On with Rory and Denver Dave

Sun, May 24, 2015 - 7:51pm

Back on Thursday, I had the pleasure to visit with Rory Hall and Dave Kranzler as a part of their "Shadow of Truth" series. If you have some extra time this holiday weekend, please give this a listen.

While we're at it, just a little more background on the grotesque CoT report that was sent out late Friday. I've seen some commentary and "analysis" this weekend and it all seems to focus upon the "buying of the specs". This kills me...the buying of the specs. As if that's the big story.

Here in Turdville, we focus upon the ongoing and ever-present market manipulation of The Bullion Banks. And if you're one of those "flat earth" types that still believes in free markets, I encourage you to read this:


So, let's see. We now have proof that Bank trading desks manipulate:

  • Forex
  • Industrial metals
  • Energy
  • Swaps
  • Equities

But NOT gold and silver. Heavens no! Those are free and fair markets. Uh-huh...

Anyway, back to the CoT. During the reporting week of May 13-19, the price of gold rallied over $35 before giving back $21 and finishing +$14. For three consecutive days, gold closed above key resistance at $1220 and the always-important 200-day moving average. It was on the verge of a breakout and, in the face of a sharply-falling dollar, it was poised to begin a virtuous cycle of higher highs and increasing momentum. Well, of course, NOT if The Banks have anything to say about it.

For the reporting week, the Large Specs bought 23,000 new longs and covered 22,000 existing shorts. That's 45,000 contracts of buying pressure. On top of that, the Small Specs added nearly 10,000 contracts of buying pressure. Taking that other side of these trades were your supposedly altruistic and benevolent Bullion Banks. But they didn't just simply sell their own existing longs into this buying. Oh no, of course not. Instead, they issued and absorbed nearly 51,000 new naked shorts. Let's do some math, shall we?

  • 50,754 new short contracts at 100 ounces per contract is 5,075,400 troy ounces of paper gold
  • That's 158 metric tonnes
  • More than the total admitted holdings of Thailand
  • More than 5% of total annual global mine supply
  • More than 75% of total annual U.S. mine supply

And here's where it gets really disgusting and downright criminal. If we combine the holdings of the six, CME-approved Comex gold vaults...both registered AND eligible...we find these vaults to hold 7,835,317 troy ounces of gold. By shorting 50,754 contracts in just five days, The Bullion Banks effectively shorted about 65% of the total Comex vault.

It gets worse. By adding 50,754 new naked shorts to their pile, the Gold Banks are now gross short 273,085 contracts of paper gold on the Comex. Applying the same math as above nets a short obligation of 27,308,500 troy ounces. And what does the CME Group state as the total amount of gold in the Comex vaults? Just 7,835,317 troy ounces. Therefore, The Bullion Banks are now short about 350% of the total, available supply in the Comex vaults. If you want to really be disgusted...The total Comex registered vault is just 372,631 troy ounces. That's only enough gold to physically settle 3,726 contracts. However, as stated above, The Banks are gross short 273,085 contracts. That's a "leverage" of over 73X. And you wonder why I use words like "grotesque" and "criminal".

And we haven't even discussed silver yet...where the numbers are just as bad if not worse. For the week, silver was up $1.21 through last Monday before being forced 66¢ lower on Tuesday to finish +55¢. This was almost entirely due to an epic short squeeze on the Large Specs...NOT new spec buying. The Large Specs added 2,900 new longs but they covered over 19,000 existing shorts.

Rather than stand idly by and let the market reach a new equilibrium where buyers and sellers meet, The Silver Banks (namely JPM), issued 18,595 new naked shorts. As before with gold, let's do some math.

  • 18,595 new short contracts at 5,000 ounces per contract is 92,975,000 troy ounces of paper silver
  • That's 2,900 metric tonnes
  • About 11% of total global mine supply

Again, when we compare these numbers to the existing Comex vaults, you're likely to get pretty angry. As of last Friday, the six CME-approved Comex silver vaults allegedly held 178,765,000 ounces of silver. The new, record-breaking total gross short position of The Silver "Commercials" is 125,035 contracts or 625,175,000 ounces...again about 350% of the total vault. Put another way, in terms of total annual mine supply at 877,000,000 ounces, the Silver Banks short obligation is now over 71% of total annual mine supply.

I'll say it again...sickening, grotesque and criminal...and this is how we value and price precious metal.

Well, the good news is, not for much longer. If you haven't yet listened to our latest Jim Willie interview, please do so soon. You should also be sure to read this great article from our pal, Koos. Pay particular attention to the phrase "break the barrier between 'commodity' and 'monetary' gold". Hmmm. What do you think that means?


Anyway, we'll begin a new week on Tuesday and I invite you to join the fun here at TFMR. We're all in this together and its definitely going to get much worse before it gets better. So, c'mon in. The water's warm. The end of The Great Keynesian Experiment is upon us. Be sure you are preparing accordingly.



About the Author

turd [at] tfmetalsreport [dot] com ()


May 24, 2015 - 8:03pm


Right before my BBQ

May 24, 2015 - 8:06pm



May 24, 2015 - 8:17pm


Silver66 even on a holiday you beat me. Lol Keep Stacking

May 24, 2015 - 8:23pm

Interview Koos Jansen, Torgny

Interview Koos Jansen, Torgny Persson and Ronan Manly


Question 4: Do you foresee any changes to the current global fiat based monetary system in the next 5 years?

Yes. There are many signs of big changes coming up. The fiat currency system is failing for all obvious reasons. Gold will surely re-enter the international monetary system.

Yes, I believe we will witness the end of the US Dollar hegemony in the next 5 year period.

What we see currently is that structural support for the US Dollar from foreign (non-US) governments is ceasing. Surplus countries are no longer particularly interested in purchasing US Dollar denominated debt assets. The US Dollar strength we’ve seen the last couple of years have been due to support from private non-US investors. When this support is waning, there will be no one picking up the slack. An important trend is that central banks are adopting free float policies for their currencies. Recent examples of this include Switzerland depegging the Swiss Franc from the Euro and Russia allowing the Ruble to depreciate relatively uninterrupted.

The exorbitant privilege for the US of being able to run perpetual trade deficits will come to an end as foreign (non-US) demand for holding the US Dollar as reserves will decrease. The US Dollar will thus depreciate significantly.

I don’t however believe that there will be a totally new monetary system introduced within 5 years although I’m certain there’s ready made plans for the inevitability of our current system eventually failing. Gold will however likely play an increasing role for international debt settlements and serve as collateral to a larger degree. Gold as a store of value will thus be rediscovered and appreciated in international affairs again to a larger degree.

Gold will thus anew take on its historical role as an anchor for international trade. A revaluation will follow as the market places are rejuvenated with Asian countries like China and Singapore leading the development of setting up physical marketplaces for gold. The paper markets will diminish in importance over time if not default outright in case of a rapid increase in demand."


May 24, 2015 - 10:16pm


After seeing news coverage of the ongoing drought, it occured to me that California might just dry up and flake off, like a really big scab.

May 25, 2015 - 8:23am

Now now Marchas45

you have to get up early to beat me...LOL

but if you were not out shooting and selling then perhaps you could have squeaked by me


4 oz
May 25, 2015 - 8:34am
Safety Dan
May 25, 2015 - 9:03am

Fox announced WTC 7 collapse before it fell ON 9/11

Fox announced WTC 7 collapse before it fell ON 9/11

Video unavailable

Read more at https://investmentwatchblog.com/fox-announced-wtc-7-collapse-before-it-f...

Here's another HOAX:

The US has been cooling for 85 years, but NASA recently altered their data to make it appear to be warming
Read more at https://investmentwatchblog.com/the-us-has-been-cooling-for-85-years-but...

For this:

Nets Ignore as Obama Blames Rise of Terrorism on Climate Change - See more at: https://newsbusters.org/blogs/scott-whitlock/2015/05/21/nets-ignore-obam...

Meteorologist Spears Obama's 'Absurd Climate Change Claim'

Slaps media for failing to counter with facts


And this:

A (Not Quite) Complete List Of Things Supposedly Caused By Global Warming


and all on 0.006 deg C per year!

The MSM News Is Now Propaganda For Our Government.. Read and watch it at your own risk..

Safety Dan
May 25, 2015 - 9:20am

Rory, Dave & Craig, Another Article About Brics - SDR?

BRICs To Establish New Multi-Currency Financial Order


The new BRICs initiatives break the monopoly of existing western institutions over the financial order – a very important symbolic change, as it’s the first time a global financial institution is led by developing countries, said experts to RT.

“If the new development bank experiment succeeds, it will show the world that the emerging countries can do and manage a multilateral economic institution by themselves,” Akshay Mathur, geo-economic fellow head of research at the Indian Council on Global Relations, told RT at the BRICs academic forum.

While talking about the bank’s challenge to western-dominated financial system, he said that one of its goals is to stimulate lending to countries in local currencies for the new projects in that region.

“Right now the bank has clauses in its charter to encourage lending in local currencies. It can do it for lending in the new projects in the East, for Russian projects in the ruble,” he said.

BRICs has already employed tools to move away from US dollar dominance, believes H.H.S. Viswanathan, Distinguished Fellow at India’s Observer Research Foundation.

“A lot of trade between China and Russia is already taking place in local currencies. As far as India is concerned, it’s not that advanced, but in some areas – yes, we are using local currencies,” he said adding that the main advantage of the banks’ moving away from the dollar is that trading in local currencies reduces the operational cost.

Risk of China’s Domination

Akshay Mathur also pointed out the potential risks the bank may face, cautioning that China, the largest of the five BRICs economies, could end up dominating the new financial institution.

China has already shown notable success in internationalizing yuan. It is issuing foreign loans in its national currency and has currency swaps with 21 countries.

“China is lending now more than the World Bank and the IMF combined in Africa and Latin America. So, what I mean about the risk of Chinese financial architecture is that we want to move to a more multilateral multi-currency equitable architecture, because now we have been moving from the risks of one currency [the US dollar – Ed.] to the risks of another,” he said.

The fact that the BRICs countries are setting up new institutions doesn’t mean that they are abandoning all of the existing ones, said Oliver Stuenkel, Professor of International Relations at Fundação Getúlio Vargas (FGV) in São Paulo.

“I don’t think the BRICs countries are fully betting on new institutions which may have dominance by China, but I think BRICs institutions will have more capacity to engage both institutions reducing the risk that one country dominates all of others,” he said.

Despite holding the pre-eminent position in the West’s economy, the World Bank is also in the process of adapting to the rise in influence of other less developed countries. BRICs group will actively encourage this trend by seeking to reform existing institutions, while at the same time creating new ones, he added.

Non-BRICs Participants

Apart from the BRICs, there are other countries showing interest in entering the new development bank, said H.H.S. Viswanathan.

“Already some European countries, particularly Scandinavian countries, Finland, have shown interest, although it’s North. There will be countries who will be interested. Because they think that it’s going to be a success,” he said, adding that the bank itself is interested in inviting new members.

The subscribed capital of the New Development bank is billion, which means the BRICs countries allocated billion each. The authorized capital is 0 billion, which means another billion is expected from other interested parties, which may be countries or even other banks.

Brazil, Russia, India, China and South Africa established the New Development Bank, along with a reserve currency pool worth over 0 billion, during the 6th BRICs summit in July 2014. The bank will finance infrastructure projects in the BRICs and other developing countries, and is expected to begin operations by the end of 2015, with its headquarters in Shanghai.


Safety Dan
May 25, 2015 - 9:21am

A European Central Banker

A European Central Banker Gave Hedge Funds Inside Information

Last Friday, hedge funders were dining in London with ECB executive board member Benoît Cœuré. Cœuré told them about the ECB’s plan to accelerate its bond buyingbefore the information was released to the public.

Naturally, the hedge funders did what anyone with an iPhone and some inside information would do. They placed their bets before the rest of the world found out about the ECB’s plans.

That’s called insider trading, and it’s usually illegal. If the tipster had been a private individual, he would be in big trouble. However, the rules don’t apply to central bankers.

We’ve seen this movie before. In 2008, over sandwiches and pasta salad, Treasury Secretary Hank Paulson gave a group of hedge fund managers advance warning of the impending rescue of Fannie Mae and Freddie Mac.

Hedge funders and central bankers are in bed together. We already knew that. But pay attention to what happens to European stocks next. The US stock market bottomed and then took off soon after Paulson tipped off the hedge funders in 2008. Knowing that Paulson and the US government had their backs gave the hedge funders courage to jump back in to the market. We wouldn’t be surprised if European stocks rally in the coming weeks.


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Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

Key Economic Events Week of 7/8

7/9 8:45 ET Fed Stress Conference, three Goon speeches
7/10 8:30 ET CGP Hump-Hawk prepared remarks
7/10 10:00 ET CGP Hump-Hawk House
7/10 10:00 ET Wholesale Inventories
7/10 2:00 ET June FOMC minutes
7/11 8:30 ET CPI
7/11 10:00 ET CGP Hump-Hawk Senate
7/11 12:30 ET Goon Williams
7/12 8:30 ET PPI

Key Economic Events Week of 7/1

7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 10:00 ET Construction Spending
7/2 6:35 ET Goon Williams
7/3 8:15 ET ADP June employment
7/3 8:30 ET Trade Deficit
7/3 9:45 ET Markit Services PMI
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7/3 10:00 ET Factory Orders
7/4 US Market Holiday
7/5 8:30 ET BLSBS

Key Economic Events Week of 6/24

6/25 10:00 ET New Home Sales
6/25 1:00 pm ET Chief Goon Powell
6/25 5:30 pm ET Goon Bullard
6/26 8:30 ET Durable Goods
6/27 8:30 ET Q1 GDP final guess
6/28 8:30 ET Personal Income and Consumer Spending
6/28 8:30 ET Core Inflation
6/28 9:45 ET Chicago PMI

Key Economic Events Week of 6/17

6/18 8:30 ET Housing Starts and Building Permits
6/19 2:00 ET FOMC Fedlines
6/19 2:30 ET CGP presser
6/20 8:30 ET Philly Fed
6/21 9:45 ET Markit flash June PMIs

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