Metals Capped Into FOMC Minutes

An incredible amount of fraudulent, virtual silver is being created in order to cap price and paint the chart. Will JPM and the rest of The Evil Empire be successful once again in capping price and routing the Specs. The reaction to today's FOMC minutes may help to determine the outcome.

Again, I can't stress enough the devious and fraudulent nature of this latest attempt to contain and cap price. The past four days have seen the price of Comex Digital Silver pressing up against the key resistance of $18 and the 200-day moving average near $17.93. See below:

Over this same time period, the Comex Silver Banks led by JPM have increased the total supply of Comex silver contracts by 12,809 contracts. So, while price has been flat, total supply of Comex silver contracts has been increased by 6.5%. THIS is how you cap price and paint the chart!

Imagine for a moment where price would be this morning if total open interest was held flat for the past week. How much higher would price be if sellers of existing contracts needed to be found for the 12,809 contracts of buying pressure? On a larger scale, yes the price of Comex Digital Silver is up $2 year-to-date or about 13%, but how much higher would price be if The Banks hadn't fraudulently added 44,000 new contracts since December 30?

Why do we always describe this as "fraud"? Two primary reasons:

  1. The Banks are selling something that they don't have. Can you enter into a contract to sell a house or a car if you don't actually own the house or car you are attempting to sell?
  2. The Banks create this new "silver" from whole cloth without depositing as collateral any additional silver into their Vaults.

Regarding point #2, see below. Note that at the beginning of 2017, total silver within the Comex vaulting structure was 181,903,037 ounces. Total Comex open interest that day was 163,812 contracts. With each contract representing 5,000 ounces of silver, this equates to a virtual exposure of 819,060,000 ounces.

As of last Friday, total open interest had grown to 205,602 contracts or 1,028,010,000 ounces or virtual silver yet the total amount of silver in the Comex vaults was stagnant at 184,088,021 ounces.

So, The Comex Silver Banks have increased the supply of virtual silver by 25% while only increasing the supply of physical silver in the vaults by 2%. This is fraud, this is a scam and this has absolutely ZERO connection to the supply/demand fundamentals of actual physical silver.

And what are The Banks attempting to accomplish in their aggressive efforts to cap price? Two things. First, maintaining price below the 200-day moving average is important in managing future Spec demand for additional Comex paper.

Second and perhaps more important is the chart-painting aspect of keeping price below $18. As you can see on this weekly chart, by capping price here, JPM et al are effectively attempting to paint a massive head-and-shoulder top onto the weekly chart.

So, once again, you must be alert and cautious here. The forces aligned against you in the Comex silver "market" are powerful and these criminals are doing everything in their collective power to rig price in their favor. Will they be successful (again)? That will depend upon a number of factors going forward. For today, at least, you'd be wise to not underestimate the collusive power of The Banks and the fraudulent nature of their paper derivative pricing scheme.

TF

www.tfmetalsreport.com/subscribe

129 Comments

billhilly's picture

Tired...

Getting SO tired of these (mini) smackdowns.  Please, oh please, let the manipulations end already ! 

Marcrward's picture

Silver silver

Silver silver

RickshawETF's picture

Thurd!

Looks like a "sale" coming on CDS . . .

Stack on!

Turd Ferguson's picture

almost there...

MODERATOR

canary's picture

Am I trying to compete against Goldman Sachs?....Scary!

Goldman...Looking for the price of Gold a year out to be only slightly above current levels.....$16.50 Silver in three and six month, then $17.20 in a year....U.S. equity rally to fade by the 2H17.

http://www.kitco.com/news/2017-02-22/Goldman-Sachs-Agnostic-On-Gold-Prices.html

lakedweller2's picture

Logical Conclusion

Trump also on the Bankers payroll.

infometron's picture

I still don't get it, Craig. Sorry.

"The Banks [viz., mainly JPM] are selling something that they don't have. Can you enter into a contract to sell a house or a car if you don't actually own the house or car you are attempting to sell?"

How does this possibly square with Andrew Maguire's assertion that JPM has five years equivalent of total annual mining supply of physical silver? If that is true, I'd say they are good for as many dingy dangy dong contracts they care to issue. So what if they aren't keeping it all in COMEX vaults? If they have it, they have it. Right?

So the question is, I hate to sound like a broken record, do they have it or not?*

Please forgive me if I've missed something along the way.

*Edit: If they do have that much physical silver (or anything close to that, let's say even 'just' one year's worth of total mining production of physical silver), it is a separate question as to whether they should have ever been allowed to stockpile that much in the first place.

Turd Ferguson's picture

I have no idea

MODERATOR

All I know for certain is that they show 90,694,859 ounces in their Comex vault. That's enough to cover/deliver about 18,000 contracts sold short.

Whether or not they have some other massive stockpile somewhere else is impossible for me to know.

Turd Ferguson's picture

Furthermore

MODERATOR

Here's a look at the latest Bank Participation Report summary of the cumulative positions of the 5 largest US Banks and 22 largest non-US Banks. Note that the NET position of just the US Banks (of which JPM is hands down the largest player) is 26,554 contracts on a GROSS short position of 33,459 contracts.

infometron's picture

@Turd Re: I have no idea

I appreciate that, Craig, thanks. I guess it remains to inquire on what basis are Andrew and Ted making their assertions about JPM's physical holdings of silver. Any insights you might be able to provide in eking that information from them would also be greatly appreciated. Maybe an A2A2A with them both on that topic?

Turd Ferguson's picture

And as you can see above

MODERATOR

The 27 Banks in total are NET short 64,027 Comex silver contracts for an obligation of 320,135,000 ounces. Again this is versus a registered vault of 30MM oz and a total vault of 184MM.

Turd Ferguson's picture

I'll ask Andy

MODERATOR

Ted and I had a falling out about a year ago so he's not welcome here as a guest.

AGXIIK's picture

Glad I exited JNUG

My gut tells me that with all these attempts to break and hold above $18 and even sniff $1,240 for gold we're in for a nasty sharp down tick in precious metal prices.  

Having watched these markets for 8 years and seen this sort of action scores of times, my gut---nothing as scientific as the TA work some rely on, nonetheless tells me we're not going to see higher prices for a while.

So much cash in going into the insanely overpriced POS stock market, the lack of fear regarding economic conditions, the Trump MAGA paradigm making Average Joe giddy and rates still relatively low, the pricing pressure that would induce gold and silver to go up rather than down simply does not appear to be in the market now.

I exited my entire JNUG holdings yesterday, glad to get $10.50 to $11.00

BTW  This is parenthetical to Mr Hemke's assertion that if we try to fight those who conspire to blunt our hopes for higher prices we might be punching out of our class.  Mike Tyson ain't got nuttin' on these demented sock tuckers when they load their gloves with horseshoes and railroad spikes.

billhilly's picture

What they won't do...

...to crush the opposition !  These bastards !!!! 

http://www.zerohedge.com/news/2017-02-22/le-pens-chief-staff-bodyguard-detained-police

remember Domonique Straus-Kahn !

edavidberg's picture

DUST

My purchase of DUST yesterday is thankfully working out.  The question is when to sell and buy NUGT and JNUG.  I was initially thinking I'd sell DUST at 30 but it's almost there.  I think I'll hang in there a while longer.  

I do have a question regarding your post.  I see that the number of contracts is increasing, but isn't it true that buyers are using leverage as well?  I think it's an interesting analysis but I'm just trying to understand the meaning of it.  

Thanks. 

remup181's picture

bitcon vs gold

So are we saying or seeing that bitcoin in a short time is going to be more valuable than gold, a physical commodity verses an electronic commodity. and this is not insane. hum

Yukajub's picture

nothing to see here...

Nothing to see here, just the USD taking a dive and someone's foot on the neck of PM's. Lovely.

Edit: I could update this with a more recent screenshot, but just imagine more of the same, but worse.

canary's picture

Predicted Daily Trends for Gold and Silver...for the next day

Thursday, February 23

Spot Gold Intra-Day Trend: Choppy-Sideways. VantagePoint’s short-term indicators are conflicted.

Spot Silver Intra-Day Trend: Choppy-Sideways. VantagePoint’s short-term indicators are conflicted.

infometron's picture

The writing on the wall

This pretty well sums it up, I'd say:

http://www.zerohedge.com/news/2017-02-22/criminalization-financial-independence

Totally amazes me that so many still can't see the forest for the trees...

Thank goodness for the kindred spirits here in Turdville!

An oasis of sanity in a desert of deceit!

AIJ's picture

From Clif / Only his answers in a tweet string..interesting...

clif‏@clif_high

Ack! BIG GIANT HUGE TM when #BTC passes price of gold here over these next 2 weeks!

@kylegoed not those words. Rather 'no offer', 'broken market', 'fall off', 'closed doors'... best i have.

@petroglyphic yeah, but data has gold moving up too. Plus, you know #BTC! It's a bouncy bastard!

AIJ's picture

And there there is this Clif tweet

clif‏@clif_high

Ack! IM data suggests AU 2b near $1448 when #btc crosses that point. This is an intersection of sets building in mid March!

Dr. P. Metals's picture

just tiptoe'ing back into JNUG

...let's see... surprise

Sound Money Minnow's picture

Having not posted in a long time an anecdotal personal story

Have my TF Metals friends ever needed access to cash quickly? I am certain some have, even Marchas...lol...as he offered up some PM's at nice prices to fellow subscribers. Anyways here is my story.

My kid is a typical millennial. He has a good heart, but was brainwashed by public schools. Anyway he is trying to navigate life in a world where opportunity for his gene pool isn't great. His Mom and Dad are average Americans. I suppose I was at the high end of my gene pool in that I secured a civil service job that made me earn over my head at the expense of the taxpayers. Sorry about that for all the private industry folks that have carried my weight. My son chose not the college route, after one semester he determined that law enforcement wasn't his bag of donuts, can't say I blame him after complaining my entire 20 year and 1 day career. He took up a dead end job in working for a hotel chain. Now he has chosen an opportunity with an Asbestos removal firm in upstate NY. He is getting a first hand view of what is left for us serfs. I am not saying that as an excuse for him, but we live in different times today.

I had the option of the military in the 70's to 80's where you didn't have to sacrifice body parts for a war you didn't believe in. That was back when I was a patriot and thought everything the USA did was thought to be righteous. Boy, have I had an education since then. I want to love America  more than anybody, but my real life education makes me question what we actually stand for anymore. Yet I digress. As a risk of rambling, I question what advice I give to my youngin today. I got like 20,000 saved for him when he finally decides what he wants to do. He is going to inherit a nice sum when I expire, that is if he is responsible enough at that point where I believe he won't piss it away. I want to give my kid the world, but I wouldn't be okay with it at this point. Am I alone in this world? I just wonder if anyone else is dealing with helping without hurting?

I keep falling back on it is rougher for young adults in this generation. I suppose the fact that I taught my son morals has handicapped his ability to succeed in an upside down world. Say it isn't so. Anyways, the first day in a new opportunity at his new job he gets in an accident and has a $1400.00 repair bill. Of course, I got his back and since he has a $500.00 deductible, it isn't worth claiming it on insurance. I am certain GEICO appreciates it. 

So in conclusion, I sell 180 ounces of silver at the local coin dealer. Get a check. Cash it at a local bank, since I closed my account with Bank of America, because they are part of the problem. The local bank cashed my check for $3056.40 and after a ten minute wait, where I requested large bills, the best they could do was a bunch of $50.00's. At least the police weren't called for this minimal transaction.

Anyway, for all the parents out there, am I an enabler?  Good thing I never ran a business because I would be broke right now. Thanks to all for letting me vent. It is therapeutic for a guy who is just trying to do the best he can.

infometron's picture

@Dr P Re: JNUG

I just doubled down on JDST... I guess that is what makes a market!

Good luck, keep yer stops tight, at least until 2:00pm!

Dr. P. Metals's picture

I know ;)

the miners are usually smashed "before" the actual event starts, so hoping it's now smashed as hard as it will be... ;)

Edit: JNUG is already off 20% from it's recent highs, after all, so...I realize that's nothing with this beast, but...

goldcom's picture

And to think Turd told us

And to think Turd told us just a week or two ago there wasn't any real resistance that he saw why gold shouldn't get up to $1,255. Yet these fuckers cappytee cap cap cap anything close to $1,240. Silver has been even worse.

Please don't get me wrong about Craig's miss on this one because as I've said before I don't blame any of the PM gurus for missed forecasts, well except for Blow Pony or whatever his name is.

The evil ones and their Bullion Bank accomplices can draw a line in the sand anywhere and anytime they want till they can't. 

I haven't bought any Bitcoin and was going to let gold float up to close to the $1,255 price point and fund my  bitcoin purchases with my Bitgold(Gold Money) card. My fuck up for waiting this long because Bitcoin was a little over $900 at the time and now at $1,130.

Any of you guys that have Bitcoin have any advise for me here? Should I just pull the trigger or do you expect a pull back?

Dr. P. Metals's picture

@goldcom

Advice? Seriously? ROFLOL. none of us know where things are going either, gold or BTC...

Only the LORD knows, and He ain't tellin'

infometron's picture

@Dr P

I'll be stopped out of JDST @14.10 with no loss

Can I interest you in a side bet on which of us gets stopped out first? wink

Yikes! See how easy it is to introduce a new layer of derivatives!

Looking good for you so far!

canary's picture

It's possible...

That the Goldman's report today (silver $16.50) was to help the cartel to deal with silver.

Dr. P. Metals's picture

Sure, I'll take that bet. 1 ASE?

on who gets stopped out first?

Edit: 1 ASE payable in BTC equivalent. Deal?

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