Wednesday, April 4, 2012


*UPDATE: This morning we advised that the CME is estimating total volume in silver yesterday of 53,978.  Marshall Swing has contacted the CME for clarification, and volume estimates ONLY include the pit session which closes between 1:29 and 1:30pm EST, and DOES NOT include access market electronic trading in the afternoon. 
Apparently any cartel shenanigans conducted during electronic trading is free game and goes unreported by the regulating agencies. 

On the now infamous Ron Paul/ Bernanke silver raid of February 29th, we documented how 225 million ounces of silver were dumped on the market over a span of only 30 minutes, smashing silver $4 from $37.62 to $33.68.

In a sign of the diminishing returns of paper market manipulation, on the heels of today's Fed minutes disappointment, beginning at 2pm EST, over 127,000 contracts, or 637.535 MILLION OUNCES OF PAPER SILVER were dumped on the market in only 1 hour, resulting in a massive silver decline of.... $0.65. 

You read that correctly. 

Nearly 80% of ENTIRE ANNUAL WORLD MINING SUPPLY was dumped on the market (during the thinly traded Globex session), over a single hour, and all the cartel could muster was a lousy .65 decline in the paper price of silver!

Coincidentally, NetDania's volume function was disabled as we attempted to post a screen shot of the action.  A price chart of the epic fail will have to do for now:

Live New York Silver Chart [ Kitco Inc. ]

We will have confirmation from the CME's globex numbers tomorrow.  Contrast today's 127,000 contract dumping with yesterday's Globex action, which saw a total of 43,708 silver futures contracts trade hands on the Globex throughout the entire session.

Volume from the 24 hour chart indicates that ~45,000 contracts traded in the hour between 2p and 3p yesterday, or roughly only 225 million ounces.  We also saw massive volume throughout this afternoon's sell-off: