The Criminality of The Comex

Sun, Jun 28, 2015 - 6:19pm

How is this even legal? That's a serious question and I'd like a serious answer after the you read what is presented below.

Immediately following the short squeeze in mid-May that resulted in a 10% price move in just five days, the "Large Specs" in silver set out to rebuild (or were tricked into rebuilding) a massive naked short position in Comex silver. As you can see on the chart below, over the past five weeks, these Large Specs have added 41,806 gross naked short contracts to their accumulated position. This drove their total reported position up from 16,891 contracts on May 19 to last Tuesday's 58,697 and is the sole, primary reason for silver falling by $2 over the same time period. (click to enlarge)

Here is where this "market" becomes fraudulent and clearly fails to serve the world's silver producers and consumers. These "Large Speculators" as a group are collectively hedge funds, managed commodity funds and High Frequency trading funds. By definition, these are trading groups and they do not hold any physical silver. Therefore, they are truly "naked" in their position as they do not have physical silver to deliver to buyers at a future date (one of the rationale for having futures markets in the first place).

And let's put this into perspective...

These Large Speculators added 41,806 naked short contracts over these last five weeks. At 5,000 ounces of "silver" per contract, that's the equivalent of 209,000,000 ounces of silver.

  • In 2014, the entire world only produced 877,000,000 ounces of silver. Therefore, over just five weeks, the Large Specs naked shorted 24% of global mine supply. And, again, this is silver that they don't have.
  • Perhaps you think that, instead, this shorted silver has already been parked at the Comex for future sale. Well, as of Friday, the entire Comex silver vault holds just 183,000,000 ounces. So, over the past five weeks, these Large Specs have naked shorted 114% of the entire (registered and eligible) Comex vault.
  • However, only registered metal is allegedly marked and ready for sale/delivery. As you can see on the CME Silver Stocks report below, Friday's registered silver total was just 58,000,000 ounces. Using the same math, in just the past five weeks the Large Specs have naked shorted 360% of the total Comex registered vault.
  • Now lest you think I'm cherry-picking information to make my "case", let's venture into the weeds a bit and get down to the nitty-gritty...

    The term "Large Specs" is only used on the traditional, "legacy" version of the criminally-complicit CFTC's Commitment of Traders report. On what they call the "disaggregated report", we can find positions assigned specifically to a group called "Managed Money". What is Managed Money, you ask? Here's the definition from the CFTC's own document:

    Money Manager: A “money manager,” for the purpose of this report, is a registered commodity trading advisor (CTA); a registered commodity pool operator (CPO); or an unregistered fund identified by CFTC. These traders are engaged in managing and conducting organized futures trading on behalf of clients.

    OK, so this is pretty clear. This is a grouping of "traders (which) are engaged in managing and conducting organized futures trading". Nothing mentioned here about holding physical metal or hedging future delivery. Just traders looking to hold derivative positions for trading profit.

    On this week's CoT report, we find the following positions assigned to these traders (

    Managed Money GROSS long contracts: 46,135

    Managed Money GROSS short contracts: 53,304

    Managed Money "spreading": 11,851

    Now what is this "spreading"? What does that mean? Again, from the CFTC:

    “Spreading” is a computed amount equal to offsetting long and short positions held by a trader. The computed amount of spreading is calculated as the amount of offsetting futures in different calendar months or offsetting futures and options in the same or different calendar months. Any residual long or short position is reported in the long or short column.

    So, to determine the actual number of NAKED SHORT contracts held by "Managed Money", we need to subtract the spreading total from the gross total. Doing so yields a total NAKED SHORT position for "Managed Money" of 41,453 contracts.

    Again, please let me remind you of the definition of "Managed Money" from the criminally-complicit CFTC...These are trading funds. They have no physical silver to deliver. They are simply speculating in the paper derivative silver futures market.

    At a total position of 41,453 contracts, these trading funds are now NAKED SHORT 207,265,000 ounces of silver, coincidentally almost the same number as above when using the aggregated "Large Spec" grouping. Again, looked at another way, these trading funds are naked short:

  • 23.6% of annual global mine supply
  • 113% of the total Comex silver vault
  • 358% of the total Comex registered vault
  • Now, before you write to me arguing how no one was complaining when these same fund took LONG positions, you must understand that you're missing the point entirely. It's not the speculative trading that bothers me, IT'S THE NAKED SHORTING OF BOTH THE COMMERCIALS AND THE SPECS. The essence and purpose of futures trading is to allow producers and consumers of a physical commodity to either sell or buy forward. The gambling speculators take the other side of these trades. This system DEMANDS physical backing of trades and delivery if it is to have any legitimacy. Remember, "Managed Money" speculators have no metal to deliver. Regardless, they are allowed to naked short metal to whatever extent the cash in their margin accounts allows.

    This is insanity and completely against the rationale for having futures markets in the first place as it places "pricing control" in the hands of speculators who have no connection to the physical markets. Silver miners, their employees and all producers of physical silver metal are being explicitly harmed by this process and they should work diligently to end it. The Comex and all unallocated, paper derivative futures trading should be immediately halted due to the irreparable damage it is causing to silver mining industry.

    One final note, as you can see on the chart below, the extreme size of the Large Spec short position now exceeds by nearly 24,000 contracts the position held back on May 12 which, when panic covered, led to a 10% price squeeze in five days. This makes another squeeze in the days ahead highly likely and, once it begins, it should be spectacular to behold as all of these trading funds rush to cover at the same time. You might want to keep this in mind as you are bombarded with "analysis" that claims that the next move in silver is lower.

    So we close where we began...How is this legal? How can a managed money or hedge fund naked sell silver that they don't own, thereby suppressing price and damaging the businesses that produce the metal and the employees that rely on these companies for their well being? This is the essence of a financial system run amuck, doing more harm than good and operating completely against the rationale of it's creation. Why is this allowed to continue? How can anyone claim that this is a free, fair and honest pricing system?

    We all await the day when this fraudulent and unfair scheme finally collapses.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    kryton619 · Jun 28, 2015 - 6:25pm


    Thanks for all the great posts turd!

    Marchas45 · Jun 28, 2015 - 6:25pm


    What A Treat

    heathbr · Jun 28, 2015 - 6:27pm


    What a week this will be!

    Havenstein · Jun 28, 2015 - 6:32pm

    July 4th

    Fireworks starting a few days early.

    · Jun 28, 2015 - 6:32pm
    NW VIEW · Jun 28, 2015 - 6:36pm


    Well, one would think with all the hype, bailins, Greek woes, bank closures, fears within the markets, the continual printing of all fiat funds and the loss of freedom within America, that the P.M. would be up 10% on opening. The reality is that it is still difficult to rise above $1200 and $16.00. jmo

    Mickey · Jun 28, 2015 - 6:38pm

    The intent of t he naked shorts is to manipulate the markets,

    anyway, how many entities are there which can handle positions this large anyway.

    lakedweller2 · Jun 28, 2015 - 6:39pm

    It Is The Agenda That Matters

    If the intent is to destroy the economic fabric of the US as well as all other Western countries in order to establish some form of a New World Order, then it is necessary to destroy the legal system also. If you can not destroy it, you tie its hands on the Federal Level by ordering all Regulators and Law Enforcement Agencies at the Federal Level to stand down or order their diversion into other immigration or race conflicts or terrorists threats...WITH no criminal action against financial institutions or organized markets. You deregulate simultaneously and bribe Congress.

    Therefore what is ON ITS FACE a criminal action is allowed to thrive. Although this economic activity appears to be "stupid", "ill advised", part of a failing theory (Keynes), is actually an intentional act to destroy the Sovereignty of the US for the above stated


    4 oz · Jun 28, 2015 - 6:40pm
    CPE · Jun 28, 2015 - 6:46pm

    EUR & oil

    Correlation still intact, both down 1.5%

    CPE CPE · Jun 28, 2015 - 6:48pm


    It's almost 7am in Shanghai. Sell Chinese sick bubble / buy Au?

    Barfly · Jun 28, 2015 - 6:55pm

    finally. happening.

    Burn, baby, burn.

    Texas Sandman · Jun 28, 2015 - 7:05pm

    How can this be legal?

    Stupid Answer: Because it's the US Government doing it. You know... Land of the free and home of the brave where laws are rewritten by the supreme court to make unconstitutional laws constitutional...

    Nixon: "If the president does it, it's legal!"

    My sarcasm runneth over.

    Texas Sandman · Jun 28, 2015 - 7:20pm

    And now for their next trick...

    They make the SPX close positive and gold close negative tomorrow.

    When you have access to a leveraged futures market and a printing press with unlimited paper and ink, all things are possible. Just a matter of pulling the right strings...

    Listen to helicopter ben...

    AIJ · Jun 28, 2015 - 7:25pm

    Willie is probably right

    Have to wait for the gold trade note.

    kryton619 · Jun 28, 2015 - 7:30pm


    Open a Bitgold account with this link and receive a 1/2 gram of gold for free. (Just over $19.00)

    stickley · Jun 28, 2015 - 7:30pm

    comex evil

    Great article Turd! One of your best! I have always believed "the boyz" have to keep PMs low to make everyone think everything is okay with the economy. Laws have nothing to do with this because the govt. allows this for that purpose. Seems "the boyz" are making a killing of this situation! Anyway the thing that bothers me also are the poor countries that depend on PM mining for their living. These crooks running this absurd show only care about themselves and their pockets! They will get their just reward in the end! Thanks for all you do . CIGA Tim

    Texas Sandman · Jun 28, 2015 - 7:39pm

    Would have loved to be the fly on the wall...

    at the meeting woody had with the heads of JP Morgue, Goldman Sucks, et al the day before gold took its dive.

    I mean isn't this the way government is supposed to happen in an open free society?

    heathbr · Jun 28, 2015 - 7:47pm


    I like the idea of BitGold, I feel like it could be the recipient of a lot of fleeing dollars for people that don't hold the phys. Although owning the shares might be the best place to be, and they do give you $10 of free gold when you sign up!

    Check it out!

    mike97 · Jun 28, 2015 - 7:57pm

    Both gold and silver capped at 1% in Asia

    Who said there is a Greek problem? TPTB has things(G&S) under control. If the pm's don't rise, then there is no problem. Lets hope things get a little more disorderly when Europe opens tonight.

    · Jun 28, 2015 - 7:58pm

    How is this legal?

    I have my suspicions... 

    That is former CFTC chairman Gary Gensler in the background, FYI.

    BarnacleBill · Jun 28, 2015 - 8:00pm

    On I see a rhyme not a repeat

    This will go on to the final planned implosion when those of us free market types that have stacked and prepared will be vilified as the cause of US problems. The peop!e will gobble this up and it will be so easy for an executive order to be promulgated that preppers have an unfair advantage over the "middle class"(now people on the dole). Therefore it is only fair that anyone profitting from PM profits should either pay 90% taxes on any profits or be offered a pass by the IRS to turn in any illegal pm's to exchange for fiat at 25% of artificial value. Amnesty! Puke

    The game plan has been thought out well ahead of time.

    But I have to keep stacking any way.

    I have to laugh that my childhood friends had grandpas that didn't trust the banks and had mattresses of cash. We just thought they were crazy old coots. How little did we know!

    AIJ · Jun 28, 2015 - 8:04pm
    waxybilldupp · Jun 28, 2015 - 8:05pm

    Just a thought ...

    We here in Turdville have wondered and speculated for years, "When will it all end"?"

    Here's the thought I had while weeding the garden earlier today:

    Clearly, with the happenings in Greece, Ukraine, and soon to come in Spain, Portugal, France and a few other locations, the pace of TEOTGKE is quickening. But there will be any number of starts, stops, restarts along the way as TPTB scramble to blow more smoke and adjust the mirrors. Turdites know this ... SO GET TO THE FRICKEN POINT, WAXY!

    It will truly hit the fan, no later than 16 months from now. Why 16 months? Do the math. 16 months from now, there will be a presidential election. Barry will be out (with a 2-1/2 month cushion). Do you think for one moment he will be caught relying on the generosity of others? He has been complicit in the destruction of the USofA, and in particular, the middle class, for the last 6 years. When the poop starts really hitting the air screw, some might start getting a little hostile and wish to hold him accountable. For the next 16 +/- months, Barry still manages the most powerful military on the planet. He holds the keys to a big honkin' seven-four-seven that can take him anywhere that will have him.

    Do you think for an instant he is going to rely on Jeb, or even Hillary, to bail out his sorry ass when things start getting hinkey?

    I'd love to hear that conversation ... "Hey Hillary (Jeb). Things are getting a bit dicey here in DC. Rumor has it you and Bill are going to take a little 6 month vacay in New Zealand 'till things cool down. Mind if Michelle and I and the girls join you on the plane, since you're goin' that way and all?"

    "Dang, Barry. You know I'd really like to help you out, but we already must have 20, maybe 25 folks lined up to make that trip. Don't think that's going to work. You how crowded it an get on AF-ONE with that many people. Check with ya' later."

    Barry just isn't going to risk that happening. Now obviously, things could get ugly well before then. You have to know that in spite of all that has happened in Greece the last few months, there are going to be some who get up tomorrow morning and say, "WTF! My Debit card doesn't work! How can this be?" And, when it happens here, there will be millions who say the same thing, because the story-line on the Kardashians or the Duggers didn't cover the possibility. Oh well. They're not called Sheeple for nothing.

    Just a thought. And now, back to your regularly scheduled socio/political/economic upheaval.

    wax off

    4 oz · Jun 28, 2015 - 8:05pm

    ...And While everyone was looking on direction

    ...and while everyone was looking one direction...

    Kentucky Sen. Rand Paul’s trip to Colorado this week includes a first for a presidential candidate: a fundraiser with the marijuana industry.....

    silver66 · Jun 28, 2015 - 8:13pm

    Just posted on end of last thread

    Thought I would repost here

    Friend is a big bond trader with a major Canadian bank. On the 18th of June he had sent me a text that Greece was going to get bad, but then he felt the can would be kicked. In that text he said he was glad he had gold (which by the way I had pointed him to a few years before)

    I just got a text that told me it would be black Monday tomorrow by the looks of it.

    I am hesitant to post due to the amount of fear porn of late, however given current state of affairs I felt this was important coming from a person that works inside the beast wink.

    I have never bought on credit cards, other than for convenience but if things look like they are coming ashore then I am locked and loaded with 4 cards that have zero balances on them and lots of room

    If I get any more texts from him tonight I will post


    ​If this is the beginning of the reset all I can say is Man up and be the beacon of integrity and wisdom that so many will be looking for . Lead by example of your actions

    AIJ · Jun 28, 2015 - 8:22pm

    So I'm sure right now turd

    Is talking to Denver Dave who is talking to Kirby who is talking to Willie who is talking to Sinclair. Hey guys share info.

    silver66 · Jun 28, 2015 - 8:33pm

    Follow up on text from friend

    Marchas45 asked me to keep him posted

    I sent a text back asking how big a shit show he thought it was going to be? 

    Short text back,... big and atms are probably out of euros in Greece (I think that is pretty obvious)

    It was a short text as he said he has been called into a meeting downtown and will try to touch base later or chat tomorrow

    I am glad he was called in, in fact I would have been concerned if one of the big bond traders was just going to figure out what to do tomorrow morning.


    psalm 23

    Yukajub · Jun 28, 2015 - 8:35pm

    according to silver

    Nothing of significance has happened. Trading at same price as last Thursday :oP

    Mr. Fix silver66 · Jun 28, 2015 - 9:05pm

    How is this even legal?

    Because, here in what was once a free country, a criminal cabal has hijacked the government at every level, and even pretending they are legitimate, by pointing out the illegality, avoids the obvious conclusion that our country is being run by a bunch of Satanic genocidal maniacs.

    These markets were never legitimate, the entire paper Ponzi scheme that includes currencies, as well as futures markets, only have the appearance of legitimacy, when they are in reality a fraud perpetrated on the populace with the sole intent of separating them from the fruits of their labor.

    Analyzing the daily numbers is an exercise in futility, because when they don't add up, they can just change the rules. You know this to be true when there is no one to turn to to arbitrate any wrongdoing. They are literally all in on it. In essence, this criminal cabal extends to all banking and government institutions, and are now in collusion with most if not all multinational corporations.

    The outcome will be the impoverishment and enslavement of humanity.

    How does this end?

    It will not be done through elections, they've been rigged for quite some time now. Humanity has been forced into a situation whereby they must fight for their freedom, and in this, I'd love to hear another option. Most people just want to be left alone, to pursue their own dreams and happiness, those in charge have worked tirelessly to make this an impossibility.

    We are being herded into a blood bath, with the outcome heavily stacked in their favor.

    There are only two possible outcomes, we except that we are now slaves, and except that our slave masters would prefer that there are far fewer of us, meaning many of us will die.

    Or we can take up arms and defend ourselves, arresting every banker and politician for crimes against humanity.

    Evil can only run unimpeded when good men do nothing. Even the religious leaders who are supporting the institutions that have enslaved us must be eliminated. I'm specifically referring to the Pope, who's in this up to his eyeballs, and the Vatican stealing the wealth of humanity for thousands of years. He only serves to give these completely evil entities moral authority.

    Unfortunately, most of humanity cannot even identify the problem, making the solutions impossible.

    This will not end until they are hanging by their necks.

    Under the current circumstances, it is highly likely that not only cash but also gold and silver will be made illegal. I've long stated that every exit is being closed. Ultimately, we will have to fight back.

    Notice: If you do not see your new comment immediately, do not be alarmed. We are currently refreshing new comments approximately every 2 minutes to better manage performance while working on other issues. Thank you for your patience.

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