Guest Post: "Selling Time", by Paul Mylchreest of ADM Investor Services

Wed, Mar 25, 2015 - 11:50am

You'll likely recall that our pal, Paul Mylchreest, has long been a valued part of Turdville. He now works for ADM Investor Services and, whenever he writes a new research article, he freely shares them with us. His latest work is a must read and is reprinted here.

Of course, I realize that this is 71 pages long. I've already emailed Paul asking how in the world he finds the time to publish such lengthy and exhaustively-researched articles. Please try to make the time to read the entire piece. If you need to skim, the section between pages 22 and 28 is where Paul focuses on the current peculiarities of the gold "market".

Again, enjoy reading this fine piece of work and many thanks to Paul for sharing.


Selling Time

About the Author

turd [at] tfmetalsreport [dot] com ()


Mar 25, 2015 - 11:55am



Bummer, my work is blocking the connection to his link. Read it when I get home.

Mar 25, 2015 - 11:55am

May as well grab a spot :)

Just hanging in.

Mar 25, 2015 - 12:08pm

Bed time reading tonight

Can hardly wait to get through


Mar 25, 2015 - 12:20pm

Hell Silver66

When I go to Bed I sleep. LMAO Keep Stacking

Mar 25, 2015 - 12:28pm

Atlanta Fed bank now sees Q1

Atlanta Fed bank now sees Q1 GDP at just +0.2%. Yep, rates hikes are right around the corner...gimme a break.

Mar 25, 2015 - 12:29pm


You may need to renegotiate with the Mrs......surprise


Mar 25, 2015 - 12:29pm

Report Excerpt

An excerpt from the report (pg 28)

"In aggregate, the four major identifiable sources of demand (SGE, Indian imports, ETFs, central banks)
have exceeded 100% of world gold mining output for last 6 months. The latest figure, for January 2015,
of 349.7 tonnes was equivalent to 150.0% of world gold mine output.

This is probably the biggest unreported “run” on the banks, or rather a “run on bank vaults” in
history. You wouldn’t know it, though, from the gold price. Very clever.

As we’ve said before, the current lockdown in the price reflects a large, leveraged long/short trade
which is long the Nikkei Index and short paper gold instruments. From our analysis, this trade has been
in operation since the Fed’s QE3 announcement in September 2012.

Given the strength of physical gold demand during the last couple of months – unprecedented in the
last four and a half years - it’s not surprising that gold showed signs of breaking free. That was until
heavy shorting of paper gold futures (yet again) pushed the price back down.

Hopefully it’s obvious that the screen price of gold in dollars is not remotely reflective of supply and
demand fundamentals. Strong demand, in conjunction with physical gold’s marketability and ultimate
safe haven status, is further evidence of shortening time horizons.

Another way of putting it would be “hoarding.” "

Best Regards,


Mar 25, 2015 - 12:47pm

Everyone may recall

This is where Paul and I slightly differ. He thinks it's a Long Nikkei/Short Gold pair while I think it's a Long USDJPY/Short Gold pair.

In the end, it hardly matters...the algo drive is there regardless.

Paul does another excellent job here of concisely explaining the silliness of the gold price, mentioning too the huge shorting power of The Cartel Banks into the January rally. ALL OF THIS is what combines to infuriate me versus the Sister/Dick/Casey/Armstrong Denier Cabal. That these fools and goons persist in defending the status quo by denying gold price manipulation and suppression should marginalize them to the fringes of the discussion going forward.

Mar 25, 2015 - 2:57pm

Latest from Bix

He believes that the market is down today because SEC proposed making HFT's register under FINRA...

It was like clockwork this morning. At 8:05 am the SEC proposed to make High Frequency Traders register under the FINRA regulations and the market began to immediately tank. Hmmm. Heaven forbid companies like Virtu Financial (previously known as EWT, LLC) have to play by the rules!

SEC Proposes Forcing HFT Firms to Register under FINRA

I have written extensively about the largest HFT player but here was my first in-depth look at them way back in January 2008 when they were still called EWT, LLC...

Who's the Little Man Behind the Curtain?

According to some filings EWT, LLC had ...less than 10 employees in 2003 but is now a "leading market maker...on 25 exchanges and market centers globally"! Wow, these guys are either REALLY good or REALLY CONNECTED TO SOMEONE POWERFUL!

Let's look closer.

The co-founders of EWT, LLC were the former NYMEX Chairman Vincent Viola and a GOLDMAN SACHS MAN named David Salomon who "reported directly to ROBERT RUBIN". Yes, the King Pin himself! If you know GATA you know that ROBERT RUBIN = BANKING CABAL

Let's look at David Salomon..

"David Salomon co-founded, with former NYMEX Chairman Vincent Viola, EWT LLC and Madison Tyler, two of the most successful algorithmic-based trading companies in the securities industry. He also recently co-founded FATTOC LLC, a trading company and developer of next-generation trading-related applications for major financial institutions. Mr. Salomon began his career in finance in the risk arbitrage department at Goldman Sachs, where he ran the equity strategy group and reported directly to Robert E. Rubin. Mr. Salomon spent 15 years of his career as a trader in the energy markets. He was a founding member of the oil-trading department at J. Aron & Company. He went on to help found the energy derivatives business at both Banker's Trust and American International Group, Inc. (AIG). In 1978, Mr. Salomon received his B.S. degree in politics and psychology from Princeton University graduating summa cum laude and Phi Beta Kappa. In 1982, Mr. Salomon graduated with distinction from the Wharton School."

QUICK SIDE NOTE: Mr Salomon's company Madison Tyler is where Lawerence Eugene Harris worked while he was on the Regulation SHO Roundtable that was convened to investigate naked short selling on the exchanges…I challenge other GATA folks to dig into those depths!


It's crazy to think we've had the goods on these criminals for 7 years and the CFTC and SEC continue to do nothing...not surprising but CRAZY!

On a brighter note, it does seem like the regulators are pulling in the reigns a bit and all it may take is A BIT. High Frequency Traders make up over 90% of the trades that happen in gold and silver everyday so this cannot be good news for the Bad Guys.

Stay tuned as the noose gets tighter and tighter!

May the Road you choose be the Right Road.

Bix Weir

Mar 25, 2015 - 3:23pm

Re: Latest from Bix

I strongly urge you to consider other options in the sector to ponder. Bix is a witless amateur and knows nothing of what he speaks.

Registering with FINRA is a simple bureaucratic process...just paperwork.

Net effect for the HFT space? Zilch.

Verus nemo
Mar 25, 2015 - 3:45pm

Why is grandma Yellen scheduled to "speak" on Friday

supposedly just 15 minutes before the close of N.Y. equity trading? Or is she? Is this just unsubstantiated rumor?

Yen Cross over on ZH is alleging that Yellen is now planning on some speaking event this Friday: "Fed Chair Yellen Speaks 3:45 p.m. N.Y. time."

It's probably nothing but these kinds of 'announcements' drive me crazy, especially when (if true) they're timed like this one appears to be. I've always thought that the biggest shocks were most likely to be announced at, or near, the close of business on a Friday afternoon so as to trap the unsuspecting (i.e., bank holidays, roll-out of capital controls, wage and price controls, etc). What's up with this, following on the heels just days ago of the FOMC statement? Is this not odd?

Sinclair's GOTS is looking increasingly prescient! Anyone?


Okay. I found the following on the Federal Reserve website, so it looks 'harmless enough.'

"March 27 Speech - Chair Janet L. Yellen
Monetary Policy
At the Federal Reserve Bank of San Francisco Conference: The New Normal for Monetary Policy, San Francisco, Calif.
3:45 p.m. ET 

Mar 25, 2015 - 3:51pm



braincramps nadgeskaul
Mar 25, 2015 - 4:13pm


Perhaps you are correct and Bix's predictions about the Greenspan being a hero are not correct, but some of his thoughts are interesting and have progressed.

I try not to prejudge issues. I come to events/news with an open mind and it has served me well. Thank you for the feedback, always like hearing an opposing view.

Mar 25, 2015 - 4:39pm


Yeah, I don't mean to be so hard on him, but he's a sensationalist and has really bothered me on occasion with his speculations. The last straw was his incessant belief the US was forewarning of a gold-backed currency because there was some gold coloring on the new US $100 bill.

It's been a while since I've lent him an ear, so maybe he's changed his style a bit.

Regardless, he definitely is barking up the wrong tree with FINRA. It's a non-issue.

Mar 26, 2015 - 8:53am

Gold market manipulation is 'too inflammatory' to be debated

Gold market manipulation is 'too inflammatory' to be debated at Hong Kong conference

Submitted by cpowell on Thu, 2015-03-26 10:35. Section: Daily Dispatches

6:51p HKT Thursday, March 26, 2015

Dear Friend of GATA and Gold:

Yesterday's concentration on gold at the spectacular Mines and Money Hong Kong conference may have inadvertently proved GATA's longstanding contention that gold market manipulation simply can't be discussed in polite company almost anywhere in the world.

For at the outset of a panel discussion described as a debate about the direction of the gold price, its moderator, Rod Whyte, a longtime gold advocate and member of the Board of Directors of Australia-based business information provider Aspermont Ltd., announced that the panelists had agreed that gold market manipulation would not be discussed because the topic is "too inflammatory."

Since Whyte has expressed support for GATA at other venues, the calculated avoidance of the manipulation issue would seem to have been someone else's idea. In any case the panel included two members who could not have been expected to want to discuss the issue: Philip Klapwijk, formerly an analyst for Gold Fields Mineral Services, now managing director of Precious Metals Insights Ltd. in Hong Kong, and Albert Cheng, Far East managing director for the World Gold Council.

... Dispatch continues below ...

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