Tooth and Nail

94
Fri, Mar 11, 2016 - 10:57am

Wow. The Forces of Darkness are fighting us for every last tick, nakedly issuing new Comex contracts at a record pace in a desperate attempt to hold gold back from new 2016 highs. Will they win again? When was the last time they lost?

I must admit to a certain level of frustration today. After yesterday's reversal and rally, gold appeared to be on the verge of another breakout. Instead, after surging $10 higher to $1284 at the "Asia open" last evening, gold is now down $20 and back to $1264. How/why?

  • First of all, incredible naked short issuance by The Bullion Banks on the Comex. Just yesterday, they increased the total open interest by 15,000 contracts to a new multi-year high of 504,000. This represents new obligations to deliver up to 1.5MM ounces or 47 metric tonnes but did The Banks deposit any additional gold or put up any extra gold as collateral? Of course not.
  • Price was sat upon all night long as we even saw a return of The London Monkeys after a 3-day absence. Here's a look at price immediately following the Asia open.

  • Next, we get the standard London PM fix screw job where price is suddenly smashed for $5 just as the Fix is determined:

  • And now, at 10:30 EST, I look up to see price at $1258 and down $15 on the day, $26 or 2% from the "Asia" highs. Ridiculous. Is there any accompanying news? No. Has the euro given back all or even part of its gains from yesterday? No. Has the yen suddenly plunged, taking gold with it? No. This is nothing but plain, old standard Cartel raiding. Brutal. Totally unfair. Completely manipulated. Sickening to watch.

So, is that it? Are we doomed to suffer another massive raid and Spec rinse cycle? It's hard to say. The FOMC and accompanying "fedlines" next Wednesday will go a long way toward determining what happens next? Will Mother raise the FF rate again? I doubt it. Will she and her Goons proceed to jawbone their way to dollar strength? Yep. And will The Cartel use this jawboning to raid price even further because "all is well, the economy is strong, markets are surging, rates are headed higher"? Of course.

We will, most definitely, have to watch the charts closely. For now, both metals are hanging tough despite all of the repeated raid attempts and incessant creation of paper metal.

At the end of the day, this is all criminal behavior but what do you expect from a bunch of unregulated criminals? Since the end of January, they've now issued over 130,000 new Comex gold contracts to meet the Spec paper demand. That's 13MM paper ounces or 404 metric tonnes. These banks don't have this gold nor do they intend to find and deliver it. They're simply waiting the process out. Hoping/planning to smash price with such force that the Specs will rush the exits. This Spec selling will allow The Banks to buy back and cover their shorts, thereby reducing open interest and closing positions without ever having to deliver any metal. It's criminal. It's fraudulent. And it's the way business is done on the Comex.

As you can tell, I'm a little beaten down today so I'm planning to take the afternoon off. My pal, Sweetness, is in town so I'm going to watch a little basketball, drink a little beer and play some golf...though not necessarily in that order. As such, there WILL NOT be a podcast this afternoon. We'll record and post one tomorrow morning, instead. (And don't go complaining about how you need me to read the CoT for you. I can tell you right now that it's going to be horrific with the largest Commercial NET short positions in years. We'll deal with that tomorrow.)

Have a great day and try to find some solace in the fact that LIES cannot continue forever. The TRUTH always wins and The TRUTH will one day set prices free.

TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  94 Comments

joeblack
Mar 11, 2016 - 11:00am
proformatrillionaire
Mar 11, 2016 - 11:08am

1st

Now that I live near Gainesville Coins I will need to drop by and make a purchase in person to celebrate.

gazzmann
Mar 11, 2016 - 11:12am

it's a

third

TF Metals fan
Mar 11, 2016 - 11:15am

That beer

..is a great idea. Much better than seeing a bunch of criminals at work.

canary
Mar 11, 2016 - 11:20am

Totally naive question.

If the Fed rise rates or just talks tough next Wednesday (bypassing weak negative data).....With all those commercial short positions.....What will happen to gold and silver?

BarnacleBill
Mar 11, 2016 - 11:20am

Opportunity

For physical purchases should the Banksters prevail short term at FOMC. I'll take it! It is very frustrating to watch but they ARE losing control and soon it may not be possible to buy physical at these prices. Trying to stay positive.

Mar 11, 2016 - 11:20am

Since the Asia open

The Asia open sends gold to new 2016 highs on strong upward momentum. In a normal "market", this would engender even more buying. Think of what you might see in an individual equity, for example.

Instead, we get this:

canary
Mar 11, 2016 - 11:21am

Seriously?

C'mon, man. You can answer that yourself...

Mar 11, 2016 - 11:27am

Shares being pushed lower too

HUI now down 2% on the day after daring to reach above 180 again.

ReachWest
Mar 11, 2016 - 11:35am

The Battle Rages On.

Thanks Mr Turd ...

This is a war and we win some battles, while losing others. (Although - the opposition wins more and has been since 2011.) But - they will ultimately lose. No matter how powerful they seem (with their endless supplies of conjured currency and naked paper gold shorts) - we have a secret weapon. That weapon is called "human nature and natural laws". Trust will be lost in their paradigm. They are fighting the forces of gravity (so to speak) and we have gravity on our side. The best they can hope for is to delay the inevitable. The spinning top is wobbling and there is no way to stabilize it before it stops spinning.

I wonder how many of those people in the command structure of the Keynesian system are actually acquiring physical metal for their own personal protection? Probably a large percentage.

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

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
7/3 10:00 ET ISM Services PMI
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

Recent Comments

by It'stheBankers, Aug 24, 2019 - 10:04pm
by jack3617, Aug 24, 2019 - 9:04pm
by Marcus, Aug 24, 2019 - 8:58pm
by mavens, Aug 24, 2019 - 7:15pm
randomness