"a huge cash settlement instead of taking the metal."

[gunDriller]

just reading Harvey Organ's Saturday blog.

http://harveyorgan.blogspot.com/

"The owners of these long positions having plucked their money down on July 1.2010 surely would not give up this late in the game and also having surely witnessed the chaos at the silver comex. Something happened and if I am a betting man,

it looks like these guys got a huge cash settlement instead of taking the metal. There is no other explanation.

Silver is now in backwardation as players are getting more for the silver in the front month than in future months.

We are witnessing the leasing of silver metal by the customer to the dealer for a huge premium and now settlement for huge dollars instead of taking the metal.

The silver comex is in crisis."


then he's got some more pearls,

"Thus the usa is buying the entire debt itself and disguising its actions.

As for the excess debt created, it is my assumption that this extra debt created is used to buy the major usa stocks and it is this that is keeping the usa stock markets up."


"Or more accurately, the USFed hides its vast monetization efforts in the United Kingdom account ledger item"


plenty of Jewels in today's commentary, but mainly i was wondering - when the Comex tries to persuade customers to accept cash instead of physical, how big is the bribe ?

that might shed some light on the actual price of silver.

[Quixote2]

As I recollect a few months ago it was rumoured to be a 25% premium.

I would speculate that last Thusrsday, July 22, the jump in silver prices was the result of the bribed persons/organizations taking their winnings and buying next months contracts in an attempt to repeat the bribe payoff.

[gunDriller]

As I recollect a few months ago it was rumoured to be a 25% premium.

I would speculate that last Thusrsday, July 22, the jump in silver prices was the result of the bribed persons/organizations taking their winnings and buying next months contracts in an attempt to repeat the bribe payoff.


that's a damn good insight !

it makes me wonder if the lowest we will be seeing silver again is $17.30. that was a Friday close about 2 months ago.

i had been thinking $17 was still possible. the cartel has made some successful runs for $17.50 lately, but not the sustained effort we saw in early Feb. 2010 where consecutive days of 4% to 6% drops led to the approximate low, $14.90.

the silver market sounds fragile - but this is reading from Harvey Organ's blog.

in previous blogs he has talked about his CFTC testimony, his experience in 2008 with Scotia Mocatta not having his family's Precious Metals, the February 2010 cram-down, etc.

but i haven't heard him talk about the silver market using terms like "about to default". i know other people have been talking about it for years.


i suppose that if Comex has deep US government type pockets backing them, they can keep playing the current game indefinitely - giving people FRN's in lieu of physical.

does it sound plausible to you guys - if enough people demand physical, Comex will default ? or will they just keep moving the goal posts - dumb question - yes, they will keep moving the goal-posts.

but they are not operating in a vacuum. they have customers, and the customers seem to be putting up with it.

though i wonder ... if there is a PPT for the stock market, why not have one for Comex ?

why not create fake, "proxy customers", and have them buy contracts on the Comex, put up with all their bullsh*t, and keep the game going that way ?

[SLV^GLD]

why not create fake, "proxy customers", and have them buy contracts on the Comex, put up with all their bullsh*t, and keep the game going that way ?
I guess my answer to that question is another question; what exactly are they winning by playing this particular game? I must be missing the 800lb gorilla. This seems like an awful lot of work and for what, exactly?

[gunDriller]

why not create fake, "proxy customers", and have them buy contracts on the Comex, put up with all their bullsh*t, and keep the game going that way ?
I guess my answer to that question is another question; what exactly are they winning by playing this particular game? I must be missing the 800lb gorilla. This seems like an awful lot of work and for what, exactly?


the gold and silver markets are used to prop up the value of the US$ and possibly the British Pound. to make it look like the fiat currencies are actually worth something.

the price action on the Canadian market is interesting from this point of view. most of the time, when gold falls, that is correlated to an increase in the value of the US$ relative to the Canadian dollar.

so on the Canadian markets, whereas we might see a fall in the price of gold, they see our price multiplied by the exchange rate. that doesn't really explain it but i think it's related to the PM market manipulation.

i think watching the gold price in addition to the exchange rates over a period of time has helped me understand it, i.e. how the pounding down of the price of silver has a net effect of maintaining or increasing the apparent value of the US$.


because Bernanke has now paid lip service to the things he's going to do to help the economy, which occurred at last week's meeting, i think in the next 3 months they will announce publicly what they announced March 18, 2009 and have since not announced - "Quantitative Easing".

i think some of the market manipulation we are witnessing is in preparation for that event. sort of, pump the US$ up before making an announcement that is destined to make it fall.

last year, the dollar fell about 8% in the 24 hours after the announcement. gold rose by about 8%.