Silver Futures Show Markets Are Acting Strangely 30 comments
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One need look no further than the Silver futures to see just how strange the markets are right now.
October Bank Report - 2 US Banks are short 38,375 Silver Contracts. This is 29.1% of all Commercial Short Positions (91,723). Total Contracts: 131,801. Why does this matter?
- Traders are supposed to be limited to 6,000 total positions in the futures market. Even if you divide the contracts evenly, both banks (which of course remain unnamed by COMEX) would be short 19,000+ or more than 3 times the position that "normal" traders can possess. That gives these two banks three times the clout that you or I could possibly possess.
- Short position is 191 Moz of Silver sold short. That is almost a third of the entire YEARLY world production of silver sold short by two US banks. You decide what kind of an effect that would have on prices.
- Total Contracts cover 659 Moz of Silver. World Production last year was 670 Moz.
- Commercial Short Position of 91,723 is 458 Moz. Commercial Shorts were 82.4% of all short positions in the COMEX. If that doesn't represent manipulation, I'm not sure what does.
- The Bank Participation Report is an increase of 8500 contracts short in just 30 days. That's 42 Moz of Silver sold short at a time when Silver went from $16/oz to 17.63. I think that would qualify as applying the brakes on prices.
In other Silver news, the gap between what the COMEX can actually cover on its contracts, compared to what it counts, is continuing to widen. A couple of months ago the balance between Registered (what the COMEX actually controls to honor redemptions) and Eligible (What could be used, but is owned by others, yet counted to COMEX) shifted past the 50/50 mark to the deficit. It has since widened to more than 5 Million ounces of silver. Registered Stocks have fallen to 55 Moz while the Eligible is now close to 61 Moz.
The Registered stocks took a major hit on Monday when COMEX admitted to a major error in Silver added to HSBC Bank, USA (New York). Apparently COMEX originally counted 1.8 Moz of silver as Registered when it is actually owned by someone else.(Eligible). Even so, COMEX is leveraging the Silver it actually owns by a factor of 12 (55 Moz to cover 659 Moz in contracts).
One final note for now. Those same two US banks who are short 38,375 contracts in silver also have some long positions. Those long positions total 38 contracts (no joke). But hey, that's an increase from the 13 reported in September!
Disclosure: Long GLD/SLV, physical metal, retirement accounts
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Psychopaths are beaten only one of two ways:
1. By a bigger psychopath; or
2. By refusing to submit to the psychopath.
But at least in this article, Ed provides some information to back my position.
Ed states, correctly, that the position limit for silver is 6000 lots.
But under NYMEX Rule 559-A, the exchange can grant an exemption to the rule for hedgers, as follows:
" The Market Regulation dept may grant exemptions from position limits for bona fide hedge positions as defined by CFTC Regulations 1.3(z)(1)."
Gee, Ed, so I guess maybe these large banks really do hold offsetting positions of forward silver, or physical silver in New York, or London or anywhere else on the planet. And maybe they short more contracts on COMEX as the price rises because at higher levels, more physical silver comes to market.
Where's the conspiracy??
All the silver, both Registered and Eligible, is "owned by someone else". COMEX doesn't own silver.
Do you understand how this whole system actually works?
Do you believe a bond broker/dealer who hedges his municipal bond inventory by shorting US T-bond futures is a manipulator?
On Oct 21 11:28 AM GMiki1 wrote:
> They're hedgers? Meaning they're producing silver and hedging their
> production? I don't think so. They're manipulators, pure and simple.
> Where are Gary Gensler and the CFTC and reform?
On Oct 21 11:28 AM GMiki1 wrote:
> They're hedgers? Meaning they're producing silver and hedging their
> production? I don't think so. They're manipulators, pure and simple.
> Where are Gary Gensler and the CFTC and reform?
You can pretend that you know that b/c they have the status "broker/dealer" and can therefore CLAIM to be hedging for hmmmm...for whom exactly??...that therefore they actually ARE hedging for anyone but themselves...WHO DO NOT MINE GOLD OR SILVER, and therefore should NOT be able to "hedge" as you say, since that was the whole intent of being able to hedge on the COMEX in the first place.
But, back to your claim...bet you can't come up with even a small fraction of the total amt they're short that belongs to ANY client (other than others in the anti-gold bankster cartel) who is hedging their mined metal prices. Go look--those with big hedges...hedges that are way beyond totally underwater, such as Barrack (a company the meaning of whose name in Hungarian matches their soul and their modus operandi...oh, it's f**k_s**t BTW...yep, the name given it by Munk...go look it up) et al are actually trying desperately to COVER their hedges, not put new ones on.
But of course being the scum-defending lawyer you are, you'll tell me that those names are "confidential" and don't have to be released...like everything else these banksters do, under the guise of being "federal" like the Fed...all private and for themselves only. This is and has been shown definitively to be and will be proven publically to be in the future a totally manipulative scam set up by and run for many decades now by the anti-gold intl bankster cartel to prop up their massive, largest in the history of the world, fiat currency counterfeiting scheme. And I for one would love to see the group as a whole be hung publically...along with those who knowingly defended them....
I hedge metal on COMEX. I have physical metal positions that I deal as premiums move up and down on physical metal and coins.
Same thing the bank broker/dealers do. It's called "hedging price risk". Been doing it for 30 years as my prime source of income.
The banks buy and sell physical metal and forward positions and use futures as hedges.
That you don't understand the precious metals business is OK, that you don't understand the function of COMEX is OK. There's still lots of money to be made in metals.
And just because you get all worked into a lather by the banks, maybe you could read the COMEX rules about how if the hedgers do exceed position limits, the exchange can audit their hedge book to see exactly what these guys are doing. But let's not get comfused by facts. It's so much more fun to see the conspiracy, right???
And I'm a bullion dealer/ trader...not a lawyer.
On Oct 21 12:50 PM jt wrote:
> kohlakid you sound like a mob lawyer...they're innocent b/c they've
> got a gun to the wife of the guy testifying who is an eye-witness
> to the crime of which the mob is not guilty b/c the witness won't
> testify b/c his wife has a gun to her head, and he won't talk.
>
>
> You can pretend that you know that b/c they have the status "broker/dealer"
> and can therefore CLAIM to be hedging for hmmmm...for whom exactly??...that
> therefore they actually ARE hedging for anyone but themselves...WHO
> DO NOT MINE GOLD OR SILVER, and therefore should NOT be able to "hedge"
> as you say, since that was the whole intent of being able to hedge
> on the COMEX in the first place.
>
> But, back to your claim...bet you can't come up with even a small
> fraction of the total amt they're short that belongs to ANY client
> (other than others in the anti-gold bankster cartel) who is hedging
> their mined metal prices. Go look--those with big hedges...hedges
> that are way beyond totally underwater, such as Barrack (a company
> the meaning of whose name in Hungarian matches their soul and their
> modus operandi...oh, it's f**k_s**t BTW...yep, the name given it
> by Munk...go look it up) et al are actually trying desperately to
> COVER their hedges, not put new ones on.
>
> But of course being the scum-defending lawyer you are, you'll tell
> me that those names are "confidential" and don't have to be released...like
> everything else these banksters do, under the guise of being "federal"
> like the Fed...all private and for themselves only. This is and
> has been shown definitively to be and will be proven publically to
> be in the future a totally manipulative scam set up by and run for
> many decades now by the anti-gold intl bankster cartel to prop up
> their massive, largest in the history of the world, fiat currency
> counterfeiting scheme. And I for one would love to see the group
> as a whole be hung publically...along with those who knowingly defended
> them....
Freedom and democracy is only real when useful for people so not freedom for bankers ruining your USA country should be allowed.
You need to send to prison at least one hundred of these high managers to show all of them example of what could happens to "financial terrorist".
Their casino and ambitions will ruin America and Europe ... The more dangerous terrorists are inside your financial and lobbying system ....
They are making a casino of your country
Good luck to Americans people is your "civil" war you should success first
Only the long term price trend would be out of their hands.
But I agree that the long term trend is out of their hands.
On Oct 21 05:54 PM TERN wrote:
> Kohala: If they are hedging, these banks may not have significant
> net positions, but if they both dominate the short and the long side,
> they have ample opportunity to fluctuate the prices as they please.
>
>
> Only the long term price trend would be out of their hands.
Think about it, it only takes 100,000 people who want to buy 1000 ozs of silver to equal 100,000,000 ozs of physical demand. 1000 ozs of silver still costs far less than a fully loaded Toyota Corolla. Imagine individuals with higher net worths that decide they might want 10,000 ozs or more. Silver demand is going to BLOW AWAY the shorts. Keep at it everyone. Silver mine supply is completely used up by industry and the silver investors will be the price movers. Should the price dip substantially at any point, ADD.
Most people will not realistically think too hard about selling until silver is at least trading near old high of $50 IMO.
10,000 people who want to buy 100,000 ozs = 1 BILLION ozs!
(think about high net worth individuals who can pay $1.8 mil
100,000 people who want to buy 10,000 ozs = 1 BILLION ozs!
(think of professionals who have $180 grand laying around)
1,000,000 people who want to buy 1,000 ozs = 1 BILLION ozs!
(think of solid middle class who can pay $18,000 for silver)
10,000,000 people who want to buy 100 ozs = 1 BILLION ozs!
(think of Joe Sixpack who wants to squirrel away $1800 safely)
100,000,000 people who want to buy 10 ozs = 1 BILLION ozs! (think about Chinese and Indians in this example)
THIS IS WAY WAY WAY more than all the silver available ANYWHERE aboveground!!! In my estimation, all of the above examples could easily be met as more and more people are looking at alternatives ways to protect their wealth, or even just to diversify holdings)
BUY SILVER BULLION! Tell you friends and family they should. Get the involved in a some good mining stocks before the price breaks out hard over $20 and they will get the "silver fever" and become even more enthusiastic after they get a taste of success!