Cartel Banks Playing Their Same Old Tricks

Price rallies, Banks add shorts. Price falls, Banks cover shorts. This is how the game has been played for years and it continues to this day.

We're once again discussing the CFTC-generated "Bank Participation Report". So, as usual, we begin with this disclaimer:

  • The CFTC's Bank Participation Report is issued monthly from a survey taken at the Comex close on the first Tuesday of every month. The report summarizes the combined positions of the four largest U.S. banks (primarily JPM, MorganStanley, Citi, Goldman but occasionally others) and the twenty largest non-U.S. banks (Scotia, HSBC, DeutscheBank, UBS, Barclays and others).
  • These reports might be half-truths and/or complete falsifications, designed to mislead you and get you leaning the wrong way. Just last year, JPMorgan was fined by the CFTC for "repeatedly submitting inaccurate reports relating to the required reporting of positions". See here:

I will leave it up to you, dear reader, to assign or withhold legitimacy to/from the data. Commitment of Traders reports at least show data that balances shorts with longs. Since we have no idea how many Banks operate offshore trading funds outside of these reported proprietary positions, it's impossible to know how many longs or shorts any individual bank may truly have. Additionally, these are just Comex positions. The size and scope of derivative positions in the OTC market can/will never be known.

OK, so here we go. To keep it simple, let's just look at the changes to the Bank positions here in 2015.

DATE/PRICE                    GROSS LONG                        GROSS SHORT                    NET

Dec 2, 2014 $1199                 

US Banks                                    20,927                                           29,543                               -8,616

Non-US Banks                          21,154                                            73,145                               -51,991

TOTAL                                         42,081                                          102,688                             -60,607

You may recall that gold surged right out of the gate in 2015 with a huge rally that took price from a 12/31/14 close of $1184 all the way to an intraday high of $1308 on January 22. A BPR survey was then taken on February 3, with price having already fallen back to $1260. Here's what it showed:

DATE/PRICE                    GROSS LONG                        GROSS SHORT                    NET

Feb 3, 2015 $1260

US Banks                                      9,163                                             65,901                             -56,738

Non-US Banks                          20,009                                          96,264                             -76,255

TOTAL                                          29,172                                           162,165                             -132,993

So, to no surprise with Banks now massively NET SHORT, price continued to decline over the next few months before bottoming in the days following the massive, deliberate and orchestrated raid of Sunday July 19. Another BPR survey was taken on August 4 and it looked like this:

DATE/PRICE                    GROSS LONG                        GROSS SHORT                    NET

Aug 4, 2015 $1091

US Banks                                      8,997                                             39,347                             -30,350

Non-US Banks                          35,915                                             44,093                             -8,178

TOTAL                                          44,912                                            83,440                            -38,528                 

In total, the 24 Banks added 72,386 NET shorts while price rallied to begin the year and then they took those shorts and more back off while price fell. We wrote about this back on August 11 and urge you to review this post now for some further background and numbers:

And here's where we are as of last Tuesday, October 6. Price that day closed at $1146, up $55 or 5% from the August lows:

DATE/PRICE                    GROSS LONG                        GROSS SHORT                    NET

Oct 6, 2015 $1146

US Banks                                       8,686                                            58,709                            -50,023

Non-US Banks                           31,616                                            54,684                            -23,068

TOTAL                                           40,302                                          113,393                            -73,091

So, you see, this isn't complicated. The benevolent and altruistic Bullion Banks, which only seek to promote an orderly and fair paper market, always sell longs and add shorts while price rallies and then turn around and add longs and cover shorts while price falls. This is how it has always worked and this is how it will continue to work until the day finally comes when the music stops.

When will that be? It's impossible to say. Until then, however, we'll continue to shine the light of truth upon this brutally unfair, deceptive and fraudulent paper derivative price discovery scheme, hoping (if not in vain) to bring about an end to this racket as soon as possible.



Turd Ferguson's picture



I was on with a Denver radio station this morning. The audio can be found here if interested:

Joseph Warren's picture

Thanks Craig

Great commentary

Your sentiments expressed in the last paragraph is why I come here. I'm sure many Turdites feel the same way.

philly's picture

I'll take the THURD and be a

I'll take the THURD and be a happy man!

lnardozi's picture


which is a synonym for...

My regrets, respected sir!

infometron's picture

And that's not all?

Gold is up today, but the HUI is getting smashed!

Profit taking, or are miners also being sold short?

Does anyone know how to answer this question?

I'm sure there must be an information source.

bim jeam's picture


Caught the radio interview (live), you were really roll'n.
Coffee maker must have had a workout this AM.

heathbr's picture

No podcast


Safety Dan's picture

Citi's Willem Buiter has

Citi's Willem Buiter has called it: we're about to go into 'global recession'

Willem Buiter, chief economist at Citigroup.REUTERS/Lucy NicholsonWillem Buiter, chief economist at Citigroup.

Citi's global chief economist, Willem Buiter, published a note to investors saying he believed it was "likely" that the world was about to sink into a global recession, and it may already be in that recession. Buiter said that if China's growth is actually less than that stated in its official numbers, then the current level of weak growth would not be enough to avoid a global recession. Many people distrust China's official GDP numbers, which place growth at about 7%. China's real level of growth may be as low as 4%.

Buiter's definition of recession is a technical one, and it came as part of a long, thoughtful paper dated October 6 that was mostly devoted to a discussion of how recessions are defined. (He has also made this case before.) Most people define a "recession" as two consecutive quarters of declining GDP growth. But Buiter — along with other economists — prefers a definition which accounts for so-called "growth recessions," when GDP is growing but at a pace slower than population growth, or a pace slower than growth in unemployment. (In other words, if a country grew at 2% GDP but had a population growth of 5%, unemployment would likely increase and the change in GDP per capita would be negative.)

When you account for those definitions, and factor in the slowdown in China, then the global economy may be running at "below normal activity" and faces "a significantly negative output gap" or, in other words, a global recession.

Here are Buiter's main points:

Safety Dan's picture

ALERT: Central Banks are

ALERT: Central Banks are Selling U.S. Government Bonds at Fastest Pace on Record!

“Once the Biggest Buyer, China Starts Dumping U.S. Government Debt – WSJ”…
“MI-CM113_CBANK_16U_20151006170009.­jpg 1,280×1,103 pixels”…
“Global tax deal targets multinationals –…
“My Way News – Lower gas prices means no Social Security increase next year”…
“Central Bankers Urge Fed to Get On With Interest-Rate Increase – WSJ”…
“No Fed Shame in Waiting Longer for Liftoff Is IMF Advice in Lima – Bloomberg Business”…
“US banks build defences against downturn –…

Safety Dan's picture

Watchdog Says Report of

Watchdog Says Report of 10,000 Toddlers on ADHD Drugs Tip of the Iceberg—274,000 0-1 Year Olds and 370,000 Toddlers Prescribed Psychiatric Drugs

Mental health watchdog Citizens Commission on Human Rights says a new report issued by the Centers for Disease Control and Prevention (CDC) on the 10,000 toddlers being prescribed ADHD drugs, is only the tip of the iceberg regarding children being prescribed psychiatric drugs in the U.S. According to IMS health, more than 274,000 0-1 year olds are being prescribed psychiatric drugs and a staggering 370,000 toddlers.


While the recent New York Times article, “Thousands of Toddlers Are Medicated for A.D.H.D., Report Finds, Raising Worries,” seems shocking, the actual numbers of infants and toddlers being prescribed psychiatric drugs dwarfs the 10,000 2-3 year olds being prescribed ADHD drugs.[1] The mental health watchdog, Citizens Commission on Human Rights (CCHR) says according to data provided by IMS Health, the world’s leading health information and analytics company, hundreds of thousands of toddlers are being prescribed far more powerful psychiatric drugs than just ADHD drugs, and most alarming of all is the more than 274,000 0-1 year olds prescribed psychiatric drugs.[2]

According to IMS Health’s Vector One: National and Total Patient Tracker Database for 2013 these are the figures for 0-1 year olds being prescribed psychiatric drugs

  •     249,669 0-1 year olds are on anti-anxiety drugs (such as Xanax, Klonopin, and Ativan).
  •     26,406 0-1 year olds are on antidepressants (such as Prozac, Zoloft, and Paxil).
  •     There are 1,422 0-1 year olds taking ADHD drugs (such as Ritalin, Adderall, and Concerta).
  •     654 0-1 year olds are taking antipsychotics (such as Risperdal, Seroquel, and Zyprexa).

While the CDC was correct in issuing their report on the 10,000 2-3 year olds (toddlers) being prescribed ADHD drugs, the number of toddlers on anti-anxiety and antidepressants is staggering in comparison:

  •     318,997 2-3 year olds are on anti-anxiety drugs.
  •     46,102 2-3 year olds are on antidepressants.
  •     3,760 2-3 year olds are taking antipsychotics.

And as for other age groups, the numbers start in the millions with 0-5 year olds:

  •     The total number of 0-5 year olds currently prescribed psychiatric drugs is 1,080,168.
  •     The number of 6-12 year olds on psychiatric drugs is 4,130,340.
  •     The number of 13-17 year olds taking psychiatric drugs is 3,617,593.[3]

Much more here:

Safety Dan's picture

The Peanut Allergy Epidemic

The Peanut Allergy Epidemic Is A MAN-MADE EPIDEMIC Caused By Vaccinations!

I found food allergies in all the animals that are getting injected with vaccines. A wild elephant has wheat allergy - it had been vaccinated. Dogs are getting peanut allergies and other food allergies.

I found a ridiculous study done that "proved that Thai children don't get peanut allergies" in spite of peanuts being a large part of their diet. "As stated earlier, it is possible that we dismissed sick young children and those with atopic tendency from our study. However, lack of peanut reaction among young children was observed in the report from Singapore despite relatively common allergy skin reactions to peanuts among Singaporean children". First thing they did was eliminate any child that had a skin reaction from the study.  I searched and found an article from a Singapore newspaper "A worrying trend is revealed by the relatively high prevalence of peanut hypersensitivity, now constituting almost a third of patients presenting for the diagnosis and treatment of food allergy in KK Hospital, Singapore."

I found an article about Israel that said they don't have peanut allergies but peanuts are a significant part of their diet. It's true. The children in Israel don't have peanut allergies unless their parents move to the UK and get vaccinated there. In Israel they are troubled by serious sesame allergies. And, guess what! Sesame oil is used as a diluent in vaccines, too. They get their vaccines from a different manufacturer than we do.

J Siefert's picture

The meaning of "Moderate"


brokerk22's picture

It is pointless

to even have these markets.  What bullshit.  It is total government bankster control of this market.  It is a shame and a joke.

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