Silver manipulation - right out in the open for all to see

CARTEL AT RISK OF FLIPPING OVER THE PRECIOUS METALS POKER TABLE

OCTOBER 7, 2012 BY THE DOC 1 COMMENT

Submitted by SD Contributor FW:

Frequently, silver worrywarts claim the cartel can ultimately control the price of silver, and that no advance will come beyond levels the cartel deems appropriate.  This logic fails in the face of the 12 year old bull market.  More to the point, the argument fails to factor the importance the powers that be assign to keeping the rigged game going.  Sure, the cartel cheats.  It’s like they play poker with 15 extra decks of cards under the table, able to pull needed cards at will just as easily as manufacturing naked short sales.  But they sure as heck don’t want to flip the entire poker table over and end the game forever.  It’s critical that you understand this analogy.  On an incremental basis, as the cartel’s manufacture of naked shorting becomes increasingly brazen and ever more separated from the realities of the true physical market, they run the risk of flipping over the poker table.  They lose all power to control paper prices when the game is seen by all as over — when the poker table is flipped over.

On an intra-day basis we can see longer-term money sentiment was actually buying precious metals equities AFTER the Friday morning COMEX paper raid.  Look at the chart of the Dec. COMEX silver contract vis-a-vis the GDX and GDXJ below for an expression of that dynamic.

More and more people are coming to understand what the cartel is doing and these people are buying the dips.  You don’t see it on the COMEX as easily as expressed in the comparison above.  But the buying is here, and it’s not going away.

In early September when silver first challenged $35 there was quite a bit of discussion in the precious metals community about the cartel having the ability to crash the price back down to the $32 and change area — if not a full retest of $30.  I noted at the time it was unlikely given the qualitative shift that had happened with physical market demand.  Indeed, that case proved out — and will continue.  For all the monumental capping efforts the cartel has executed, they’ve only been able to get silver to just a bit below $34 on a spot basis for mere hours.  I don’t give a rat’s arse about their rising short position nor hyperventilating about the scary picture painted by the commitment of traders data.  There comes a time when those signals fail to operate and being able to know when and when not to let that data trump decision making is a qualitative art.  The past two months have proven to be a cartel failure and the smart money knows it.   Rising shorts in the face of higher silver prices is to be expected and exactly what we’ve seen historically.

Frequently, silver worrywarts claim the cartel can ultimately control the price of silver, and that no advance will come beyond levels the cartel deems appropriate.  This logic fails in the face of the 12 year old bull market.  More to the point, the argument fails to factor the importance the powers that be assign to keeping the rigged game going.  Sure, the cartel cheats.  It’s like they play poker with 15 extra decks of cards under the table, able to pull needed cards at will just as easily as manufacturing naked short sales.  But they sure as heck don’t want to flip the entire poker table over and end the game forever.  It’s critical that you understand this analogy.  On an incremental basis, as the cartel’s manufacture of naked shorting becomes increasingly brazen and ever more separated from the realities of the true physical market, they run the risk of flipping over the poker table.  They lose all power to control paper prices when the game is seen by all as over — when the poker table is flipped over.

The poker table analogy isn’t perfect.  But it might be helpful to some struggling to understand the link between the physical market and its ability to limit the power of the paper market.  Yes, we are ruled over by gods that play in the paper market.  But by definition, the paper market only has power because market participants give it legitimacy through participation.  If there’s anything that scares the cartel more than the rising price of silver it’s the scenario of the cartel overplaying its hand and thereby de-legitimizing the very paper markets that give them power to manage (not fully control) prices. 
 
Friends, you’re witness to history.  You’re watching the de-legitimizing process of the paper precious metals markets unfold before your very eyes and there isn’t a da** thing the cartel can do about it other than manage the slow burn because they want to avoid flipping over the poker table at all costs.

http://www.silverdoctors.com/kitco-erases-evidenence-of-cartel-silver-raid/

KITCO ERASES EVIDENCE OF CARTEL SILVER RAID

OCTOBER 5, 2012 BY THE DOC 28 COMMENTS

And…it’s gone!

As we have documented in depth throughout the day (here and here), the cartel instigated a waterfall decline in silver this morning co-inciding with the 8:30am EST NFP release, dropping silver to $34.15.
Kitco has just decided to erase the evidence, as they have just removed the entire manipulative takedown from their charts. 

‘There’s no manipulation in silver! See? Show me on the chart any manipulative price action!‘

Fortunately, SD captured the data this morning on more than one platform.

Full evidence of raid and subsequent chart fudging below:

This morning’s raid just after it occurred:

And on NetDania:

And poof: like that, all evidence of the NFP raid is simply digitally erased!

See? What silver manipulation?

Well played Blythe.

and.......

SILVER COT REPORT 10/5/12: COMMERCIALS INCREASE NET SHORTS ANOTHER 31 MILLION OUNCES!

OCTOBER 5, 2012 BY THE DOC LEAVE A COMMENT

Submitted by SD Contributor Marshall Swing:

Silver COT Report 10/5/12

Commercials added 1,337 longs on the week and a sizeable 7,518 shorts to end the week with 46.51% of all open interest, an increase of -1.25% in their share since last week, and now stand as a group at 289,200,000 ounces net short, which is an increase of another 30,905,000 net short ounces from the previous week. 

Large speculators piled on 2,458 longs and covered 1,650 short contracts increasing their net long position to 190,590,000 ounces, an increase in their net long position of over 20,000,000 ounces from the prior week.

Small speculators picked up 940 longs and covered 1,133 shorts for a net long position of 98,610,000 ounces an  increase of just over 10,000,000 ounces net long from the prior week.

While the commercials appear to have piled on the short positions this past reporting period, we see in the disaggregated commercials numbers that the accumulation of those short contracts was pretty evenly split between the producer merchant and the swap dealers.

and.......

http://www.silverdoctors.com/cartel-dumps-1-5-x-us-annual-silver-production-on-futures-market-in-5-minutes-on-nfp-release/

CARTEL DUMPS 1.5 X US ANNUAL SILVER PRODUCTION ON FUTURES MARKET IN 5 MINUTES ON NFP RELEASE

OCTOBER 5, 2012 BY THE DOC 33 COMMENTS

In an attempt to flash-smash silver and prevent a weekly close above the critical $35 level, the cartel dumped an estimated 51 MILLION OUNCES of paper silver on the futures market in only 5 minutes on this morning’s non-farm payrolls release between 8:30 and 8:35 AM EST.

Net Dania’s spot silver chart, which is not a precise futures volume measure but approximates the volume, indicatesnearly 10,500 contracts were dumped in a span of merely 5 minutes, and half of those were dumped in a span of 2 minutes between 8:30 and 8:32am EST.

Apparently the t 1/2 of silver market intervention of a year and a half’s worth of paper supply is now approximately 30 minutes as silver has retraced the entire smash, and is trading back at $35/oz!

Silver is a runaway train waiting to happen as the pent-up physical demand is simply breath-taking!

We continue to recommend our readers STACK THE SMACK on any significant cartel take-downs, as silver looks like it wants to head MUCH HIGHER in the near future as QE∞ is now a reality.

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