The Games Continue - 1630 & 29

Fri, Jun 15, 2012 - 11:21am

As we await what could be an historic weekend, we might as well take some time to look at the current state of the paper metal markets. In a stunning development, prices appear to be capped.

First of all, we have to address what happened this morning. Even ZeroHedge, which for whatever reason attempts to completely ignore metal price manipulation, got in on the act this morning. ( In this instance, they are correct about the "stop hunt" but the bigger news (which isn't mentioned) is "whom" is doing the hunting and, even more suspiciously, the timing of it all.

Take a look at the chart below. Note that the $10 spike UP occurred at 8:26 EDT. At exactly 8:30 EDT, the NY Fed released a completely dreadful "Empire State Manufacturing Index" update. ( If we were to assign rationale for a $10 spike to the "disappointing" economic number, shouldn't the spike have occurred at 8:30 or 8:31? Hmmm? Nope, As you can plainly see, the spike occurred at 8:26.

Now, we could probably spend all day asking questions like:

  • Was the data "news" leaked?
  • Were the trades executed by a stop-trolling spec algo or a stop-trolling Cartel algo?
  • Was it all pre-designed to act exactly at 8:30, using the headlines as "cover"? And did someone just get antsy and/or program the trade to begin prematurely?

Of course, well never know. The CFTC couldn't give a rat's ass about things like this. They're too busy planning parties where they spend the money saved by Gensler and Chilton never seeing a barber. Regardless, all of this is simply today's "Exhibit A" of the total farce which the paper metal markets have become.

So, anyway, back to 1630 and 29. Take a look at the chart above and you'll see something else: Another foray above $1630 that was quickly beaten back. Why is $1630 so special. Well, I could cite a number of reasons but let's stick to the charts. First, I lifted the chart below from Trader Dan. (Dan doesn't get to post much but that doesn't mean you shouldn't still be checking his site daily

Note the horizontal and diagonal resistance around 1630. You can also see The Cartel capping action on this chart:

The effort to keep silver below $29 is even more obvious and...odd. Seriously, why $29? What makes $29 so important to JPM? (Since we know from the latest CFTC data that JPM is the only firm shorting at this point, it is logical to deduce that JPM is the party capping price at $29.) July12 silver options expire on June 26. That's still 7 trading days away and $29 is an odd number to defend for that sake. There's far more known option open interest at $30 than there is at $29. Maybe you think I'm crazy. Maybe you think I'm seeing things. Maybe you should have a look for yourself.

At any rate, price is clearly being held below $1630 and $29 and I sure don't expect that to change over the remainder of the day. There might be some fluctuation but why on earth would anyone be willing to gamble by taking a large position at this point. It's much safer to lay low, watch the headlines and get ready for Monday.

As you all know, the Greek elections are Sunday. Regardless of the outcome, we can expect fireworks when everything re-opens Sunday night. And do not overlook the Egyptian elections which are also this weekend. Boyohboy, if you want to talk about long-term, Middle Eastern geo-political ramifications, look no farther than the Egyptian elections.

In the time it has taken me to type this, I see that another foray above $1630 has been beaten back. That's pretty funny. Again....what a complete joke the paper metal markets are. However, that should not stop you from buying even more physical metal. I am still expecting a hot, explosive summer for gold and silver prices. Physical demand is extraordinarily strong and events are swirling that will change forever the dynamic of how gold and silver are priced. Be patient and continue stacking.

Have a great weekend but be prepared for a very wild and volatile week ahead.


About the Author

turd [at] tfmetalsreport [dot] com ()


Jun 15, 2012 - 4:04pm
Jun 15, 2012 - 4:08pm


That "Coup of America" was one helluva an article. The depth of their depravity is almost beyond imagination.

Jun 15, 2012 - 4:08pm

Pictures From

Pictures From Zimbabwe Coming to "theater" near you?

Jun 15, 2012 - 4:21pm

Re: Pictures From ^^^

That is some scary, scary shit...

Jun 15, 2012 - 4:22pm

repy to Erratum Above by gosave

"In fact it seems senseless to suppress these prices to protect the currency when the practical effect of the policy is to serially strip the US Dollar of what little practical backing it has, give China a made in heaven exit strategy for the 2,2 trillion in unwanted dollars they are trapped in, and help China build the worlds next reserve strategy.

Perhaps it buys time, but that's about it, its pretty clear how it will end. "

I have been contemplating what if China had threatened to upset the US fiat dollar apple cart by dumping their treasuries. If China proposed the central banks control the price of gold over several years (less than $1600) so they could convert fiat dollars to gold they would let the Ponzi scheme continue, our banksters could continue to plunder. If I was China, and I wanted to have the next gold backed world currency, I would want about 20,000 tons of gold.


"the US government allegedly manufactured/bought some 1.3 to 1.5 million 400 oz, gold-plated, tungsten bars. Some 640,000 of these bars were allegedly stored at Fort Knox, and the balance was sold/shipped to central banks/other parties around the world."

​This potential 600 million ounces is about 20 million kg or 20,000 tons of gold plated tungsten. The value of 600 million ounces gold is about $960 billion or one trillion dollars.

​Since most of the gold in the world is claimed by various central banks and is mostly stored in New York and London vaults with various stickey notes denoting ownership. The stored international gold is rarely if ever audited. If you substituted your tungsten bars for real gold, the claimed owners would be none the wiser. An elegant way to practice fractional reserve gold vaulting. Jim Willie stated that over 5,000 tons of gold was shipped so far this year to the far East without records through the London market. It appears that China could be well on their way to 20,000 tons of real gold.

​I assume that the Fort Knox gold was already switched in the last 10 years. JP Morgue,Goldmen Suks, and the London banksters may complete the switching of German, French, Italian, and Arabic gold with tungsten bars so China has their 20,000 tons. When the deal is complete, the price of gold will to to $10,000, the TBTF banks will "fail", reconstituted as new entities with the same old banksters in control, and the US goobermint will authorize printing of another trillion to cover the losses of TPTB while joe six-pack and the middle class bear the losses via taxes and inflation. The banksters will continue to plunder while the world has a new gold backed currency..

P.S. The US government will impose a 90% excess profits tax on bullion sales/

Jun 15, 2012 - 4:27pm


You better h/t this one. Could be the best of the day

Jack McBrayer & Triumph Visit Chicago's Weiner's Circle - CONAN on TBS
Jun 15, 2012 - 4:36pm

Detroit versus Hong Kong

It's becoming apparent why Chinese have been 'stock piling' industrial metals . . . They have now clout larger than GS and JPM with their Detroit based warehouses: From today's LME buyout press . . . "Hong Kong is the only place in China where investors can freely buy and sell shares in Industrial & Commercial Bank of China Ltd., the biggest lender by value, and PetroChina Co., Asia’s largest company. The deal would be Hong Kong Exchanges’ first overseas acquisition. The 135-year-old LME sets global benchmark prices for metals including copper, aluminum and nickel, of which China consumes more than any other nation. Its network of warehouses doesn’t currently extend into the country."

Jun 15, 2012 - 4:47pm

I'm still laughing. Thanks


Submitted by murphy on June 15, 2012 - 4:27pm.

You better h/t this one. Could be the best of the day

I Run Bartertown
Jun 15, 2012 - 5:03pm
Jun 15, 2012 - 5:29pm

@ Bullwhip29

RE: 100% Chance of a Beatdown

So to follow up, yea I think we will most likely have an inconclusive election. This will not be looked on favorably by the market because it 1) doesn't lead to an obvious Greek exit, so CBs don't need to "interfere"? and 2)Doesn't leave them in and thus not pro-bailout. Either way markets will sell of and Gold along with it, insert whatever reason you would like here for why, doesn't matter. Oil, copper, etc. will also fall as there is another rush for treasuries and dollars. The Egyptian election will just add fuel to the fire. But don't worry this will all be proceeded by the saviors in chief, the CBanksters, coming in on tues to save the day. And guess what, this all gives cover to Obama to commission Big Ben to press the QE button, no questions asked. Then the games begin. I'm hoping to get in on some Gold at sub-1600s, one-last-time. Today was an excellent day to exit any and all equity positions, and I'm pretty sure that was what today had been engineered for and Thursday's CB coordination announcement was the vehicle. Good luck to all.


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