Didn't the CME lower margins on Gold and Silver last week?
CME lowers gold, silver, copper, natgas margins | Reuters
- Nov 15, 2012 · Nov 15 (Reuters) - The CME Group on Thursday lowered margins for natural gas, gold, silver, copper, lean hog and live cattle futures, effective after …
December is the NUMBER ONE month for Gold and Silver deliveries annually. The "December" Gold and Silver contracts trade on the notably criminal COMEX in New York during the month of "November". November is "seasonally", on average, the first or second most bullish month for these two Precious Metals EVERY year.
This year, from it's close on October 28, 2012 up to it's November high, the price of Gold was up 4.5%. On one 100 ounce NY COMEX Gold contract, a trader held a $7694 unrealized profit at the November high price, if he had purchased his contract at the close in October. The November high in Gold occurred at 11AM the morning of November 23, 2012. The November high price for Gold at that time was $1754 per ounce.
This year, from it's close on October 28, 2012 up to it's November high, the price of Silver was up 11%. On one 5000 ounce NY COMEX Silver contract, a trader held a $16,950 unrealized profit at the November high price, if he had purchased his contract at the close in October. The November high in Silver occurred at 7PM October 26, 2012. The November high price for Silver at that time was $34.28 per ounce.
With unrealized profits in the Precious Metals of this magnitude going into options expiration, it was imperative that the bullion banks do everything in their power to prevent delivery demands at great financial loss to the banks.
Nov. 27 Comex December gold options expiry
Nov. 27 Comex December silver options expiry
Let the games begin!
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CME Declares Force Majeure Due To “Operational Limitations” On NYC Gold Depository
CME Group declared a force majeure at one of its New York precious metals depositories yesterday, run by bullion dealer and major coin dealer Manfra, Tordella and Brooks (MTB), due to “operational limitations” posed by Hurricane Sandy.MTB has “operational limitations” following Hurricane Sandy and can’t load gold bullion, platinum bullion or palladium bullion, CME Group Inc., the parent of the Comex and New York Mercantile Exchange, said today in a statement.
MTB must provide holders with metal at Brinks Inc. in New York to meet current outstanding warrants in relevant delivery periods with compensation for costs, Chicago-based CME said.
The CME said that MTB will not be able to deliver metal as the lower Manhattan company deals with "operational limitations" almost a month after the arrival of Hurricane Sandy.
MTB is one of five depositories licensed to deliver gold against CME's benchmark 100-troy ounce gold contract, held 29,276 troy ounces of gold and 33,000 troy ounces of palladium as of Nov. 23, according to data from CME subsidiary Comex.
In a notice to customers on Monday, CME declared force majeure for the facility, a contract clause that frees parties from liability due to an event outside of their control.
CME said that individuals holding MTB warrants or certificates for a specific lot of metal stored in the depository, may receive gold delivered from Brinks Co. (BCO) in New York. MTB is responsible for any additional costs incurred by customers receiving metal from Brinks, CME said.
"This shouldn't have a material impact on the way market participants are doing business," a CME spokesman said. "They'll still contact MTB if they want to take delivery on contracts," and MTB will arrange for delivery through Brinks according to Dow Jones Newswires.
In a notice posted to its website dated Nov. 12, MTB said the firm "sustained substantial damages" following Hurricane Sandy's arrival in New York City on Oct. 29, and had curtailed its operations.
The force majeure will remain in effect until further notice from the exchange, the CME said. The delivery period for CME's December-delivery precious metals futures begins on Friday.
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Doesn't ANYBODY find it the least bit alarming that MTB has conveniently used a natural disaster to hide the fact [assumed] that it DOES NOT HAVE THE METAL AVAILABLE to meet December Gold delivery demands? Seriously, this storm hit New York almost one month ago, and now with just two days before "first notice delivery" they have encountered “operational limitations” preventing them from making good on delivery demand of Gold via December Gold contracts sold through their depository? Seriously? This is OUTRAGEOUS!
November 28, 2012, at 3:17 pm
by Daniel Duval in the category General Editorial |
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by Daniel Duval in the category General Editorial |
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Jim
Richard outdoes himself in this report. Now they are calling it a roll over that was executed not as a spread but as an outright sale. That was such a bold manipulation that even they have to come up with an excuse.
Richard is right. That is what is called “an operation.”
Those watching the precious metals markets (this excludes the CFTC) are well aware of yesterday’s options expiry for Gold and Silver on the COMEX, and the Friday “first day notice” just ahead…and some violent ‘games’ by the Cartel in the paper markets were duly expected.
This morning Blythe apparently unleashed her heavily-caffeinated flying monkeys to ‘game’ the markets. Completely incredible paper volume in view of existing physical supply. In seconds. Good morning!
Oh, did I say ‘physical?’
– Yesterday’s Manfra ‘force majeure’ excuse (one of COMEX’s five bullion stores) for non-delivery of physical bullion should (in a regulated, unmanipulated market) have sent the spot price of Gold several hundred dollars higher, but it looks like the Banksters have discovered Bennie’s secret CTRL+P trick of creating binary electronic digits out of thin air…beats mining with a pick and shovel, eh?
These are no longer markets as price-discovery vehicles, but more resemble playing naked-twister with sociopaths and crooks.
– The MF Global and LIeBOR frauds were just a small ‘taste’ of what’s coming when it is discovered that the paper masters of the universe have hypothecated and rehypothecated physical bullion (both private and sovereign) many times over. [For CFTC regulators read: it's long gone and many are not going to get it back, ever.]
Richard outdoes himself in this report. Now they are calling it a roll over that was executed not as a spread but as an outright sale. That was such a bold manipulation that even they have to come up with an excuse.
Richard is right. That is what is called “an operation.”
Those watching the precious metals markets (this excludes the CFTC) are well aware of yesterday’s options expiry for Gold and Silver on the COMEX, and the Friday “first day notice” just ahead…and some violent ‘games’ by the Cartel in the paper markets were duly expected.
This morning Blythe apparently unleashed her heavily-caffeinated flying monkeys to ‘game’ the markets. Completely incredible paper volume in view of existing physical supply. In seconds. Good morning!
Oh, did I say ‘physical?’
– Yesterday’s Manfra ‘force majeure’ excuse (one of COMEX’s five bullion stores) for non-delivery of physical bullion should (in a regulated, unmanipulated market) have sent the spot price of Gold several hundred dollars higher, but it looks like the Banksters have discovered Bennie’s secret CTRL+P trick of creating binary electronic digits out of thin air…beats mining with a pick and shovel, eh?
These are no longer markets as price-discovery vehicles, but more resemble playing naked-twister with sociopaths and crooks.
– The MF Global and LIeBOR frauds were just a small ‘taste’ of what’s coming when it is discovered that the paper masters of the universe have hypothecated and rehypothecated physical bullion (both private and sovereign) many times over. [For CFTC regulators read: it's long gone and many are not going to get it back, ever.]
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By Debarati Roy & Joe Richter - Nov 28, 2012 2:42 PM ET Bloomberg
Gold futures fell the most in three weeks as pessimism on a U.S. budget resolution eroded demand for commodities.
On the Comex in New York, gold futures for February delivery tumbled 1.5 percent to settle at $1,718.80 an ounce at 1:38 p.m., the biggest drop for a most-active contract since Nov. 2. In the first 30 seconds of floor trading, 7,700 contracts traded, according to PVM Futures Inc.
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In the FIRST 30 SECONDS of floor trading, 7,700 contracts traded!!! That equates to a 770,000 ounce dump of Gold onto the market. But was it real Gold, or merely "paper Gold"? 770,000 ounces represents 1% of global annual Gold production.
Gold was trading at $1735.59 an ounce prior to the NY Open of the COMEX. 770,000 ounces x $1735.59 = $1,351,034,300 !!!!!!!
What moron would SELL $1.3 BILLION of Gold in 30 SECONDS, let alone sell it in the face of "Fiscal-Cliff Concerns"? Selling Gold in this environment seems hugely counter-intuitive, does it not?
Dealer inventory [the MTBs of the COMEX world] is 2.528 million ounces. 770,000 equals 30% of ALL the Gold available to meet delivery demand held by the COMEX depositories. How can 30% of all the available COMEX Gold be sold in 30 SECONDS not raise a single red flag at the CFTC?
The question that begs to be asked is...who bought 770,000 ounces of Gold in 30 SECONDS. There is a buyer for every seller don'tcha know? And what if the person[s] that bought that Gold decides to demand delivery of it next month? Mere speculation... If I had to guess, JP Morgan's left had bought the 770,000 ounces of Gold it's right hand sold...all in the name of 1. bailing out the bullion banks that were underwater at the end of a bullish month for the price of Gold, and 2. Suppressing the price of Gold when it should obviously be rising as the USA heads for financial doomsday.
I am open to more data and
other possibilities, but it certainly looks like the infamous Dr.
Evil strategy being employed for the Comex post-option expiration in
which a large number of call options are turned into active December futures
contracts, and then hit hard with a manipulative price effort the next day. I
suggested that this might happen given the way in which the option market closed
on Tuesday. Such phenomena are like old friends now in these
markets.
Funny too how roughly the same thing happened in the Silver futures about the same time. Silver is also post option expiration today.
As you know I used to track the big price drops around key option expiration dates on the precious metal charts.
That is not the only possibility. It could also be some 'tape painting' as the big shorts knock the price down before they close the books on their losing positions for the month. But I am inclined to think it was a special post-expiration event.
And it *could have been* just an unfortunate accident that happened in two different and important global markets simultaneously. Maybe it just 'vaporized.'
Not to worry, I am sure Bart Chilton and the stalwarts at the CFTC, who are closely watching the gold and silver markets, have already identified the seller(s), and examined their selling motivations, and the size and placement of their 'fat finger.' I am sure they will let us know about it, four or five years from now.
On the Comex in New York, gold futures for February delivery tumbled 1.5 percent to settle at $1,718.80 an ounce at 1:38 p.m., the biggest drop for a most-active contract since Nov. 2. In the first 30 seconds of floor trading, 7,700 contracts traded, according to PVM Futures Inc.
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In the FIRST 30 SECONDS of floor trading, 7,700 contracts traded!!! That equates to a 770,000 ounce dump of Gold onto the market. But was it real Gold, or merely "paper Gold"? 770,000 ounces represents 1% of global annual Gold production.
Gold was trading at $1735.59 an ounce prior to the NY Open of the COMEX. 770,000 ounces x $1735.59 = $1,351,034,300 !!!!!!!
What moron would SELL $1.3 BILLION of Gold in 30 SECONDS, let alone sell it in the face of "Fiscal-Cliff Concerns"? Selling Gold in this environment seems hugely counter-intuitive, does it not?
Dealer inventory [the MTBs of the COMEX world] is 2.528 million ounces. 770,000 equals 30% of ALL the Gold available to meet delivery demand held by the COMEX depositories. How can 30% of all the available COMEX Gold be sold in 30 SECONDS not raise a single red flag at the CFTC?
The question that begs to be asked is...who bought 770,000 ounces of Gold in 30 SECONDS. There is a buyer for every seller don'tcha know? And what if the person[s] that bought that Gold decides to demand delivery of it next month? Mere speculation... If I had to guess, JP Morgan's left had bought the 770,000 ounces of Gold it's right hand sold...all in the name of 1. bailing out the bullion banks that were underwater at the end of a bullish month for the price of Gold, and 2. Suppressing the price of Gold when it should obviously be rising as the USA heads for financial doomsday.
28 November 2012
Comex Open Saw 24 Tonnes of Paper Gold Dumped at Market - Sharks, with Laser Beams
Funny too how roughly the same thing happened in the Silver futures about the same time. Silver is also post option expiration today.
As you know I used to track the big price drops around key option expiration dates on the precious metal charts.
That is not the only possibility. It could also be some 'tape painting' as the big shorts knock the price down before they close the books on their losing positions for the month. But I am inclined to think it was a special post-expiration event.
And it *could have been* just an unfortunate accident that happened in two different and important global markets simultaneously. Maybe it just 'vaporized.'
Not to worry, I am sure Bart Chilton and the stalwarts at the CFTC, who are closely watching the gold and silver markets, have already identified the seller(s), and examined their selling motivations, and the size and placement of their 'fat finger.' I am sure they will let us know about it, four or five years from now.
"Gold saw a massive 24 tonne sell order (7,800 contracts) at 08:20 a.m. New York time - bang on the opening of the world's largest gold exchange - which [saw] a fall of 2.25% in the market price.
If the selling was year-end profit-taking then it was inept. Dealers try and finesse big sell orders into the market to get the best (highest) price for the biggest volume they can and thereby optimize profit - that requires stealth. If on the other hand it was a "fat finger" episode as has been suggested with a broker said to be looking to roll his December gold futures contract then it was even more inept.
More likely this could be a short play, with the seller looking to trigger stops below the market at $1730 and thus extend the move significantly lower and thus increase his profits. If so, he certainly caught the market on the hop as the move is counter-intuitive with everything else that is going on in the economy.
Rising concerns about whether Democrats and Republicans can find common ground between tax increases and entitlement spend reduction remains to be seen. More importantly, the US reaches its law-enshrined debt ceiling of $16.4 trillion early to mid February 2012. That promises fireworks again as it did in August 2011 when gold hit an all time high of $1922 as the market stares into the abyss of a possible US debt default.
Against the current economic backdrop, a short seller would have to be quite brave. In short, we will not know the identity or the reason for the sale for a while. Longer term gold investors should not however be deterred - the rationale for buying gold is as favorable as ever and a degree of patience required.
Ross Norman, CEO, Sharps Pixley, London, Flash Crash in Gold - Whodunnit?
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If the bullion bank cartel was covering their grossly underwater shorts today, it would be a MAJOR signal that prices are going higher very soon! Only time will tell, but a clear signal that prices may be back on the rise as early as tonight's Asian market open is the simple fact that the HUI Gold Bugs Index closed up almost 1% today in spite of the beat down of the Precious Metals bullion prices over at the notoriously nefarious NY COMEX this morning.
A move and close back above $1723.25 in Gold should put this contrived sell off in the rear view mirror. That Gold's price closed above $1713.77, the 50% Fib retracement of the November rally, today should be considered a "buy the dip" opportunity. Take advantage of it, and reconsider ONLY if price closes below $1713.77 in New York.
The fact that Silver BOUNCED HARD at $32.90, the 38% Fib retracement of the November rally, should be considered HUGELY BULLISH. In fact I would not question the bullishness of Silver at this time unless price closes below $32.46 in New York. Congratulations if you bought today's dip. Reconsider ONLY if price should fall below $32.90.
Only a fool would believe that the US Government is going to fix, resolve, improve the nation's and/or the World's burgeoning economic morass. And only a bigger fool would unload his Precious Metals on the cusp of Global Financial Armageddon.
THERE IS STILL TIME TO ACCUMULATE PHYSICAL GOLD AND SILVER...BUT ONLY WHILE SUPPLIES LAST.
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