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. ]](http://www.kitco.com/images/live/nysilver.gif)
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:
74 comments:
Posted by The Doc at "11:46 PM"
Hm. Your website clock is acting up or something.
Retry Netdania, it's still working here..?
-conax
They are having to go out on a loooonnnngg limb to keep the shiny down. Desperation to the moon!
I'd like to own the Tums concession on W Street today. Might trade a few ounces for that.
Oh, JPM was down $1.09 before the debacle, now they're down only 41 cents. Nice sticksave, Legs.
This was indeed an epic fail. It looks like it's taking more and more silver to be dumped into the market to do less and less damage. Next they will dump a billion ounces to drop the price $.25.
As frustrating as the last year has been for the silver longs silver has held up well considering the massive amount of paper thrown at the silver market. The fact that they continue to do this in plain sight speaks volumes of their deperation.
Hey JPM, why not try dumping 1 Trillion oz of paper silver into the market, and let's see how that works out for you?...
A trillion here and a trillion there, and pretty soon we're talking serious amounts of physical silver. Wait, what's that? Only fiat paper money can reach those laughable numerical levels, you say? Why didn't you say so before?...
I feel like I've got plenty of silver right now. Might use the next dip to get an ounce of gold.
data glitch i tell ya.. nothing to see folks just a data glitch! (kidding)
Honestly, this game is getting to old, I'm sick of the whack a mole with silver... we need a major boost.
Doc's point about diminishing returns on the paper hit is correct. But it's also important to keep the event in context. Leading into the take-down on Feb. 29th, we had a number of weeks of slowly building bullish sentiment and exposed weak-hand speculative interest accumulating in silver. Those are the sheep the Cartel regularly fleece. Today's hit came after a much shorter period of slowly rising bullish sentiment and a less substantial flock of sheep ready to fleece. That partially explains the less bang-for-the-buck the Cartel got today.
Another interesting thing to observe is the relative performance to gold. It's been noted already, but just to underscore a basic point, it can't be said enough how unusual it is to see silver fall so much less in percentage terms vs. gold on take-down days. There wasn't enough stop orders from weak-hand momentum player specs such that the running of the stops couldn't even get silver below yesterday's prices. Just a simple eyeballing of the 72 hour kitco price charts of gold and silver show the contrast. I don't know the data off the top of my head but that massive contrast probably only has happened no more than ten times on take-down days in the last decade.
All this points to a modest supply of weak-hands willing to sell silver in the short-run, and strongly supports those that believe we've already hit bottom at about $31 back on March 22nd.
Where is the CFTC & the SEC ?
Balless wonders
127,500 contracts is a lot of dumping but the chart damage is minimal. We're in a sideways pattern for quite sometime now, so this dump in the markets, just after the COMEX close is telling me, there are investors waiting for Bernanke's FED notes to come out and buy on the dips. Look at the charts folks .... it's a nothing move (chart wise).... Stay Strong!!
No offense guys, but this is great news. I don't have nearly as much Ag as I'd like.
We'll ALL know that the end-game truly has been reached when they dump a massive amount of worthless paper crap into the worthless paper market and the price of REAL silver... rises! Good on 'em, too. Bastages.
Ed_B
They did another fail before the 2/29 225 mil oz take-down. They're trading it amongst themselves at that kind of high freq. My guess is this was another head-fake before another smash to the high 20's. At least that's what I'm hoping, I got enough for a 100oz bar and I'd like to get a couple hundred dollars off!
The real fun starts when Asia sets up their exchange and people start standing for delivery and arbitraging the phyzz to Asia.
Thanks for this boggling insight on just how desperate they are becoming in the raids. Nice to know our collective buying is slowly but surely weakening their manipulation abilities.
Ok, I've been a silver holder and buyer since 2001. Very happy with my results! Still think silver is the investment of a life time. One major question continues to rattle around in my brain. It is: If there is a shortage of metal (silver) why have we not heard one single user like solar panel makers or others start barking that silver is getting hard to get? I think that is what will finally propel silver. Any thoughts on this?
Hey Sailor (sorry, couldn't help myself)
the shortage is not upon us yet. There is greater demand than supply but there is inventory available for now and it's being drawn from storage shelves.
The shortages will start soon, possibly mid year, as physical silver is absorbed.
The eastern economies are doing ok. The western ones are floundering but in each case, the electronics from smart phones to computers and the like are ramping up. Hundreds of millions of phones, massive weapons resupplying and upgrades along with the clear recognition but stackers like us are taking down silver sends silver moving quickly into consumer products, vaults, solar panels and the like. China and India are buying at a rate of 100 million ounces each this year.
The strangle point will come soon enough
Each physical ounce bought takes 100 ounces or more from the paper market and their potential claims against the vaults.
This 650 million oz take down did nothing. It just reversed yesterday's bounce and signifies little except the opportunity to buy more silver. I picked up 500 oz Monday and am very happy with the price.
This must be a sign of end game. Paper markets increasingly irrelevant. Nice to see the diminishing returns.
637m looks incorrect. 9,832 contracts in the May contract or 49m oz (7.7% of what is being claimed). Happy to be corrected if wrong.
Who's the buyer?
So what if silver supply was dump so much in so short of a time? Why is that even surprising? If I had money to do it and making lots of money, I don't mind it either.
People here who buy metals are the one who aren't making any! It is a losing trade with physical metals! You lose 10% for silver and 3% on gold everytime you buy physical! So you have to actually wait for any of those to go up their respective premiums to even break even! Now that's a bad trade!
I know because I work there! You buy above spot and sell below spot!! Super bad trade!
CPME, Who is selling their physical?
CPME, Who is selling their physical?
Yeah who? Paper is not metal!
From all the sources that I have read, the only Ag seen at smelters and being sold to dealers is silverware and junk silver, not coins or bullion.
Tyberious
Epic..
downright EPIC!
I can see that it's taking more ounces of paper silver to reduce the price of silver which means that it's getting harder for the bank to control the price.
What do you guys think that I should invest in? Physical silver or canadian copper pennies cause they will be removed from circulation this fall?
SILVER!!!!
Tyberious
Turned out to be a fine day to hit my LCS.
Seems to be lots of Ag available--no sign of any shortage or any squeeze.
Truly, that's the last thing I want to see.
It is a little disturbing that my LCS is paying over spot for Silver...
4oz
are they transferring the shorts to some corpse entity to be allowed to bankrupt later?
Hey Canadian Precious Metal Exchange - you'll just have to stay on the job a bit longer to learn the value of physical possession. I have to ask you though - does your boss know the fine job you're doing talking up the business? I ask because I'll be in there shortly to pick up my order of 10oz Australian year of the Dragon coins, and I'm wondering if I should mention your post while I'm there - as an employer I can only imagine MY reaction to seeing one of our people posting an equivalent comment online using my company name...
Its making it hard though for us silver holders to stay afloat right now. i do not have much money and am being forced to liquidate small possessions in order to gain liquidity. i am refusing to sell the few silver coins i have, but I mean a brother has gotta eat, and when it comes down to it. i have 200 dollars in a tax-free-saving account right now wrapped up in volatility etfs. should i sell these? or should I sell my silver? well thats an easy decision...i love the coins i have they are old silver maple leafs. i feel like the older ones are better because the new silver is probably fake..... Doctor Jamin - Fightin Hard' One Love.
Keep suppressing JP! I want to buy more!!
Anonymous.....Thanks for your comments to Sailor Jim's question! I hope you are right about mid year shortages! Been waiting for a long time. Bought my first silver eagle at $3.75. I really believe that the powers that be are so completely corrupt that the manipulation will continue until the industrial users cry shortage. My two cents.
Gents, dont hold your breath on anything more than a solid 10% YOY rise for the next couple of years.
There are still plenty of small supplies entering the system. Expect 2014/2015 to be the start of "windfall profits" for PM collectors.
I believe that the silver price will hit above $50 this year and over $100 next year. The silver price will eventually hit above $1000 between 2016-2020. Keep stacking silver for all you who despise the federal reserve. There is no other option for our federal government for our MASSIVE DEBT and our EVER-GROWING FEDERAL DEFICIT SPENDING but to print the dollar until the hyperinflation and until our dollar becomes nearly worthless. Then there will be NEW DOLLAR after the crash of the dollar. In the meanwhile, the gold and silver will retain its purchasing power.
Every massive naked short selling of paper silver by the JP Morgan/HSBC/Federal Reserve is a GIFT of subsidized silver SALE for those who are prepared to buy the physical silver. Don't leverage; don't buy ETF's, ETN's, or the silver options. JUST PHYSICAL SILVER. Don't sell it for at least 5 years!
Be patient.
If only about 1 billion oz. of silver exist, that is only $32 Billion. Why are there so few billionaires interested in silver when they could easily corner this market? I don't get it! I can only think of two:
1. Eric Sprott
2. Hugo Price
3.??????????
Please add to the list if you know any! Don't say Buffet or Gates- we know what side they are on.
Because the will get HUNT-ED, or BUFFET-ED!
Tyberious
Yeah, where's Dr. Evil when you need him?
"I shall take delivery of ONE BILLION OUNCES of your silver, or flood every city with liquid-hot-magma"
there still dumping in Hong Kong
It' sure is taking allot of paper to hold silver down a few cents
I thought total May silver contracts for Open Outcry (Comex) and Globex (Electronic) was around 44 000. Stockcharts for $SILVER says total volume for Tuesday April 3 was 44 277. Where did you get the 127 000 contracts Doc?
First 6 hours of Asian trading is 3 500 contracts and price down 27 cents.
Same old story as always... let PMs rise a bit, then have a disproportionate smash to give the impression of extreme volatility to temper the inevitable rise. Alas, for leveraged paper traders it is REAL volatility. Wake me up after QE6.
Hey Bro, do you mind citing your volumn source. The CME site is posting estimated volumn for the entire day at 53,978: http://www.cmegroup.com/trading/metals/precious/silver_quotes_settlements_futures.html. That number includes access trading up until the 5:00 p.m. close. It will be revised tomorrow for the final number, but won't deviate much from the estimate
Would love to know where you are getting your numbers from.
Thanks in advance.
linear thinking doesn't work with investing, especially not in silver and not in our time. start with shortage talk: in any market, shortages only exist during brief time periods, then the market finds new equilibrium. many physical investors will sell at 40$ then 50$ etc. all these predictions like david morgan 60$ in 2012 make me laugh because they want to give you some kind of success guarantee where there are none. also interesting how in a decline everybody saying "it's just the paper price", but when it moves up out come all the "bullish reasons", while in the casino they are just covering some shorts like in Q1 2011. all i know is that today i get 3 oz of a precious metal (that is a proxy to gold) for every day of my labor, still a unique historical gift. but when and how i will be able to use that wealth is just unknown. it will probably be in a world without the western luxury lifestyle of the past decades, a lot of state control, worldwide financial and resource wars, and widespread poverty and unemployment. and it might be as late as 2016 - the problem is you can't afford to be even 1 day late in this...
german stacker
Slow and easy. Going to get 4 oz. today. Two weeks and a nice purchase from the DOC will add to my stack.
No worries of ups and downs in the price. So, bring on the smashes and every time I'll get a little more phyzz. If the price goes up, I'll get a little more phyzz. Hmmmm. Funny, sounds like all I do is get a little more phyzz. LOL
2 OZ.
@dave in denver-CME is a "private" company who runs an exchange who's main job is to fight inflation(in my humble opinion). WHY do you trust THEIR numbers???Every financial TBTF are manipulating their numbers, WHY would CME be any different? Their numbers are suspicious ALL the time. EXAMPLE- THEIR BAR LISTS!!! IF you are the D in D that harvey Organ posts from time to time, I have much respect, I'm just sayin!
IF this is true, bernyankme and dimon feel like a sexual deviants, who can't get it up anymore. I LOVE IT. BURN IN HELL BANKERS!
Stack the drop huh? "won't see silver at these prices any more!" Hmm heard that when it was $40, $35, $27, $34, $37 and now $31.
Oh by the way, 10% over spot for silver so that's an extra amount gone too on my investment. Oh plus I don't get that 10% if I sell to dealers so, lets see, selling $40,000 worth of stuff privately huh? That's kind of dangerous!
Worst investment in history!
Should have bought some apple stock in 2003 for $15 a share!!! Way better investment than silver at $4 a share in 2003!!
By the way, Bix weir's article is crap of the silver bug community rumour sites. I wasted money on private subscription, you shouldn't too!!
As far as the solar panel industry goes, they are busy filing for bankruptcy. Solyndra a few months ago, and now another yesterday: Solar Trust for America. They cannot report if they do not exist. Funny how all of these alternative energy companies are disintegrating even with the massive government loans that they received.
@saint- Want some cheese to go with.........!! Public forums are not the place to cry!!!
@flock-Perhaps these companies "bought" "silver" at $45, and "sold""silver" at $30.By the way people, YOU CAN't build a solar panel with paper silver, you need phyzz. SOME HOW these solar companies are conected to the manipulation.
@everyone- looks like bernyankme just "got it up" Silver is diving. BURN IN HEE BANKERS!!
Chinese solar firms kicked our butts. We need to stop the stupidity of trying to subsidize an industry that can't compete. Using government subsidies to try this is just dumb.
Be patient, stackers. Please be patient.
The Hunts and Buffett were amateurs in the silver world and got crossways with powerful people including Middle eastern interests.
There are plenty of wealthy people buying gold and silver today. They have figured out that stacking quietly is the best way to stay out of the cross hairs of TPTB.
The important volume buyers are commercial users, central banks like China and India and the tens of millions of ounces purchased by us, the silver stackers who file away those OZZZZ quietly, for the day when they will represent real money.
Be patient friends. we will be vindicated.
As for Apple. Who cares how much their stock went up.
They use slave labor in China and Vietnam. Foxconn suicides number in the hundreds.
Students are forced to work for Foxconn to get a high school graduation. Jobs should rot in hell for this. He was nothing more or less than a slave master.
Apple uses silver by the TONS. That might be the shiny lining to this story. But Apple is no sterling corporate citizen. If a corporation gets rich off the blood of peasants they are evil. I will never own an Apple product for this reason.
This site and silver are being repressed.
Doc you must have got your data from netdania. I normally look at their charts on a 1 minute basis for volume. But as you said, they greyed out the volume from showing on their graphs.
Same modus operandi: Sell-off of gold and silver in London and Comex (the West), and buying of physical silver and gold in the East.
This morning, they even started to short gasoline futures. But gasoline prices are not budging much. They will never create any realistic sentiment of 'low inflation' with gasoline prices sky high. People can see the writing on the wall for the coming high inflation of prices of commodities.
The blame for inflation falls squarely on 'The Fed'.
Just a coupla comments (note: may have already been said in some comment above, just don't have time to read thru all)--
1) Very likely there were NO sales, paper or o/w, simply an illegal collusive ping-pong algo trade set up between two or more criminal bankster trading centers..."collusive" being the key word
2) CFTC and SEC don't need balls to do anything, they've already pre-determined to do nothing, there's nothing for them to think about. They are (aside from MAYBE Chilton) as much the criminals as these banksters,
3) The affect will be seen over the next week or two in terms of how much offtake of REAL physical (silver esp.) happens once the "bottom" of this PM murder is in.
4) Gotta admit I'm way beyond sick and tired of waiting for this "failure to deliver" crisis that never seems to come...how much more effin physical silver is out there to be bought up??? Weren't we supposedly running out 10 yrs ago? and 8? and 6? and 4,3,2,1? Where is all this physical coming from???
Hey doc, aren't you suppose to be telling people to buy the dip... The never ending dip.
Hope the fuckers smash it below 30 by monday as i am increasing my stack from 669 oz to 1000 maples so bring it on blythe you worthless peice of shit,oh and thanks for the discount.
"Hey doc, aren't you suppose to be telling people to buy the dip... The never ending dip."
You wish!... Never ending dip BS. What was the price of silver in 2000, and what is the price of silver today?
Silver has retained its purchasing power (and then some). Debt-based fiat paper 'money', on the other hand, is dying a quickening death. All attempts to save it are pointless, for it only prolongs the agony for the majority of the people.
Symbolically, when Ron Paul held up the silver coin in front of Mr. Bernanke's face, he was showing him that the days of fiat 'money' are numbered.
Give us a call 44-mag and we'll hook you up on the Maples as a regular reader/ contributor here at SD
"Where is all this physical coming from???"
There is no physical needed when all they do is naked short selling of paper gold and silver.
However, the trading of gold and silver ultimately depends on gold and silver being physical elements (not virtual intangible make-believe things), so the physical supply ultimately determines the true market prices based on demand (in spite of the ongoing manipulation).
SD and similar sites are making it known that it's only the paper. I think folks are beginning to see that. Last year a dump like this would have taken silver way down--and it did. All this paper selling is doing is creating a rock-solid baseline while allowing us to buy a bargain basement prices.
2012 is the year of physical delivery.
Loaded up on Moose, taku's and koala's
Yeah bad trade but good investment. Depends which timeframe is your priority and how far into the future you are thinking
The biggest single event for silver will be the asia physical exchage opening. Once this occurs we will see serious upwards movement in price
Doc. i would buy from you in a heartbeat but i live in Canada and i trust customs about as much as the Bernake.
DOC and Bull,
Keep on the good reporting. You can well believe the FED is watching you. Doesn't matter. I'm close to having enough for a 100 oz. purchase. I hope they see this. I have no fear as the people will prevail over all governments.
For you Canadians, watch closely for the Cannuk's posts. He's quite savvy and has some good advice. A little crazy but but very sharp.
Keep stacking 'cause the COMEX is cracking.
2 OZ.
"Doc. i would buy from you in a heartbeat but i live in Canada and i trust customs about as much as the Bernake."
Same here!
44 mag and anon 6:47- we are working on a better solution for Canada involving Canadian suppliers, eliminating the customs and import duties.
We'll let you know when something's finalized.
-Doc
Mr. D.....Salusa and the cronies are coming for you...you can't hide because they always know where you will be before your there. Time is up in less then 3 weeks....exposed!
Sheldan Nidle
This is so frustrating! I won't have the spare cash to buy my first physical for about six months. Who knows what will have happened by then?
AAAAAAAAAAAAAAAAAAAARRRRRRRRRRRRGHHH!!
This is so frustrating! I won't have the spare cash to buy my first physical for about six months. Who knows what will have happened by then?
AAAAAAAAAAAAAAAAAAAARRRRRRRRRRRRGHHH!!
I think you better recheck your source and ask him about Preliminary vs. Final. It is my understanding that the Final Comex report includes access trading.
Just to clarify, the volume number to which you inquired was the estimated volume at Comex settlement. Of course it wouldn't include access trading. However the Final report is posted usually mid-morning the following the day and that report per my understanding includes access trading. That report is not even remotely close to the volume number claimed in this post.
Again, I asked for your source of that volume number you use and you have not provided it. Please link the source so I can see it for myself. If you are going to post numbers in a very public forum like this, you should be prepared to cite your sources.
Thank you.
P.S. I am really hoping that you have a valid source for that number. But it needs to be validated before it's believable.
I've been doing this longer than you have and I hate the cartel more than anyone. But you have to attack with credibility.
Here is yesterday's FINAL report for Comex metals trading: http://www.cmegroup.com/daily_bulletin/Section62_Metals_Futures_Products_2012064.pdf
You will see that the volume is all-encompassing, including PNT's
doesnt matter how many contracts are dumped the price changes on buyer/seller ratio.
oddly enough both whole days resulted in a 6.66% decline.
2-29 37.12 34.65 change of 2.47 4-4 33.26/31.04 change of 2.22
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