On yet another day of Fed failure to meaningfully prop up the deteriorating Treasury market – while PIIGS sovereign bonds were “slaughtered into the close” – something incredible occurred, which even I am still in disbelief about. And that something was – drum roll please – an actual sharp increase in PM prices late on a Friday afternoon.
Some might say it was due to “short covering”; extreme undervaluation; fears of a weekend turn of events in Syria; the PM-bullish COT report, released at 3:30 PM EST; or even reduced expectations of Fed tapering (personally, I expect no more than a “token taper,” if anything at all, which may well BACKFIRE on the Fed’s best laid plans). However, such events have occurred on countless Friday’s before; yet, NEVER are prices allowed to overcome the Cartel’s rote capping algorithms; particularly before weekends – when bullish Friday closes can prompt market participants to “do their homework” while perusing their Sunday New York Times, Barron’s, or the like. In other words, the ANSWER to the question of why gold and silver surged late in the day is because a new BOMBSHELL was published at 2:00 PM EST by King World News – regarding new evidence that JP Morgan has indeed been manipulating the gold and silver market for years…
Suffice to say, this will be my dedicated topic tomorrow; but for now, know that Andrew McGuire’s revelation that two other JP Morgan whistleblowers submitted detailed evidence of PAPER PM manipulation 15 months ago, but were completely ignored by the CFTC, may well catalyze a run on PHYSICAL metal equivalent to what occurred after the initial McGuire disclosures in March 2010; and thus, just one day after JP Morgan announced it will be spending an additional $4 billion to deal with its exploding legal and regulatory costs!
Better yet, enigmatic CFTC Commissioner Bart Chilton; who to this day has been “all bark, no bite,” violently lambasted JP Morgan and Goldman Sachs – in particular – in a seething speech titled the Brutality of Reality; stating that not only are PAPER PMs – and many other “paper commodities” – manipulated by banks, but that “it’s time for an intervention. Congress should not only do away with the statutory exemption that has been used by Goldman and Morgan, but also do away with the ability of the Fed to allow any commodity-related ownership by the banks whatsoever.” And “for those paying attention, there will likely be more cases filed by the CFTC in the next few weeks than we’ve seen in a long time. Stay tuned.”
Perhaps Zero Hedge is just starting to get wind of the daily PAPER manipulation of markets I have been writing of for years, but better late than never. Anas for the world’s BIG MONEY, trust me it is already well aware of what’s going on. When the PM suppression is finally understood by the “medium money” – and inevitably, the investment community at large – not only will PHYSICAL PM prices be many multiples of the current levels, but supply will be GONE, GONE, GOODBYE. In other words, not only will prices be too high for the average person to afford – and that goes for silver as well – but there will be NONE to purchase at any price.
Stay tuned for tomorrow’s article on this VERY important development; and get ready for some near-term squirming by TPTB. First, from “Helicopter Ben” after Wednesday’s FOMC meeting; and next, Jamie Dimon and company when the silver scandal starts expanding. By the way, I still have little confidence that CFTC will go after JP Morgan specifically this month; however, widespread dissemination of the aforementioned revelations may well prove to be a veritable “Ebola Virus” to those attempting to illegally suppress PM prices. And oh yeah, whether JP Morgan and Goldman Sachs are ensnared in this deadly web or not, don’t’ forget they have spent 2013 going MASSIVELY LONG the gold market!