Market Rigging Whistleblower Ted Butler Interviewed by Sprott Money News
From Ed Steer's Gold & Silver Daily
September 21, 2013 - 7:58am
"It's a certainty that the miners won't say a word in protest."
¤ Yesterday In Gold & Silver
As I mentioned in The Wrap in Friday's column, the price action and volume in Far East trading on their Friday was dead right up until the London open. That's when things changed and, in hindsight, for the worst.
The high-frequency traders spun prices lower on several occasions during the Europe and U.S. trading day, and bought up all the longs that the tech funds and small traders were prepared to puke up as sell stops were hit. It was the same old, same old, and I'll have more on this later.
Anyway, by the time gold was done for the day, it closed at $1,325.60 spot, down $39.50 from Thursday's close. Not surprisingly, net volume was immense at around 196,000 contracts.
But silver really got smashed, as the price got hammered for about 3\% by the HFT boys in the space of about thirty minutes during mid-morning trading in New York. The smallish rally from there ran into more high-frequency traders shortly after, and they kept up the price pressure until well after the 1:30 p.m. EDT Comex close.
Silver finished the Friday session at $21.80 spot, which was down $1.285 on the day. Although silver didn't close precisely on its low tick, it came close. Net volume was a monstrous 62,500 contracts.
It was more or less the same story in platinum and palladium as well, as their respective charts are almost identical to gold's.
For the day, the high-frequency traders closed gold down 2.89\%, silver down 5.57\%, platinum down 2.06\%, and palladium 1.91\%. Not even rhodium was spared, as it was bid down 2.50\%.
Of course the dollar index did zip. It closed late Thursday afternoon in New York at 80.34, and then traded almost ruler flat until half-past lunchtime in London. At that point it chopped a few basis points higher and closed on Friday afternoon at 80.44, up a whole ten basis points on the day.
The gold stocks got crushed, and barely finished off their lows. The HUI closed down 6.28\%, andand has now given back all of its gains from Wednesday.
The silver equities only did marginally better, as Nick Laird's Intraday Silver Sentiment Index closed down 5.04\%. The ISSI has given back a large chunk of its Wednesday gains as well.
The CME's Daily Delivery Report showed that 1 gold and ten silver contracts were posted for delivery on Tuesday within the Comex-approved depositories. The link to yesterday's Issuers and Stoppers Report is here.
Hard on the heels of the Thursday deposit into GLD, was an even larger withdrawal by an authorized participant on Friday, as 57,932 troy ounces were removed. And as of 10:32 p.m. EDT yesterday evening, there were no reported changes in SLV.
For the third day in a row, there was no sales report from the U.S. Mint. Month-to-date the mint has sold 9,000 ounces of gold eagles; 5,500 one-ounce 24K gold buffaloes and 1,850,000 silver eagles. Based on these figures, the silver/gold sales ratio works out to 127 to 1.
Once again there was almost no activity at the Comex-approved depositories in either gold or silver on Thursday. In gold, they reported receiving 6,799 troy ounces, and didn't ship any out. In silver, they didn't report receiving any either, but they did ship 41,506 troy ounces of the stuff out the door to parts unknown.
As expected, the Commitment of Traders Report showed improvements in the Commercial net short positions of both silver and gold, although I must admit that I was expecting a bigger improvement in silver than what was shown. However, it is what it is.
In silver, the Commercial net short position declined by only 6.2 million ounces, and is now down to 111.3 million ounces. Ted Butler says that JPMorgan's short-side corner is a hair under 15\% of the entire Comex futures market in silver on a net basis; which means that all the market-neutral spread trades have been subtracted from the total open interest; and in troy ounces, JPMorgan is short about 105 million ounces of the stuff. On its own, this amount represents almost 100\% of the entire Commercial net short position in that metal. That's outrageous!
In gold, the improvement in the Commercial net short position, was 1.49 million ounces, which is a pretty big number, and substantially larger thContinue reading this article »