COMEX Search And Seizure

By Craig Hemke – Re-Blogged From Gold Eagle

These are dark times for The Bullion Banks. Their Fractional Reserve and Digital Derivative Pricing Scheme is in great peril as refineries, miners, and mints all shut down in response to the coronavirus pandemic. Will these Banks be able to scrounge up enough physical metal to keep their scheme afloat through June? That remains an open question.

You may recall that we’ve been warning of the outrageous volume of COMEX EFPs (Exchange For Physical) for years. For the calendar years 2018 and 2019, the COMEX swapped out over 14,000 metric tonnes of contracts for alleged “physical metal” in London. And this process grew even more extreme in 2020, as the first three weeks of the month saw 290,000 COMEX gold contracts “exchanged” this way. Here’s the link from the last post dedicated to this subject, written on March 10: https://www.sprottmoney.com/Blog/comex-gold-efp-us…

Continue reading

Safe Haven Demand As Rising Risks

Gold surged over $1,436/oz this morning, it’s highest level in almost six years as an escalation of US sanctions on Iran added to heightened geopolitical uncertainty and uncertainty in global markets.

Market participants are also concerned about the G-20 summit this weekend where it is hoped that President Donald Trump and China’s Premier Xi Jinping will meet to discuss the deepening trade war.
Gold has closed above $1400 for first time since 2013 as investors diversify into safe haven gold to hedge the growing global risks including the risk of much looser monetary policies again and of zero percent and negative interest rates.

Continue reading

JPMorgan’s Domination of COMEX Silver

By Craig Hemke – Re-Blogged From Sprott Money

Much has been written lately about the size and scope of JPMorgan’s COMEX silver vault. We thought we’d add to that conversation today.

First of all, some background.

JPMorgan didn’t even have a COMEX silver vault in early 2011. The application was only rushed through in March of that year, and they began accumulating silver that summer. (https://seekingalpha.com/article/259549-will-jpmorgan-now-make-and-take-…)

JPMorgan's Domination of COMEX Silver - Craig Hemke (21/03/2018)

Continue reading

Silver Prospects

By Ted Butler – Re-Blogged From http://www.Silver-Phoenix500.com

Here’s a recent interview I did with Jim Cook, President of Investment Rarities, Inc., for whom I’ve consulted for more than 17 years (where did the time go?). It’s gotten to the point where about the only interviews I do are with Cook, but that’s not due to our long relationship. Rather, it’s because he comes prepared and wastes no words, making my role easy. With Cook, it’s always about getting to the heart of the matter, with the least amount of fluff as required.

Cook: Are you disappointed with the recent price action in silver?

Butler: Of course, I thought we might finally be breaking out.

Cook: What happened?

Butler: It’s the same old story.  As I outlined previously, we were setup for a strong rally at the recent lows, but whether the rally was of the now-typical $2 to $3 variety or the big one was based upon whether JPMorgan added aggressively to COMEX silver short positions. JPMorgan, once again, stopped the silver rally cold by adding massive amounts of short contracts, just as they have on every silver rally over the past ten years.

Continue reading

…They Lit The First Candle

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

Many of us have waited for today, April 19, as we anticipated the new Chinese daily gold fix and the opening of the ABX physical exchange.  Some may be disappointed, others, ecstatic.  I will say I am personally pleased because it was almost exactly as I suspected.

Much has happened over the last couple of weeks — and a lot of it has to do with “truth” being exposed.  The “markets” are no different.  China, in my opinion, is simply trying to aid in markets determining prices of gold and silver.

Last Friday we got horrifying (from a contrarian standpoint) COT numbers with nearly record numbers for commercial shorts.  With history as any guide, gold and silver should have already been slaughtered, they have not been.  In fact, we now have silver and gold at nearly one-year highs and mining equities exploding.  Yesterday saw a dozen or more juniors up 25%++ for the day!

As I have maintained, I believe today’s action will become more frequent with the Shanghai physical demand pushing prices higher.  I believe they lit the first candle of truth today, other candles will follow until the light switch gets flipped on.  COMEX/LBMA will either go along in price or they will be arbitraged completely out of inventory.  As I wrote several weeks back, “what good is a contract that cannot perform”?  It is very possible China will let this “stew” for a while and allow the markets time to adjust to real and free pricing …only then do I see China coming out with a gold backed yuan.  If they were to do that today, it would be a declaration of war on the U.S. hegemon, if they wait, they can have cover and say “hey, it was global free markets that pushed gold out of sight”.

As mentioned above, commercials are very short gold and silver now…and they have lost $billions just today.  Maybe they continue to throw paper at gold and silver, but Shanghai ain’t buyin’ it!  No matter what the apologists say, COMEX can and will default when they can no longer deliver metal.  They say “cash settlement” is not a default …who are they kidding?  This is the rally you never sell …until you are offered a different “paper” (one that is backed by something, anything) that can be trusted.  China may be making this offer in the near future!

CONTINUE READING –>

The Breaking Point?

By Bill Holter – Re-Blogged From http://www.Gold-Eagle.com

We have a very important inflection point coming next week with the Fed meeting.  I believe the inflection point has already been reached a few weeks back but next week may be the final straw.  Will the Fed raise rates to “save face” and try to stem the loss of credibility?  Or will they remain “patient” (cornered) and realize they cannot raise rates without razing the entire building?

Before getting to the rate hike thoughts, a bit of backdrop is needed.  World equity (and credit/currency) markets are in disarray.  20-40%+ drops in equity bourses around the world are now common.  In plain English, the world is already in a bear market of significant historical proportions.  Credit markets particularly in Europe are showing signs that illiquidity is taking over.  The German bund trading to .8% up from nearly 0% is just one illustration.

Continue reading