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One Of The World's Largest Silver Miners Slams The CFTC About Silver Market Manipulation
It has long been known to silver market watchers that when it comes to the price of paper silver, there has long been a chronic and extremely concentrated shorting presence at the Comex, one which the CFTC has persistently refused to address even though it consistently surpasses the proposed limits on derivative positions. Now, at long last, a Canadian silver miner, First Majestic Silver Corp., has decided to take the CFTC to task.
In a letter penned by Ted Butler to CFTC Chairman Tim Massad (who recently replaced former Goldmanite and future US Treasury Secretary, Gary Gensler), Keith Neumeyer, CEO of First Majestic, became the first primary silver producer to vocally highlight some of the questionable activity reported weekly in the CFTC's Commitment of Traders report, specifically the "record position change of more than 28,200 net contracts of COMEX silver futures" the equivalent of 141 million ounces of silver and 61 days of world mine production. Incidentally, this was first observed here one week ago.
Neumeyer observes accurately that the "big changes in positions on the COMEX are by speculators and commercials acting as speculators and not by those engaged in bona fide hedging" and comments that "such massive speculation in COMEX silver futures may not be in keeping with the spirit and intent of commodity law and may suggest something is wrong with the price discovery process, since real producers and consumers of silver don't appear to be represented."
Neumeyer concludes that such moves in the futures market "appear from the outside to be manipulated practices by a concentration of players."
Don't hold your breath for a response, however. Recall that less than two years ago, under the aegis of Bart Chilton who is currently a handsomely paid lobbyist at DLA Piper on behalf of the HFT lobby after spending years bashing them while at the CFTC, the commodity regulator closed its "investigation" concerning manipulation in the silver market, without finding anything:
CFTC Closes Investigation Concerning the Silver Markets
Washington, DC – The Commodity Futures Trading Commission (CFTC or Commission) Division of Enforcement has closed the investigation that was publicly confirmed in September 2008 concerning silver markets. The Division of Enforcement is not recommending charges to the Commission in that investigation. For law enforcement and confidentiality reasons, the CFTC only rarely comments publicly on whether it has opened or closed any particular investigation. Nonetheless, given that this particular investigation was confirmed in September 2008, the CFTC deemed it appropriate to inform the public that the investigation is no longer ongoing. Based upon the law and evidence as they exist at this time, there is not a viable basis to bring an enforcement action with respect to any firm or its employees related to our investigation of silver markets.
Curiously, this investigation took place during a time when the CFTC, as it publicly admitted recently never even looked at spoofing activity in the precious metals markets, which also explains why two days ago, another Indian scapegoat (the third in a row after Navinder Sarao and Nasim Salim), one Himanshu Kalra was busted for spoofing gold and silver in the period between March 1, 2012 and October 31, 2012 - a span of time which was covered by the CFTC's grand silver manipulation which concluded in September 2013, and yet which the CFTC completely failed to notice.
And yes, in a non-banana republic, a regulator so humiliated would be forced to at least reopen its "investigation" and admit that it was wrong and has missed glaring examples of market rigging, but in the US that won't happen.
Which is also why while we salute First Majestic with this first public appeal by a corporation to the CFTC to stop the rigging in the silver market, we have absolute certainty that this too complaint will promptly end up in Mr. Massad trash never to be heard from again.
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does anyone have a clue...just the slighest clue, how much silver is sitting in the vaults of the Mexican central bank?
(that they do not have to report)
Yeah, like the CFTC is going to go to the FED and tell them to stop giving JPM free money for a perpetual term and take off their shorts.
Guess who OSHA, the EPA and the IRS will be visiting!
They're a Canadian company with mines in Mexico. Although all my bars (before the boating accident) said Northwest Territorial Mint.
Problem here is that silver and gold are money, always have been, always will be. What FM is doing is actually penning a letter voicing concerns over the USD being propped up, not silver manipulation.
Which is why this will go nowhere unless, and until, the USD is replaced or devalued.
REAL Money in competition with FED notes means real money is going to be controlled, as FED notes are a political (and MIC) whim.
Gee I wonder which will win - the longest reigning champ of money GOLD or the new school fiat dollar. The dollar has 50 years under its belt and gold has a lifetime.
:)
Whoever sets the price of the PM of course. Right now an ounce of gold is a used central air unit and silver is two pounds of medium ground beef because that's what it can buy.
Where can I get that coin? I want 100 of them
Read the CFTC statement carefully. It does NOT say there was no wrongdoing, just that there was no LEGAL basis for action. In other words, if JPM was acting as an Agent for The Fed/ESF/PPT that would NOT be an illegal act because these bodies are above the law and are specifically authorised to intervene in any market for the purposes of "stability". Even if that means bakrupting the Miners.......
Haha,
My new 14 SEER A/C and 96% gas furnace (gotta convert to R410A non-chlorinated refrigerant) ran $6,800 with new gas service.
To replace the failed heat pump and stay on the old R-22 refrigerant and old furnace would have ran $2,500, but R-22 will no longer be produced after 2020. Thanks Montreal Protocal
I aint selling Au or Ag to pay for it though.
"Healthiness"
LMAO. Maybe just use health? Jesus, where do these CEO/Presidents come from....
When the bottom falls out, that's the price of the PM until someone states otherwise. Even then, the coinage is mostly stamped with a value well under the market rate. Again, you would have to find a retailer after the effect to do the exchange that would honour YOUR faith in the value of Au or Ag. Only one tribe cares enough about shiny metal. I doubt that particular tribe will be around to any great effect once it happens. And it will happen just like every other time in history. Probably the exact same way like the other 9000 cases on record.
Retail exchanges as history show for anyone NOT nobility or a conqueror all revolve around barter, never cash. In the case of a failed democratic republic, doubly so. The collapse of Rome had little to exchange once it's IOU's amounted to nothing gained. It lost England to it's mercenary contractors. The celts, gauls, germanic, slav and goths repossessed their lands nearly the instant that money that wasn't worth anything in terms of use...even though it was gold and silver. Most of the European tribes nearly instantly reverted back to exchange based community cartels once the economic system once used was no longer useful.
Just the way things go and a common re-occuring theme of "modern" western civilization.
Salah,
Theres a big pile of agreements that say theres silver...is that physical silver? Thats the point...who knows?
Is somone selling somthing that they dont own? I cant do that.
RIPS
When I buy PM's, I always use my bank debit card. EVERY TIME I make a PM purchase, my bank calls me the next day to "confirm" that I really made this purchase.
EVERY FCKING TIME
I usually buy from the same (reputable) company, but not always, but that seems to be irrelavent - it's the fact that I am buying PM's that gets the banks knickers in a knot. They have NEVER contacted me to confirm a purchase or payment regarding anything else - only PM's.
dude that is not realy wise, try buy some pm anonymously with cash.
You can bet that your transactions are being recorded somewhere for possible money laundering. After thinking it through, I don't mind bank confirmation as much as I would mind a hacker running up charges on my account. When I buy PMs online I usually place the order and send a check or money order to the PM dealer. At least it is somewhat harder to track.
Laundering money from my bank account??? If I was laundering money, I would be purchasing with cash. And checks and money orders are all recorded by the bank, so debit purchases are recorded a little more quickly, but that's about it. I won't argue the idea of a hacker using my debit info, but that is insured by the bank, so hack away.
Debit is fast, easy, and I LOVE the idea of exchanging electrons for PM's - I laugh every time.
Probably should be reported on some more, Mexico's silver.
They keep their mouth shut about the historical precious metals manipulation.
???
The playing with paper has destroyed the physical markets in anything...its a game now....and the biggest player wins..
Correct, faith always runs out when what's delivered isn't what was asked for. It's looking like unilateral failure on everyone's behalf regardless of 'size'.
You have to be a member of the elite insiders to win in the metals market, too bad the regular people are only there to give away their money.....
I am doing ok swing trading NUGT, JNUG & their inverses, buying some phy with the winnings.
Bullshit. As long as physical is available for purchase, AND YOU TAKE DELIVERY, you will win the game.
Warren Buffet did a number on it in the 90's
If a market is not controlled by a corrupt, criminal cabal, then that market is not in the land of the free. US controls global financial markets with corruption, fake data, infinite spying backed up by an iron fist of the military while pretending to espouse free and fair markets. All rating agencies are instruments of US foreign policy as are all US bansk, brokerages and corporations
Show me a free market or an honest regulator or an honest bankster or, heaven forbid, an independent economist in the land of the free.
American Financial Markets Have No Relationship To RealityAs we have demonstrated in previous articles, the bullion banks (primarily JP Morgan, HSBC, ScotiaMocatta, Barclays, UBS, and Deutsche Bank), most likely acting as agents for the Federal Reserve, have been systematically forcing down the price of gold since September 2011. Suppression of the gold price protects the US dollar against the extraordinary explosion in the growth of dollars and dollar-denominated debt.
http://www.globalresearch.ca/american-financial-markets-have-no-relation...
Russia and China starting their own rating agency to fight US domination:
Russia and China: Watch Out Moody’s, Fitch and S&P, Here We Come!June 1, 2015
The rating agencies are a major pillar of dollar dominance post 1971 and important instrument of US foreign policy - Russian-Chinese move to found its own represent a major new development and challenge to established global financial order
http://russia-insider.com/en/russia-and-china-watch-out-moodys-here-we-c...
Now watch First Majestic experience a bomb threat, a mine incident, some other kind of intimidation. You tow the mafia line or else. It's the new American way: control, manipulate, defraud, deceit...
What took these guys so long?
And where are their teeth? Letters and press releases aren't good enough...
Too bad they are not in a position to close the mine for a bit. Let the supply dry up.
They could always open their own exchange. Set the buy price at what mineing costs are and get their silver that way. They could also use that silver to pay the shareholders with. Or hire a private army of unemployed who will take silver as payment. Once you have an army then other options open.
That would be expensive, if you were to cast Silver Bars and Ship (courier) with insurance Dividends in Physical Form.
Then neighbours, mailmen/women and others could find out......Locked Cabinets
Beware......."Security Breach" then amounts could add up.....Bigger Safes
Ah.......Gold.
No appreciation for the job Keith Neumeyer has done making Silver available to those who want it?...there's your teeth, use them as you wish.
A letter. That should change everything. Finally.
LMAO. Thread winner.
I can think of 2 letters i'd like to send the manipulators, FU
unfortunatley it does not go far enough, say for instance....
a strongly worded letter.
now that would open some eyes
Silver Producers should FIGHT BACK by threatening to hold back the supply of physical from the market. At the very least counter the shorts with press releases from a Silver Producer Consortium that they may or may not be doing so to influence the traders and counter manipulation. Silver spot is priced by parasites it should be priced by producers.
The governments support the present price discovery system and need this manipulation to continue. The "regulators" are an arm of those governments.
WHY, praytell, would the author of this article refer to a shill organization like the CFTC as a 'regulator'? I thought you guys were informed?!?! They are ENABLERS OF FRAUD and PATSYS.
Canada, Mexico, Russia, and other producers must refinance mines in these nations and then refuse any of their metal to be sold on Comex or US run markets.
Excuse me but "What" ?
Are you quoting something?
could not find this round at teir web site:
https://www.store.firstmajestic.com/
where can we buy this?
First Majestic's had this positionon on price-rigging for years.
Which is why I buy perdiodically from them, not that their prices are great, but they're one of the only silver miners that haven't sold their soul to the devil bankers.
Before the boat capsized, I had also bought some silver from FM. If you catch it at the right time, you can buy it at a fair price. Now that I see these guys at least taking even a token stand, I may buy some more from them this summer. It is only a letter, but it is more than a lot of miners are doing. I hope they don't have any "accidents" in the near future.
AMEN
Dear Keith,
STFU.
- CFTC
He is very late to the party.
The late Adrian Douglas had the paper fraud nailed in 2011, and the GATA boys knew it was happening way back in 1998 via JPM and Barrick Gold.
https://www.youtube.com/watch?v=GmpVurAewpo
+1 for mentioning barrick
Go ahead and short silver. One day you will get your just reward. Limit UP! Oh nooooooo!
It's about time the minertards start saying something before they're all working at McDonalds.
The silver mining industry lost several billion dollars last year, because the malevolent bankster cabal feels threatened by actual money.
No one's manipulating silver that's rayciss
It is the WHITE metal....hmmmm.
If you look at end of December 2014 in AG, you will see 'smart money' possibly that bought a huge amount of shares compared to the last 5 years.
http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=AG&instt...
Now if these silver producers had the stones, they would beat them at their own game. Borrow the money at ZIRP and buy all of the COMEX INVENTORY below the price of production. Problem solved.
You know? I'm going to make say something which may make me unpopular but here we go....
Every single one of us stackers (both gold and silver) should be on our knees and thanking these banksters for their manipulation. It's because of them we've managed to amass piles of shiny at bargain prices. We're all complicit. I know the industry hurts due to it, but without it, my stack wouldn't look as big and I'm betting yours wouldn't either. Hell, I've seen comments on here about the manipulation saying how they can still load up at bargain prices. As long as these banksters carry on their scheme, it still means we can pick up silver (the second most usable commodity in the world) at around £11 per troy ounce and gold at around £800 per ounce. We ALL know they should be trading higher, but I bet you won't want to pay those higher prices?
I'm not casting judgment on anyone as I enjoyed these bargain prices as much as the next stacker. But always remember, when you point a finger at someone, there's always three fingers pointing back at you...
Not only that, but as long as the 'low prices' continue, so will the semblance of 'normal', and we can go on watching ball games, drinking beer, and grilling burgers. Once the music stops, it's gonna be a long time for anything 'normal' to re-appear, with much heartache making the bridge.
As much as I want to disagree with you, I know, deep down, you're right. Which is what makes it all the more painful.
Keep stacking, my friend....
Except those of us who bought both equity and shiny...
Any way... Holding.
PM's are maniplulated? no fucking way...
Can you go bust already, nobody is interested in your enquiry nor your silver.
Hey Slave..your buttholes leaking...
Does master know you are spending his free time here with us?
Off with ya!
RIPS
Could it be derivatives and tranches for silver paper?
http://michaelekelley.com/2015/01/28/remember-cdos-theyre-baaaack/
Here are some more signs of a coming recession.
http://michaelekelley.com/2015/05/29/mergers-and-acquisitions-set-record...
http://michaelekelley.com/2015/02/20/fed-warns-of-two-bubbles/
http://michaelekelley.com/2015/02/24/would-you-pay-39-more-than-asked/
Here is the starting point.
http://michaelekelley.com/2015/04/28/next-recession-will-start-with-this-country/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
Here is how to get your mind off this stuff.
http://michaelekelley.com/2015/05/29/muppets-gone-wild/
Good luck!
This explains why First Majestic has been beatten down... They are speaking up.
I LOVE THEIR 50 OZ HAND POURED BARS...
Tyler, thank you for supporting Mr. Neumeyer in his courageous attempt to identify and combat what will probably go down as one of the most flagrant abuses of financial regulatory power in history. I wish I had commented on this article earlier, but I did not see it until today.
The CFTC has stonewalled any attempt to overturn its protection of the corrupt cabalist central and money center bankers who have systematically manipulated the PM markets for the benefit of themselves and their cronies.
Until Mr. Neumeyer is better rewarded by history, I would just like to thank him for addressing an issue that I and many other bloggers at ZH have been concerned with for a long time.