

If price moves UP substantially in the next few months, they options purchased at 4.00 will be bid at 6.00 and then 8.00, giving the holder a potential, significant profit.

Keg's picture

Obama, Reid, and Biden

Of course those videos show them lying.  They are career politicians and their mouths are moving. 

After voting for the end to filibusters, one senator from my state talked about how she wanted to see more bi-partisanship in Congress.  After she voted to shut the other party out from any voice on presidential appointments.  And as recently as last week her website said "if you like your policy and doctors, you can keep them."

I'm not sure where this quote originated but I have heard Rep. Gohmert say it.  "A lot of people think life is like a box of chocolates.  It’s more like a jar of jalapenos.  What you do today – might burn your ass tomorrow."  I hope that rings true for Obama and Reid.

SilverSurfers's picture

$

index down trend went to 79.0 (near 78.9 52 week low), pops to 81.5, now at 80.8. which is the 50% level on that pop.

Was the NV land swindler's great grandfather a hanged MN horse thief, when claim jumping?

http://urbanlegends.about.com/b/2009/01/12/the-real-truth-about-harry-reids-horse-thieving-uncle.htm

Which gives sociopathic reasoning behind the hunt for red october by captain Marko Aleksandrovich Ramius

ddaak's picture

COMEX DEC Countdown - 11/21/13 update

FYI:

COMEX registered gold inventories increased slightly yesterday, about 1400 ounces. Total OI increased by 4694 contracts to 408,297. Total claims per oz now stands at yet another new high of 69.2. Rolling has begun in earnest, DEC13 OI decreased yesterday by 23,784 contracts to 126,583. DEC13 claims per oz is now at 21.5.

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