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COMEX And LBMA: Why No ‘Upside Cartel'?
Several people have asked me, “why doesn’t a cartel form to take on the suppression schemes on the COMEX and LBMA?”. This is a very good question. One I believe can be answered with some common sense, a little bit of thought and a very broad view.
For a little foundation work let’s look at COMEX silver inventories. They claim to have 63 million ounces available for delivery, adding in the eligible category we see a total of 175 million ounces. At current prices, it would only require $1 billion to claim the entire registered category and only $2.8 billion to wipe out all inventory. I am using silver here because the numbers illustrate how small this market really is and how easily the inventory could be cleaned out. Were we to look at their gold inventory, only $10 billion would do the trick!
Now on to our question, why hasn’t anyone taken on the suppression scheme? Why doesn’t someone just step up with $10 billion and end it all? First, once upon a time someone did. The Hunt brothers tried in the late 1970's and came close to actually cornering silver ..but as you recall, the “rules” were changed by COMEX and only selling was allowed. Truth be known, they did “corner” silver, which is why the rules were changed, the “money interests” were about to go belly up but the Hunts slightly miscalculated. The Hunts had borrowed monies and used margin accounts, when COMEX changed the rules they could no longer fund their positions, they were forced into liquidation. Please understand this, were someone to try to corner the silver or gold markets, they would in effect be challenging the biggest financial powers the world has ever seen. Trying to corner the COMEX individually or collectively would be met with some very nasty responses that would know no limits. Some say, and I believe it’s plausible if not even probable that JFK was shot because he wanted to bring silver notes back into the system. He wanted to limit or even abolish the Federal Reserve. He challenged the “money interests”. It is for similar reasons I believe an individual or individuals would be easily thwarted by threats or worse. In my opinion, an “operation” like this could only be undertaken by a country …or countries, plural.
Why wouldn’t a “country” make a try at something like this? You might ask Saddam Hussein or Mohamar Qadaffi what they received for wanting to sell their oil for something other than dollars? Your next question might be, why wouldn’t Russia try to blow the game apart and expose the fractional reserve nature of the gold market? They are already being sanctioned, so what sort of additional blowback would there be? Or why wouldn’t China do this as they surely have the ability to?
Thinking this through, why would they? Just to blow the credibility of the Western Ponzi scheme? Actually the real question is why wouldn’t they? It is my opinion they “have” been doing this, or better said, actively “preparing” to do this since at least 2008. China or even Russia could have blown up the COMEX and LBMA at any given point in time over the last many years but have not done so because they did not yet “have the prize”. The “prize” being the contents of Ft. Knox, West Point, NY Fed and BOE vaults! They have been methodically draining these Western vaults for years and accumulating our gold…”in preparation”.
Let me explain it this way, the largest client I ever did business with taught me a lesson very early in my career. He bought 20,000 shares of a stock that immediately went up 15-20%. I called him gleefully to let him know the good news, he cussed and told me to blow it all out at market. When I called to give him his fill price I asked why he was upset, he just made $50,000 in less than a week? His plan was to buy up to 500,000 shares, when he buys something he wants it to go DOWN in order to buy more and build the position without affecting the price upwards. His words were, “20,000 shares is a ham sandwich odd lot position, I’m not in this for nickels and dimes”.
Relating this to China, they have now amassed at least 10,000 tons of gold in my opinion and most likely much much more. More importantly, they have drained a good portion of this gold FROM the West. Blowing up the Western financial system at a time they had not yet “built their position” would have been foolish, doing it after building their position while draining Western reserves kill all birds with one stone!
I wrote last year an article titled “Kill Switch” where I hypothesized the very large open interest in silver was actually the Chinese (et al) holding their thumbs on a kill switch. One where they could make a “call” on more COMEX silver than is even available. The open interest has again expanded and now near record levels well over 188,000 contracts representing over well 900 million ounces versus 63 million ounces available to deliver. I still believe there is validity to this hypothesis, we will see.
I believe China is now in a position to act and it is likely they will ask for an audit of our gold reserves as they announce theirs when requesting entrance into the IMF’s “SDR”. The fraud will be exposed, China (et al) will own a significant portion of Western the reserves (significantly marked up in price) and it will all have been done within the rule of law …and as I said yesterday, “politely”.
To answer the original question, I believe there has been a cartel on the buy side all along that just bided their time and “carried” their opponent into the deep waters of the championship rounds! If this theory turns out to be correct and I fully believe it is, we will look back at the charts and understand China smiling politely and saying “thank you” after each cartel attack! This will be no laughing matter.
Me to, when your holding a nice piece in your hand it just feels like you have something there and for me when it's gold it's almost like it doesn't belong to me Lol....
Cheers Buds \_/
I can always agree with the first three words of that statement!
Cheers Buds \_/
Nice little popper!
Cheers Buds \_/
Unlike the issue I'm having with silver, they can just grab the bag and go! Lol...
Cheers Buds \_/
No kidding nice little gap up!
Cheers Buds \_/
I do the voice to text on the IPhone and it puts stuff together like that! LOl...
Cheers \_/
are you trying to plug something up there? ROFL
Cheers Buds \_/
Love the KILO! Nice chunky size piece....
Cheers Buds \_/
Then you have answered your own question IMO it's always a good time to buy!
Now as a side not, this is a great level to double up IMO it could go down, maybe way down, but odds are it will go way up from here in time.
Cheers Buds \_/ and thanks for the reply!
I'm the same way but I buy when I have the $$$ doesn't matter if it's $40 or $4 an OZ to me. I like the stuff so I stack it
Now if your trying to turn a fast $ then trade USLV vs DSLV
Cheers Buds \_/
It's to late to get scared now!
I know your a busy guy Bob but if you can find the time I would love to see a chart read like that for physical silver!
Cheers Buds \_/
Good god Bob! That's a nice post, lots of info.
Cheers buds \_/
The main issue with banning 5.56 is that it is also 223 and IMO banning this pair of rounds would make it the only thing flow out of US bases faster than cocaine!
Be kind of hard to ban that?
Cheers Buds \_/
Nice post Bob! Thanks.
Cheers Buds \_/
On the move again today!
Cheers Buds \_/
I knew someone was going to like that Lol...
Cheers Buds \_/
so if it's down .04 against the Euro today and silver went up .04 then would it be reasonable to day that if the dollar goes back to 1.50 against the Euro then silver would be up .46 x .10 = 15.99+46.00
Don't you wish my thinking and math skills we always spot on Lol...
Cheers Buds \_/
Board has been dead! thinking it might pick up a little now buds Lol...
Silver could get real interesting now, not the first time I was thinking that but lets see.
Cheers Buds \_/
WTI oil hits fresh 6-year low after bearish U.S. supply data
Investing.com - West Texas Intermediate oil futures fell to the lowest level since March 2009 on Wednesday, after data showed that oil supplies in the U.S. rose to the highest level on record, exacerbating fears over a glut in supplies.
On the New York Mercantile Exchange, crude oil for delivery in April slumped $1.08, or 2.49%, to trade at $42.38 a barrel during U.S. morning hours. Prices were at around $42.70 a barrel prior to the release of the inventory data.
Meanwhile, the May Nymex contract was down 84 cents, or 1.85%, at $44.35 a barrel, compared to $44.52 ahead of the report.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories rose by 9.6 million barrels in the week ended March 13, compared to expectations for an increase of 3.8 million barrels.
The report also showed that total motor gasoline inventories decreased by 4.5 million barrels, compared to expectations for a drop of 0.9 million, while distillate stockpiles increased by 0.4 million barrels.
Total U.S. crude oil inventories stood at 458.5 million barrels as of last week, the most in at least 80 years, indicating that cheap prices have yet to affect output.
According to industry research group Baker Hughes (NYSE:BHI), the number of rigs drilling for oil in the U.S. fell by 56 last week to 866, the 14th straight week of declines.
The number of working U.S. oil rigs is 46% lower than an all-time high of 1,609 hit in October.
Market players have been paying close attention to the shrinking rig count in recent months for signs it will eventually reduce the glut of crude flowing into the market.
Concerns over diminishing spare capacity to store excess oil in the U.S. and China also weighed, according to market participants.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for May delivery declined 35 cents, or 0.64%, to trade at $53.17 a barrel.
London-traded Brent prices touched $52.57 on Tuesday, the lowest level since February 2, before closing at $53.51, down 43 cents, or 0.8%.
Meanwhile, the spread between the Brent and the WTI crude contracts stood at $10.79 a barrel, compared to $8.32 by close of trade on Tuesday.
Oil prices have fallen sharply in recent months as OPEC resisted calls to cut output, while the U.S. pumped at the fastest pace in more than three decades, creating a glut in global supplies.
Elsewhere, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.1% to 99.92, moving away from recent 12-year peak of 100.77.
Market participants were looking ahead to Wednesday’s Federal Reserve statement to see if it would drop its reference to being patient before raising rates.
Traders would interpret such a move as a sign that the central bank could raise rates as early as its June monetary policy meeting.
And you have a 50 50 chance we will make a deal with Iran, if that happens, they are so cash strapped right now, we could see gas at $1.49 Lol...
I think we will see the deal in the price of WTI before any announcement.
Cheers Buds \_/
Getting some sleep now, 3 year old will not nap so he got kicked out of preschool so we are hiring a nanny.
Still super busy but am getting a small amount of free time now, thank god! Lol...
Cheers Buds \_/
I only got like 40 Lol...
I'm watching
Cheers Buds \_/
I'm pretty out there! Lol...
I am so super busy Dan I dont have time to think, 2 boys is way to much, I dont know how my mom did 6 kids alone?
Everyone is good Buds thank you for asking.
Cheers Buds \_/
Good god Dan!
I don't know why but I love that post! thank you...
Been looking into doing some bee keeping with the boy, you have a link to the products?
Cheers Buds \_/
A 22 at 15 yards will mess someone up! Lol... it's got the subsonic sting to it
Cheers Buds \_/
What was the distance on that shot? I did see the pic!
Cheers Buds \_/
Oil down over 7% at the open today!
Cheers \_/
Small price bump today at open.
Cheers \_/
And that why they are afraid IMO
I think they are just afraid of the general public?
Cheers Buds \_/
Yes they have been on a spree of killing people there for no good reason IMO
The world is becoming a scary place abroad and in the home land.
Cheers Buds \_/
Can we go to the dealership now?
The games not over yet.
Did you move that pawn?
I moved a pawn!
Yah that one, can we go now?
The games not over yet!
YES IT IS!
Tell me whats that from? Lol...
Cheers \_/ and Happy Friday to all!
Looks like Silver got whacked! sketchy day for traders today IMO
Cheers Buds \_/
Could you imagine a margin call on a 300 trillion dollar leveraged trade?
That very well be what next week feels like for some of the big guys in this game IMO
Cheers Buds \_/
So I'm kind of expecting it to open up and get smacked down or open down and rocket up Lol...
Or it could crash down or just rocket up.
I think I have it covered there
Cheers Buds \_/
I think this is the pre run for news coming Monday
Everyone jockeying for cheek space! Lol
Cheers Buds \_/