Guest Post: "COMEX - Why It's Corrupt", by Ted Butler

Sat, Jun 28, 2014 - 10:33am

In light of this week's freakishly grotesque Commitment of Traders Report, I thought it best to reprint Uncle Ted's latest column to subscribers, which he decided to make public yesterday.

If you haven't yet seen this week's CoT, the details can be found here: and I will be discussing it fully in a podcast later this morning. In the meantime, just know this:

In their vain attempts to contain price and stall this nascent rally, The Bullion Banks issued paper metal in record proportions. For the Wed-Tue CoT week, the price of gold rose $49 or about 4%, to contain this move, the gold "commercials" added over 53,000 contracts to their NET SHORT position. This is an increase of some 67%! The news was just as disgusting in silver where, on a CoT-week price rise of $1.32 or 6.5%, the silver "commercials" added over 20,000 contracts NET SHORT. That's an increase of one week!

These are hopelessly broken and corrupt paper "markets". Thanks, Ted, for all your continued efforts to shine the light of truth.


COMEX - Why It's Corrupt

by, Ted Butler

It is one thing to label (libel?) the world’s most important precious metals exchange as the most corrupt; but perhaps quite another to prove it in terms beyond reasonable doubt. First, let me be clear in what I am asserting – the Commodities Exchange Inc. (COMEX), owned and operated by the CME Group, has come to control and manipulate the price of gold and silver, as well as copper, for the sole benefit of certain exchange insiders, most prominently JPMorgan.

Through corrupt trade practices, the COMEX has stolen and captured the pricing mechanism for gold, silver and copper away from the influence of actual supply and demand fundamentals. Replacing the law of supply and demand as the price determinant, the COMEX has substituted a private club run by a few large traders who, in turn, dictate prices to metal producers, consumers and investors. The federal commodities regulator, the CFTC, is complicit in the price capturing, but the prime culprit is the CME Group. Ironically, it is data from the CME and published by the CFTC that prove price manipulation on the COMEX.

Because the price control of the COMEX is continuous, if silver prices are manipulated, as I allege, the manipulation is in effect whether prices are falling or rising. Gold prices surged 4% last Thursday (June 19) and silver by 5% in the single largest one-day price rally in months. Government data, in the form of past and future Commitments of Traders Reports (COT) demonstrate conclusively not only why prices exploded on that day, but also why gold and silver prices were lower into the price explosion.

It is important to understand that price manipulation is the most serious market crime possible. In fact, the US economy and body of trade law depend upon the price of any good or service being established in free market competition without artificial constraint. That’s the definition of a free market. The whole concept of US antitrust and commodity law is to prevent an uncompetitive market share being controlled by a few market entities. If the price of any commodity is artificially set by anything other than free market competition in its production and consumption, it sends a false message to producers and consumers and distorts both current activities as well as future plans.

Particularly in silver, the COMEX violates just about every concept of a free market; from unnatural market share concentration to creating an artificial pricing scheme which overrides any impact from the actual production and consumption of the metal. Those are strong words, but easily substantiated.

The first thing to understand is how and why the CME replaced real production and consumption as the price discovery mechanism with electronic trading for purely speculative purposes. The “why” is for the money and once you see that, the “how” becomes obvious.

The CME owns and operates the COMEX and other exchanges as a publicly-traded for-profit corporation. As such, its main motivation and purpose is to generate profits for shareholders. While there is nothing wrong with that in the abstract, a commodity exchange is a unique financial institution in that such exchanges, at least in the US, must be authorized by Congress and regulated by the CFTC. In addition, there is a strong front line self-regulatory responsibility bestowed on US commodity exchanges, like the COMEX, to make sure all trading is on the up and up.

These are not typical responsibilities for the vast majority of publicly-traded corporations and have come to create deep conflicts of interest between commodity law and the CME’S profitability. Please remember that commodity exchanges have existed and have been regulated for almost a century in the US, while they have existed as publicly-traded, for profit corporations for only around a decade. It’s taken that long to see there is something wrong with that set up.

The CME depends on increased trading volume for increased corporate profits. The only way to increase trading volume is to introduce new products and/or increase the trading volume of existing commodities. Introducing new products is easier said than done, as the most active markets have been around for many years. That leaves the only viable avenue for increased corporate profits as increasing trading volume on existing markets. While the CME has been very successful at increasing trading volume on existing markets, that success has created a problem for everyone in the world outside a few insiders at the COMEX.

The problem is that the CME has relied on High Frequency Trading (HFT) and other speculative trading schemes to pump up trading volume to drive corporate profits. This is a problem because it has forced the COMEX to cease accommodating real producers, consumers and investors in silver, gold and copper and instead to cater to those trading with HFT computers and to those speculating in large quantities of electronic contracts.

Real commodity producers and users have little use for the rapid short term speculative trading that has come to drive profits for the CME. Why would a silver mining company be involved in electronic trading measured in small fractions of a second? This can be seen in how little actual trading is done in COMEX silver by actual miners or silver users; I would estimate less than 5% of all COMEX silver futures trading is transacted by real producers and consumers of silver. More than 95% of COMEX silver trading is purely speculative in nature, with much of it nothing more than day trading by HFT algorithms.

This is the consequence of the CME seeking to pump up trading volume at all costs. By catering to speculative traders seeking rapid turnover over the needs of producers, consumers and investors seeking legitimate hedging opportunities, the COMEX has become little more than a private gambling parlor divorced from the price influence of actual silver supply and demand. It also explains how the price of silver can be so estranged from real world fundamentals – the COMEX speculators setting the price have no interest in actual supply and demand, just the next price tick. This can be seen in the COT data published weekly by the CFTC.

The “hot” money category of the COT reports is the managed money category of the disaggregated report. This is the category of registered commodity trading advisors (CTA’s) that mainly trade on momentum and price signals and is most responsible for price movement, both down and up. Most (but not all) of the traders in this category are what I call the technical funds which buy and sell when prices penetrate moving averages. Most of the buying on Thursday and Friday was by technical funds which bought to cover short positions and/or establish new long positions in gold and silver as several important moving averages were penetrated. In essence, this was the sole explanation for the price rally in gold and silver.

There has been a documentable pattern of technical funds selling 30,000 net silver contracts (or more) on big price declines and purchasing that number of contracts on price advances. All technical fund buying and selling is based upon price signals. This equates to 150 million ounces of silver sold and bought over days and weeks with no connection whatsoever to what is transpiring in the real world of silver production and consumption. Similar amounts of gold and copper COMEX futures dictate prices in those markets.

I doubt that any serious student or analyst of the COT reports would argue with anything I just wrote about the technical funds and the effect their buying had on price the past couple of days and weeks. In fact, a good number (including me) wrote extensively about how the record number of technical fund shorts in silver virtually guaranteed a sharp short covering rally at some point. Some may argue with my contention that the technical funds are largely snookered into and out from positions by the commercials who control the COMEX price mechanism, but that is not material for this discussion.

The simple fact is that when the technical funds buy, they all buy in unison and that is usually the sole reason for prices to rise. When the technical funds sell, they sell in unison causing prices to fall - always. It’s not hard to see why the technical funds trade in lockstep with other technical funds - they are all using the same price signals. And it’s not hard to see why the commercials always take the other side of the technical funds collective buying or selling – the commercials are the only entities capable of being the technical funds’ counterparties.

I admit that if the commercials didn’t trade aggressively against the technical funds, prices would soar and fall much more dramatically than any price moves witnessed to date. Some, including the commercials themselves and the regulators at the CFTC and CME view the commercials counterparty transactions with the technical funds as legitimate market making designed to smooth out price movements. While that may be somewhat true, a much bigger issue emerges.

The technical funds are speculators through and through. No one would argue otherwise. In their role as counterparties, the commercials are also speculators; positioning against the technical funds for nearly certain profit. The problem, in a nutshell, is that prices are being determined in a speculator versus speculator contest. By the very definition of the traders involved, no real producers or consumers or investors in the actual commodity are represented in the speculator vs. speculator contest in COMEX futures trading. Please think about that for a moment.

The CME Group spends millions and millions of dollars on lobbying and advertisements proclaiming their exchanges exist to make it possible for actual commodity producers and consumers to hedge their price risks. But instead of encouraging real silver producers and consumers to hedge price risk, the CME has instead devised and encouraged a trading system on the COMEX that facilitates a massive speculator vs. speculator private betting pool. Talk about false advertising. Worse, real silver producers are unfairly punished by the artificially low price that the private betting game has created. I am sure that real hedging makes up way less than 5% of the total trading volume and open interest in COMEX silver.

The root cause behind the unlawful conversion of the COMEX into a speculative day trading scheme from a market designed by Congress to facilitate legitimate hedging is an old issue, but with a slightly new twist – the absence of position limits. And this explains why the CME fights legitimate speculative position limits at every turn.

Most are familiar with previous initiatives concerning position limits; specifically, to establish limits on how many short contracts big commercials, particularly JPMorgan, could hold in COMEX silver. While the CME Group and JPMorgan fought to prevent or delay position limits in silver, at least JPMorgan does seem to have reduced its concentrated short position in COMEX silver recently (with all eyes on Friday’s report). But I’m talking about position limits now in a new way.

There are about 30 or 40 technical fund traders in COMEX silver. When fully positioned each holds, on average, roughly 1000 silver futures contracts, either long or short. As such, no one technical fund holds anywhere near the proposed (still not in force) speculative position limit of around 5000 contracts, or even, for that matter, more than the 1500 contract position limit that I have long advanced. So why the heck am I raising the issue of position limits when the average technical fund holding doesn’t exceed 1000 silver contracts? Let me explain why.

If a single speculative trader went long or short 30,000 contracts of COMEX silver futures in a short period of time (days and weeks), causing the price of silver to rise or fall dollars per ounce, no one would argue that wouldn’t manipulate the price or violate the intent of position limits. 150 million ounces of silver suddenly bought or sold on the COMEX would, most certainly, jolt the price up or down. Even the CME and CFTC would react strongly if a single speculator suddenly bought or sold 30,000 COMEX silver contracts.

But what’s the difference between a single speculator suddenly buying or selling 30,000 COMEX silver contracts and 30 separate speculators suddenly buying or selling 1000 contracts each if they are all operating as a single speculator? I’m not suggesting that the 30 separate technical funds all buying or selling at the same time are colluding among themselves (as the commercials are, indeed, colluding), but the net effect on price is the same whether they are colluding or not. The sudden purchase or sale of 30,000 contracts of COMEX silver has the same impact on price irrespective if transacted by one entity or 30 entities simultaneously.

The intent of speculative position limits is to limit the influence of purely speculative trading on price. Since the technical funds are operating on basically the same price signals to buy and sell, they are, in effect, operating as one entity and as such must be subjected to position limits on a collective and not only on an individual basis. The sick thing is that the CME (and the CFTC) know this collective technical fund trading pattern is manipulating the price of silver up and (mostly) down, but pretend not to notice for two very obvious reasons. Any restriction of technical fund trading would reduce trading revenue to the CME and, moreover, deprive COMEX commercial insiders of the rich pickings the technical funds provide to their commercial counterparties.

That’s why the CME is corrupt and how I can say that openly without rebuttal or retaliation. But I’m not a prosecutor or enforcement official; I am an analyst who can only point out how and why the price of silver (and gold and copper) is manipulated on the COMEX. The solution is simple – treat technical funds who operate as one entity as one entity for the purpose of speculative position limits.

Congress never intended a regulated commodity exchange system to be centered on growing profits to the exchange operator (the CME) to the detriment of real commodity producers, consumers and investors. If you agree, please write to your elected officials, particularly those on agricultural and finance committees, and insist that technical funds be subject to speculative position limits on a collective basis, since they trade on that basis. I’m also updating the email addresses for the appropriate regulatory officials, since there are some new faces. To be sure, I am not counting on the CME and CFTC to do the right thing as far as enforcing position limits in a fair manner; I’m just trying to shine a light on corrupt practices.

//tmassad[at]cftc[dot]gov Chairman">https://tmassad[at]cftc[dot]gov Chairman

//mwtjen[at]cfct[dot]gov Commissioner">https://mwtjen[at]cfct[dot]gov Commissioner

//somalia[at]cftc[dot]gov Commissioner">https://somalia[at]cftc[dot]gov Commissioner

//sbowen[at]cftc[dot]gov Commissioner">https://sbowen[at]cftc[dot]gov Commissioner

//cgiancarlo[at]cftc[dot]gov Commissioner">https://cgiancarlo[at]cftc[dot]gov Commissioner

//agoelman[at]cftc[dot]gov Enforcement Director">https://agoelman[at]cftc[dot]gov Enforcement Director

Ted Butler

June 27, 2014

For subscription information, please go to

About the Author

turd [at] tfmetalsreport [dot] com ()


Jun 28, 2014 - 10:47am


First-o-licious---thanks for sharing Turd!

The Doc
Jun 28, 2014 - 10:47am

Rick Rule has finally joined

Rick Rule has finally joined the manipulation camp. Apparently Eric Sprott has finally worn off on him!


Podcast: Play in new window | Download

Sprott Global Resources Chairman Rick Rule joins The Doc & Eric Dubin this week to discuss:

  • Platinum & palladium- is the run over, or is the real move to the upside yet to come?
  • Rick discusses the “ugly set of circumstances” facing mining in South Africa, and the implications on the supply side for gold, silver, platinum, and palladium over the next few years
  • Why water will be the investment story of the next decade
  • Rule discusses the pernicious devaluation of the dollar over the past 30 years, and predicts that the impact of the shift in global trade settlement & savings from dollars even slightly (1%) into gold will result in a 100% move in the valuation of gold.
  • Rick also provides his outlook for precious metals in the face of continued manipulation, and states: “In my 30 years of experience in the markets, I’ve seen alot of manipulations, and the markets always, ALWAYS win.”

SD Weekly Metals & Markets with Sprott Global Resources Chairman Rick Rule:

Spartacus Rex
Jun 28, 2014 - 11:00am



Has a familiar smell T.F.:

What the heck, let's throw this in too. Ed Steer:

"The Commitment of Traders Report was worse than even Ted (Butler) imagined it would be, as my hoped-for scenario didn't even come in second in a 2-horse race. Ted has never been wrong yet---and I must have been dreaming in Technicolor if if I thought I was going to best him on this one.

In silver, the Commercial net short position exploded by 20,059 contracts---100 million ounces of paper silver---or to put it another way, 44 days of world silver production. The Commercial net short position almost doubled in a week to 214.5 million troy ounces. JPMorgan's short position is about a third of that amount.

It was almost all technical fund covering of short positions as they raced to cover as moving averages were broken to the upside---and the raptors [the Commercial traders other than the 'Big 8'] let them off easy and sold them all the long contracts these technical funds wanted.

Even JPMorgan got into the act---and Ted Butler feels that they went short about 1,500 additional silver contracts during the reporting week, bringing their short-side corner in the Comex silver market up to 14,500 contracts, or 72.5 million ounces.

As bad as the silver number was, the number in gold was gargantuan, as the Commercial net short position in that precious metal blew out by 53,282 Comex contracts, or 5.33 million troy ounces---the biggest 1-week change that I can remember. The Commercial net short position increase by 70 percent in just one week---and now stands at 13.16 million ounces.

Once again it was the gold raptors selling longs to the technical funds as they covered short positions and, like silver, even JPMorgan showed up, selling about 4,000 of their long-side corner in the Comex gold market. Their long-side corner is down to 30,000 contracts, or 3.0 million troy ounces.

Ted pointed out on the phone that in the last three weeks, the Commercial net short position in silver has increased by about 33,000 contracts. So if you're looking for a reason when the silver price is up only two bucks, that's the reason.

Once again it should obvious to anyone with more than two synapse to rub together that the rallies of last Thursday and Friday---and since the June 5 low---were just about 100 percent caused by short covering in both metals. I should also include copper, as the blow-out in the Commercial net short position in that metal was massive as well---and for the same reason.

As Ted Butler said---and rightly so---this is the technical funds/speculators being gamed by another set of speculators---the raptors---with these ones dressed up as Commercial traders. There's not a damn thing 'Commercial' about them. They're there for fun, profit---and price management. Why this isn't obvious to most market analysts is a complete mystery to me.

The big question that both Ted and I have is why the raptors let the technical funds off so easy. They could have skinned them for megabucks, rather than for less than the two bucks they took out of their hides. But since the raptors all trade as one entity, it has to involve price management.

Ted figures that there was more technical fund short covering since the Tuesday cut-off---and I certainly agree. But, like this last COT Report, we'll have to wait until next Friday to see how much more damage was done---and now that I think about it, there probably won't be a report next Friday because of the U.S. holiday on that day.

I'm happy to say that I have very few stories again today and, like yesterday, I'm hoping that there are a few in here that you find interesting in the midst of such meagre fare."

BTW: First to HT the Turd!

Jun 28, 2014 - 11:26am
Spartacus Rex
Jun 28, 2014 - 11:49am
Jun 28, 2014 - 11:52am

lost cause...

the markets (charts,reports, media stories) are a hoax

"manipulation" even if there was anything to "manipulate" is LEGAL

the 'big banks' can fractional-reserve-loan-deposit-derive-create as much fiat as they want, no need to trade even if there was an actual market in which to trade.

Calling for justice is noble, but the silver market (that isn't) can never go back to what it never was.

Spartacus Rex
Jun 28, 2014 - 11:55am

Lost Cause...

At least the Silver Coins can go back into your pockets, Right?

Jun 28, 2014 - 12:33pm

Washington's blog article

I thought this article was particularly good, speaking about the corruption of markets and things in general.

The quote from Karl Rove could probably easily apply to the way the owners of the CRIMEX think about their role as market makers.

"Guys like [Suskind] were “in what we call the reality-based community,” which he defined as people who “believe that solutions emerge from your judicious study of discernible reality.” … “That’s not the way the world really works anymore,” he continued. “We’re an empire now, and when we act, we create our own reality. And while you’re studying that reality—judiciously, as you will—we’ll act again, creating other new realities, which you can study too, and that’s how things will sort out. We’re history’s actors…and you, all of you, will be left to just study what we do.”

Make believe land only goes on so long as all the people with you in make believe land agree to continue to make believe and believe what you tell them. When they get wise, make believe land where you can create your own realities becomes "a reality-based community" where you cannot make reality, but must obey the natural laws of the universe, such as economics and physics.

Jun 28, 2014 - 12:41pm

Guest Post: "COMEX - Why It's Corrupt", by Ted Butler


With the Comex so corrupt re PMs, why should one invest in PMs at all?

Jun 28, 2014 - 12:42pm


After seeing the latest COT report, I felt like we are scheduled for several drone attacks by the banksters. It is most likely the same feeling that ISIS has while they march to Baghdad, knowing that their enemy can bomb at will.

Jun 28, 2014 - 12:43pm


Because physical metal is your only protection against fiat devaluation and collapse.

While The Comex drives paper price lower, we all take advantage of the "sale" to add to our stacks at ridiculously discounted prices.

Jun 28, 2014 - 12:44pm


I am starting to like this guy. He penned the "Pitchfork" article distributed yesterday as well.

Dagney Taggart
Jun 28, 2014 - 12:52pm

HT to Spartucus

Turd asleep at the draw.

Jun 28, 2014 - 12:57pm


Now that's funny!

Jun 28, 2014 - 12:59pm

Brazil 1-1 Chile at half

Brazil 1-1 Chile at half time.....cracking game

Dagney Taggart
Jun 28, 2014 - 1:00pm


I hear Hillary Clinton will be leading the pitchfork mob.

PS. @Turd: Something tells me you'll be answering many of these "green" -type questions shortly as the stragglers try to find a lifeboat for reasons not fully understood to them.

Mr. Fix
Jun 28, 2014 - 1:24pm

Fresh Jackass: Always a good listen!!!

TRUNEWS 6/27/14: Jim Willie "The World's Disappearing Gold"
Mr. Fix
Jun 28, 2014 - 1:35pm

"COMEX - Why It's Corrupt", by Mr. Fix.

The article is way too long winded for me, it's really quite simple.

The COMEX was created with the sole intent of theft and fraud, from day one.

It is specifically designed to steal gold from the nation, and steal money from anyone dumb enough to invest in paper promises.

Just like the Federal Reserve, it's sole intent was to bankrupt a nation, and everyone within, the COMEX more specifically was designed to steal hard assets such as gold and silver. It was always a fraud, it is still a fraud, and when it is no longer serving its original intent it will be allowed to die.

Incidentally, gold and silver will remain range bound until its death. ( This will be when there is nothing left to steal).

Jun 28, 2014 - 2:24pm

Nick Hanauer

What he says with the pitchfork situation is true but these Seattle oligarchs are suspicious to me. Being a major investor of Amazon he has enjoyed supreme benefit from the Central Banks fund push in the stock market. Amazon trading at like 300 times earnings or some approximate absurdity. Yes Amazon has a great business plan and has expanded like crazy for good reason but I think it is a poster child type promoted by TPTB. Wal Mart gets all kinds of accusations of wiping out mom and pop businesses and bad treatment of their employees while Amazon is a good employer ask yourself who else would hire some of those Wal Mart workers and Wal Mart has grown while establishing a good return for investors.

So I can see why Nick should be nervous. Taxation for people like him should go up but the business people making $300K - 500K that are the anchors on main street end up suffering the most when all is said and done. I wiki searched him and he is pretty clean but involved with this League of Education Voters, checked them out and don't see too much that they have done in my Washington state to better our education system super controlled by unions.

Maybe Nick is a good guy but that is what I thought about Bill Gates until I got Dave Janda's insight of the Gates Foundation, just thought Bill was misguided with his overwhelming success but I think there is much more to Bill than that. I live in rural Washington state where initial Agenda 21 issues(same time as Bush 1's New World Order speech) were tested and achieved like the Spotted Owl that started out the logging industry was destroying the habitat and as it has ended up another owl is just outperforming the Spotted Owl so they are killing that one but there is no letting up on the timber industry or allowing more Federal Forests Lands to be logged now down about 90% less and our State timberlands are much the same. Nick, Bill, Seattle and a few counties in our state are doing just fine but the rest of the State sucks or isn't to great. Here in Washington state I would be surprised if we have 25% of mill workers like we did before the Spotted Owl and the mill in my area just let go of 80 more workers because they can't get enough wood, but we don't need those old manufacturing jobs right, we have Amazon.

What I'm trying to point out is Nick is a winner in this winners and losers game that becomes a little less murky as we learn more about the flow of currency at the levels it is with Government and Wal Street.

Jun 28, 2014 - 2:31pm

Thought experiment

Imagine what it would be like if you could only borrow say, the amount of your yearly salary for a house purchase.

Housing would be 5 times cheaper.

Folk would have more disposable income to save and spend.

Salaries would be lower, but folk would be wealthier.

Products could be made at more competitive prices thus increasing exports.

What if healthcare cost the same as the rest of the world?

Seriously; The USA has a huge competitive advantage. If only the banks would stop typing in "productivity" numbers into their computers and insisting on stealing half of the workers efforts for itself - every month for 25 years.

It is essentially one big sucking sound. I suspect reducing the availability of debt would cause a massive deflation, leading to incredible wealth creation and productivity boom.

Jun 28, 2014 - 3:11pm



Perhaps Nick is trying to do some advance PR work on his own behalf, painting himself as one of the good guys (who just happens to be in the .01%).

Patriot Family
Jun 28, 2014 - 3:45pm

Sorry - this wont get fixed until it fails spectacularly

I have zero faith left in the system. Whether or not what the CME is doing is illegal or if the CFTC is complicit is no longer any concern of mine. They are protected. It has been proven over and over that the typical citizen getting 20-40% of his hard earned money sucked out of his hands and into our government coffers has absolutely no influence or voice in these matters. My investments are targeted toward the ultimate failure of our current system and the tumultuous period where we transition from the old system to the new.

If there was a way for me to completely check out of this system, I would seriously think about it. Unfortunately I am on of those stubborn bastards that loves what the US Constitution stands for and the ideal of an efficiently governed Constitutional Republic and citizens being able to build and florish without onerous regulations or tax burdens. I am convinced there is no way we can return to that standard under our current government and financial system. The rule of law as applied to federal government and large financial institutions is broken, and it only exists to put the screws down into the common citizen and bleed them dry.

If anyone here can tell me how the CME will be held to account and when position limits will be imposed I am all ears. Until then all it amounts to is a bunch of blog posts circulating around the little guy investment community with no traction to drive change. still needs to be brought to light, but am I the only one who thinks this will continue for years?

Patriot Family
Jun 28, 2014 - 4:04pm

goldcom4me -Seattle

You are correct Seattle is doing just fine. There are at least 20 cranes visible from my offices putting up highrise buildings in the downtown area. They are attracting thousands of workers in from all over the world. There are jobs for anyone with decent technical skills, and the secondary support jobs are in good supply as well. The housing market is hot, with bidding wars erupting on homes in the immediate Seattle area.

Unfortunately Seattle seems to be out of touch with the rest of the country's financial woes and is enacting legislation that will eventually kill growth in the small business sector. $15 minimum wage, fairly powerful unions, very liberal/left leaning politics and powerful representation and support for the free crap army will eventually kill all the good things about this city just like it killed NY, Chicago and CA. Legalizing pot (which I am ok with as long as reasonable limits are enacted) is attracting a whole new element of low life dealers from the east coast and mid west due to lower risk of prosecution for posession and dealing. Too bad - this is a beautiful city.

Jun 28, 2014 - 4:30pm

@ Seriously

"While The Comex drives paper price lower, we all take advantage of the "sale" to add to our stacks at ridiculously discounted prices."


If you're a stacker (as opposed to a trader) the last few years have been a real gift. To paraphrase Herbert Stein, things that can't go on forever, won't.

Patriot Family
Jun 28, 2014 - 5:11pm

For those of you into preparedness...

I watch Wranglerstar's videos regulalry and really like the two he's done on ram pumps. It's pretty amazing that a small pump constructed for around $100 can supply a homestead's water needs with just a couple of check valves, an air tank and gravity. You'll need to watch the first video where he explains how a ram pump works and then the replacement pump he built using PVC and pipes.

Anyway, the guy has a ton of videos where he walks through how he is building out a homestead location. Most are VERY informative. Highly recommended. In fact, whenever I need to learn how to do something, I don't buy a book on it. I go to YouTube for free.

Hydraulic Ram Pump DIY | Wrangerstar
Hydraulic Ram Pump DIY 2.0 | Wranglerstar
Jun 28, 2014 - 5:11pm

Harvey's Up! (TFMR)

Harvey's Up!

  • Stephen Flood: China is suffering from a massive credibility hit today as a scam to extract credit from Chinese banks by repeatedly pledging the same collateral of gold, and other commodities, over and over and over again unwinds. China’s Chief Auditor has identified $15.2 billion in loans backed by falsified gold, according to the National Audit Office’s website. It has been estimated that upwards of $80 Billion was advanced in gold backed loans alone, according to Goldman Sachs. Could $80 billion in false Chinese gold loans have suppressed gold price? It is quite likely as the central banks of the world print money that they are in fact creating a massive false economy where capital and savings values are eroded, bad debts unreconciled and poor credit decisions the norm. It is possible that should confidence drain from the system the rush to the exit will become unmanageable, for a time at least.`Bubbles are forming all over the investment landscape and the fear is that an inflation monster is about to be unleashed. It is of critical importance for investors to own an allocation of their investments in gold. The rule of thumb is between 3% and 10%.
  • Harvey: For the past three days after options expiry, the bankers continue to unload many non-backed gold/silver contracts on the Comex and in London trying to lower in price our two precious metals, silver and gold, trying to influence owners of spot month contracts from taking delivery. We have pointed out to you on countless occasions on each of the prior expiry months as to their criminal activity on this front, and they do this in broad daylight, knowing quite well that the regulators will do nothing. I am totally amazed to see both metals hold up again today despite the massive shorting. Gold today skyrocketed above $1320 and hit its zenith at $1322. Silver took out $21.19 before being pushed back by the relentless short selling. As I pointed out to you yesterday that $1320 USA is a line in the sand for the bankers. If $1320 is penetrated and the price stays at prices beyond 1320 dollar gold, this will send gold northbound into the 1340-1350 dollar range immediately. The line in the sand for silver is $22.00 as that was the price prior to the drive by shooting in April 2013. The 21.00 dollar defense is a minor line..the biggy is 22.00 silver.
  • Harvey on current events: The big news today is the calling up of the reserves for the Saudi Arabian army as they witness the ISIS rebels coming close to seal off their border with Saudi Arabia. Even though Saudi Arabia is Sunni, they are way too moderate for our blood thirsty rebels, and it is quite possible that they will invade Saudi Arabia. In Iraq, the West is angry with Maliki and want him ousted. Maliki is angry at the USA for delay in shipping replacement vehicles and aircraft. So what does the Prime Minister do? He simply buys from Russia, much to the anger of the uSA who are losing control over in the Middle East. The Russians are set to cut off gas supplies to Europeans as the Russians suspect that European nations are selling their excess supplies back to Ukraine. The cease-fire agreement has been extended to Tuesday. In Japan, the Nikkei collapsed as consumption sank big time last month. In Spain, they are planning a tax on bank deposits.
  • Michael Kosares: Gold remains the best performer on the year thus far -- better than Treasuries, the euro, commodities, farmland, NASDAQ and the Dow Jones Industrial Average, better even than silver. 1. A possible stock market meltdown Jon Hussman (Hussman Strategic Advisors) is predicting a stock market correction in the near future that will wipe out 38% to 50% of current valuations. 2. A potential adjustment in the gold-oil price ratio. In 1933 a gold sovereign bought about 10 barrels of oil. Today a British sovereign will not buy even one barrel of oil. Even the short term the gold-oil price differential chart looks good with respect to the gold/oil differential. It suggests gold is undervalued, perhaps severely undervalued. Given the situation in Syria and Iraq and the general heating up of the civil war between Sunni and Shiite across the Middle East, it is difficult to believe that the disparity will resolve itself in significantly lower oil prices. 3. A possible make-up rally based on gold's historic undervaluation when compared to inflation.
  • Ted Butler: The simple fact is that when the technical funds buy, they all buy in unison and that is usually the sole reason for prices to rise. When the technical funds sell, they sell in unison causing prices to fall - always. It’s not hard to see why the technical funds trade in lockstep with other technical funds - they are all using the same price signals. And it’s not hard to see why the commercials always take the other side of the technical funds collective buying or selling – the commercials are the only entities capable of being the technical funds’ counterparties. But what’s the difference between a single speculator suddenly buying or selling 30,000 Comex silver contracts and 30 separate speculators suddenly buying or selling 1000 contracts each if they are all operating as a single speculator? I’m not suggesting that the 30 separate technical funds all buying or selling at the same time are colluding among themselves (as the commercials are, indeed, colluding), but the net effect on price is the same whether they are colluding or not. The sudden purchase or sale of 30,000 contracts of Comex silver has the same impact on price irrespective if transacted by one entity or 30 entities simultaneously.
  • Alasdair Macleod: We should note that central banks, such as the Swiss, Danish and Italians are investing significant sums in equities. It will be far easier for the Fed, the ECB or the Bank of England to buy equities if the trail is already blazed by other smaller and respectable central banks. The acquisition of equities by central banks, government pension funds and sovereign wealth funds amounts to enormous power to sway markets the state's way; all that's required is a bit of inter-departmental cooperation and $29 trillion (and rising) can be fully utilised to this end. This intervention could increase until governments end up as significant shareholders in most major companies. Norway's Government Pension fund alone is buying 5% of every major listed European company. So do not underestimate the potential scope for further government intervention. Politicians and crony-capitalists will relish this new state-sponsored capitalism, which promises to tame bear markets and enhance share options. Unfortunately such idealist thinking is in defiance of economic reality with all the eventual consequences that entails.​
  • Zero Hedge: Japan is in trouble. Normally the news that a piece of macro data had utterly and completely collapsed would be greeted by the BFTD mentality as bad news reinforces the printing-press of central planners' put guaranteeing future wealth for all... but not this time. Household spending collapsed 8.0% in May (echoing the plunge following the last tax hike in 1997) - more than double expectations and almost as bad as the month of the tsunami. Great news? That's the problem... the great limiter of central bank largesse is looming as Japanese CPI spiked to 3.7% - its highest in 24 years! (and Core CPI at 3.4% - its highest since 1982) This implicitly hobbles the BoJ from further exuberance and already JPY strength (and NKY weakness) are showing.
  • Tyler Durden: Detroit’s Water and Sewerage Department has begun turning off the taps of 150,000 residents who are at least two months behind on payments. According to the U.S. Census Bureau, 38.1 percent of Detroit residents are living below the poverty line. Despite the tough times many people are facing, they’ve been paying an average of $64.99 a month, significantly higher than the national average of about $40, and rates are only going up. The Detroit City Council just approved a nearly 9 percent rate increase for water. “What we see is a violation of the human right to water,” Meera Karunananthan, an international campaigner with Blue Planet Project, told Al Jazeera America. “The U.S. has international obligations in terms of people’s right to water, and this is a blatant violation of that right. We’re hoping the U.N. will put pressure on the federal government and the state of Michigan to do something about it.” As one advocate notes,"sick people have been left without running water and working toilets. People recovering from surgery cannot wash and change bandages. Children cannot bathe, and parents cannot cook."
  • Michael Snyder: The Federal Reserve would have us believe that the unemployment rate in the U.S. has fallen from a peak of 10.0 percent during the recession all the way down to 6.3 percent now. But according to, the broadest measure of unemployment is well over 20 percent and has kept rising since the end of the last recession. And according to the Federal Reserve's own numbers, the percentage of working age Americans with a job has barely increased over the past four years. Right now, the Federal Reserve tells us that the inflation rate is sitting at about 2 percent. But according to John Williams, if the inflation rate was calculated the same way that it was in 1990 it would be nearly 6 percent. And if the inflation rate was calculated the same way that it was in 1980 it would be nearly 10 percent. So which number are we supposed to believe? The one that makes us feel the best? And without a doubt, "2 percent inflation" sounds a whole lot better than "10 percent inflation" does. But anyone that does any grocery shopping knows that we are definitely not in a low inflation environment.
  • Greg Hunter: The U.S. is in a damned if we do, damned if we do scenario in Iraq. If we help the Iraqi government, we will be helping the Iranians; and the Saudis will, no doubt, stop oil trade in dollars. If we do nothing, ISIS might take over Iraq and a terror army will have its own country. This is an enormous mess, and it will spike oil prices and might even start WWIII. I don’t think the Russians are going to invade—at least, not at the moment [ DS: Except maybe to send some "advisors" into eastern Ukraine]. They look like they will continue arming and helping the separatists, and that might draw more sanctions. I said might. Obama said that if the Europeans refuse to impose new sanctions, then he won’t either. The President couldn’t look any weaker in Ukraine and Iraq for that matter. The economy plunged in the first quarter even greater than we were told according to the latest government revision to GDP. It shrunk -2.9%, not -1%. When you consider the “official” GDP in the fourth quarter of 2013 was a positive 2.6%, the fall is stunning quarter to quarter. That is a 5.5% cliff dive in GDP.

All this and more on...

The Harvey Report!

Harvey's Up!


Dr. P. Metals
Jun 28, 2014 - 5:22pm

@Safety Dan

Not sure, my Geiger counter says just o.o7 micro sieverts, pretty constantly, ever since I bought it, which is well within natural background levels

I dislike the untruths and cover ups and outright lies about Fukushima but if we are spreading further lies and propaganda and scaremongering are we no better than those we critique?

don't believe me? That's great and you don't have to, you can just get your own counter, $179 at, for instance.

Safety Dan
Jun 28, 2014 - 5:23pm

In The Process Of Spectacular Failure...

Comment from linked page:

"If someone was in southern New Mexico, exploding 55 gallon barrels of Anthrax into the air, hoping the wind would pick it up and carry it across the Southeast and kill tens of millions of people, the US military would be on it immediately, the world would be transfixed watching it on the news and everyone would be rushing in to put a stop to it.

Anthrax is nowhere near as lethal as plutonium. Not even close.

Yet, meetings are being held, townhalls held to keep the locals quiet, reporters either told not to report or threatened, other than 'official' PR releases. 'Filters being changed', more 'investigating', while the Southeast is being covered in a blanket of plutonium waste, on top of the enriched uranium and plutonium from Fukushima."

Fellow Turdites, there is clearly a problem. Oh, by the way, if you live in the US Southeast, you should probably move to South America right now. The WIPP nuclear waste storage facility in Carlsbad, New Mexico apparently was never sealed after plutonium waste drums blew up in February, and the radiological contamination is just getting worse:

'Radiation spikes at WIPP nuclear facility — Hits highest levels since initial hours of radioactive release in February — Document link removed from official website — Gov’t analyzing samples for “potential impact on human health”'

This is probably the worst nuclear accident in US history, considering the amount of plutonium involved, and apparently nothing has been done to mitigate the expulsion of plutonium into the wind, which takes it across the Southeast. The numbers are just getting worse. Clearly, no one in DC gives a shit.

Paul has another post:

Crumbling Pillars of Support
Safety Dan Dr. P. Metals
Jun 28, 2014 - 5:34pm

@ Dr P Metals

I wish I was there to validate myself. I did read about the subject, though reading and doing are vastly different. Please further enlighten us. I don't like spreading misinformation and apologize to the group if I did. I look forward to further information from you.

On another radiating subject:

Hormesis is a biological phenomenon whereby a beneficial effect (improved health, stress tolerance, growth or longevity) results from exposure to low doses of an agent that is otherwise toxic or lethal when given at higher doses. The philosophy of Hormetism, advocated in this blog, is based upon harnessing this biological phenomenon in a deliberate and systematic way in order to increase strength and resilience.

Radiation. Moving beyond chemical hormesis, we enter more controversial waters. While it has long been known that high or moderate levels of ionizing or nuclear radiation are damaging or deadly, it would surprise many people to learn that exposure to low levels of radiation–for example background radiation levels seen at higher altitudes– may actually have beneficial effects. And yet, that is what the evidence increasingly shows. This includes studies documenting reduced rates of cancer and death for (a) industrial workers who handle low-level radioactive materials; (b) residents of high altitude regions such as Colorado; (c) people exposed to higher levels of natural radon gas; and (d) survivors of atomic blasts a who lived outside of the immediate blast areas.

Patriot Family
Jun 28, 2014 - 5:46pm

Barnhardt is on fire in this post... A2A material?

Outstanding post. Really like her writing style. I have to figure out if I am in agreement with her conclusions. Turd, you really need to get her onto an A2A.


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 4/22

4/22 10:00 ET Existing Home Sales
4/23 10:00 ET New Home Sales
4/25 8:30 ET Durable Goods
4/26 8:30 ET Q1 GDP first guess

Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

4/1 8:30 ET Retail Sales (Feb)
4/1 9:45 ET Markit & ISM Manu PMIs
4/1 10:00 ET Construction Spending (Feb)
4/1 10:00 ET Business Inventories (Jan)
4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS

Recent Comments