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 $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

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  129 Comments

Dr. P. Metals
Feb 22, 2017 - 12:36pm

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

on who gets stopped out first?

Edit: 1 ASE payable in BTC equivalent. Deal?

matt_
Feb 22, 2017 - 12:37pm

AEM: Buy Now?

This is a messy chart, but hopefully it makes sense:

There is a support line near $44-45 dollars that is draw as a horizontal green and red line. The 50 day moving average is drawn as a solid red line. The Bollinger bands are drawn as solid blue lines. All three (50 day SMA, lower Bollinger band, and horizontal support line) meet together right now (at the point I labeled "Buy !"). I'd buy some if I wasn't already 100% invested.

infometron
Feb 22, 2017 - 12:41pm

@Dr P

I was just joking to make a point, but I'll happily wager you a gentleman's bet

I've told you when I'll be stopped out, what is your stop loss price for JNUG?

goldcom
Feb 22, 2017 - 12:46pm

Your point is correct and well taken

Just one small note in my defense...To be specific, my thought was that once CDG got through $1230, it was clear to head to $1250-1255. It so far has seen just $1246.

https://www.tfmetalsreport.com/blog/8148/cdg-continues-climb

bently
Feb 22, 2017 - 12:48pm

Metals smash

Isn't it somewhat encouraging that after throwing everything but the kitchen sink at the metals today, silver, almost defiantly, sits less than two cents under $18?

Take that, you Goldman Sachs creeps!!


Feb 22, 2017 - 12:50pm

Meant to discuss this in yesterday's podcast

Will be sure to do so today. Recall that NIRP and negative rates are THE SINGLE GREATEST FUNDAMENTAL EVER CREATED FOR PHYSICAL GOLD OWNERSHIP.

goldcom
Feb 22, 2017 - 12:52pm

TF

You made a great case then, as well as anyone could. I'm just making the point that even the best can't overcome these bastards. Any recommendations on bitcoin? Just thinking I need a few for some exposure in this mad mad world.

Dr. P. Metals
Feb 22, 2017 - 12:54pm

LOL

you're a wise man, as I would have made a motion for summary judgment and award to Dr. P. based on the facts of the case LOL

because...i'm in a free ride position at this time and cannot therefore have a stop set on JNUG at this time, so there's no way I could have lost the bet, I could only have won it. I didn't claim to have set a stop either


Feb 22, 2017 - 12:57pm
goldcom
Feb 22, 2017 - 12:58pm

I just keep buying a little at a time

I've got $2500 in and it's now worth about $4200. Not selling anytime soon.

Your friendly host gets a free $10 worth of you use this link : https://www.coinbase.com/join/57812c99ec111b68d60003d5

matt_
Feb 22, 2017 - 12:58pm

I just bought a few $48 AEM calls

I could not help placing a bet.


Feb 22, 2017 - 1:03pm

More BTC

Right at the old closing high and just $15 away from the old intraday high of $1150 on January 5.

infometron
Feb 22, 2017 - 1:05pm

@Dr P

Whoa! You prompted me to go check my wallet! Whew! Still there!

AgAuMan
Feb 22, 2017 - 1:05pm

Cap? what Cap? it's a Hard Hat

I have been watching Silver all morning.... The Hard Hat isn't allowing an 18 Dollar print

Texas Sandman
Feb 22, 2017 - 1:06pm

fundamental for PM ownership

Most important is negative real interest rates. With year-over-year headline inflation numbers now running in the 2.5% range, we now have that for the first time in at least 5 years. That, in itself is like throwing gasoline on a sputtering fire.

JMHO.

Angry Chef
Feb 22, 2017 - 1:06pm

Sure You Can....

"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?"

Can you sell something you don't have ? Sure you can. It's called MERS and Mortgage Backed Securities. It's fractional reserve EVERYTHING. And when that fails you have War and Disaster Capitalism.

Think of all the money it's going to cost to repair those dams in California and Nevada. Disaster Capitalism works great. If you're a Bankster.

We're at the end of the road for the fiat unbacked monetary system. There is no place to put the debt. The only thing left is to continue to loot the wealth of the middle class. And they're almost tapped out. So what's the solution ? You either have some debt relief ( default ) or War. I don't like to think of it but I can't seem to get around to finding another solution.

billhilly
Feb 22, 2017 - 1:07pm

okay Info....

I'm in JNUG at 10.05...I'll bet I get stopped out first at that price !!!

Of course I know we are just having fun here ! Sorry to say though, I hope it's YOU !


Feb 22, 2017 - 1:07pm
infometron
Feb 22, 2017 - 1:10pm

#draintheswamp

Good grief... Bush & Obama all over again?!

https://wallstreetonparade.com/2017/02/sec-nominee-has-represented-8-of-...

Looks like foxes still rule the chicken coop! Good grief! Feels hopeless!

How much I've been looking forward to not having to pay (as much) attention.

Texas Sandman
Feb 22, 2017 - 1:13pm

Doc, I respectfully disagree

Yes, negative REAL rates are extremely important, especially when it comes to hedge funds and the like increasing their exposure to the synthetic gold derivatives.

However, when it comes to holding even just a few ounces of physical gold...in fully allocated private hands...negative rates are the key. Imagine yourself a German citizen with the choice of holding dying euros in a bank account paying 1% in fees due to negative rates. You are powerfully incented to turn your euros into physical gold. Get a couple million Europeans to recognize this reality and you've got the real prospect of crashing the paper derivative pricing scheme.

infometron
Feb 22, 2017 - 1:13pm

@billhilly

I'm rooting for ya, as my short position is only covering about 30% of my portfolio!

So, if you win, I win too!! I'm just trying to ease the pain a'mite!

lakedweller2
Feb 22, 2017 - 1:14pm

SEC Nominee

Might as well get his beach house and go there for 4 years before checking in at work.


Feb 22, 2017 - 1:16pm

Budget "out of control"

The Don promises to "spend in a careful way". Hmmm. What about that $1T in new infrastructure that was supposed to drive the economy, force higher rates and spike the dollar??

https://www.zerohedge.com/news/2017-02-22/its-absolutely-out-control-did...


Feb 22, 2017 - 1:22pm
canary
Feb 22, 2017 - 1:23pm

Janet Yellen must feel good how VIP she is

(Crown prince Canary bin Eagle bin Hawk al-Owl.....Deep cover covert bullion bank plant)


Feb 22, 2017 - 1:24pm

Miners getting pounded

However, as you can see, just pulling back into line with Comex Digital Silver.

4-mo HUI in candles, CDS in bars:

6-mo of same:

Thor
Feb 22, 2017 - 1:24pm

@ sound money minnow

One of the very few things we have any hope to control in this world is to take care of family. Bravo.

billhilly
Feb 22, 2017 - 1:24pm

An analogy...

With all this DAMN talk it just occurred to me that our DEBT is like the water that is building up behind the damn. It just keeps raining down more debt and the pressure continues to build. And then there is the snow-pack which represents our unfunded liabilities and will slowly melt and add to the pressure.

All the politicians can do now is try little fixes to keep the damn together (boy with his finger in the dyke) but someday (inevitable, and maybe soon) this baby is gonna crack wide open and the good ole USA ( and the world in general) is going to be flooded over with debt that cannot be cleared away.

And all the sleeple who live below the damn are kept unawares of the pending doom about to descend upon them. We who are awake, are moving to higher ground as we can see the dangers. The damn's we build with our stack's are porous and will never hold the water of debt behind it.

Texas Sandman TF
Feb 22, 2017 - 1:28pm

TF: Gold vs cash vs a ledger entry at the bank

One possibility ignored in your discussion is simply holding cash notes in a safe at home. If you aren't facing a big opportunity cost in the form of interest paid, that's another possibility. In fact, I do precisely that, keeping a few thousand in fiat hidden at my place for the day the ATMs stop spitting bills, the credit cards don't work, and we don't have a barter economy for gold & silver yet.

But if they're charging you fees to hold money at the bank, simply holding cash bills is another viable alternative.

If inflation is raging away, that latter possibility isn't so appetizing. And for my own situation, were that to happen, I'd strongly consider converting even that small commitment I have to paper money into pre-64 bags of silver, for example.

Again, JMHO.

Texas Sandman TF
Feb 22, 2017 - 1:28pm

TF: Gold vs cash vs a ledger entry at the bank

One possibility ignored in your discussion is simply holding cash notes in a safe at home. If you aren't facing a big opportunity cost in the form of interest paid, that's another possibility. In fact, I do precisely that, keeping a few thousand in fiat hidden at my place for the day the ATMs stop spitting bills, the credit cards don't work, and we don't have a barter economy for gold & silver yet.

But if they're charging you fees to hold money at the bank, simply holding cash bills is another viable alternative.

If inflation is raging away, that latter possibility isn't so appetizing. And for my own situation, were that to happen, I'd strongly consider converting even that small commitment I have to paper money into pre-64 bags of silver, for example.

Again, JMHO.

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