Silver Market Sees ‘Anomalies’ and ‘Devious Efforts’ - CFTC’s Chilton

Tyler Durden's picture

From GoldCore

Silver Market Sees ‘Anomalies’ and ‘Devious Efforts’ - CFTC’s Chilton

Today's AM fix was USD 1,607.00, EUR 1,298.90, and GBP 1,030.33 per ounce.
Yesterday’s AM fix was USD 1,613.00, EUR 1,300.39 and GBP 1,032.39 per ounce.

Silver is trading at $27.88/oz, €22.67/oz and £17.89/oz. Platinum is trading at $1,406.20/oz, palladium at $582.70/oz and rhodium at $1,100/oz.

Gold climbed $0.40 or 0.02% in New York yesterday and closed at $1,611.60/oz. Silver climbed to $28.21 and dipped again but finished with a gain of 0.68%.

Gold initially traded sideways in Asia then dipped below $1,610/oz but then recovered and has traded in a range between $1,605/oz and $1,610/oz.

Gold Prices/Rates/Fixes /Volumes – (Bloomberg)

Gold edged down on Wednesday on profit taking after sustaining 3 days of gains which saw gold creep slowly above the $1,600/oz level again.

Recent dollar strength and a lack of clarity in the minds of many market participants regarding whether the ECB or the US Federal Reserve Bank will employ more quantitative easing to prevent double dip recessions and even depressions may be partly to blame for gold’s lack of gains recently.

However, the dollar is set to weaken again due to the appalling US fiscal situation and further quantitative easing and money printing on behalf of the FED, ECB and BOE is almost inevitable.

Eric Rosengren, a Boston Fed Bank President, made comments that the US Fed should launch QE3 to prevent recession and ultra ‘dovish’ or uber accommodative monetary policies are set to continue which is bullish for gold.

Other macro data and developments were also gold positive and likely to lead to safe haven demand.

Standard & Poor’s downgraded Greece’s sovereign rating to negative and a Greek default continues to be almost certain – with the attendant risk of contagion in the European and global financial system. 

Italy sank further into a recession as its Q2 ranked in 2.5% yearly decline. German industrial orders surprised on the downside for June showing the contagion is not felt by European so called ‘PIIGS’ alone.

Gold Spot $/oz Daily,10/08/07-08/08/12 - (Bloomberg)

The Bank of England has slashed growth forecasts to zero and inflation predictions again. The BOE has been overly optimistic on growth and wrong regarding inflation for some time and looks set to continue to be so. 

As long as governments and central banks continue to pile debt upon debt and substitute sovereign debt for financial and banking debt – the crisis will continue.

XAU/GBP Exchange Rate Daily  - (Bloomberg)

A proper diagnosis is necessary before applying the right remedy. Central banks continue to deal with the symptoms of the crisis and not the causes. As any doctor will tell you, that is not in the patient's long-term interest and risks making the illness worse – and potentially fatal.

A debt crisis will never be solved by creating more debt. Gold remaining not far from record highs in most fiat currencies shows this and the consolidation of recent months has set the stage for a marked increase in prices in the coming months.

Real diversification remains crucial and those who have allocations to gold will continue to be rewarded.

XAU/EUR Exchange Rate Daily, 09/08/10-08/08/12 - (Bloomberg)

Silver Market Sees ‘Anomalies’ and ‘Devious Efforts’ - CFTC’s Chilton

The silver market was affected by “devious efforts” to move the price of the precious metal, according to Bart Chilton, a member of the U.S. Commodity Futures Trading Commission, as reported by Bloomberg.

“I continue to believe, consistent with my previous statements and information from the public, that there have been devious efforts related to moving the price of silver,” Chilton said by e-mail today in response to questions from Bloomberg. “There have also been silver and gold market anomalies outside of the silver investigate window that have raised, and continue to raise, market concerns.”

The enforcement division of the Washington-based agency, the main U.S. overseer of derivatives markets, began pursuing allegations of manipulation in the silver market in September 2008. 

Investigators have analyzed more than 100,000 documents and interviewed dozens of witnesses, the CFTC said in a November 2011 statement. Chilton said last month the investigation may be completed as early as September.

In a story published Sunday, the Financial Times stated, "A four-year investigation into the possible manipulation of the silver markets looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case.” 

The FT based their story on three unidentified people “familiar with the situation."

However, Steve Adamske, a CFTC spokesman, said on the silver investigation that “we will decline to comment because the commission has not decided a course of action on this matter.” 

One of the identified targets of the current CFTC silver market investigation has been JP Morgan Chase and some have long voiced concerns that the concentrated short positions held by some banks, including JP Morgan, could allow manipulation of the price and price capping. 

This could result in a massive short squeeze which propels prices much higher leading to further massive losses for ‘too big to fail’ and ‘too big to bail’ banks should the small silver market see sharp moves upwards due to the tight physical market.

For breaking news and commentary on financial markets and gold, follow us on Twitter.

Cross Currency Table – (Bloomberg)

(Thomson Reuters Gold Forum) – India Gold Demand Slow
India's gold demand at the start of the festival season has been slow with rural buyers staying on the sidelines, preferring to hold on to their cash at a time when deficient monsoon rains threaten to dent their incomes.

(Bloomberg) -- Gold Recovery Seen by Deutsche Bank From More Dollar Weakness
A “meaningful recovery” in gold may occur with further weakness in the dollar, Deutsche Bank AG said.

“We still view the ongoing underfunding in the U.S. external deficit as the dollar’s Achilles heel and one of the factors that could drive gold prices higher,” Michael Lewis, an analyst at Deutsche Bank, said in a report dated today.

(Bloomberg) -- Russia’s First-Half Gold Output Falls 2.4% to 79.2 Metric Tons
Russia’s first-half gold output fell 2.4 percent to 79.2 metric tons, led by a decline at Kinross Gold Corp.’s mine in the Chukotka region, the country’s Gold Producers’ Union said today in a statement.

(Bloomberg) -- Gold in Euros Seen Climbing to All-Time High: Technical Analysis
Gold priced in euros may reach a record in the next six months after sliding toward a support area comprising several key levels including the 200-day moving average, according to a technical analysis from Commerzbank AG.

Gold denominated in euros continues to come off its peak at end-July and is slipping toward 1,283.70 to 1,274.70, an area of support made up of the 55-day moving average, the May-to-August support line, the lows seen in mid-July and the 200-day moving average, technical analyst Axel Rudolph wrote in a report.

Gold priced in the 17-nation currency reached an all-time high of 1,374.76 euros on Sept. 12, 2011, according to Bloomberg data. It peaked this year at 1,344.39 euros on Feb. 22, Bloomberg data show. Support levels are marked by clusters of buy orders, according to technical analysts, who say that past moves may be used to predict trends.

The long-term resistance at 1,325.30, made by a straight downward sloping line joining the September and February peaks, is expected to give way before the end of September with an advance towards the highs in February then being “on the map,” Rudolph wrote in a report dated yesterday.

“While trading above the 200-day moving average, our medium term outlook will remain bullish,” he wrote. “A new all-time high above that seen in 2011 is expected to be seen within the next half year or so.”

Bullion is poised to extend an 11th year of gains on expectations that central banks around the world will add further stimulus to boost economic growth hurt by Europe’s debt crisis. Euro-denominated bullion traded at 1,299.20 an ounce at 11:42 a.m. in Singapore, while gold priced in dollars was at $1,610.15 an ounce.

Gold slips with demand for safe havens - MarketWatch

Gold flat, volume low; investors wonder about central banks - Reuters

Tanzania Gold Exports Up 30% in Year Through June, Bank Says - Bloomberg

Gold Snaps Three-Day Advance as Dollar’s Strength Damps Demand - BusinessWeek

Is gold getting ready for take-off? - MarketWatch

When will the European gold shops stop buying and start selling gold? - GoldSeek

Gold And Grand Theft Economics – Zero Hedge

Europe's Scariest Chart In More Detail - Zero Hedge

Gold rush in India? Government steps in again - Mineweb

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Badabing's picture

Say it isn't so!

Pladizow's picture

Asking the CFTC if there was manipulation is like asking JPM if they manipulated the market!

LawsofPhysics's picture

Correct, and Blythe already told everyone that would be "illegal" (in today's regulatory-capture world of course).

Short Memories's picture

Was it this article that's kicking the price up???

One more time please! :)

strannick's picture

Who cares about Chiltons hand wringing sympathy while silvers crime in progress continues. If a years worth of production sold short on the COMEX isnt convincing evidence enough for these CFTC dummies, then either disband the moronic CFTC, or throw CFTC Commisioners Jill Sommers, Scott OMalia, Bart Chilton and Gary Gensler in jail for the felonious billion dollar crime they have seemingly helped perpetrate.

Perhaps one day, a plaintiff will be granted discovery, evidence will be revealed, and som or all of these CFTC Commisioners will be in prison. Remember how retiring CFTC Justice Painter revealed that former CFTC Chairman Wendy Gramm allegedly told another CFTC Justice never to rule in favor of a plaintif claiming manipulation. It seems the current CFTC Commisioners have inherited Wendy Gramms legacy, and continue her despicable scheme.


"One of the identified targets of the current CFTC silver market investigation has been JP Morgan Chase and some have long voiced concerns that the concentrated short positions held by some banks, including JP Morgan, could allow manipulation of the price and price capping. 

This could result in a massive short squeeze which propels prices much higher leading to further massive losses for ‘too big to fail’ and ‘too big to bail’ banks should the small silver market see sharp moves upwards due to the tight physical market."


To hear this quoted by a chief cocksucker organization like Bloomberg means the truth IS getting out.  These asshole manipulators can only continue to function in the dark surrounded by secrecy.  Either way the CFTC shakes out with this investigation, at the end of the day any MSM coverage is good coverage.  The truth is our best weapon.  

strannick's picture

Here's how its done. Lawsky shows these corrupt bumblers how to get to the bottom of things. Any time the Fed and Treasury are ''blindsided and angered'' you know your doing it right. At the end of the article, the reporter confuses ''public shaming'' with ''bankster shaming''

The Treasury Department and Federal Reserve were blindsided and angered by New York's banking regulator's decision to launch an explosive attack on Standard Chartered Plc over $250 billion in alleged money laundering transactions tied to Iran, sources familiar with the situation said. 

By going it alone through the order he issued on Monday, Benjamin Lawsky, head of the recently created New York State Department of Financial Services, also complicates talks between the Treasury and London-based Standard Chartered to settle claims over the transactions, several of the sources said.

 Lawsky's stunning move, which included releasing embarrassing communications and details of the bank's alleged defiance of U.S. sanctions against Iran, is rewriting the playbook on how foreign banks settle cases involving the processing of shadowy funds tied to sanctioned countries. In the past, such cases have usually been settled through negotiation - with public shaming kept to a minimum.

fockewulf190's picture

So Timmah and the Bernank are pissed they couldn't forwarn their partners in crime over at Standard BS. Too fucking bad. It's about time someone got their balls stepped on. I'm sick and fucking tired of these pricks backing up the status quo.

Man do I wish Ron Paul had a chance. These fuckers would be so history.

runlevel's picture

maybe blythe was telling the truth.. JPM  isnt short silver... they are just the middle man for their customers... (The US Govt)

CrawdadMan's picture

but, but the CFTC are supposed to be the good guys. See, they are investigating JPM for silver market manipulations. Only a good guy would do such a thing.

Robot Traders Mom's picture

88th Floor of 1 World Trade Center on Fire.

MsCreant's picture

They are saying it may be false alarm. Article has other sickening observations however.

Robot Traders Mom's picture

Nice work NBC-make me look like a jagaloon.

Badabing's picture

looking out the window now all looks fine.

Sofa King Confused's picture

Fire at 3 Lafayette Center, Washington, D.C  ( CFTC Headquarters ) all evidence about silver manipulation destroyed



francis_sawyer's picture

"88"th floor?... on 8/8?... Just before 8AM?...


i-dog's picture

Good grief!  ... It's the Chinese this time ... instead of the, er, "raghedz"! Timberrrrrrrr....

francis_sawyer's picture

From WIKI ~


In popular culture

  • The completed tower can be seen, along with the other completed World Trade Center towers, in the 2011 video game Call of Duty: Modern Warfare 3, which is set in 2016.
  • The tower is seen under construction in the 2012 film The Dictator during a helicopter tour of New York City.
  • At the end of the 2012 film Men in Black 3, when main character J stands atop the Chrysler Building, the tower can be seen under construction as the camera pans across the city.
  • The unfinished tower can be seen in the 2012 film The Dark Knight Rises as part of the Gotham City skyline.
  • An animation of the Lower Manhattan skyline, including the completed tower and World Trade Center site, is seen when the circus arrives in New York City in the 2012 film Madagascar 3.
  • Two duplicate Freedom Towers are seen completed in the future New York skyline in the 2030s in the 2006 film Click.
  • The completed tower can be seen, along with the other completed World Trade Center towers, in the 2008 film Babylon A.D., where the High Priestess has her office in Two World Trade Center.
  • The completed tower is seen in a war-torn Manhattan in the year 2021 in the Fringe episode The Last Sam Weiss. It seems to show that in this series' universe, the National September 11 Memorial & Museum was not dedicated until 2021, though in reality, the memorial was dedicated in 2011.
A Nanny Moose's picture

Ba Ba. Fathers' Day in China....or someone let the sheep outta their pen again.

El Oregonian's picture

Wow, thats weird 'cause I just ATE!!!

Cognitive Dissonance's picture

"The fire department says the situation “probably will hold.”

Well thank God. Three steel framed skyscrapers at this very location totally collapsed from fires a little more than 10 years ago. Been there, done that.


Jlmadyson's picture

Deeper and deeper into the rabbit hole.

malikai's picture

Silver's come back in.

Gold's also holding near zero.

EDIT: Public Console is running Gold, as usual. We're getting some pretty decent short term signals here today.

vinu02's picture

Fireworks will begin next week when italy and greece needs to make payment. 

scatterbrains's picture

Watch them announce it was Sprott trying to corner the market lol

GetZeeGold's picture



Enemy of the state......he must be stopped.


MsCreant's picture

Die JPM, Die.


Crispy's picture

Physical mkt is just fine from where I stand. Fuck the paper...

Monedas's picture

There's no manipulation .... just a little "stabilization" .... that's all !

Cognitive Dissonance's picture

"When it becomes serious, you have to lie." - Juncker

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Yes, like inflation, a "little bit" of manipulation is good for the market!



silvertrain's picture

The Silver show will get real when the supply is shown for what it is..When company x needs there metal to make a fuckin solar panel or Ipad and there order is not there thats when panic sets in and it blows its load,Rodium like..

LoneStarHog's picture

Hey, GoldCrap, not ONCE did the criminals at the CFTC interview TED BUTLER nor ANY of the other top silver analysts who have been collecting data for DECADES, especially GATA.

Gee! Why would the CFTC exclude CREDIBLE witnesses WITH data?

Understand, GoldCrap?

LongSoupLine's picture

Chilton is chasing pipe dreams...after all I did watch the Blythe interview, and she personally assured me the JPM is on the up and up. /sarc/


On another note, in the past I have emailed Bart my personal chart findings regarding silver manipulation.  To his credit, he did reply thanking me for the info.  Whether he used it or not?...who knows, but at least he was responsive.

GolfHatesMe's picture

Perhaps reviewing the COMEX self clearing process documents, Bart? 

LoneStarHog's picture

I have sent Chilton TONS of daily data, to which he responded that it would IMMEDIATELY be forwarded to the investigative team ... Yeah! ... For the better part of a year I even published a cartoon-type campaign, with the assistance of Ted Butler, exposing and mocking the criminals at the CFTC, using daily data that showed illegal manipulation that any IDIOT could see. For example>

StychoKiller's picture

It's difficult to get someone to understand something when they're being paid NOT to understand it...

Jlmadyson's picture

Nothing good going on at Morgan Stanley;

tocointhephrase's picture

Would you like a violin with that?

chinaboy's picture

If, someday, it is found out that the silver market is as manipulated as, say, liebor, it will be interesting to see why the CFTC "dropped" the INVESTIGATION (why they choose to look the other way). The CFTC may want to freeze the matter. But  the FT story makes it harder.


Good work, goldcore.

buzzsaw99's picture

Round up the usual suspects. [/Renault]

pan's picture

Silver bitchez!

lsbumblebee's picture

It took Captain Obvious 4 years to figure that out.

johnnymustardseed's picture

They will do what is necessary to protect the fiat.