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Citigroup Just Cornered The "Precious Metals" Derivatives Market
One week ago, when we scoured through the latest OCC quarterly derivative report (in which we find that the top FDIC insured 4 US banks continue to account for over 90%, or $185.5 trillion of all outstanding derivatives which as of March 31 amounted to $203 trillion; nothing new here), we found something fascinating: based on the OCC's derivative update, JPM had literally cornered the commodity derivatives complex, when from "just" $226 billion in total Commodity exposure, JPM's notional soared by 1,690% in one quarter to $4 trillion, or about 96% of total.
Some, without even bothering to read the article, did what they always do when reacting to Zero Hedge articles: accused it of writing a "wrong" post first and asking questions later and coming up with some utterly incorrect response to show just how wrong Zero Hedge was because, guess what, the Office of the US Currency Comptroller had clearly "fat fingered" trillions in critical data which is far more logical.
As usually happens in these situations, Zero Hedge was right (there was some tongue in cheek apology but hey, at least someone got to boost their traffic briefly by namedropping this web site; incidentally apology accepted), which could have been checked simply just by looking at bank call reports, in this case the quarterly Regulatory Capital report, schedule RC-R, which made it very clear that indeed JPM's OTC commodity derivatives had exploded to $4 trillion.
For those too lazy to check before tweeting, here is the number of OTC cleared "Other" commodity derivatives for JPM before, as of December 31:
And after, as of March 31:
Furthermore, while we await the OCC to respond to our inquiry (we aren't holding our breath), nobody has disputed our claim (because it is purely factual) that as of Q1 the OCC decided to exclude Gold as a separate commodity category (see call reports above) and lump it in with Foreign Exchange for some still unexplained reason. It would appear that gold is money after all...
So to summarize: as we reported first (and we would be delighted if other so called financial experts dedicated as much effort to digging through the primary data as they have to desperately try to disprove our article), JPM has indeed cornered the OTC commodity market, with its $4 trillion in "Other" commodity derivatives which amount to 96% of total. We don't expect anyone to ask Jamie Dimon about this on the quarterly earnings call because this is one of those things one doesn't want an answer to if one wishes to be invited to the next conference call.
However, another big question remains: just what is Citigroup - not, not JPMorgan - with the Precious Metals category.
Here is the chart showing Citigroup's Precious Metals (mostly silver now that gold is lumped in with FX), exposure over the past 4 years. Of note: the 1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion!
For those of a skeptical bent the proof can be found in Citi's own call report, which can be seen here as of March 31, 2015 vs December 31, 2014.
Another way of showing what Citi just did with the "Precious Metals" derivative category, is the following chart which shows Citi's total PM derivative exposure as a percentage of total.
Soaring from just 17.4% to over 70%, there is just one word for what Citigroup has done to what the Precious Metals ex Gold (i.e., almost exclusively silver) derivatives market.
Cornering.
So, the question then is: just what is Citigroup doing with its soaring Precious Metals (excluding gold) exposure, and why is such a dramatic place taking place at precisely the time when not only JPM is cornering the entire "Other" Commodity derivatives market in the form of a whopping $4 trillion in derivatives notional, but in the quarter after none other than Citigroup itself was responsible for drafting the swaps push-out language in the Omnibus bill.
And also: how is it legal that JPM is solely accountable for 96% of all commodity derivatives while Citigroup is singlehandedly responsible for over 70% of all "precious metals" derivatives? Surely even by the most lax standards this is illegal, but what makes the farce even greater is that all of this taking place out of FDIC-insured entities!
The final question, which we are absolutely certain will remain unanswered, is whether any of these dramatic surges have anything to do with the recent move in precious metals prices, or rather the complete lack thereof, even as Europe is on the verge of its first member officially exiting the Eurozone, and China's stock market is suffering its worst market crash since 2008. Oh, and we almost forgot: with both JPM and Citi now well over 50% of the derivatives market in two critical categories, who is the counterparty!?
We have inquired with the OCC about both the derivative moves of both JPM's "commodity" and Citi "precious metals" surges, both rising by over 1000% in the past quarter. We will promptly inform readers if we hear back, which we won't.
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physical is real. end broadcast.
I dont have enough people words to make it understand you the way it understands me.
I'm glad i found ZH a few years ago. And got rid of PM 'market' cocksuckers in my brain.
Are they doing this to hedge all their other investments if gold and silver go up? Obviously they are working together. MAFIA... Perhaps they are hedging for the FED. But even if there is upside move - who pay them the reward at the end of the day? How many quadrillions can the FED create, and why would you want it at that point?
The money must be being used for something else, like shorting the Chinese market perhaps.
timing seems right
But it doesn't matter because its all just paper.
My question is why is Citi the only one making this bet? I thought all the big US banks ( Citi, JP Morgan, Morgan Stanley, Bof A, Goldman Sachs, Wells Fargo) were in it together?
So, excuse my naivety, but what happens to the price of PM's if / when Citigroup or JPM exit their positions?
There will be no exit, there will be a reset.
Exit ?????
there is only one way and that's a reset
A paper contract on an underlying banking and insurance industries commodity asset, used for determining financial valuation in the future, as good as gold?
The ability to assess a price by "affixing a quote" for gold and there by apply arbitrage throughout global markets creating unfair advantages to the otherwise unsuspecting market participants.(Emerging Markets) It would easely provide the opportunity to create follies in finances and creating high risk insurance coverages lacking any creditably, again, backstopped only with golds electronicly traded futures. Gold's valuation backstopping these risks are on the primary banks "derivative commodities" balance-sheet" using unfair-market price discovery suppression tactics in secret.
Printing money up without risk is no longer enough....
They must have Moar
But it doe's matter!!...Everything, these CRIMINALS do matters!!
another cigar for you MY MAIN MAN
It is sad to see so many posters trying to decipher the hidden meaning, which is this...
The banking industry creates a lot of confusing lingo and verbiage to camouflage what is essesntially a scam or scheme...which is then legitimized by lawmakers in congress who provide legal cover for unlawful acts in exchange for political contributions, book deals and speaking fees. The executive and judicial branch are the strong-arms who rough up or suicide unwelcome interlopers or prying journalists.
The end game is always the same...what more do you need to know?
You think you are going to outgun the system which you, yourself, legitimize by your participation, sweat equity and ernest efforts?
Your ancestors would be ashamed. Grow up.
So what do these "derivatives" depend on?
A lower price or a higher price?
If a lower price and the SGE starts setting the gold price
in October on physical...
Oh... wait... October surprise season...
No one has any idea what this says about likely gold and silver prices near term?
I have zero clue.
The metals arena has been nothing more than a psychological game for several years now, and it will continue to be until the criminals decide to present us with the reality of the situation. Make no mistake, they hold all of the cards and the physical. The majority of small holders have been lulled into complacency and/or have capitulated.
Those who control these markets (and all others) want it all, and the music will continue until some catastophic event, be it market or sovereign, motivates them to take action.
The short sellers are not finished, and eventually metals are going to fall through the floor. It is at that point that the music will stop, and those who chose to pay attention throughout will be the beneficiaries. It matters not to the criminals how large that group is. They continue to position themselves for the great transition, and once complete the game will start over.
It's no coincidence that mayhem abounds. One could argue that this was the plan all along. Plenty of distractions to provide the moneychangers cover to corner the world. Like it or not the US/USD is positioned to stay relevant longer than most believe possible. The pain will increase for you and I.
Have faith, pay attention, and distance yourself from the blast that will most assuredly occur
They only mine about $15 billion of silver a year. These bets seem absurd. Even if they are multiyear, they are absurd.
Silver as a commodity, gold in FX. While paper prices follow each other.... There's something special in silver; it can break the camel's back, fuck up paper markets, like Greece, but times 10. Efforts to get rid of silver as money? Dunno... But imho, it's a push to get silver out of money, into commodities. They're good at paper games.
Just wanted to make sure they have enough derivatives to control the physical price. Derivatives bought with printed up Monopoly money.
Control is the important word along with volumes and timings. Reminds me of Problem - Reaction - Solution?
Interesting data point that will have to be filed away and watched to see if anything else builds upon it. Such as indicators that other large banks are now cornering other segments-- a sure sign of complete collusion.
So the first hypothesis that comes to my mind with regard to specific banks cornering individual derivative market segments is that they are trading out among themselves.
i.e. -- my commodity contracts for your gold and silvers. That sort of thing.
So why would they do this?
To eliminate the risk involved of having to deal with multiple players in the event of the forthcoming crash. The 2008 crash really got going when banks starting doubting the ability of each other to honor their calls. This appears to be frontrunning against a repetition of that factor.
If Bank A controls all the contracts both up and down on a single entity, it is insulated against potential counter-party risk. Or so it believes.
In this regard, it may well be a good idea (at least from the bank's perspective). Controlling one entire segment by yourself is bound to be easier to manage than being wrapped up in a widespread crisis involving negotiations with many other players globally-- some of whom may no longer be reliable.
On the other hand, the fact that they are dancing with the Vertical Trust devil in the face of anti-monopoly laws everywhere would seem to indicate that they fear collapse a lot more than they fear the Sherman Anti-Trust Act. One is an immediate danger while the other is only a potential future risk that can probably be made to go away with cash.
Not a good omen, no matter how it plays out.
Nice analysis. Certainly a few months will tell.
I'm not paying the debt to you in sandwiches though.
As Dr E pointed out , they seem to be fatal for some reason.
Oh, come on, BTFD (Buy The French Dip).
Assuming that these numbers are correct, it has to mean not only that every bank everywhere has agreed to let Citi have these lucrative deals to itself, but that they have also rolled out their own existing contracts to Citi (or are in the process of doing so).
It also means that every regulator everywhere on the planet has agreed to not notice that this is taking place.
This is clearly not legal and it would only take one single voice to queer the whole deal.
Since it is proceeding and nobody is raising a fuss, it is a significant harbinger of future trouble.
Questions worth watching:
1) Are these numbers real?
2) Are other banks gaining exclusive rights to other categories and, if so, how are these being apportioned amongst themselves?
3) If supposedly antagonistic trading blocks such as USA/EU versus BRICS are all in on the deal and nobody will blow the anti-trust whistle, what does this tell us about the approaching danger and the reality of who is for us and who is against us?
Amazing that such 'commodities' - which after all, really have no significance whatsoever in the scheme of today's modern econonmics, garner such importance amongst such Large institutions, does it not? Hmmm...
/s
This should be called in-dependence day
InDepends Day
Interdependence Day
So, when Citi's bail-in occurs, do I hand over the combination to my safe?
No Need, we got it.
-- .gov
If the fed is indeed controled by the big banks then I would suspect this is a hedge against China and Russia and their desire to control the physical assets. The big banks may want to screw the little guy... but I suspect it's just more of the fact that they want to get ahead of every trade in the global market... while protecting their protector... the fed and the status quo.
The expiration of all these contracts is the key to them staying ahead of their trades and also an indication of when they think the music stops. It is clearly in their interest to keep physical prices down... unless they think they can make more money fucking each other.
"We will promptly inform readers if we hear back, which we won't."
Silence is an answer. I think we may have case law on that one....
{{{ More Breaking News }}}
https://youtu.be/9U4Ha9HQvMo
Looks like ADIA is in for another slow comfortable screw...
http://blogs.wsj.com/deals/2011/11/04/citi-wins-case-over-soured-abu-dha...
They can be neither short nor long. There is million of derivatives on the market. I rather wonder, why can they have a share of more than 50%. Either they trade with themselves or there is a strange unknown counterpart. They are trading with. And now it gets interesting.
looks like a big deal. they are not fooling around, wish I had more dry powder for the gold price is going to 780
So, like this is all true?
It's like a roadmap to the handful of "banks" (euphemism for den of vipers) that will call for trillion $ bailouts or "marital law" as in the case of 2008.
Bailouts are the only reason to corner the market on toxic shit. Just ask JP Morgan.
"The dictionary definition of manipulation includes corners. Now, a corner might be the result of manipulation or it might be the result of competitive buying, as, for instance, the Northern Pacific corner on May 9, 1901, which certainly was not manipulation. The Stutz corner was expensive to every body concerned, both in money and in prestige. And it was not a deliberately engineered corner, at that.
As a matter of fact very few of the great corners were profitable to the engineers of them. Both Commodore Vanderbilt's Harlem corners paid big, but the old chap deserved the millions he made out of a lot of short sports, crooked legislators and aldermen who tried to double-cross him. On the other hand, Jay Gould lost in his Northwestern corner. Deacon S. V. White made a million in his Lackawanna corner, but Jim Keene dropped a million in the Hannibal & St. Joe deal. The financial success of a corner of course depends upon the marketing of the accumulated holdings at higher than cost, and the short interest has to be of some magnitude for that to happen easily.
I used to wonder why corners were so popular among the big operators of a half-century ago. They were men of ability and experience, wide-awake and not prone to childlike trust in the philanthropy of their fellow traders. Yet they used to get stung with an astonishing frequency. A wise old broker told me that all the big operators of the [1860's] and [1890's] had one ambition, and that was to work a corner. In many cases this was the offspring of vanity: in others, of the desire for revenge. At all events, to be pointed out as the man who had successfully cornered this or the other stock was in reality recognition of brains, boldness and boodle. It gave the cornerer the right to be haughty. He accepted the plaudits of his fellows as fully earned. It was more than the prospective money profit that prompted the engineers of corners to do their damnedest. It was the vanity complex asserting itself among cold-blooded operators.
Dog certainly ate dog in those days with relish and ease. I think I told you before that I have managed to escape being squeezed more than once, not because of the possession of a mysterious ticker-sense but because I can generally tell the moment the character of the buying in the stock makes it imprudent for me to be short of it. This I do by common-sense tests, which must have been tried in the old times also. Old Daniel Drew used to squeeze the boys with some frequency and make them pay high prices for the Erie "sheers" they had sold short to him. He was himself squeezed by Commodore Vanderbilt in Erie, and when old Drew begged for mercy the Commodore grimly quoted the Great Bear's own deathless distich:
'He that sells what isn't hisn
Must buy it back or go to prisn.'"
[- Jesse Livermore], Reminiscences of a Stock Operator
+1 what a great comment as well as a great reference from from a really great book. thanks for sharing.
Thank you. I should have bolded the vanity complex part of it too. It's almost of equal importance.
So, then, what Jesse is not directly saying is that if the "cat's out of the bag" then the corner has a low likelihood of being successful. Do you infer that the same way?
"debtor of last": Interesting opinion: "is is a push to get silver out of money". Gold/silver ratio is near all-time high if you put some history into it. While everyone agrees silver is the better bet here, if silver loses the money upside in the big reset, the central banks (owning gold only) become the big winners and permanently fix the gold/silver ratio at 100+.
Are we potentially fools for buying gold and silver 1:1+ in ounces?
Back in 2008, the stock price of Citi stood at $1.00 (yes one dollar) and it was clearly insolvent. I was tempted to buy the stock at this price, as I was certain that the powers that be would not allow the FDIC to sieze it. But I lost my nerve. Rather than being siezed for insolvency, the bank was bailed out by the government via Paulson, and changes were made in accounting rules to give the appearance of solvency. It now appears that Citi and JPM each own a high percentage of silver derivatives. This is clearly a case of fraudulent hypothecation. Its time to put Elizabeth Warren or Eliot Spitzer in charge of the CFTC.
That's like telling the fox to investigate the henhouse.
Warren, whorehound Spitzer, and the fraudulent-ass TEA PARTY are no threat to Wall Street.
I'm sure Jack Lew knows
Well I'm a black jew. LOL.
Hey, I thought that was funny.
What is it for? IMO, they just bought themselves 1yr insurance against the other derivatives that are about to implode on their books. Likeliest looking at Greece, the CDS tsunami on sovereign debt. If the counterparties are the same as the institutional customers who bought the CDS from JPM & Citi, they would cancel themselves out I suppose in theory.
As the article says, these are derivatives of PM and commodities, tied to the performance of the actual stuff and they are only likely to go supernova at or just after the great financial system meltdown. I think they are expecting a credit event to be triggered by the ISDA/EMEA and we're really really (This time) looking at the collapse of the financial system or near enough to profit heavily from these hedges. Maybe.
I don't have the expertise to know if they are shorting PMs.
"how is it legal that JPM is solely accountable for 96% of all commodity derivatives while Citigroup is singlehandedly responsible for over 70% of all "precious metals" derivatives? Surely even by the most lax standards this is illegal, but what makes the farce even greater is that all of this taking place out of FDIC-insured entities!"
- 2013 Total FDIC Trust Fund in Treasuries = $36.9 Billion + $18 billion in the DIF (Risky)
- 2013 Total National Credit Union Trust in Treasuries = $11.2 Billion
- Martin Armstrong pointed out that the big 4-5 TBTF wanted FDIC Deposit Accounts for the Next Phase whatever that was to be
- Today seems like a move is taking place on PMs & Commodities, we see the Shock in EU coming, Geopolitical Risks of war, US Federal Budget Explosion, US Securitization and Credit at Highs,... Normalization of QE & LIRP must happen... M&A explosion to position themselves to own more
- Most risks to USD as World Currency seem to be appearing unless that was a dream last night, although as Armstrong points out their is no place to park money other than the USA & US Bond Market
Derivatives are a good point for further exploration, since I believe this has been pointed out as one of the 2-3 Biggest Risks to the EU Today.(ISDA)
As I say there are like 40 big Problems/Issues/Risks for any World Leader Right now in the US System of Systems. Banks & Governments are working in Collusion within their Racketeering and Anti-Trust Activity to balance all of this.
- And it ain't just Greece that is the problem, it is like 40 Different things... including 3-5 surrounding the USA maintaining Superpower Status through dominance, hegemony, aggression, and use of war powers and financial dominance
So... Who is the counterparty to the hedging? Someone's on the other side of this activity.
Unless they're just now reporting hedging activity that they had been doing all along. Not reporting to their shareholders and holding off balance sheet.
They are just making the argument for a Bail-In more "obvious", Why not steal the people's money when the market is crashed... what, we only have to wait between now and September.
I'm a simple guy, a geographer who has lived in various cities, University Professor, Computer Technician.
In the last financial crisis, I talked a lot with an Economist (now renowned, part of the Bank Brics representing Brazil, author of several books (actually two, very good.)).
Well.
When he began to crash and the US government decided to save the "too big to fail" I was against.
He argued that in a free world, those who break fuck, part of free trade.
The state should not save stupid argentários.
The Surf (his name on the Net) said he needed to save the banks because otherwise the world economy would PRO bag.
The Blog where we talked already went off the air but kept talking by e-mail and other media.
The guy was in Russia and China by scheduling the new bank and talking about the insertion of Brazil.
Today he agrees with me, they should have left break not only argentários banks in Brazil (which cost very dear to us) but also the sons of bitches in the US.
However great they were.
hehe.
The decisions and arguments were not out of ignorance or by mistake, they were lies, by design. Everyone knew giving the banks money for free was not going to save the little guy, the goal was never to save the little guy or the economy, the goal was to implode the economy and to confiscate all of our wealth. That worked out wonderfully, according to plan.
This is unintelligible.
This is unintelligible.
my head is asploding
Odd job to switch billions in derivative positions from one balance to another. The FED's round table to discuss 'things' must have been rather crowded in this DEFCON 5 meeting with other banks and big hedgies.
SGE? Silver shortage? Bondgeddon?
Sometin's fishy, and it's a big big fat whale this time. DB.
You've just crossed over into the Twilight Zone.
Maybe both banks have been doing this nonsense all along and have just posted some real numbers, probably for some tax loss reasons when things blow up.
“Just about anything you buy, rather than paper, is better. You’re bound to come out ahead, in the long pull. If you don’t like gold, use silver, or diamonds or copper, but something. Any damn fool can run a printing press.” – Nelson Bunker Hunt
“Just about anything you buy, rather than paper, is better...
Including members of Congress. Didn't see that one coming, now did you Nelson?
WILL SOMEONE PLEASE TELL ME?
IS CITIGROUP LONG OR SHORT?
IS JPM LONG OR SHORT?
As if this fact is irrelevant!
PS: Thank you to whoever provides me the answer.
Yes
Ditto.
Nevermind. My "Ditto" was in response to the "Yes", which I found amusing.
This is the best I can see now from May 2015 COMEX Monthly Report. The link from ZH that I had in mind I found and is best show of JMP Manipulation of Gold & Silver maybe... shows the Major Dealers I= Issue -Delivery (Idiot sale) “S” stands for “stops,” meaning the firm took delivery of gold.(C=Customer Account, H= House Account) like for JPM. COMEX 100 Gold Futures = 100 troy ounces a shot.
http://www.zerohedge.com/news/2013-04-26/jpmorgan-accounts-993-comex-gol...
Below is from this Index which is only up to May 2015:
http://www.cmegroup.com/trading/metals/monthly-metals-review.html (Platinum picked up in Apr 2015, then in May it was Copper)
Monthly Metals Review
1 METALS TRADING HIGHLIGHTS May 2015
Highlights:
?
Average daily volume for
May 2015 COMEX metal (Gold, Silver and Copper)
futures was 284,323 contracts, compared with
259,393 contracts during May 2014, an increase of 9.61 percent.
?
Average daily volume for
May 2015 COMEX metal (Gold, Silver and Copper)
options was 31,963 contracts, compared with 38,967 contracts during May 2014, a decrease of 17.97
percent.
?
Average daily volume for
May 2015 Gold futures was 186,074 contracts, compared with 172,911 contracts during May 2014, an increase of 7.61 percent.
?
Average daily volume for
May 2015 Gold options was 26,727 contracts, compared with
32,976 contracts during May 2014, a decrease of 18.95
percent.
?
Average daily volume for
May 2015 Silver futures was 44,317 contracts, compared with 42,053 contracts during May 2014, an increase of 5.38
percent.
?
Average daily volume for
May 2015 Silver options was 5,178 contracts, compared with
5,954 contracts during May 2014, a decrease of 13.03
percent.
?
Average daily volume for
May 2015 Copper futures was 53,932 contracts, compared with 44,429 contracts during May 2014, an increase of 21.39 percent.
?
Average daily volume for
May 2015 Platinum futures was
10,586 contracts, compared with 11,400 contracts during
May 2014, a decrease of 7.14 percent.
?
Average daily volume for
May 2015 Palladium futures was
6,555 contracts, compared with 9,328 contracts during
May 2014, a decrease of 29.73 percent.
http://www.cmegroup.com/trading/metals/files/momu-2015-05.pdf
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsMTDReport.pdf
Oh this is the one I remember:
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf
http://www.cmegroup.com/trading/metals/precious/gold_contract_specificat... (shows the Index)
Edited above for Definitions.
http://www.zerohedge.com/news/2013-04-26/jpmorgan-accounts-993-comex-gol... (Original I saw in 2013)
I had to re-read that. I agree. JPM House Sold Delivery of 2468 each Contracts 100 Gold Futures in June (100 OZ X 2468) and JMP Customer sold Delivery of 2265 each Contracts 100 Gold Futures in April 2015 (100 OZ X 2265). Page 3.
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf
Its Relevant since we don't have the same level of access to real time data, but in the case of futures & options we don't see the activity like a ticker tape.
I know in our free market I should pay for the data or a broker to provide the data to me. S/
- Options on stocks show real time prices, and often the contracts (both puts & calls) for the contract, but you don't really see all activity, all at once, or in real time
or anyway that is where I am. HFT can swoop in.
Edit: I'm a little slow today:
It is Relevant since they, the banks, are trying to take over the world as Predators, since their friends are selected power players, and since they will prey on all of us soon.
So these huge players are massively short.
-----
If we assume they have inside information (they ALWAYS do), that means they and the predators-that-be know the world economy will collapse within the next few months, thereby triggering massive liquidation of EVERYTHING, including gold and silver, to cover margin calls.
The temporary collapse of precious metals at that time will be one of the greatest times EVER to buy precious metals. I only wish I had more dry powder to take advantage!
Does this sound consistent with what you told me?
Ah, in the first article in 2013 on JPM Delivery contracts and the link above... These are actual Sales of Gold, Actual Delivery. I might be wrong and should re-read this. But ZH was making the point that JPM was selling so much Gold that it was impossible for it to have any gold left to sell. That the numbers were somehow fraudulent and that the gold didn't really exist. From Year to Date figures that ZH Posted and some later in 2014 it appeared that JPM was massively selling real gold.
http://www.zerohedge.com/news/2013-04-26/jpmorgan-accounts-993-comex-gol...
"When just one firm accounts for 99.3% of the physical gold sales at the COMEX in the last three months it’s not what most of us on this side of the rainbow would consider “broad-based” selling."
Anyway I would think, yes, if they are selling real gold as reported, then they would be shorting.
As you know the ZH story has been consistent that JPM is shorting silver & gold for the FED... to keep domination of the World Reserve Currency.
So, yes. I agree.
I am the worlds worst investor though.
If you look at the columns you can see a total of deliveries for each COMEX Market if I have this right for my link. From this I can see the players.
- Nova Scotia is a Player involved in Gold
- SG Americans (Society General) is a player in Palladium
- HSBC is a player in Gold, Silver, Platinum, Copper
- Jefferies LLC is a player in Silver, Copper, Platinum
- INTL FCSTONE LLC is a player in Copper
- RBC Capital Markets is a player in Copper
- CITI Group is a player in Copper
- JPM is a player in Gold, Silver, Palladium, Platinum, Copper
Citi Groups doesn't seem to be a player in any real way in the Futures of PMs.
http://www.cmegroup.com/delivery_reports/MetalsIssuesAndStopsYTDReport.pdf
there are no other entities taking the "other side" of the trade. they are playing both sides. the size of the position is directly proportionate to the leverage necessary to control price.
deleted brain fart.
In classical parlance, longs are cornered not shorts.
Therefore, if the derivatives represent a massive short position then the word "corner" is a ruse.
(But then again, the counterparty to the short would be attempting the corner.)
The question is who is the counter party or counter parties to all these derivative contracts? If Citi and JPM are cornering markets why would anyone want to be a counter party unless they are in on the HFT skim. Besides shouldn't the only market makers in this case be Central Banks since it is them that are supposed to set monetary policy which includes commodity prices? If it isn't fixed on both sides the market should collapse if anyone with any brains is trading this supposed market. They'd be getting out of their positions come when the markets reopen knowing the markets been cornered by banks that shouldn't be market makers in the first place if the Federal Reserve and other Central Banks are supposed to be the 'market makers'. What does that tell you if the Central Banks won't own their own markets.
Who exactly is running the casino one has to ask or is there no casino at all anymore.
Put in other terms a whore can't work for more than 1 pimp at a time or else problem's inevitably occur due to conflicts of interest, etc. so who is the pimp and who is the whore here Citibank or the Federal Reserve?
If there is a market enough counter party holders will get together (after betting amongst themselves) and call in contracts forcing a default on delivery when they can't deliver on all the margin calls at once ala the Hunt Brothers and silver back in the early 80s. Same with JPM.
Please stop dreaming. There is no market. You've surely been around here long enough to understand that.
See my post below.
Dewee Heetam and Chow.
NICE. LOL just a joke.
They create derivatives contracts to jack up trading volumes as they is how they skim money from the system. They manipulate all markets (physical and financial markets). The greater the volatility the more transactions generated and therefore the greater the profits extracted. It will go on until the system implodes. It will do as money and financial accumulation has far exceeded industrial accumulation - ratio of roughly ten to one.
AND you forgot and Howe. They both flatback.
Let's be realistic. These reorts themselves could very easily be phony, produced by the government as just more propaganda.
Or, they could be real, which would, in part, explain why gold and silver have been, are, and seemingly will continue to be traded in a truly artificially-induced price range.
The deerivative contracts of the TBTF, and especially Citi and JPM as concerns the precious metals, are control mechanisms. They control the trade, ergo, they control the price.
Up or down doesn't matter. Long or short doesn't matter because they'll do as they please.
The real question is whether PM buyers and sellers in the real, much smaller (though very significant) market abide by the price issued by the entity which controls the trading.
It's like groceries. Do you complain when certain foold items go on sale. Probably not. And, if you're a thrifty sort, you buy extra of what you like/need.
I'm looking at silver going to 12, and then 10, maybe even lower. I consider every day a buying opportunity, and, when TPTB dictate that the price should be lower, I am happy to comply by buying more.
Most people don't get this, and I understand why, because people measureeverything in worhtless FRNs, but, it's not how much you pay, but how many ounces or pounds or kilos of gold or silver you actually possess.
All attempts at price manipulation, by whatever means, eventually fails or is abandoned, in every market, though I have to admid the US bankers have done a pretty damn good job at stealing everything that isn't nailed down.
The key is not letting them get yours and not getting caught up in their endless myriad of tricks, scams, skims, misdirections, lies, laws and rules.
I have to apologize for any spelling errors. ZH's spell checker doens't seem to want to function on my MacBook Pro (yeah, I recently got a new computer, using funds at 0% interest for 12 months. Thanks, banksters.).
I just posted 3 times on the Futures Contracts.
I feel the answer lays in Options Contracts.
Good Luck.
JPM did just deliver on a huge amount of Gold Futures, but they do this regularly like the are rigging the market.
Greeks seek refuge in gold with other Europeans... boom JPM is selling in June.
Still we need a Report about Options.
1) Be First,
2) Be Smarter,
3) Or Cheat.
...When 1 and 2 fail, employ #3 by Cornering the Market in Gold and Silver.
/sarc
I gues that's one way to accomplish a Midas touch reputation.
if they own all of them does that mean they can close them and I will be fucked?
so if they had just bought gold that would be obvious... so are they buying the next best thing secured by the US taxpayer, or something else? If they had put this money in derivatives it would have affected those prices as well. so... where's the money now??
fx mixed in with gold? nice combo
my guess, shorting Chinese stock market and other currencies, or increasing value of other currencies Yen?
The Perth Mint tried to discredit ZH's original story. Remember they are a government run entity.
Good really. Not much will be left when the markets collapse. The too big to fail banks will fail spectacularly - wiped out by their derivatives exposure.
No they will consolidate all risk and only expose that. The rest will just continue to push the numbers around until they have no where else to go, aka the big one.
Let review my theory : Since oil, iron, cooper , gold , silver, etc had had many fluctuations lately and many derivatives bets are price off then TPTB is centralizing all bad bets in one bank in order to avoid the implosion of many banks or any AIG kind of risky companies .
Don't let them hide the details. We need this info to issue the arrest warrants and prosecute them. To put the banksters into jail.
Good luck, they own the law.
feels like i am in the matrix in this thread
Well, which pill did you swallow?
i look forward to chinas physical only market
THe problem is the bankers are, in the information age, always ahead of the regulators. That will not change.
So, basically, we are on the verge of SHTF.
"Here is the chart showing Citigroup's Precious Metals (mostly silver now that gold is lumped in with FX), exposure over the past 4 years. Of note: the 1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion!"
Clearly JPM & CITI are the markets.
This smacks of Anti-trust, Racketeering, or both.
When you have one big guy that is Monopoly. When it is all Paper Transactions for fun and games, that is how commerce and free enterprise get hurt.
This guy has an interesting perspective, as always.
http://redefininggod.com
He writes on July 4:
Bank depositors, prepare to be wiped out
Zero Hedge is reporting some interesting things going on in the world of derivatives right now. The banksters appear to be gathering all their derivatives contracts into a few “fall guy” banks, including entities within those banks that are FDIC-insured…
Citigroup Just Cornered The “Precious Metals” Derivatives Market
JPMorgan Just Cornered The Commodity Derivative Market, And This Time There Is Proof
If you read the following article, you’ll see why this is bad news for depositors in those banks: It Can Happen Here: The Confiscation Scheme Planned for US and UK Depositors.
I’ll sort through everything and produce an understandable explanation of all this as soon as I’m able. For now, suffice it to say that I won’t be keeping any money in the banks except what is needed to pay immediate bills. For when the derivatives go pop, they’ll steal it all.
I've got what might be a dumb question. What about the Chinese and Russians who are supposedly buying phisical? Won't the price for physical continue to demand higher premiums, and if we are able to affect those countries why would they not attack the crap out of us?
Collusion. Everyone's in, and each has its role to play.
I think that you are on to it!
This is precisely the actions of those who would prepare for war.
These derivatives are about to be wiped out and the banks exposure to them.
They were ordered to do it and they did it.
something so big is coming it is going to take 99 % of people totally by surprise.
I have nothing except a pair of clean socks and underwear to my name left in US now. everything, and I mean everything is offshore and NOT in my name
Feds ‘lose’ audits for Fort Knox Gold
What ever they are doing I am sure the words - evil, satan, scum banks, jail, hell, should come to mind.
Perhaps they are getting all the FEDS gold now for themselves through swaps and sending it to Israel, nothing would surprise me,
I'm guessing that they (TBTF Banks & Federal Govt & Spy Agencies) are so big... they have facilities out in the open... ship in the open... use major contractors like AT&T... and if they use Individuals they are out in the open just using hotels and cell phones as the base of operations in foreign countries.
Sure they have Trade Craft. USA is the highest Tech in the world and they can borrow from Japan & South Korea... or Israel. But the ground work is 1-2 guys going to business meetings.
If actual transactions are taking place between buyers and sellers in a (real) market, there cannot be more buyers than sellers and vice versa.
If JPM and Citi represent more than 50% of either buyers or sellers, than, by definition, they are selling to themselves or buying from themselves -- which is FRAUD as the COMEX is a price-setting market. In other words, by the FACTS acknowledged and announced by the US regulators, the US government, the FED and Comex, our entire financial system is a criminal enterprise and our government consists of criminals.
The Americans are stupid.
The Chinese are stupid.
The Russians are stupid.
YOU are stupid.
Have a nice day.
Buy silver and bust citi ...
Gold is to the dollar as the crucifix is to the vampire. You can also bet that top secret trade agreement that just passed has a few "extras" in it to have to do with what's coming down the pike in the financial system. And those extras have to remain secret as well, because I think the people are about to get dumped on. Again.
Credit default swaps? Commodity swaps?
You'd also have to get a prospectus with the math. Volatility aught to figure prominently, though I'm thinking that the introduction of volatility into gold price futures has not been very successful.
http://schrts.co/bZi84z
http://schrts.co/AAW6Ww
It would be an interesting outcome to see a depeg of the Yuan.
Meant to post this last night, but I'll cut to the chase: I get alerts from Fannie Mae (HomePath.com) on foreclosures in several upstate NY counties, one of which is Monroe, where Rochester is. I have been looking for property for 3 years (found one recently), and still get these alerts by email.
The other day, they just started coming in bunches, 12 new listings in Monroe Co., sevral in other surrounding counties. Never seen such volume. Made me think that the banks, and especially the Feds, know something bad is coming and they're trying to unload ASAP.
With all the turmoil and cheating in the world, it would not surprise me. Keep an eye on your own specialty area of investing, money, business etc. If you see radical changes you may be onto a bigger scam or seeing the early stages of economic collapse.
I'm pretty sure it's coming soon. Greece will be one catalyst. China's stocks are already crashing. Cash, PMs, tools, food, guns, weed and booze will be in high demand soon. Very soon, I beleive.
Tyler, even if only half of what you appear to be disclosing in this article is true, it has to represent a significant piece of investigative journalism that is worth pursuing like a pit-bull.
Before we all go off the deep end, I would like to suggest that ZH use its leverage as an extremely well-read medium to contact the CFTC, COMEX, Federal Reserve, Citi, and JP Morgan directly and simultaneously to request an explanation. I would also suggest that it be copied to all sitting members of Congress. As you usually do, it would be great if the exact content of the letter got posted on ZH, as a public audit trail for the process.
Even if some of these facts have been misinterpreted, I think the public has a right to know how we have misinterpreted them, and what the truth actually is.
The substance of the communication would be a summary of the facts you have already discussed and a simple query: "What do you want us to do with this?" I think you may have a lot more leverage than you think right now.
I'm not sure there is an award for exceptional journalism on the internet, because I think that process is probably controlled by the cabal as well.
Either way, hats off to you guys at ZH. Keep the pressure up. I think a lot of your readers are very proud of what you are doing.
state secret
What we as readers of this Website SHOULD be concerned about is tha they will shut down ZH! I have been surprised by that fact...that we have this source for information not found ANYWHERE else in a consistent way and with widespread reading by "us."
Then, when I begin to unwind my thoughs, and think according to the new ethical and moral standards of our Congress and the Oligarchy we now have here, seemingly worse by any other standard in History (I am a likely wrong here, but I think of Nixon being brought down and how truly different our Press is now, which is NOT challenging the status quo being that they ARE the system, after all)...I can only CONCLUDE:
They are not afraid of anthing found in the alternative press due to the fact that they will not ALLOW this story to propagate! I send copies of these pages to my friend and family and they think it is untrue, what is presented here or THEY ARE SO apathetic now, that no one believes anthing will change!
We should be very scared here of how this might unwind!
The apathy and unwillingness to look truthfully at this situation is profound in my own family. Dad, Mother, Brother, Uncles, Aunts -- they all bank at Chase, trust the government, and are riding their stock portfolio up with the moneyprinting. The few that I convinced to buy precious metals are angry with me now, seeing the value in USD go down 30-50%. I try to bring up all the fraud at work and THEY DON'T CARE. All they care about is the current COMEX spot price. They watch their 60 Minutes, read their NYT, and listen to their NPR and believe they are informed. The matrix is fed by the fiat debt dollar. If the moneyprinting stops, and the EBT cards, stock buybacks, and no-bid military contracts no longer function, THE MUSIC WILL STOP. Part of me wants to rub everyone's nose in the truth, seeing their delusional worldview shattered, but I don't want a nuclear exchange or other manufactured crisis that will be the death of many, to be the catalyst. I was listening to Dane Wiggington's weekly radio broadcast at GeoEngineeringWatch.org and he quoted a Chinese proverb: "You can't wake someone who pretends to be asleep." I am writing to my family members again regarding new laws putting the derivatives holders ahead of share holder and depositors in the event of a banking crisis; and the FDIC being underfunded on the order of 100:1 ($40 billion to insure $4 trillion in deposits). We're entering a period of profound lawlessness. If you don't hold it, you don't own it. There might be some good laws and regulations somewhere, but they are not effective if they are not enforeced. I am buying more PMs, beans, water filters, and firearms as we speak. I figure if I am willing to die for what is rightfully mine, then that is more intelligent than waiting for Obama, Holder, Roberts, Pelosi, and Boehner to do the right thing.
It would be very difficult to shut this site down permanently. Look at how Pirate Bay and other bittorrent sites keep rising from the dead after repeated takedowns. All ZH has to do is have the site hosted offshore in a more friendly county.
They can corner that all they like. Does not affect the size of the stack in my safe. Derivatives...just another form of fiat.
So, as I understand it, JP Morgan and Citi are, effectively, GSE's.
Sponsored, aided, abetted, financed, protected, by the government,
Forgive me but what is a GSE?
Government sponsored enterprise
government-sponsored enterprise
From Clif High's "Webot" site http://halfpasthuman.com/:
July 'fireworks' will really take off (according to ST [short term] data) around the 8th.
His data runs over the last 6 months or more have indicated an explosion in the price of gold and silver where in some cases the data indicate the price of gold will be such that "you can't get it at any price" and silver for a time could be priced close to gold on an ounce to ounce basis. While his webot predictions have been wrong or off on timing in the past he has had some pretty spectacular "hits" on some pretty important issues/events that were eerie to say the least. Would make the physical PM world a very interesting place if he's right this time around . . . .
No one is answering "why" the two biggest crooks in the business are corning the two markets…speculation: when the shit hits the fan and normally in those circumstances gold and silver would then soar through the roof, JPM and Citi can use their control of those two metals to stamp the price down and keep it from soaring - all at the bidding of the US - to keep the dollar "secure" in it's role as the Reserve Currency - and keepit from being trashed by a through the roof gold and silver price. Any thoughts on this?
None other than complete agreement. I have already voiced my views many times on this blog as to the actions of the cabal in this regard. I have no idea whether they will ever be held to account.
I have no idea whether they will ever be held to account...
Not unless their names end in Hunt and they're domiciled in Texas.
Tried to get this posted on Money Metals Exchange...They blocked it.
I'm sure all of this exposure is perfectly legitimate "hedging" and "nets out" to zero.
They say Third Times a Charm.
In my case is more like Third Day of Reading it a charm.
Good info. Good Catch by ZH. I've never seen the links before, so it takes some time to process.
I actually looked at the first Article when it came out, but didn't get much out of it and didn't go to the OCC Links.
- Yesterday had brain fog, then proceeded to celebrate a little, but glad I pulled the 2013 Article on JPM Gold & Silver Futures to refresh my Memory, maybe I'll learn something
http://www.zerohedge.com/news/2013-04-26/jpmorgan-accounts-993-comex-gol...
I'm still having trouble with the Ibank link for Citi Call Data, comparing the two quarters...
Edit okay Table 9 on OCC DQ115, page 33, shows Citi Total for Precious Metals Derivatives:
http://www.occ.gov/topics/capital-markets/financial-markets/trading/deri... ($3 B to $42 B)
http://www.occ.gov/topics/capital-markets/financial-markets/trading/deri...
This is all totally normal. Nothing to see here. Move along...talk about flags or something. JP and C don't know 'nuttin special, nothing going to happen. GS told me things are good. Buy the dip.