Wednesday, November 28, 2012

Gold Price Hammered As USA Heads Towards Financial Doomsday

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 …
ANY COMEX margin change, higher or lower, always manages to favor the shorts.

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!

CME Declares Force Majeure Due To “Operational Limitations” On NYC Gold Depository

Published in Market Update Precious Metals on 27 November 2012 

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.


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!

Jim’s Mail Box

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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