Thursday, October 13, 2011

...and we wonder why Gold and Silver are down

The U.S. dollar index erased early gains today and ended slightly lower as the euro reversed early losses and ended higher on easing tensions over European banks.

...and Gold and Silver are BOTH lower?

S&P downgrades Spain's debt rating on weak economy- AP

...and Gold and Silver are BOTH lower?

Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In History- Zero Hedge

...and Gold and Silver are BOTH lower?

Fitch may downgrade BofA, Morgan Stanley, Goldman- AP

...and Gold and Silver are BOTH lower?

For how much longer must we endure this bullshit?  The barometer of TRUTH must be set free!

Key regulator calls for limits on speculation in commodities markets

Exclusive: CFTC has votes to pass position limits

CFTC May Finish Curbs on Speculation Oct. 18, Gensler Says

SPECIAL REPORT: Position Limit Scenarios
By Bix Weir
The new Bank Participation Report for September has been posted and it looks like the top 3 or less US Banks that had offside silver short positions are closing in on being under the proposed position limit law just in the nick of time!

Here's the numbers

9/6/2011 = 23,859 net short

10/6/2011 = 14,388 net short.

Basically, the top 3 or less banks were able to cover 9,471 short contracts by orchestrating the latest silver slam from $42/oz down near $28/oz. Many suspect the majority of this short position resides at JP Morgan. That may be but if this is split evenly between 3 banks they are now under 5,000 contracts each or quickly nearing the proposed position limit formula of around 4,500 contracts at the moment. The timing of this short position being congruent with the expected position limit proves beyond a doubt that the many delays in implementation of this rule were orchestrated to give the banksters time to cover.

JP Morgan Covered 36 Million Ounces of Naked Silver Shorts Since Sept 6th
From SilverDoctors
We have speculated previously that JP Morgan was attempting to extricate itself from its 120 Million ounce naked short silver position during silver's most recent sell-off.
The CFTC's October Bank Participation Report seems to substantiate this fact.

On September 6th, 4 large US banks held 24,584 short silver contracts, the equivalent of a 122,920,000 ounce short silver position.

The 4 large US banks' silver shorts had grown every month since silver's May smash-down, during which the same 4 banks had massively covered into the take-down and reduced their short position to 20,613 contracts.
The latest CFTC Bank Participation Report for October indicates that these same 4 large US banks (chiefly JP Morgan and HSBC) covered 7,177 silver shorts or 35,885,500 ounces during the September silver smash-down!
This means that effectively, JP Morgan and the other 3 major US banks (mostly JP Morgan) have reduced their naked silver shorts by approximately 29% during the latest PAPER FUTURES take-down.
At 17,407 contracts, the naked short COMEX futures position has now been reduced to 87,035,000 ounces- the smallest short position JP Morgan has held since it acquired Bear Stearns' silver shorts in 2008. While this leaves JP Morgan and the other shorts in a much better position than several weeks ago when they held over 122 million ounces short, obviously this is still nowhere near a respectable cap should the CFTC ever actually implement position limits mandated by the Frank-Dodd act.

...and we wonder why Gold and Silver are down...IT'S OBVIOUS WHY!!!!!

1 comment:

  1. Thanks for the blog.... Want to sell your old and broken silver please see the link bellow for more details sell silver