CFTC Confirms Its Complicity

Wed, Sep 25, 2013 - 12:37pm

In what can't be termed a surprise, Reuters reports today that the CFTC is prepared to close it's silver investigation.

In the end, why should this surprise anyone? They've covered up the manipulation for five years. If they were to act now, they would be opening themselves to liability based upon their inaction. All they can do now is cover up and hope that the entire issue slips away into irrelevance.

The institutions of government are hopelessly corrupt. I believe fear know now that we are too far down the path of tyranny and corporate fascism to ever be rescued.


From Reuters:

The U.S. Commodity Futures Trading Commission on Wednesday said it has closed its long-running investigation into complaints about manipulation in the silver markets, and is not recommending charges.
The CFTC publicly confirmed the probe in September 2008. At the time, the agency had received complaints about whether the silver futures contracts traded on the Commodity Exchange Inc (COMEX) were being manipulated.
"Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets," the CFTC said in a statement.

The full CFTC statement is here:

About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 25, 2013 - 11:42pm

@Mr Fix - @Woofwoof

Mr Fix,

There is no reason to coordinate the Ag purchases through one specific source.

In fact, I'm more in alignment with "woofwoof" regarding the tactical impact.

Market disruption for the sake of disruption should not be the goal.

In fact, if JPMC or BM has lurkers paid to be here, then they will see the tactics first and position their shorts to counter the long play.

Given the tactics at US Mint and the fact that many here are US citizens, the most likely intermediary is the US Mint. However, the US Treasury Sec can adjust the Ag content of the US ASE by written decree. Given the situation with the debt ceiling and the Congress, it would not be surprising if the US Treasury Sec already has such orders in place and just classified. I've wanted to send ASE samples to a metallurgical assay company in order to test the silver content to double check on the US Mint.

Another play would be to drain other silver sources internationally. It would be more logical to buy from a legit government mint with nice coinage but lower sales figures. A coordinated purchase should drain international silver supply from closer to the source (the miners themselves). This would bring that government mint to buy more from the miners.

I believe Eric Sprott was rumored to be buying from the miners themselves instead of through RCMint.

The US silver supply appears fairly strong. The question is what happens in Shanghai, Tokyo, or Perth if several tons of silver move on the same day. Does that mint just get more currency printed and buy more silver with the paper currency? Or, is it more like London and Chicago where they can print more paper promises and hypothecate the sold bullion?

Sep 25, 2013 - 11:48pm

my 2 cents

CFTC closes. Paper silver to $0.00 phys ???? but not much lower than where it is now.

US government creep is eroding our future and we step closer that future everyday. we need to wake up others to what we here see developing.

fight to hang on to your stack

Sep 25, 2013 - 11:48pm

Me 2

I'm in as well.

Loud Noises
Sep 25, 2013 - 11:58pm

So I sat down, saw this news

So I sat down, saw this news and immediately knew I should pour a drink. I was debating between stacking more PMs or cheap Russian ammunition. I think I'll go with ammo this time. Primarily because the only scenario left in which my stack will appreciate is one that will also make ammo extremely valuable. Apparently a total system failure is what it'll take. We all have an idea of how uncomfortable that will likely be.

I've been on a great positive kick lately, but this does not encourage me.

Dyna mo hum
Sep 26, 2013 - 12:05am
Sep 26, 2013 - 12:16am

I'm thinking that on October 31, I will buy 10 oz of silver.

I'm thinking that on October 31, I will buy 10 oz of silver.

Dyna mo hum
Sep 26, 2013 - 12:16am
Dyna mo hum woofwoof
Sep 26, 2013 - 12:19am

Woof woof

You think we might need to start a forum for the coordinated purchase?

Mr. Fix
Sep 26, 2013 - 12:39am

Coordinated purchase–source.

I realized that the source is unimportant, and I'm not entirely sure that even if all of us bought all we could on the same day it would make a significant dent in the market, but for me, there is no downside.

I tend to keep 100% of my savings in precious metals anyway, my next purchase will be just like any other.

Dyna mo hum:

I haven't been called a "wacko" for quite some time now, that used to be the popular thing to do here,

but the way events have been unfolding, there seems to be a shortage of anti-conspiracy theorists these days.

Sep 26, 2013 - 2:03am

rise up, folks, who do not want to be slaves.

the USA is at the most dangerous moment in its short history.

every turdite, please double, triple your efforts to load up physical silver!

the title of my messages is the first line of the chinese anthem.

when the 1989 tiananmen incident happened, i was in junior high school in shanghai and i dreamed of going to USA.

when 911 happened, i was working on wall street but became very suspicious about USA.

nobody can foresee the future. nobody can turn the tide.

everybody has to choose a side, either with them or against them.

but, life is meaningless. the universe doesn't care about how earth and human race fares.

the universe doesn't care about good or evil. what's fittest survives. the evil may be the fittest, the chosen!

Sep 26, 2013 - 2:06am

silver inventory at shanghai futures exchange dropped

significantly since april.

it stands at 460 tons now, down almost 1000 tons from the peak of 1400 tons in march.

i'm suspcious of the silver inventory at comex!

Sep 26, 2013 - 2:32am

1% of americans are gold/silver bugs.

so when the evil crack down upon goldsilver bugs, the other 99% won't blink at all!

1% didn't win any revolution in history.

just my worry.

everyone dies in the end. let's die with the highest honor!

(honor is in the eyes of the beholders. i can't help being cynical these days!)

Sep 26, 2013 - 3:46am

Shorted silver, got convinced

Shorted silver, got convinced by my chart pointing to 13.5... Most likely too early. But I did not go all in, at least.

First chart, typical bubble ( anti in this case) pattern developing downwards.

Second chart, fractal comparison to 2008 shape.

Sep 26, 2013 - 3:55am

@ ivars


Care to elaborate?

ivars Kerbouchard
Sep 26, 2013 - 4:21am


Well all has been said in chart explanations.. Charts suggest something, explanations come along..or they don't. It would /should not mean end of bull market, actually end of bear phase. If though price drops below 13,5 for a longer period of time ( it may shoot for a day or so), then bull market 2002-> comes under question, but i do not think it will, it will be also clear from macro events happening at that time. For the end of the downturn, I would be looking for a double bottom.

My macro events looking short term at this potential drop to 13,5 is : Debt ceiling with government shutdown,. it all shall play out pretty soon- by the end of this year.

Still I have no good idea what happens to the USD IF a) Obama after shutdown decides to issue executive order to raise the debt ceiling or b) FED writes down 1 trillion of the USG debt to make debt ceiling debate irrelevant, or both. May be there arises a military need for funding, suddenly. We know Syria is still a current target, Israel may create another one if needed , etc.

In case of a-> that should be metals positive as debt continues to increase and undermine the USD as USG debt=NET savings in USD worldwide, and as these savings increase, depending on saver feelings towards the USD stability ( or intentions to destabilize ) - as USD net saving amount increases, so has the price of potential safeguard against the USA devaluation.

In case of b-> that is not so clear as initially if FED writes of 1 trillion of USG debt, the DEBT is 1 trillion less, plain and simple, USG can operate at will, etc. Should be PMs negative, I feel, at least initially, as Bank excess reserves with FED will also be reduced by 1 trillion , so less inflation risk if they overflow into lending. Same time, FED will reduce its balance sheet by 1 trillion- that is what they want, do not they? No need to taper. Clearly PM negative.

After that who knows. Congress may step in to bring FED to order or turn to Chicago plan and take away USD from FED, and issue "greenbacks" -debt free money instead. That initially would clearly send PMs up, since everyone thinks such money is inflationary. Will it be, I do not know, but it will reduce USG debt further as it can be used to pay it off 100% and more. Not pay off deficit- that is not possible, but debt. USG debt can even turn negative-meaning USG will be able to lend money out at interest. So longer term it might be not so obvious PMs will skyrocket. Then of course the CB system as whole will impact prices- if only FED is kicked off money printing, or will it be a new system for most countries who want to get rid of debt. Against wishes of banks, of course.

Sep 26, 2013 - 4:29am


I see where you're coming from, kind of hope you're wrong though. Don't think I'll be shorting silver but I seriously start purchasing at that level if it goes there.

Sep 26, 2013 - 7:32am

the chart clearly shows higher lows and highs since june 28

all the bluffs and cappings and raids aside, the gold/silver charts clearly show that gold/silver has been making higher lows and higher highs since june 28!

i still strongly believe june 28 is the absolute low!

the raiders still take every opportunity to intimidate the longs and some longs not only get scared but also scare themselves into submission, onto the sidelines, and even into the short side!

yeah, brilliant! short it at 22! were short at 50, 44, 35, 30, 26? smart ass?? did you cover on june 28, smart ass?

the good news, today, in asian session. silver not only held up but also broke thru 22 despite CFTC closing and throwing out the cases!

for me, ever since june 28, the best indicators beside the GOFO rates are the penalty directions on shanghai gold exchange!

since june 28, at SGE, whenever the silver shorts pay penalty to the silver longs because they are either unwilling to deliver or simply run out of silver, price of silver has bottomed and will rebound!

since sept 10, at SGE, silver shorts have been paying this penalty to the longs every day for more than 10 trading days in a row!

my bet is silver has bottomed at 21.22 before the FOMC taper bluff. 21.22 is a higher low, folks!

once it clears 22, the rebound game is still on!

let's keep our fingers crossed.

i bet gold will clear 1350, silver 22.5 next week!

Fat Willie
Sep 26, 2013 - 9:29am

93 to 1

Every once we buy, is pressure on 93 ounces of paper. 1000 ounces phys- 930000 ounces paper. Keep that in mind.

ironsky ¤
Sep 26, 2013 - 9:45am

The Exchange Stabilization Fund

Can't seem to find anything posted by Eric deCarbonnel after January 22, 2012. Anybody know anything about him?

ForWhomTheTollBuilds judejin
Sep 26, 2013 - 11:46am

"1% of americans are gold/silver bugs."

I think a goldbugs real safety will be in his/her obscurity.

The miniscule amount of gold owned by Americans means a massive sweeping confiscation scheme is unlikely to be useful to the govt this time around.

On the other hand, its no trouble at all for the govt to slip into a 4000 page bill a note about a 99% windfall profit tax on gold or a 10 year federal prison sentence for anyone caught with bullion (financial terrorism).

Anyone with the ability to keep their trap shut should be fine. Anyone who cannot will be in danger of being turned in by their neighbors under some "defend the country from the speculators that ruined us" program.

John Galt
Sep 26, 2013 - 1:23pm

@ FWTTB re: 1% and Obscurity

You make a couple of valid points, and not just related to government rules changes surrounding taxation and future changes to the legality of owning PMs.

Obscurity is a key consideration, and I have stated many times on this site that stackers who have their names and mailing addresses listed with their LCS or online PM marketers are going to be vulnerable to government types showing up at those establishments seeking customer lists.

Another thing I believe stackers should consider is where they hide their shiny.

Obviously at home is not good, especially if the address is the same as the PM shipping address. Many joke about taking boating trips, but my advice would be that anyone taking those trips should leave their smartphones and other devices with possible embedded tracking technology elsewhere.

Anyone moving around with a smartphone is leaving a digital trail, and anyone following that trail will pay attention to journeys to unusual locations.

Sep 26, 2013 - 2:35pm

Two choices

Either assemble a group of people to march on DC and the financial sector to capture it and commandeer it, or let the Chinese, Indian, and middle east armies come over and stop this mess. That's what happened to the German people in WWII.

Howard Roark
Sep 26, 2013 - 3:37pm

CFTC and nothing comes...

I said it: the wolf is keeping the chickens... but not for safekeeping, of course! Just keeping some backs free of trouble. EE at its best.

It would be nice if some coordinated buy of metals made a difference, would it not?

Don´t forget other attempts (with more visibility): Max Keiser being one of them. For me I´ll go with that co-op. In a smaller scale, I guess, since I´m waiting on some "portions of our precious".

Keep strong and beware of the napalm in the morning,



Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 3/18

3/19 10:00 ET Factory Orders (Jan)
3/20 2:00 ET FOMC Fedlines
3/20 2:30 ET CGP presser
3/21 8:30 ET Philly Fed
3/22 9:45 ET Markit PMIs
3/22 10:00 ET Existing Home Sales
3/22 10:00 ET Wholesale Inventories (Jan)

Key Economic Events Week of 3/11

3/11 8:30 ET Retail Sales (Jan)
3/11 10:00 ET Business Inventories (Dec)
3/12 8:30 ET CPI (Feb)
3/13 8:30 ET Durable Goods (Jan)
3/13 8:30 ET PPI (Feb)
3/14 8:30 ET Import Prices (Feb)
3/14 10:00 ET New Home Sales (Jan)
3/15 8:30 ET Empire State Manu Index
3/15 9:15 ET Cap. Util. & Ind. Prod.

Key Economic Events Week of 3/4

3/5 9:45 ET Markit and ISM services PMIs
3/5 10:00 ET New home sales (Dec)
3/6 8:30 ET Trade Balance (Dec)
3/7 8:30 ET Productivity and Unit Labor Costs
3/8 8:30 ET BLSBS
3/8 8:30 ET Housing starts (Jan)

Recent Comments

by NW VIEW, 27 min 5 sec ago
by boomer sooner, 1 hour 18 min ago
by Trail Trekker, 2 hours 18 min ago
by NW VIEW, 2 hours 29 min ago