Metals Capped Into FOMC Minutes

129
Wed, Feb 22, 2017 - 11:06am

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 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 . 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

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  129 Comments

Feb 22, 2017 - 11:37am

And as you can see above

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.

infometron
Feb 22, 2017 - 11:38am

I'll ask Andy

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

AGXIIK
Feb 22, 2017 - 11:45am

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
Feb 22, 2017 - 11:47am

What they won't do...

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

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

remember Domonique Straus-Kahn !

edavidberg
Feb 22, 2017 - 11:50am

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
Feb 22, 2017 - 11:55am

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

canary
Feb 22, 2017 - 11:55am

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
Feb 22, 2017 - 12:01pm

The writing on the wall

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

https://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!

Yukajub
Feb 22, 2017 - 12:02pm

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.

AIJ
Feb 22, 2017 - 12:03pm

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!

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