More Evidence That JPM Has Cornered Comex Gold

If I can bring all of this together, it will go a long way toward proving correct Ted Butler's theory on JPM's current corner of the Comex gold futures market.

So, let's start with Uncle Ted and his assertions. Recall that Ted is a first-rate analyst who has been trading commodities for about 40 years. He has paid particular interest to the silver manipulation for the past 20. He writes an excellent newsletter to which you can subscribe by clicking here: http://www.butlerresearch.com

Using the CFTC-issued weekly and monthly data (Commitment of Traders & Bank Participation Report), Ted has followed along over the past eight months of position changes and, over that time, the changes have been dramatic. As you know, The Bullion Banks were caught heavily short at the initiation of QE∞ last autumn. I contend that this entire manufactured correction scheme was initiated by The Bullion Banks to give them an opportunity to get out from under their naked short positions and move net long. Ted has concluded that it's not the Bullion Banks per se. Instead, the scheme was initiated by JPM solely for the benefit of JPM and, from a net short gold position in excess of 50,000 contracts last December, JPM has now transitioned into a net long gold position of more than 65,000 contracts. IF THIS IS TRUE, there can be absolutely no doubt as to:

  • The motive behind the counter-intuitive price correction AND
  • The certainty of a very large and significant UP move for gold in the very near future.

I did not set out to prove or disprove Ted's assertions. After following the Comex gold and silver deliveries these past 60 days, simple curiosity led me to do some research on recent delivery patterns. What I found not only piqued my interest, I think it proves Ted correct. And again, IF TED IS CORRECT, then there is most certainly a very big move coming in gold.

So, let's start here: After taking into their house account (again, this means stopping the metal to themselves, into their own, proprietary account) 280 of 3,922 Dec12 silver deliveries, 970 of 2,526 March13 silver deliveries, a big fat zero of 3,416 May13 silver deliveries, JPM stopped to themselves 2,824 of the 3,444 July13 silver deliveries. That's 82%. For obvious reasons, this anomaly got my attention.

As I've been chronicling here all month, this trend continued into the August13 gold delivery period. Last Thursday alone, the final day of August deliveries, the JPM house account took down 154 of the 164 Aug13 gold deliveries. This brings their monthly total to 3,151 of the 4,075 contracts delivered. That's 77.3%! What's more, after the initial surge of 1,962 deliveries on the 1st and 2nd of the month, the JPM house account claimed for itself 1,945 of the 2,113 remaining deliveries. That's 92%!

With this as inspiration, I went back and reviewed the previous delivery months for gold on The Comex. These delivery months in 2013 have been February, April, June and now August. What I found is startling.

Let's start with February. Before we begin, recall that for every buyer, there is a seller...and...for every person or entity taking delivery, there is an issuer from whose vaults that metal will flow. Further, keep this in mind...If you have been naked shorting paper contracts all month, you stand the risk that the entity on the other side of your trade will stand for delivery. So, it follows that, when we see one firm taking consistently taking delivery and another firm consistently issuing the metal, we can deduce who has been shorting all along and who has been buying. Does that make sense? I hope so. If it doesn't. then please re-read that info before proceeding. It is critical that you understand this.

OK, back to February. During that month, the Feb13 contract was in its delivery period. What initially caught everyone by surprise was the sheer volume of deliveries. After just 3,253 in Dec12, a month which is usually one of the biggest delivery months of the year, the delivery total for February surged to 13,070. Of that total, the DeutscheBank house account took 5,917 and the HSBC house account took 4,879. Between the two of them, they accounted for 82% of all Feb deliveries. And just whom was issuing this metal? JPMorgan. For the month, JPM issued 7,854 of the 13,070 delivery requests. That's 60%. Also getting in on the act was Scotia. They got clipped for the issuance of 3,644 contracts. That's 28%. So, the DB and HSBC house accounts took 82% of the deliveries while the JPM (house and customer) and Scotia house accounts supplied 88%. And don't forget, this was a lot of metal! Thirteen thousand and seventy Comex contracts is 1,307,000 troy ounces, which equates to 40.6 metric tonnes.

Suddenly, the deliveries for March surged, too. Instead of the moribund 500 or so settlements that we typically see in this "non-delivery" month, March13 saw an incredible 4,229 made...more than last December! I'm quite certain that that has never happened before. So what happened? Why was the March total about 3,000 to 3,500 more than typical and expected? Keep reading...

After getting clipped for 3,644 deliveries in February, Scotia immediately went on to warpath to get that gold back. For the month of March, the Scotia house account took in 3,383 deliveries while at the same time issuing 179. All totaled, Scotia net deliveries were 3,204 of the 4,229 deliveries for March. That's 76% and, if you take that away, you're left with just the typical 1,025 March deliveries. (Actually, it's not that typical. The Barclays customer account took 834 of the 1,025.) Oh, you're probably wondering which firm provided the metal for all those deliveries? JPM. For March, JPM issued 1,813 out of their house account and 2,209 out of their customer account. That's a total of 4,022 or 95% of all March deliveries.

The next month is April and, once again, it's a delivery month. The surge in total deliveries continued as 11,632 contracts were delivered to eager buyers. Of those, HSBC was again the big winner with 3,954 deliveries into their house account. Scotia took 3,292 and Barclays got in on the act with 1,276. Between the three of them, these proprietary house accounts combined for 73% of all April13 gold deliveries. And who got stuck with the bill? DB paid out 992 and Scotia paid out 595. This left the balance with none other than JPM and they issued 9,690 contracts or 83%. 5,990 came out of JPM house and 3,700 came out of their customer accounts. Again and just for fun, 9,690 Comex settlements means that JPM had to ship out another 969,000 troy ounces or 30.1 metric tonnes.

So now it's May and, remarkably, the trend of deliveries in traditional non-delivery months continues and, whaddayaknow, it's a near-repeat of March. Of the 3,050 total deliveries in May, the Scotia house account took 1,746 or 57%. And guess who provided the metal...again? JPM. This time they got stuck providing 97% of the metal or 2,948 of the 3,050 deliveries. What's more, they issued the vast majority of this out of their customer account, which was raided for 2,781 of the 2,948 contracts. Again, "customer" gold is metal held on deposit for JPM customers. This is registered and eligible gold and, as we've seen for years, JPM is able to shift it around wherever they see fit. (And who are JPM's "customers"? Well, wouldn't you like to know?...)

Finally, this trend repeated one more time during the delivery month of June. For the month, 9,869 contracts were delivered. Once again, HSBC grabbed the lion's share, moving 4,935 (almost exactly half) of the deliveries directly into their house account. The Barclays house account took 2,000 and, for the first time since last December, the JPM house account claimed 547 or 5.5%. Issuing? You guessed it. JPM issued 7,425 or 75% while Barclays and DB added about 1,400.

So, through adding all of this together we get this. For the 3 delivery months of Feb, Apr and June plus the traditional non-delivery months of March and May:

HSBC House Account: 13,768 deliveries. Total issuance: One. Yes, you read that right. One.

Scotia House Account: 8,932 deliveries. Total issuance: 4,259

DeutscheBank House Account: 5,918 deliveries. Total issuance: 1,746

Barclays House and Customer: 5,384 deliveries. Total issuance: 908

JPM Customer: 1,444 deliveries. Total issuance: 16,758

JPM House: 547 deliveries. Total issuance: 15,181

OK, now before we go any further, I want you to take a second and review this excellent piece by Mark McHugh from back in April. Not only had he spotted this trend, he also goes on to explain how and why the deliveries out of the "customer" account should almost always match. There should not be a significant disparity. http://acrossthestreetnet.wordpress.com/2013/04/26/jamie-dimon-has-issues-or-meet-the-idiot-selling-gold/

Can you see what has transpired here?

Desperate to cover and eliminate their 50,000 contract short position but not wanting to do so through the actual buying of futures contracts for fear of disrupting the building price collapse, JPM decided to eliminate most of the position by settling and closing the short contracts in physical metal, instead. They likely made this decision in the expectation of re-acquiring the metal in the near future at lower prices. So confident were they in this eventuality, they even used customer gold to settle more than half of these obligations.

The month of June marked the bottom for the manufactured "correction" with price beginning the month at $1390 before trading down to a low of $1179 and closing out the month at $1224. Price has since continued to recover to a last of $1375.

Not coincidentally, June was also when Uncle Ted first noticed the change of position for JPM and he reported it in early July after reviewing the Bank Participation Report changes from June. Ted got me all worked up so I did some of my own research and wrote about it here. (http://www.tfmetalsreport.com/blog/4824/amazing-cot-and-bpr-gold) The gist of it is this: After years of being net short, the U.S bullion banks were net long, so much so that on the July BPR, they were suddenly net long almost 45,000 Comex gold contracts! This trend then continued onto the August BPR (http://www.tfmetalsreport.com/blog/4929/reconciliation) which showed the four largest U.S. banks to be net long an astounding 59,473 contracts.

It's important to note here that the BPR does not provide specifics. It simply aggregates the positions of the four largest U.S. bullion banks and the 20 largest non-U.S. bullion banks. So, it's impossible to say with certainty how the 59,473 contract net long position is divided. But consider this:

On the BPR dated 2/5/13, the 4 U.S. banks had a combined net short position of 69,300 contracts. After five months of deliveries and a $500 price drop, the 4 banks had flipped to 59,473 contracts net long. Now, go back up and reconsider all of the delivery totals listed above. Can you connect the dots??? If not, I'll do it for you.

JPMorgan decided late last year to rig the gold market lower in order to create the ideal conditions under which they could flip a 50,000 net short position to a sizeable net long position. Price, delivery notices and the CFTC-supplied reports document that they accomplished this feat by covering and delivering shorts while at the same time initiating and buying longs. They have no doubt been on the buy side of the record-setting Large Spec selling: http://www.zerohedge.com/news/2013-05-22/they-better-pray-there-no-short-squeeze.

And here is where it begins to come together...

If this is the case, and JPM is now net long a massive amount of gold futures, we should expect a complete change in the recent delivery pattern on The Comex. Instead of JPM being the primary issuer, they should be the primary stopper. Additionally, instead of the other banks being the stoppers, they should now be the issuers, particularly the non-U.S. banks as the August BPR showed them to have a net short position in excess of 22,000 contracts.

And what has happened this month? Exactly that! As stated above, of the 4,075 total contracts deliveries in August, and noting the huge dropoff from the volume of the three previous delivery months, 3,414 were stopped by JPM with 3,151 specifically designated for the JPM house account. And which firms have been issuing? Deutsche issued 1,116, Barclays has done 447 and Scotia accounted for 463. That's a total of 2026 or 49.7%. Note that all three are non-U.S. banks!

To me, this proves that Ted is correct. Not only is JPM net long the entire 59,473 shown on the August BPR, their position is likely even higher, offset in the net total by a net short position held by the other three U.S. banks included in the report.

And now...finally...here's the rub. The Big Kahuna. The Grand Finale. JPM is likely going to want back most, if not all, of the 3,193,900 ounces of gold that they delivered earlier this year. (16,758 customer + 15,181 house = 31,939 contracts = 3,193,900 troy ounces = 99.341 metric tonnes of gold) But the other banks aren't budging...at least not yet. There were only 4,075 total deliveries in August! And note that HSBC has taken delivery of 13,768 contracts so far in 2013 while delivering just ONE. And who is HSBC??? Yes, they're an English company but what do the "H" and "S" stand for? Do you really think that they are going to be in any hurry to return this 1,376,700 ounces of gold to The Comex and JPMorgan??? I'd say that this is pretty unlikely. Think about it. If HSBC would have simply played ball and handed back to JPM the 4,935 contracts that it settled to itself in June, total deliveries for August would have been at 9,000 not 4,000, a pace that would have matched February, April and June. Instead, total delivery volume came in at just 4,075 and JPM was left grasping to deliver any contract it can get its grubby little hands on as the final two delivery days saw JPM House stop 395 of the 419 remaining deliveries (19 out of every 20).

So, most importantly, what happens next?

Right now, the total open interest for the typically slow delivery month of October is just 23,758. Of that total, how many do you think are held long by JPM? 5,000? I'll guess we'll see when the deliveries begin next month. More significantly, the total open interest of the December contract stands at 229,838 (that's 60% of the entire Comex gold complex) and this is where JPM likely holds the majority of its net long position. If that's correct...and it most likely is...what the heck is going to happen in December? Is JPM going to simply roll into the Feb14 and the Apr14 OR are they going to stand for delivery AND, if they stand for delivery, are they going to attempt to extract 20,000 contracts or more worth of gold from the other BBs? And if the other BBs get wind of this, are they just going to sit idly by and wait to deliver or will they begin to move net long before it even gets that far? And then you're only left with Spec Shorts who don't have the capability to deliver 2,000,000 ounces of gold because they don't have it. They're just short the paper!

All of this could and should set off a buying frenzy/short-covering spree like no one has ever seen. Not only could and should price move higher in the weeks and months ahead, it should move dramatically higher, catching nearly everyone (except the readers of this site) by complete surprise.

Of course, all sorts of unforeseen events could come along and derail this plan so caution is always warranted. War could erupt in the MENA. Another Financial Collapse could materialize. Maybe India really will dump 200 metric tonnes onto the market. Any of these things could happen and nullify this forecast. However, I firmly believe that it is highly likely that this plays out almost exactly as I've described above.

I hope you're ready. Prepare accordingly.

TF

 

470 Comments

department of truth's picture

How much gold does Syria have . . .

that we can steal?  

ag1969's picture

Grayson tells White House: Don't Attack Syria

Bollocks's picture

India's Gold

There have been some news stories in the media in the last couple of days about the Reserve Bank of India discussing/considering various options of converting idle gold, including that available with temple trusts, into bullion.

The Reserve Bank clarifies that no such proposal is under its consideration at this juncture.

Alpana Killawala
Principal Chief General Manager

http://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=29444

Maximillion's picture

Perhaps this is why

Perhaps this is why it's only a 1% drop

BRICS economics agrees on structure of proposed development bank with $50 billion in capital - @Reuters    

Guess Brazil will use some

Mr. Fix's picture

That is not the "slam down" I predicted earlier.

silver.gif

There is so much more to come.

The bankers want to make sure everything is on sale when they get back to work Tuesday morning.

Kcap's picture

@fix

Where do you think they slam it to?  Re-test of lows?  $21?  Lower?

Would love to hear a guess....

Kcap

Urban Roman's picture

It's probably an assault on all commodities

Tyler Durden's picture

Crude "Flash-Crash" As Stocks Open Higher

S&P futures are up 10 points (thouhg below Friday's highs) as they open amid better-than-average volume for the Sunday evening session. Treasury futures prices have dropped notably implying around a 6-7bps yield increase with the 10Y trading around 2.84% (above Friday's high yield). The USD is modestly higher as JPY weakens but it is oil complex that saw early chaos as it flash-crashed over $3.50 at the open before bouncing back. WTI is now holding steady at around $106. Gold and Silver followed WTI's lead with the yellow metal dropping over $20 at the open before bouncing back.

 
No doubt in anticipation of a possible war ... 'Murrukans might get upset if they woke up Tuesday and gas was $10/gal. 
Mr. Fix's picture

Even though there isn't another hat on the line,

Kcap,

I suppose breaching 22 is highly likely. I still hold to the assertion that there is going to be a total  rout in the paper markets, where when they decide to pull the plug, the value of paper gold and silver will quickly approach zero, but of course, nobody's going to be buying or selling physical at anywhere near that.

That event has not yet occurred, and it may be timed with the beginning of World War III, or at least a phenomenally monumental false flag such as a nuke on American soil.

In the meantime, I suspect it will be the same old games, while just rearranging the numbers that they release, pretending that if you “go long” you can ride the wave and make a fortune.

Anyone who tries will be wiped out.

This is one of the reasons why I am disregarding who is long and who is short, because it is not relevant to my basic thesis.

Of course  I could be proven wrong, but so far, everything I see just confirms my basic premise that nothing happens until it all collapses.

pforth's picture

I agree with Mr. Fix...

Under $22 seems likely today.  Under $21 this week.  They are going to use the lack of war to smash us down.  Gosh I wish I could have both world peace and a gain on my PM investments.

lakedweller2's picture

The More They Attack Commodities

Non fundamental attacks indicate PMs are good. 

The debt ceiling is still a problem.  Deficit spending still a problem.  State funding still a problem.  QE still a problem. Unemployment still over 20%.

Tuesday morning will not be any better.  Must be "profit taking" or all desert property grabbed up by Buffet.

Kcap's picture

@fix

I agree that toward zero is where we'll go when the paper markets crumble.  But, since we've come down from $50, the toward zero could be anywhere in this area.....and the toward zero would still be correct.  That said, there is also compelling evidence to the contrary....that just like 2011, we will head toward $50.....but instead of a beatdown, there will be a beatup and the run will surge past $50, suckering in tons of paper players, stall around $70-$80....then the COMEX default and failure of delivery mechanisms, a halt in the trading price of silver as "we" know it while alternative international markets take over for price setting and then its really out of our hands....but since physical will be scarce(r) by then, it would therefore seem logical price would continue up to test the $118 area. 

But since none of us knows, its sure fun to speculate.

Kcap

Turd Ferguson's picture

Pretty remarkable, isn't it?

MODERATOR

DPH: How about the night and day difference between the quality of the comments here all weekend vs the exact same thread behind "the wall" last week? Great constructive stuff there, sniping and bitterness here. Interesting what a difference the $10/month makes.

Response to: Night & Day
Maximillion's picture

I disagree with Mr Fix

I used to think the same that they would run the paper price to zero, but then realized there's no point in them doing that as they can always settle any outstanding paper longs in fiat. As such, in order to maintain the ponzi scheme for as long as possible, it is in their best interests to keep the link between paper and physical prices for as long as possible, then for the Govt to step in and prevent trading of physical amongst non govt approved agencies.  

Only my opinion but it makes sense

opticsguy's picture

repost

why I think 1376 is in the cards for gold

Hat Tip!
3

I don't see how we go through $1500 without some sort of reversal on the p&f chart.  Otherwise, it is a long string of 'X's (blue) that rarely ever happens.  A pullback to $1376 would be a 3-box reversal from this week's highs (red), clearing the way to $1600 without a long unbroken string of 'x's.

A 4 box reversal 1% chart shows the same thing.  We need to store up some energy.

So It Goes's picture

Reverse Head and Shoulders

I am not a technician, and I'm not even sure that technical patterns can predict future prices,  BUT LOOK AT THIS:history.gif?s=FOREX_XAUUSDO&t=l&w=15&a=5

Silver Spot (FOREX:XAGUSDO) $metamarket Chart

DON'T SILVER AND GOLD seem to be putting in reverse head and shoulder patterns?

Just saying - it looks like higher prices are ahead for the patient.

So it goes.

hans007's picture

it touched 1375 on that slam

it touched 1375 on that slam earlier.  turning around though.

just random opinion, but if anything i think that the congressional voting taking a bit more time will just give PMs more time to rise.  people will buy on speculation of what they will vote.  gives them more time.   then sell the news unless something else happens in the meantime.   i bet we do something at least fire some cruise missles but it won't be such a big deal .  the big deal will be speculation as to what we will do and the possibilities.   

no idea what can happen,  what if we sent the CIA in there to blow something up at a rebel camp / civilian site or something to seal the deal on the war.   not completely insane right?   support is not so great right now, but if they can make it stronger by doing something like that, well the voting buys them some time to set that up.

ag1969's picture

9/1 BREAKING NEWS: Flash, USS Nimitz Group re-routed to Red Sea

In an apparent and quite interesting move, the USS Nimitz aircraft carrier and its battle group are being moved from the Arabian Sea into the Red Sea. Why one may ask? Because nations like Jordan are refusing to allow basing or overflight permission for an attack on Syria, thus neutralizing the relative safety of the Arabian Sea for such an attack to be launched from. With nations like Cyprus also refusing to allow basing for an attack on Syria, it is of little wonder as to why Obama has now used the political delaying tactic of blaming the Republicans for not opening up with a limited attack on Assad by requesting Congressional approval.

The story on the USS Nimitz group’s movements just broke on Reuters Canada minutes ago:

Exclusive: USS Nimitz carrier group rerouted for possible help with Syria

From the article linked above:

The nuclear-powered aircraft carrier USS Nimitz and other ships in its strike group are heading west toward the Red Sea to help support a limited U.S. strike on Syria, if needed, defense officials said on Sunday.

The Nimitz carrier strike group, which includes four destroyers and a cruiser, has no specific orders to move to the eastern Mediterranean at this point, but is moving west in the Arabian Sea so it can do so if asked. It was not immediately clear when the ships would enter the Red Sea, but they had not arrived by Sunday evening, said one official.

“It’s about leveraging the assets to have them in place should the capabilities of the carrier strike group and the presence be needed,” said the official.

http://johngaltfla.com/wordpress/2013/09/01/91-breaking-news-flash-uss-nimitz-group-re-routed-to-red-sea/

Mr. Fix's picture

Good find, AG 1969 That does account for the delay.

I was also wondering why anyone would start a war with a few destroyers when carrier battle groups are available. Maybe they were, with flyover  clearance, but now they are not.

Let's see if they can get there in a timely manner.

SilverSurfers's picture

2nd Turn

=========== THE GREATEST RACE OF ALL TIME ===========
JPM Long Gold (6/16 TF) Week Ending 6/30, Demanding JPM go long Silver (6/22 M5H) Gold 1192 Silver 18.61 (6/28 Kitco) The COT strongly indicates a rally (7/3 tyberious) LIFT OFF call (7/3 M5H) Seasonals suggest end of August take off. (7/8 M5H) GOFO Negative TF, COT Flip Bullion Banks net long (7/10 TF) JPM is Hoarding Silver (7/11 TF The jig is up (7/12 Murphy) JPM Attack Plan Goes Public (7/25 M5H) JPM Out of Base Metals(7/26 JPM) JPM Gold COT Long 85K-26% Specs Short (7/29 TB-TF) JPM Hoarding Gold (8/8 TF) Specs Covered Gold Shorts (8/9 TF) 70-150$/oz Silver by 5/14 call (M5H) Mint limit sales (8/23 TFMR) JPM Hoarding Au/Ag, Long COT Au, Short COT Ag (8/29 TF)
====================================================
Post Time 6/30/13: and there they go, mad5Hatter calling the race.
Sham-JPM Farce-BHO Clown-FED Comedian-BSB Coupon-FRN TBonds-T$B Gold-AGE Silver-ASE
====================================================
July1 19.65 July2 19.38 July3 19.72 July5 18.90 Coming out of the Gate, Sham has an early lead by a head, Farce is in 2nd by a 1/2 length, Clown and Comedian running 3rd and 4th by a full length, next is Coupon and TBill 5th and 6th by a 1/4 length, with Gold and Silver trailing the pack.
====================================================
July8 19.07 July9 19.26 July10 19.45 July11 20.15 July12 19.91 Down the back Stretch, Sham opens lead by 1/1 length, Farce 1/4 lenght ahead of Comedian moving into 3rd by a head over Clown 4th a length ahead of Coupon, TBond, Gold, Silver bunching up in 5th 6th 7th 8th.
====================================================
July15 19.92 July16 20.01 July17 19.28 July18 19.37 July19 19.52 Coming into the first Turn, Sham still leads by a length, Farce dropping Comedian fading tied with Clown 2nd 3rd 4th a length ahead of Coupon, TBond, Gold, Silver bunched in 5th 6th 7th 8th.
====================================================
July22 20.60 July23 20.15 July24 20.25 July25 20.04 July26 19.99 Gold and Silver making a move 1/2 length 5th 6th ahead of Coupon and TBond 7th 8th, Farce, Clown Comedian moving fast real scare 1/4 length ahead of Gold and Silver  and sham still in front by 1/2 length, in the 1st turn
====================================================
July29 19.85 July30 19.73 Aug1 19.83 Aug2 19.63 Aug3 19.89
Sham opens to length lead over Farce Clown Comedian holding 1/4 length over Gold and Silver with 1/2 length ahead of Coupon and TBond, out of the 1st turn.
====================================================
Aug5 19.73 Aug6 19.48 Aug7 19.58 Aug8 20.23 Aug9 20.55
Sham open 1.5 length lead for Farce Clown Commedian Gold Silver bunching 2nd-6th with length ahead of TBond 7th 1/2 length ahead of Coupon fading, into the front stretch.
====================================================
Aug12 21.43 Aug13 21.46 Aug14 21.87 Aug15 23.01 Aug16 23.25
Down the front stretch, Sham 1st opens 3 length over Clown Commedian charging Gold Silver 2nd 3rd 4th 5th 1 length ahead of fading Farce and charging Coupon 6th 7th 1/2 length ahead of TBond 8th
====================================================
Aug19 23.19 Aug20 23.02 Aug21 22.89 Aug22 23.19 Aug23 24.08
Sham 1st 2.5 lenghts over Gold Silver 2nd 3rd 1/4 length over Clown 4th 1/4 length ahead Farce 1/4 length ahead of Comedian TBond Coupon 6th 7th 8th, going into the 2nd Turn.
====================================================
Aug26 24.29 Aug27 24.74 Aug28 24.11 Aug29 23.87 Aug30 23.53 in the 2nd Turn, Sham holds 2 lengths over Gold and Silver 2nd 3rd 1/2 length over Clown 4th 1/2 length ahead of Farce 5th 1/4 length ahead of Comedian 6th 1/4 length over TBond 7th 1/2 length over coupon 8th
======================================================
The Hollies - On a Carousel


"SECRETARIAT" Greatest Race Horse of All Time - Kentucky Derby Preakness Belmont Stakes 1973 Video

====================================================

1st day out, 9/1, Spent 3 hrs campaigning Main Beach Laguna Beach CA.

Libero's picture

Fix- we agree!

"Let's see if they can get there in a timely manner". Sure hope so.

Underdawg's picture

opticsguy midwest crops

I am from IL and it depends what part of the state you are from on the conditions of the crops. Last week they had the Farm Progress Show in Decatur and they had to cancel the fall harvesting and fall tillage because the crops were behind schedule by a couple of weeks. The crops around that part of the state look good but the dry weather is going to have a negative impact on yields. There are some areas that have had ample rainfall but in the central part of the state we are in a moderate  drought according according to the state climatologist. They are actually concerned that an early frost will have a very negative impact on this years crop.

Mr. Fix's picture

Reply to “Pretty remarkable, isn't it?”

Sniping and bickering?surprise

I had not noticed.wink

If you're referring to our discussion on why the  US is going to war, maybe it is because the motivation is identical to why the bankers refuse to let the precious metals soar.angry

Of course there have been disagreements, but I found tonight's discussion remarkably civil, and informative.enlightened

Libero's picture

Let's all bury the hatchet and

get ready to watch Breaking Bad.

argent rampant's picture

@Fix & Ag1969

Destroyers can be packed with cruise missiles. Precision delivery with no pilots at risk. They will likely be the main strike, if it happens.

In a role reversal that would have been unthinkable in my day, the carriers' role might very well be to protect the destroyers from potential attack by Russian ships armed with anti-ship missiles.

SilverSurfers's picture

yeah, sure

bury the hatchet, 6" in another's skull, I would hope. Democracy thrives on conflict.

speed boat china market, 1st down 40c, recovered up 30c, nice switch, highly volatile 70c move, that is huge, but hoping that's it for the correction.

Rumor has it, Mr fix appeared in that video. I donno.

We are in an economic deflation and monetary inflation cycle, and that tell me, that prices will soar, while wages collapse, with a huge transfer of wealth to asset holdings.

So let it all hang out.

Mr. Fix's picture

pforth

"Gosh I wish I could have both world peace and a gain on my PM investments."

So do I, very much so, I wish I could see a scenario in which that would play out, but until the current crop of psychopaths in charge of things are defeated, I find it extraordinarily unlikely.

The system can be fixed without war, if cooler heads could prevail. Simply calling a debt holiday, a system reset, honest money, and bankrupt bankers, would go a long way towards establishing a way forward where the human race will be able to thrive unfettered by the banking cabal, the most powerful and successful crime syndicate in human history.

Of course, the powers that be will do whatever it takes to make sure that never happens, and eventually I suspect they will lose their fight, because they are parasites by nature and contribute absolutely nothing to humanity.

The only question is how much damage can they do in the meantime.

Bugzy's picture

Interesting

Tell congress that they will have a vote and at the same time, tell congress that what it says does not count.

How to create the biggest debate in history. Tell a bunch of spoiled brats that their voice is irrelevant.

Makes my wonder if Obama has deliberately stirred this hornets nest. The no's have it.

Just to tell him that they matter of course.

maravich44's picture

wow...

that was very telling and provided lots of clarity. Thanks.

Maximillion's picture

Price pop

Looks like someone out East is not convinced it will all be resolved soon

Mr. Fix's picture

Maximillion

I don't mind a little disagreement, I'm quite used to it. But I look at it this way, once there is a failure to deliver, or it is actually discovered that there is no gold or silver available, how much would you pay for a paper promise to deliver in the future?

I contend that in such a scenario which is inevitable, the price for paper gold or silver will be very, very low.

This becomes particularly true in a scenario that  is combined with a currency collapse, since at a certain point, not only would the paper gold and silver the virtually worthless, but so would the  currency used to pay for it.

Either way, it will become apparent that there is no upside to owning paper promises.

The only thing in question is the timing. I contend it will unfold to create as much damage, chaos, and carnage in the financial markets as possible, leaving only holders of physical gold and silver with anything of value.

So coming up with the exact number as to how low it can go may be a matter of semantics, since if the currency is worthless, the number is irrelevant.

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