Desperate Bank Shorting Continues

Mon, Jun 27, 2016 - 10:51am

Again, the paper derivative price of gold can only go up if there are is more demand for the derivative than there is supply. And with The Banks increasing supply by nearly 9% on Friday, and God only knows how much again today, you get a gold price that is only up a few dollars, despite crashing equities and soaring bonds.

So, what are you going to do? STACK! THAT'S WHAT YOU DO! In the meantime, here's a rundown of some of the carnage market action so far today. Let's start with forex where we've got the all-important USDJPY down 2/3 of a point while the British Pound is making new lows versus The Pig...even lower than early Friday!

This while global bond markets are soaring. You might read this from ZH: But then check these charts. Here are the 10-year and 30-year US rates. So far today, the 10-year note is down 10 bps at 1.48% (the alltime low is 1.38%) and the 30-year Long Bond is down 14 bps at just 2.30%! Two point two nine percent!!!

Check out the German 5 and 10 year bunds! The 5-year is down 1 bp at -0.55% but the 10-year is off 6 bps at -0.11%!! WOW!

And while we're in Germany, perhaps we should check in on our old pal, DoucheBank. No shock, I guess, that it's making a new ALLTIME low again today at $13.64. And it's not just's nearly ALL of the Eurozone banks that are in trouble. See this from ZH, too:

All of this adds up to another tough day for the Paperbugs as equities across the globe are tumbling. Of course, we all expect some major attempt by the global Central Planners to rescue "the markets" but when will it come and how effective will it be? I guess we'll just have to wait and see. In the meantime, the S&P is down another 35 points as I type and clinging to the psychologically-important 2000 level at 2002. Uh-oh...

So, now that you're caught up, let's turn to the metals and miners. If you haven't yet read the opus that we posted back on Saturday morning, I strongly urge you to do so. The final open interest tallies for Friday are in and it's every bit as disgusting as we thought. On Friday, with The Banks reeling from Brexit and the overnight surge of nearly $100, these Criminal Bullion Banks added a whopping 50,091 new paper gold contracts to the "market", effectively increasing the total available "float" of contracts by 9%. Again, where else would this type of fraud and market manipulation be tolerated? So, how/why was gold forced back down from $1360 overnight Thursday and from $1335 to $1315 during Comex hours? The Forces of Pure Evil simply created from whole cloth over 5MM ounces of new paper gold to feed to the hungry Specs. Without this new 156 metric tonnes of paper gold supply, how high might gold have risen on Friday? Without all of the new paper tonnage that The Evil Ones are issuing again today, how much higher would price be this morning? As it stands and regardless, gold is up a whopping $8 as I type at $1330....adding another $200,000,000 in paper losses to Cartel Bank P&L sheets.

Note, too, that by adding all of these new shorts, The Banks have also been able to maintain price within the channel we've been following so closely here lately. Look closely at where the rally was deliberately halted overnight! Will they be able to keep things under control? I suppose they will until they simply can't. When will that be? It's hard to say for certain but the date was moved up considerably by the vote back on Thursday!

And turning to silver...As we discussed back on Friday, DO NOT read too much into silver's relative "underperformance" on Friday or early this week. There are two, major items effecting it:

  1. The POSX is rallying due to all of the Euro turmoil. This is causing the HFTs to sell all commodities and this is leading to a drag on paper silver.
  2. The July silver comes off the board on Thursday and trades First Notice on Friday. <Edit: Turd cannot read a calendar. July silver comes off on Wednesday and trades First Notice on Thursday.> If you've been around here long enough then you know how this works. Spec trading positions (at a ratio of 4:1 LONG) are being taken off and rolled. This is A LOT of selling that is not entirely replaced by new buying.

As I mentioned Friday, I am therefore uninterested in buying any paper or real silver until around Thursday. Between now and then, I'm just watching. On the bright side, silver is UP 3¢ as I type at $17.84 and, IF it can hold here, it will post a new closing high for 2016. For what that's worth, I'll take it! Again, what I'm waiting for is for silver to break and close clearly above the trend arrow shown on the chart below. As you can see, the action today is making me quite optimistic about what is coming next.

And, finally, the HUI hit a new 2016 high of 245 earlier this morning before Cartel metal pressure and general equity selling shoved it back to its current level near 240. Meh, whatever. Have I been concerned about the shares lately? No. So am I concerned about the HUI only being up 3 points as I type? No.

OK, so here's about the only potential bad news I can find...

After I hit send on this post, I have to head out to the DMV in order to register MrsF's new car. Longtime Turdites will recall that about every time I go to the DMV, the metals get smashed while I sit in limbo, waiting for my number to be called. So, be careful out there today! (And pray for my general patience level.)

More later with a full podcast summary and review.


About the Author

turd [at] tfmetalsreport [dot] com ()


Jun 27, 2016 - 10:52am



Jun 27, 2016 - 10:53am


For the Silver!

Jun 27, 2016 - 10:54am

No problem

I am shorting the banks with XLF puts. LOL

Jun 27, 2016 - 10:54am



Danforth Coxwell
Jun 27, 2016 - 10:56am

1st ???

Hope so!

Edit: Not even close. lol

Jun 27, 2016 - 10:59am

On with Dr Janda

Excellent timing to be on Dr Janda's program yesterday. You might listen if you have time:

Jun 27, 2016 - 11:02am


Thought the car was a hotspot.

Jun 27, 2016 - 11:03am

Comex since the open

How many new paper contracts have The Banks added today? 10,000? 20,000??

Jun 27, 2016 - 11:06am

Hong Kong pollution explained?

I know, there is a distance from Hong Kong to Shanghai.....but Reuters reported that China has ordered at least 225 Shanghai-based Industrial facilities to fully or partially shut down for 14 days to reduced pollution ahead of the G 20 Hangzhou summit that is scheduled for Sept 4-5.....Chinese Industrial production is expected to get a hit.

Jun 27, 2016 - 11:06am

RE: Comex since Open

IF yur Plan was to (One fine day) let it collapse, and you then walk away without consequence or any liability, you would Not care how many 'contracts' it takes..............................

Jun 27, 2016 - 11:07am


Which is why they will print and short until one day the music simply stops.

But, again, unless you're attempting to day trade, PLEASE do not get caught up in all of the tick-by-tick, moment-by-moment shit. The Banks are doomed. NIRP and Brexit seal their fate.

Jun 27, 2016 - 11:07am

It just occured to me.

Soon the question, "When?" will be replaced by "How far?".

Jun 27, 2016 - 11:09am


As people get margin calls on their losers, many may be selling portions of their winners, miners.

Jun 27, 2016 - 11:10am


And also locking in gains ahead of the end of Q2 in order to charge/collect their 2 & 20.

Jun 27, 2016 - 11:19am

10 year @ 1.47

Down % 6.78


Jun 27, 2016 - 11:25am

Thanks Turd

Great insight as usual...Thanks!

P.S. You can hire someone to wait in line for you at the DMV?

Jun 27, 2016 - 11:39am

Lol What Happened

My Precious Metal Is Going Down Not Up. Lol Good Job I'm A Stacker. Keep Stacking.

Jun 27, 2016 - 11:43am

DMV queue

Pop on on an INS jacket, when you walk in 75% of the people in there will scuttle out ha

Ok OK thats profiling - meh bite me

Jun 27, 2016 - 11:49am

Is That Leslie Nielsen?

Celebrity Turdite

Jun 27, 2016 - 11:56am

Ben Fulford, FWIW

The EU is bankrupt and that is why its governing structure will fundamentally change
Posted by benjamin, June 27, 2016

The real reason for the ongoing trouble in the European Union, including the recent vote by the British people to leave the bloc, is that the EU is bankrupt. We know in retrospect that the bankruptcy of the Soviet Union was the real reason the Warsaw pact fell apart, with Poland acting as the first domino. For the same reason, we can predict England was the first domino in the collapse of the European Union.

The emerging consensus view is, as Pentagon analysts put it, “Brexit may lead to Frexit (French exit), the collapse of banks, populism, nationalism and anti-globalism.” This is also likely lead to an end to Khazarian mafia sponsored Mulsim immigration.

The situation in France has already become so chaotic that French police say they are becoming too exhausted to deal with the daily, violent demonstrations taking place throughout the country. French President Francois Hollande, who has only 11% public support, is trying to ban demonstrations but it is hard to see who will enforce his “ban.” In other words, France is headed for revolution.

“This is the worst period I recall, there is nothing like it,” is how former Federal Reserve Board Chairman Alan Greenspan described the general situation and the market chaos that followed the Brexit vote.

This may be the worst period Greenspan and his Rockefeller, Bush sponsors can recall but the Rothschilds are saying they made $2.5 trillion in one day on Friday by shorting all the stock markets and going long gold. This is their biggest bonanza since their insider trading on Waterloo. As the Rothschilds say, “the best time to make money is when blood is running on the streets.”

Indeed blood may well start running. Even top CIA experts are publicly saying a revolution is imminent in Europe and the United States.

However, if properly handled, this situation will be a good thing for the US, Europe and the rest of the world. If improperly handled, it will lead to chaos,warfare and hardship within Europe, the US and Japan and thus, to a lesser extent, in the rest of the world.

The EU that has gone bankrupt had become even more dictatorial than the Soviet Union ever was, according to Russian President Vladimir Putin. In Putin’s own words: “The percentage of mandatory decisions made by the European Parliament is larger than that of mandatory decisions made by the High Council of the USSR concerning its member-republics.”

Sources in the gnostic illuminati and the White Dragon Society say that if things are properly handled what is eventually going to happen is the European nations will form a larger, looser, freer union that will include Russia. In this scenario Britain will be a neutral country linked to Europe by free trade, somewhat like Switzerland, they say.

The bankruptcy of the EU was triggered by the bankruptcy of Deutschebank, the largest bank in Europe, according to members of the Rothschild banking dynasty. Deutschebank is now under Chinese control, they say. If the Chinese had not stepped in to save Deutschebank, its collapse would have triggered a domino effect that would have taken down the entire European and then Western banking systems, multiple sources agree.

There was also a secret dimension to this bankruptcy that can be traced to military activity in the Pacific Ocean. A massive joint Chinese and American fleet was engaged in “maneuvers” last week off the shores of the Philippines.

You can also confirm on the Pentagon official homepage that massive joint exercises involving naval forces from 27 nations, including China and the US, start near Hawaii on June 30th.

The real aim of last week’s maneuvers, according to WDS sources, was to cut off...

Jun 27, 2016 - 11:57am

As much as I've counseled

As much as I've counseled everyone about ignoring the tick-by-tick stuff, I must admit to being infuriated by the Cartel action in gold overnight and today. VERY tough to stomach.

Jun 27, 2016 - 11:57am
Jun 27, 2016 - 12:01pm

Silver in Daily Chart - Pitch Fork Style

Here's my latest Silver chart. If anyone wants to join my free newsletter, send me a direct message.

Jun 27, 2016 - 12:10pm


They just see another opportunity to fleece everyone without having to make an excuse. "Everything is down, so PMs are too". There...that was easy.

Jun 27, 2016 - 12:23pm
Jun 27, 2016 - 12:23pm

Bought K92

....... Mining at the open, it promptly dropped 6% !

My streak of luck remains intact ......... 

Jun 27, 2016 - 12:42pm

You see, here's what is so INFURIATING

These two charts clearly illustrate the impact of The Cartel's efforts to flood the paper "market" with as much OI as possible to drive price down.

We've documented for months the HFT-algo relationship between the yen and gold AND between the long bond and gold. You can plainly see the Bank-forced disconnect in the charts below. First, here's tha past week of yen-gold. Not the two divergences during today and Friday's Comex hours. Based upon the relative valuation of the yen, should gold be around $1340? YES! That it isn't is the impact of the Cartel's paper gold flood.

It's even more obvious when you review the 3-day LongBond-gold chart below. Based upon this clear, obvious and long-running correlation, gold "should" be over $1350. Again, that it isn't is the direct impact of Cartel Bank manipulation through the creation of paper gold supply.

AND WHY ARE THEY DOING THIS? Beyond simply doing their Master's bidding, with a NET short position now likely near 230,000 Comex gold contracts, this paper gold flood has "saved" The 24 Banks approximately $750,000,000 in paper losses ahead of the end of Q2.

Jun 27, 2016 - 12:45pm


Did you mean 1340 or 1240?

Jun 27, 2016 - 12:47pm


My bad. Just not used to typing a 13 handle yet...

Antony von Clearwell
Jun 27, 2016 - 12:50pm

Had the same thing

Last friday morning when I read 1240..... Initially :)

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