Commodity Trade Mantra

Posts Tagged ‘CME Group’

Can the Price of Silver (the Year's Top Performer) Continue to Rally?

With the price of silver up nearly 40% year-to-date, investors are wondering whether it can continue. Experts say it may have more room to run, particularly as global interest rates continue to stay negative. It wouldn’t be inconceivable to see a silver supply shortage if there was heightened demand, & in that case, a silver to gold ratio of 20 to 1 (or lesser) is not an impossibility.

Will Silver Prices take off like a Rocket while Gold Prices Languish?

Why are junk bonds and equities not dropping commensurately? It’s crystal clear that if rates are truly moving up, then all assets will be repriced lower. So for the moment, the prices of the metals— silver more than gold—are driven by this Narrative.It would be strange to see the price of silver take off like a rocket while the price of gold languishes, moribund.

How Gold and Silver or Other Commodity Prices Are Set

The price of everything in the world has a price discovery process, which is just a fancy way of saying how prices get set. But what used to set prices and is still thought by most to continue to set commodity prices, no longer sets price over the intermediate time frame. The process has been completely upended & there has been a price setting revolution in some important world commodities.

CFTC doesn't know, nor wants to know Anything about the Commodity Market Rigging

Being unaware of the Deutsche Bank market rigging story, untill 10 days later, gives the impression that the CFTC not only doesn’t know what’s going on in its jurisdiction but also that it doesn’t want to know. It is additional evidence that certain commodity market rigging is outside the commission’s concern because the governments are the actual perpetrators.

Fixing the Silver Fix - The Corruption Continues

The Pathological Liars were handed the responsibility of providing us an honest price for silver. Even better – The silver fix was supposedly created to prevent corruption in the silver market. However, not only are the Pathological Liars allowed to trade in the same market where they provide this quasi-regulatory function, but they are by far the largest traders there.

China Is Now In Control Of The Global Silver Prices

China has been an unofficial price-setter for most metals over the past decade. And this week, China became an official participant in setting prices for one of the world’s most important precious metals markets – the London Bullion Market silver price. One of China’s largest banks just became a member of an elite group of players that controls fluctuations in this key metal.

Comex Registered Silver Inventories Plunge Nearly 10% In One Day

The Comex continues to see a drain of its Registered Silver inventories, while the SHFE inventories are showing a rapid increase. It will be interesting to see what happens at these two exchanges over the next 6 months. If Comex Registered Silver inventories continue to fall, this could spell more trouble for the highly leveraged paper based precious metal markets going forward.

3 Reasons to Be Bullish on Silver Prices in 2016?

There are a number of factors that will contribute to the resurgence in silver prices: China’s addition to the LMBA silver benchmark-setting process & the slowly improving U.S. economy. Silver is used as a hedge against economic uncertainty, for jewelry & has numerous industrial uses. Silver prices are bullish. But even at current levels, they still don’t accurately reflect its versatility.

Large Withdrawal From JPMorgan’s Gold Inventories In A Day

JP Morgan lost nearly 15% of its total gold inventories in one day. If you look at the COMEX Gold Inventory table closely, you will notice that the total Registered Gold inventories are a lousy 351,519 oz. This is less than peanuts. Two withdrawals like JP Morgan experienced on Thursday, would totally wipe out the Bankers Registered gold inventories.

Price Takers and Price Makers in World Commodities

Over 99.9% of all world consumers and producers are price takers and not price setters, & yet their total consumption / production has little to do with how prices of many world commodities are determined. How can this be? There is a great force (excessive speculative positioning) that’s setting the price & rendering the law of supply and demand as almost non-existent.

Central Banks and Our Dysfunctional Gold Markets

The love-hate relationship between governments and gold is complicated. It is because gold is a competitive national currency that, if allowed to function in a free market, will determine the value of other currencies, the level of interest rates and the value of government bonds. Hence, central banks fight gold to defend their currencies and their bonds.

If Gold Is Not Money, Why Do Clearinghouses and Former Fed Chairs Say It Is?

Collateral is an underlying asset that is pledged when a party enters into a financial arrangement. Even Alan Greenspan, the man most responsible for the 2008 financial crisis, has admitted that “gold is money.” He couldn’t admit this until he’d left the Fed. But this is a man who knows all too well just how the financial system works.

Thoughts On The Price Of Gold

Derivatives can be used by bullion banks and central banks to influence the price of gold. If the paper price goes down & physical demand increases this has to be met by equal physical supply, that is, if the price for physical gold follows the paper price. If the physical price disconnects from the paper price, premiums will appear at one location.

Silver Ready to Run

Silver looks to be on the verge of a major new up-leg, finally emerging from the past couple years’ ugly sentiment wasteland. And while investors’ ongoing silver stealth buying continues, it’s been modest. So there is vast room for capital inflows to accelerate dramatically as gold mean reverts higher.

Alarming Gold Market Manipulations Underway

Here’s an amazing interview about the secretive and far-reaching gold price suppression scheme that’s been going on behind the scenes. Chris Powell of the Gold Anti-Trust Action Committee, or GATA, who is working to expose the manipulation of the gold and silver markets, tells all in an exclusive interview.

CME Implements Gold, Precious Metals Circuit Breakers Up To $400 Wide

Effective for trade date Mon, Dec 22, 2014, & pending all relevant CFTC regulatory review periods, NYMEX & COMEX will implement new Rule 589 (Special Price Fluctuation Limits) to apply price fluctuation limits to precious metals futures and options contracts. Wonder why now & what does CME know about upcoming volatility that nobody else does.

2 Comex Gold Depositories: Registered Inventories Decline 25% In A Day

On Thursday, Brinks held 257,290 oz of gold & Scotia held 339.993 oz in their registered inventories. On Friday, when CME released an update on its Comex gold warehouse stocks, Brinks registered inventories declined 62,259 oz & Scotia Mocatta fell 87,849 oz. In a day, Brinks registered gold inventories fell 24% & Scotia Mocatta’s fell 26%.

Indian Silver Imports Setting Up For Another Big Record Year

With strong demand in Oct, India imported 5,535 mt of silver year to date, with two months remaining. If India imports a conservative 350 mt of silver for each of the remaining two months, that would be a little more than 6,200 mt. In 2013, India imported 5,819 mt of silver & US imported 5,080 mt; totaling 42% of global silver mine supply.

Ted Butler’s Silver Price Outlook

What do we make out of the current gold and silver futures positions? One thing is clear, as both Butler and Steer have reiterated, the rate of accumulation in short positions of commercial traders during the next rally will determine to which extent the rally will run. I’m thinking the commercials and JPMorgan will let it rip this time.

How, Why & What on Manipulation in Gold and Silver Markets

China and the East are in the process of taking away the silver and gold pricing mechanism from New York and London & there is absolutely NOTHING the West can do about it! If there are 2 different prices for one ounce of silver or gold, which one will be the real one & designate the price for a real ounce to change hands.

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