Thursday, March 1, 2012

COMEX Wasteland

I sat down this afternoon and attempted to write about the reports of a single 10,000 contract gold sell order that triggered yesterday's smash in gold and silver.  A SINGLE seller dumped 1 million ounces of paper gold on the market in the time-span of 2 minutes (along with 225 million paper ounces of silver)-an event that reportedly caused several traders at RJO to openly question the purpose of the sell.
 For those who haven't yet heard the news: Commenting on the sell-off, CIBC World Markets wrote in a note to clients that “Gold – looks like a large seller of gold in the market. a 10k contract traded, down ticked the price by $40/oz. roughly 200k contracts trade per day, but unusual to see such a large single trade. not likely due to contract expiry either. That transaction represents 1mln oz of gold.

We all know who the single trader was, we know the reasons for the smash (gold and silver could not be allowed to rise after massive LTRO quantitative easing- the exact same MO as the smash prior to the Swiss franc debasement last September.  In addition, Ron Paul demonstrated to Americans the concept of preservation of value of a silver eagle), we have documented the trades and volume assorted with the paper smash, and a majority of us welcomed it by buying physical gold and silver into the smash.

As I began to write, I read a comment (edit: apparently the comment came from TFMetal's post tonight by the same name, check it out, Turd's analysis is always excellent) comparing the COMEX to a crime scene...and my mind began to wander..  CSI: COMEX.   That has a nice ring to it.   Obviously CSI: COMEX needs its own theme song:   COMEX Wasteland.
What do you think CBS? 
I know I'd watch. 

Out here in the pits
I fought for my phyzz
I get my back into my winning
I don't need to fight
To prove I'm right
I just need to keep on stacking...

Don't cry
Don't raise your buy
It's only COMEX Wasteland

Blythe, take my hand
Gotta keep gold south of 2 grand
Put out the fire
And don't mind Bart Chilton

The exodus is here
MFG clients are near
Let's get together
And dump more paper silver

COMEX Wasteland
It's only COMEX Wasteland
COMEX Wasteland, oh yeah
COMEX Wasteland
We're all wasted