Sprott Money Contact Form
 

Thank you for contacting Sprott Money.  We will respond to you within 1 business day.

 

Sincerely,


The Sprott Money Team


Sprott Money Ltd.
111 Queen St. East
Suite 501
Toronto, Ontario M5C 1S2
Canada

[t] 1.888.861.0775
[f] 416.861.9855
sales@sprottmoney.com
www.sprottmoney.com

Administrative office only - no walk-in sales.

 

Please Try Again After Some Time...
Please enter valid captcha
Name*
Email*
Comments*
Loading Image

Toll Free: 1-888-861-0775; Local: 416-861-0775

Swipe to the left

Comex Crime Scene Mechanics - Craig Hemke (4/5/2017)

Comex Crime Scene Mechanics - Craig Hemke (4/5/2017)
By Craig Hemke 9 months ago 4812 Views 1 comment

May 4, 2017

Perhaps you should consider the following information before entering The Comex Casino next time? Or, if you still can't help yourself, there's always 1-800-BETS-OFF.

Through late March and into April, we tried...and tried...and tried again to warn/educate as many as possible that The Silver Bullion Bank Cartel was once again up to their evil, criminal tricks. Here are the relevant links:

So now, here we are. Comex Digital Silver is in the midst of its worst "losing streak" in years, having fallen for eleven, consecutive days. And why is this happening? For virtually the same reason that it has always happened before. Namely, and as stated in the introduction of link #3 above:

"The Cartel Banks are simply playing their same old, tired game where they pull the rug out from under everyone after patiently flooding the "market" with new open interest, waiting for buying pressure to exhaust itself."

Evidence of this is shown below in one, easy-to-read chart. Just click it and it will expand:

Between March 24 and April 20, JPM and their criminal pals (deceptively called "Commercials" by the criminally complicit CFTC) issued 42,128 new silver contracts and fed them to the hungry hedge funds and other "speculators" wanting "silver exposure" at The Comex Casino. At 5,000/oz per contract, these 42,128 contracts represented the potential obligation to make future delivery of 210,640,000 ounces of silver. This was silver that JPM et al did not own nor did they have it immediately available. And this "silver" was sold to speculators who had no intention of taking/demanding delivery! ( Again, how this passes for some form of relevant "price discovery" of physical silver is beyond me.)

As you can see, these 42,128 contracts were issued with prices ranging from $17.90 to $18.70. Though issuance wasn't evenly distributed across the time period, for the sake of simplicity, let's just call it an average price of $18.30/ounce.

Price has now been maneuvered lower through the "contract expiration" period of what had been the front month May17. Unless standing for delivery, positions in the May17 needed to be closed out and/or rolled into the July17 or later by the Comex close last Thursday. The Banks used this natural selling pressure against The Specs and the resulting chart below has all the earmarks of a deliberately rigged "market":

Though it's impossible to calculate how much trading profit JPM et al might have realized through this latest price capping round trip, let's give it a try anyway...

Price closed on Monday at $16.84. If all of the recently added open interest was withdrawn as price fell to that level from $18.10, maybe we can assume an average Bank short-covering price of $17.30 to keep the math simple? If that's the case, then JPM and the other "Commercials" netted a tidy profit of $1/ounce on 210,640,000 fraudulently issued paper ounces. It's likely that just about everyone reading this can do that math: THAT'S A PROFIT OF $210,640,000.

And thus today's latest lesson. If The Banks made $210MM, then it's reasonable to assume that The Specs lost $210MM. As WOPR says: "A strange game. The only winning move is NOT TO PLAY."

Will next time be different? Probably not. As long as JPM and the other Cartel Banks have the unlimited and unchecked ability to create and issue a nearly infinite amount of paper "silver" contracts, the game will continue. ONLY physical delivery and the strict avoidance of The Comex Casino will be effective in drawing power away from The Banks and ending their fraudulent system.

If you, my dear reader, continue to validate The Comex Paper Derivative Pricing Scheme by accepting their terms and gambling in their lair, then you are a part of the problem...not the solution...and you deserve every loss you incur in the future.



Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.


The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

jsturtevant 9 months ago at 11:05 AM
It's unfortunate that our regulatory bodies and banks openly exploit markets to the detriment of investors but conflicts of interest are
normal. Avoid leverage and be ready to add physical PMs when they drive prices lower. Eventually, the market wins.

Back to top