The Latest Bank Participation Report

52
Tue, Jun 14, 2016 - 11:25am

The latest CFTC-generated Bank Participation Report provides another case study of the methods through which the major Bullion Banks attempt to influence and direct gold prices.

We've written about these CFTC-generated reports so many times, it would be impossible to link every post. However, nearly every post began with these bullet points. Here they are again, just so that we're on the same page:

  • 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 utter nonsense and complete falsifications, designed to mislead you and get you leaning the wrong way. In 2014, JPMorgan was fined by the CFTC for "repeatedly submitting inaccurate reports relating to the required reporting of positions". See here: https://www.cftc.gov/PressRoom/PressReleases/pr6968-14

Again, we know that what The Banks report as their "positions" provides an incomplete picture at best. Not only do The Banks maintain considerable long and short bets in the OTC market, they also operate numerous, offshore hedge funds and utilize these funds to take positions not included in the CFTC data as "commercial". So, what good are these reports? Similar to the weekly Commitment of Traders reports, the Bank Participation Report is only useful/interesting when considered historically...and that's what we'll do again today.

As you know, gold has been on a tear in 2016 as investors and traders around the globe have profited form being long. You would think that some of the "smartest" and "best-connected" traders in the world...those on Bullion Bank trading desks...would have profited from this 20% move as well. However, if you think that, you're dead wrong.

For your consideration, here are the last six CFTC-generated Bank Participation Reports for Comex gold. Please take some time to review them and be sure to note the size of the position changes in each category in relation to price.

1/5/16 @$1078 GROSS LONG GROSS SHORT TOTAL NET

US Banks 6,387 49,447 -43,060

Non-US Banks 35,499 37,698 -2,199

TOTAL -45,259

2/2/16 @$1127 GROSS LONG GROSS SHORT TOTAL NET

US Banks 9,136 54,150 -45,014

Non-US Banks 22,313 42,663 -20,350

TOTAL -65,364

3/1/16 @$1231 GROSS LONG GROSS SHORT TOTAL NET

US Banks 8,183 81,050 -72,867

Non-US Banks 20,514 72,777 -52,263

TOTAL -125,130

4/5/16 @$1230 GROSS LONG GROSS SHORT TOTAL NET

US Banks 11,099 88,208 -77,109

Non-US Banks 22,788 93,900 -71,112

TOTAL -148,221

5/3/16 @$1292 GROSS LONG GROSS SHORT TOTAL NET

US Banks 10,791 118,437 -107,646

Non-US Banks 21,905 109,511 -87,606

TOTAL -195,262

6/7/16 @$1247 GROSS LONG GROSS SHORT TOTAL NET

US Banks 12,704 73,928 -61,224

Non-US Banks 21,004 93,076 -72,072

TOTAL -133,296

Obviously, there are a few things here that should literally jump off the page at you:

  • First of all, check the gross long positions in both categories. Price rises over 20% yet these Banks hardly add or subtract any longs. In fact, look at the remarkable consistency of the Non-US Bank long position between February and June. Price rose $170 and then fell over $90 before climbing back. Yet, these 20 Banks barely budged their relatively tiny long position. What does this tell you about their ultimate motive? Is it to profit from alternately being long and short??
  • Look at the change to the total combined short position between February and May. It increased by 300%!! This while price was rising from epic lows near $1100 to just shy of $1300. Again, are these brilliant, MBA-carrying traders looking to profit or are they hoping to accomplish something else?
  • And, of course, be sure to note the changes from May to June. During this time, price fell nearly $100 and then rallied back $40. Did The Banks use this period to add some longs? Of course not. Instead, while the speculators were dumping long positions over fears of looming Fed rate hikes, The Banks were gleefully buying back and covering some of their massive, accumulated short positions. Note that the combined total net short position fell by 62,000 contracts or about 32% over this time period.
  • Lastly, at the peak on May 3, the total combined net short position of these 24 Banks was 195,262 Comex contracts. That same day, the CFTC-generated Commitment of Traders Report showed a "Gold Commercial" net short position of a near-record 294,901 contracts. So, of that record net short position and near-record open interest total back in early May (all issued in a desperate attempt to keep price below the pivotal $1308 level), The Banks themselves were responsible for over 66% of the total. Sixty-six freaking percent! This is NOT hedging or any other legitimate activity. This is Market Manipulation 101. Issue limitless amounts of paper derivatives until the point comes where speculative interest is exhausted. Use the selling that ensues to buy back your ill-gotten shorts, likely at a profit, but be at the ready to issue them again should price resume its uptrend.

Again, none of this should come as any surprise to regular readers here at TFMR. The purpose of this post is to continue shining the light of truth upon the fraudulent, paper derivative pricing scheme. Only when this scam/sham is finally defeated will price be allowed to reach its fair value. In the meantime, all those playing in the "Comex Casino" need to be aware of the forces aligned against them and trade accordingly.

TF

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  52 Comments

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Clarkii Stomias
Jun 14, 2016 - 3:42pm

I'll tell you Jim Rickards' Motivations

Don't get hung alongside the others (figuratively or literally, that remains to be seen). Pretty simple.

I still don't trust him. His anlysis is right (system ending, gold up) but his conclusion still speaks to his old masters (SDR will be new world reserve). He's playing both sides. Pretty savy on his part: placate the old guard as it dies (pro SDR) while you pander to the new guard as it ascends (pro gold) and maybe you can still keep your life, position and standing.

infometron
Jun 14, 2016 - 3:26pm

Right on cue

(edit: Another) Big ramp up on the S&P starting at 3:00pm, right on friggin' cue!

Amazing to watch... I'll be listening to Jim Rickard's this evening as well.

I think Clarki has probably nailed it, regarding his motivations.

Angry Chef
Jun 14, 2016 - 3:24pm

Currency Risk ?

Marcward...link didn't work for me. Can you repost ?

Clarkii Stomias
Jun 14, 2016 - 3:21pm

Question I've been pondering

Does BREXIT mean Germany turns east (to Russia) now?

Jun 14, 2016 - 3:20pm

And in a stunning development...

Today's regularly scheduled S&P ramp job has begun...though about 30 minutes ahead of the usual time.

Angry Chef
Jun 14, 2016 - 3:19pm

And There are Going To Be More...

False Flags all summer long. They will get worse and worse and more violent.

That you can take to the Bank.

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Angry Chef
Jun 14, 2016 - 3:17pm

Guerrila Update...Orlando and Brexit....

Guerrilla Update (06/13/2016)

Until people realize that there is a 5th column at work inside the United States and around the World. Working to undermine and destroy your country. These false flag gun control BS will NOT STOP !!!! Your enemies are your very own Government and Britain and Israel working within the agencies of MI5, MI6, FBI, DHS, NSA, MOSSAD, and of course CIA ( Cocaine Import Company ). It's the old Roman Empire divide and conquer strategy. As well as Operation Gladio 2.0 to create an atmosphere of fear and tension within the populace. People are easier to manage when they're scared. And if you can create a brown muslim boogie man under every bed, this will never stop !

Who do you think is destroying Venezuela right now ? The Empire of Chaos of course. Why ? Because they weren't playing ball with the Empire. So they had to be destroyed. Remember O'bomber calling Venezuela a terrorist country a couple of years ago after Chavez asked for their Gold back ?

Do you see the clowns from Israel and MOSSAD that were part of the Ukraine coup d'etat. And what happend to Ukraine's Gold ????

Do you see what is going on in Chile with that coup d'etat ???? There goes the "B" in BRICS folks.

Do you see what is happening in Argentina ?

Syria ?

We are and have been funding ISIS from day one.

We have been attacking Russia for what ? Eighty years.

I read somewhere the other day the 6th chemical plant in China went up in flames.

And now I see Globalist scum pedophile freak Rupert Murdoch is supporting the BREXIT. Do you think just maybe the death of the dollar just might be staged ????

We have fake money, fake elections, fake education, fake medicine, fake skies, 24 hr fake television PROGRAMMING, fake charts ( hat tip SS121 ).

We're being played. Do you get it yet ? And people wonder why I'm so Angry. !!!

Dirt_Reynolds
Jun 14, 2016 - 3:16pm

Humility

Being a double post, it is the ultimate in irony, or/and sarcasm. CRACKED me up!

AIJ
Jun 14, 2016 - 2:59pm

Andy Hoffman / Zero Hour?

"by Andy Hoffman, Miles Franklin

Unquestionably, Jim Rickards is one of the most interesting, and enigmatic, people in the Precious Metals universe. He first came “onto the scene” as the general counsel for the infamous hedge fund Long-Term Capital Management (talk about an oxymoron); at which, he negotiated the 1998 “bailout” that, in some ways, marked the beginning of the end of the Alan Greenspan fueled dot.com bubble. According to GATA, the most honest, and knowledgeable people on the topic of gold manipulation, “LTCM” was massively short gold at the time of its collapse; and thus, said bailout was one of the modern gold Cartel’s’ first official actions. Which I bring up not to impugn Rickards – as obviously, his role in the legal department had nothing to do with LTCM’s investments – but to show how deeply he was exposed to the inner workings of gold manipulation.

Over the years, much has been written of the facts and myths of Rickards’ career – some of which, to this day I am unclear about. Quite obviously, he has consulted with governments; “in the know” corporations; and intelligence agencies; and one thing we do know, is that on numerous occasions, he helped the U.S. government “model,” and prepare for, worst-case financial scenarios. As for me, the only time I met him personally, was when he was a keynote presenter at GATA’s once-in-a-lifetime London conference in August 2011 – at a controversial speech I’ll never forget. Let’s face it, Rickards is one of the most brilliant minds in the financial world; but also, one of the most mysterious.

Personally, my view is that in “prior lives,” his allegiance may – or may not – have been to entities not 100% aligned with the PM community. Again, I have no proof of such; but instead, an “educated opinion” based on 14 years of observations, and a lifetime of intuitive experience. However, in recent years, he appears to have done an “anti-Annakin Skywalker” – in shifting his allegiance entirely to the light side of the force. I say this with a grain of salt; as clearly, he is one of the industry’s most aggressive promoters – of multiple marketing programs. However, in aligning with Agora – “good, smart people”; who generally speaking, have your best interests at heart; and publishing reams of brilliant analysis, with the correct conclusion that the global fiat Ponzi scheme is on its last legs; I’ve officially given myself the “all clear” to listen to, and trust, his commentary. And man, is there a lot of it, as he is the most hard-working, and visible, guy in our sector.

Why do I bring him up today, you ask? Because as I write Tuesday morning – on a day when yet again, global currencies (Chinese Yuan, new multi-year low fix); commodities (copper, .03/lb); sovereign bond yields (German 10-year bund, negative 0.01%, U.S. 10-year Treasury yield, 1.58%); and equities (Europe down 1.0%-1.5%); are collapsing (with gold unchanged), I truly believe the “zero hour” event he will be discussing tonight (more on that in a second) is on the cusp of arriving.

To that end, no one has been more vocal that I, that 2016 will likely be the “end game” for the “powers that be’s”’ ability to maintain control over the hideous financial mess they created. Heck, I wrote Saturday morning of my expectation that the “Lehman of Europe” – Deutschebank – was on the verge of collapse, just before it plunged an additional 5%, to a new all-time low; and yesterday, that events were deteriorating so rapidly, we may well be approaching your last chance to protect yourself. This, one day before what could be an historic FOMC meeting – in that it may, once and for all, end years of false belief that the Fed has an “exit strategy”; and nine days before what could be a watershed event in financial history – the likely-to-pass “BrExit” referendum.

Tonight, at 7 pm EST, Rickards will, as part of a marketing promotion with Agora, give a live webcast from Switzerland. During which, he will discuss his belief that we are rapidly approaching the “zero hour” event that he believes will be the biggest monetary shock since the 1971 abandonment of the gold standard – after which, gold could rise to ,000/oz. Frankly, I’m not sure if it’s open to the public – but since I’ve been “invited,” I will be listening. And in the meantime, here is the series of promotional videos he has published, en route to his meeting with “Goldfinger” – who he claims is one of the most plugged in, knowledgeable people in the global bullion industry.

Why am I discussing this, you ask? Because regardless of his intentions – which for the most part, I believe to be genuine, and in your best interest – I agree completely that a “zero hour” event approaches for not only the Cartel, but the “powers that be” in general; be it one as “recognizable” beforehand as what Rickards will be discussing, or “out of leftfield”; i.e, one of potentially dozens of world-changing – and Cartel-destroying – “black swan” events.

I’ll let you know what the gist of his beliefs are tomorrow; but irrespective, want to issue the same, dire warning of my belief that the inevitable fiat currency “end game,” no matter how it is set in motion, appears more imminent than ever. And that, when it occurs – either via a single “big bang”; or a series of cascading events – it will likely be too late to protect yourself.

I can’t speak for Jim Rickards’ motivations, but I can tell you that it would be wise to listen to what he is saying. As well as my, and countless other “good, smart peoples’” warnings; as unquestionably, we are on the cusp of financial market history, decidedly NOT “for the better.”

- See more at: https://thedailycoin.org/2016/06/14/is-it-the-cartels-zero-hour/#sthash...."

Lintltj5
Jun 14, 2016 - 2:48pm

Just like I said the other

Just like I said the other day, the media will try to use Orlando to push gun control and ignore everything else. As I type, Im seeing that Dem. Congressmen walked out of a moment of silence and are demanding tougher gun laws.

Faux News has polls and charts showing who supports bans etc.

This on the heels of talking heads reporting how great a job the government has done in protecting us and following that by slamming Trump's comments about Muslims and a ban.

Im not a ra ra Trump fan, but gee......looking at these last few terrorist incidents wouldnt looking into problems with importing thousands of Muslims be common sense?

Also, theres an email floating around with a supposed quote from Valerie Jarretts 1977 yearbook praising efforts to integrate Islam into the US and use its own laws to do so. Can anyone verify that this is indeed a real quote and not just a made up?

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Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

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