Gold, Silver Hammered To 2.5-Year Lows; Major, New Chart Damage Suggests More Downside To Come

Gold & silver are now trading at:

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Hong Kong Hedge Fund Manager William Kaye On The Massive Gold And Silver Plunge: ‘It’s The End Game Of A Fantastic Manipulation Of The Markets’

A.M. Kitco Metals Roundup: Gold, Silver Hammered to 2.5-Year Lows; Major, New Chart Damage Suggests More Downside To Come (Forbes, June 20, 2013):

(Kitco News) – Gold and silver futures prices are sharply lower and have careened to better-than-2.5-year lows in early U.S. trading Thursday. The market place sees traders and investors in a keen “risk-off” mentality following Wednesday’s U.S. Federal Reserve events. Fresh, serious technical damage has been inflicted in the gold and silver markets to suggest they will see still more downside price pressure to come. Comex August gold last traded down $70.10 at $1,303.90 an ounce. The August contract traded down to a low of $1,285.00 in overnight trading. Spot gold was last quoted down $46.40 at $1,305.25. July Comex silver last traded down $1.458 at $20.165 an ounce. July silver hit a low of $19.64 in overnight trading.

Asian and European stock markets slumped overnight. U.S. stock indexes are also solidly lower Thursday morning. Most raw commodity markets are getting hit hard Thursday.
Importantly, world bond markets are also seeing serious selling pressure Thursday. The U.S. dollar index has rallied sharply after early Wednesday hitting a four-month low.

Read moreGold, Silver Hammered To 2.5-Year Lows; Major, New Chart Damage Suggests More Downside To Come

SEC issues new rules against abusive naked short-selling

WASHINGTON (MarketWatch) — U.S. securities regulators issued new rules Wednesday designed to protect investors against so-called “naked” short-selling, including requiring short sellers to deliver securities by the close of business on the settlement date and making clear that those lying about their ability or intention to deliver on time are breaking the law.

“These several actions today make it crystal clear that the SEC has zero tolerance for abusive naked short selling,” said Securities and Exchange Commission Chairman Christopher Cox.

Read moreSEC issues new rules against abusive naked short-selling

Gold demand soars. Price falls. What’s going wrong?

Physical demand for gold is surging but the price keeps taking serious knocks. What’s happening.

LONDON – Gold market manipulation conspiracy theorists should be having a field day.  The past few weeks have seen solid evidence that physical gold demand from individuals is soaring. We have seen the U.S. Mint having to suspend one ounce Gold Eagle coin sales because of what it terms ‘unprecedented demand’, Indian gold sales have picked up enormously in the past few weeks leading to purchasers having to wait several days for deliveries as the traditional sellers are short of gold, while yesterday we hear that Abu Dhabi, a major trading centre for precious metals, has seen gold sales rise by 300 percent in volume and 250 percent in value in August compared with a year ago.

According to a Reuters report quoting Abu Dhabi Gold and Jewellery Group Chairman Tushar Patni “It was the best month the market has seen in almost 30 years and it compensated for any drops we have seen earlier this year.  We had never expected that if gold fell below $800 an ounce we would see a 300 percent increase in volume and 250 percent in value, especially as many buyers are abroad on holiday.”

Read moreGold demand soars. Price falls. What’s going wrong?

COMEX silver and gold pricing is manipulated

For years, the data contained in the weekly Commitment of Traders Report (COT), issued by the CFTC, have indicated that several large COMEX traders have manipulated the price of silver and gold. For an equal number of years, the CFTC has reluctantly responded to public pressure over this issue with blanket denials of any wrongdoing. Many analysts have agreed with the CFTC’s position, conjuring up various ways to explain why a massive short position held by a handful of traders is not manipulative.

The recent widespread shortage of silver for retail purchase coupled with a price collapse appears to have shaken these analysts’ confidence that the COMEX silver market is operating ‘fair and square.’ Well it should, since there is no rational explanation for a significant price decline going hand in hand with product shortages other than collusive manipulation.

For any remaining doubters that COMEX silver and gold pricing is manipulated, the following CFTC data should be considered. This data is taken from a monthly report issued by the CFTC, called the Bank Participation Report. Here’s the link for the report: The relevant data is found in the July and August futures sections. I will condense it.

Read moreCOMEX silver and gold pricing is manipulated

House rejects bill on limiting speculative trading

WASHINGTON (MarketWatch) — A bill that would put new limits on speculative trading in energy commodities failed to get the required two-third majority of votes to pass the House on Wednesday.

The vote was 276 to 151. The Commodity Markets Transparency and Accountability Act would boost staffing at the Commodity Futures Trading Commission and require the agency to limit the positions of speculators in energy and agricultural commodities.

Most Republicans objected to the bill, preferring to pass legislation to open the outer continental shelf and other off-limits areas to energy exploration.

Read moreHouse rejects bill on limiting speculative trading

Silver Shortage gets Worse, Price Drops Again!

Silver 6 Months

(If you don’t hold it, you don’t own it)

Three more major silver dealers are reported to be out of silver today: The U.S. Mint, Kitco, and Monex. This, on top of the major dealers yesterday, Amark, Perth Mint, CNI Numismatics, and APMEX, all reported sold out. Further, nearly all of Canada is reported to be out of silver, from Vancouver to Toronto.

This is unprecedented, and is a perfect case of market manipulation in the paper market at COMEX and other futures exchanges to see silver prices continue to drop down to below $17/oz. today. Paper promises can be created endlessly, but real silver cannot.

This is NOT a case of the dealers getting spooked, and selling out to the refiners just in time, at peak prices. This is a case of the public buying up the stock at coin shops across the world ever since gold hit $1000/oz.. That event finally sparked a little of the public’s buying of silver and gold. Thus, the typical coin shop flow of silver to the refiners just stopped in the last few weeks, and especially the last two days.

This is NOT a case of the public creating a top with ‘everyone’ in silver, because nobody’s in silver yet. In 2006, only $1 billion was spent on investment silver, which is 0.007% of the $13.5 trillion of money in the banks. As I have long reported, the silver market is so small, there is no room for new investor demand, not even 0.1% of money could be spent on silver, because that would be $13 billion, which would push silver prices to $200/oz., and we are seeing only the tiniest beginnings of that.

Read moreSilver Shortage gets Worse, Price Drops Again!