The CFTC IS the watchdog for abuse in the options and futures markets and Friday April 12-Monday April 15 were beyond obvious as to what was done. Reportedly 1,000+ tons of paper Gold were sold in less than 8 hours of trading. This is 32 million ounces. This is 40% or more of ALL Gold produced on the planet in 1 ENTIRE YEAR! “Who” in their right mind would sell in this fashion? Who in the world even holds this amount of Gold? The answer in case you are wondering is NO ONE (other than central banks and THIS may not even be true any longer)!
Forget completely the nuts and bolts, look at this through the eyes of an 8 year old. The price of the physical metal is different than the futures prices. ONE of these two must be wrong by definition as they cannot both be correct. The “price” is and has been “set” by the paper markets. The “tail is wagging the dog”, this is more than obvious. The futures markets were set up originally to create liquidity and facilitate suppliers hedging and speculators speculating. This has gone on for years now (at least since 1996). Obviously “something” isn’t right when one market has one price and the other another price so …what to do? Just sit back and wait…for the inventories to be wiped bare.
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Ted Butler: CFTC- The Worst Regulator Possible
By SD Contributor Ted Butler
We’ve just crossed a few important anniversary dates that relate to silver that taken in proper perspective point to a disturbing conclusion. That conclusion is that the US commodities regulator, the CFTC, has done more public harm than good over the past few years. Simply put, the public and our markets would have been better off had the agency not been run by the commissioners in place, specifically including Chairman Gensler and Commissioner Chilton. In fact, rarely has so much promise for genuine regulatory reform been squandered as badly as has been the case over the past few years.
I single out Gensler and Chilton because they were once the good guys on the Commission or the only ones pushing for position limits. Since they have allowed position limits, the silver investigation and the unprecedented price declines in silver to fade into the sunset unresolved, they must be held to the greatest standards of failure. In a very real sense, Gensler and Chilton have done more harm as a result of first championing the important issues and then abandoning them. [Read more...]
Bart Chilton Says CFTC Needs to Look into Bitcoin- While Latest Silver Manipulation is Ignored!
How does Bart Chilton and the rest of the regulatory crew explain the 2013 instant replay of 2008? Price gets crashed from “sellers” yet what supposedly was sold can only be bought at a 30% premium…IF you can find it at all? We are still waiting…and now “Bitcoin” is on the front burner I’m sure that Silver (and Gold) will not be addressed until AFTER exchange defaults occur. For that matter, they won’t be reported on after the fact either because we will then have bigger, MUCH BIGGER problems facing us…like where the next meal will come from. [Read more...]
Legal Outline for Suit Against CFTC For Failing to Complete Investigation on Silver Manipulation
Because of the recent furious decline in value of real and paper silver, and the belief by many that manipulation is the major (if not only) cause, I have been asked what might be done to force the non-regulating regulator, the CFTC, to begin regulating in regard to the existing concentration.
After studying the silver futures market since the days of C.V. Myers—and focusing on it intensely for the past several years—my opinion is that if there has been, and currently is, a concentration in the silver market, it would constitute not only manipulation but consequently the disruption of market integrity, and the prevention of fair competition among silver investors, speculators, hedgers and others. Certainly, the esteemed Ted Butler has made an overwhelming case that there has been, and currently is, such a concentration/manipulation.
In light of the CFTC’s foot-dragging in concluding its unreasonably delayed investigation and/or required report concerning concentration /manipulation, I have been considering how to break the self-created CFTC log-jam that has caused incalculable financial losses as a result of the uncertainty engendered by the apparently languishing investigation.
As I will fully develop below, a lawsuit is feasible that will force either the Director of Investigations and/or the Commission itself to disgorge the Report of the CFTC’s four-year-plus investigation into concentration in the silver futures market. The hope would be that the investigation’s conclusions, either way, will allow investors, speculators, hedgers and others to make rational decisions, unlike currently when the concentration skewers free market choices and decisions.
Below is only the outline for a lawsuit, not the Petition itself.
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CFTC Probe Gold Plunge – “No Visible Central Bank Activity” Say Blackrock
The $20 billion gold futures sale and concentrated selling of gold futures on the COMEX on Friday and Monday is far more likely to be “nefarious” than the gold fixings in London. The CFTC’s track record to date has not been great and regulatory capture remains a real risk with the CFTC seeming to be reluctant to hold Wall Street banks who may be involved in price manipulation in the futures market to account. After the Libor revelations, it is surprising that there is not more scrutiny and hard questions asked of banks and regulators in this regard. Separately, large institutional fund manager Blackrock said that there was “no visible central bank activity” as the gold price plunged. They said that gold’s fundamentals remain strong and that the fall in price was driven by an outflow of “hot money” and that gold prices are now near the marginal cost of new supply which should provide strong support at these levels and lead to higher prices again. [Read more...]
Globex Flash Raid Sends Silver to $28.50
A rare evening raid on tonight’s Globex saw silver smashed from $29 to $28.50 in 3 ticks, with gold also dropping vertically back to $1585. [Read more...]
Ted Butler: A Moment of Clarity on Silver Manipulation
By Ted Butler
Every once in a while, someone utters a statement that suddenly galvanizes the issue at hand. That’s the first thing that came to my mind when I read of the US Attorney General’s words before a Senate hearing this week.
In a blinding moment of clarity, the answer to the whole “why isn’t the CFTC doing anything about the silver manipulation and JPMorgan’s stranglehold on the price” question flashed for all to see. Mr. Holder’s words couldn’t be any clearer and fit perfectly with the now-consensus view held by those who know that JPMorgan is manipulating the price of silver. The reason the CFTC is allowing JPMorgan to continue with their illegal behavior in silver is because the bank is too dam* big and powerful to rein in for fear of the unintended consequences. [Read more...]
CFTC’s Chilton: We’ve Witnessed Blatant and Brazen Monkeying with the Benchmarks
CFTC Commissioner Bart Chilton spoke Thursday before the International Roundtable on Financial Benchmarks in Washington, DC.
Chilton spoke out against last year’s LIBORGATE scandal, stating that We’ve witnessed blatant and brazen monkeying with the marks, and that When marks are manipulated, it affects us all.
While we couldn’t agree more with Mr. Chilton that benchmark manipulation affects us all, we also believe that so does manipulation of interest rates, gold, silver, the dollar, and every other commodity and currency market.
Perhaps the CFTC should focus on investigating manipulation crimes in progress, rather than the scandals that have already previously broken.
Gold & Silver COT Report 2/22/13: Commercials Cover Astonishing 44 Million Ounces of Naked Silver Shorts!
By SD Contributor Marshall Swing:
Gold & Silver COT Report 2/24/13:
Commercials added 2,026 additional long contracts to their total on the week after tremendous gains last week and covered a huge 6,815 shorts to end the week with 47.11% of all open interest, a huge decrease of 2.35% in their share since last week, and now stand as a group at 189,780,000 ounces net short, which is a decrease of over 44 million net short ounces from the previous week!!! [Read more...]
CFTC Files Suit Against the CME
The CFTC Thursday filed suit against the CME seeking civil monetary penalties and trading and registration bans for to CME employees, William Byrnes & Christopher Curtin for allegedly intentionally disclosing material non-public information pertaining to specific customer traders.
The suit alleges that from February 2008 to September 2010, Byrnes & Curtin intentionally disclosed material nonpublic information about CME NYMEX trading and customers to a commodity broker on nearly 80 occasions.
Full complaint from the CFTC is below:
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200 Million Ounces of Paper Silver Traded in 1 Minute Friday During Cartel Silver Raid!
Over a 5 minute period from 10:32-10:37 AM Friday, a massive volume spike (approximately 40,000 contracts) coincided with silver’s waterfall to $29.75- a fairly common occurrence during major cartel silver raids.
Astonishingly however, 2 minutes after silver marked it’s low at $29.75, approximately the same volume traded over the next minute- spiking silver .15 off it’s low.
It appears that a major buyer stepped in and took on the cartel at exactly 10:39 am on Friday 2/15 as nearly 40% of the day’s volume traded over a single minute.
To put this number in perspective, 200 million ounces is 26.2% of 2012′s world silver mine supply of 761 million ounces!
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CFTC’s Bart Chilton: Banks Must End ‘Brazen, Flagrant’ Manipulation
The CFTC’s Bart Chilton was on CNBC’s Squawk Box today, and stated that TBTF banks must end their brazen, flagrant manipulation.
Chilton was referring to LIBOR manipulation, and specifically RBS, who has just been fined over $600 million for their role in LIEBORGATE.
While we couldn’t agree more with Mr. Chilton, we are all still waiting to see the CFTC address the alleged silver manipulation in the same manner as the already broken LIBOR manipulation scandal…rather than drag their supposed investigation into its 5th full year. (particularly after Mr. Chilton personally advised the Doc in July 2012 that he expected a resolution of the CFTC’s silver investigation and an announcement by September 2012)
Chilton’s full interview and rant on how the banks must end their brazen, flagrant manipulation is below:
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18.3 M oz SLV Deposit & JPM’s New Silver Vault: JPM Discovers Way to Bypass COMEX Re-entry Process
Submitted by AboutAG:
Why Was 18.3Moz of Silver Deposited into the SLV Jan 16th?
The obvious answer is “JPM opened a new warehouse!”.
However, that does not answer the question, as only 10 Moz went into their new warehouse.
The experts seem to agree that one of the most plausible explanations is that JPM closed out their short position in SLV.
One or more people have 17,016,600 shares of SLV short (about 16,458,115oz) at last count (which could be a couple weeks old). It is believed that JPM is likely responsible for much or all of that short position. The unexplained addition of 17,410,210.4oz to SLV (remember, 967,881.6oz are considered a ‘normal deposit’) would cover the entire short position and then some. Or if another 967,881.6oz (1M shares) were a normal deposit, that would leave 16,442,329.4oz unaccounted for, almost exactly matching the short position.
It appears that JPM has found a way to bypass the COMEX re-entry process, making the transfer of bars from SLV to COMEX and vice-versa extremely simple.
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Bankster Backer Jill Sommers Resigns From CFTC
CFTC Commissioner Jill Sommers, who is famous for voting in favor of TBTF bankers interests nearly 100% of the time has just announced her resignation from the CFTC.
In other news, The Vampire Squid and The Morgue are duking it out vying for an alumni to replace Sommers.
Full statement below: [Read more...]
Jamie Dimon Blasts Financial Regulation: Businesses Can be Opaque
The Morgue’s Jamie Dimon blasted financial regulation in the wake of the 2008 financial crisis today at Davos, dropping this beauty of a quote: Businesses can be opaque. They are complex. You don’t know how aircraft engines work either.
Dimon also stated new financial regulations have made things (sheople fleecing) more complicated for The Morgue.
Dimon’s full statement at Davos below: [Read more...]
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