Loads of great stuff went down yesterday at the 2012 Silver Summit but what stood out for me is the AWAKENING of silver investors that the game is 100% rigged. Before my 1/2 hour speech called “The Mechanics of Silver Manipulation and Silver Conspiracies” I sat in on Jeffrey Christian’s speech and became “unhinged” as he bad mouthed GATA, Bill Murphy, Andrew Maguire, Ted Butler and finally RON PAUL! I was pissed and I told everybody so at the beginning of my speech.
I laid into Christian showing how although he claimed to have “made money for my clients by shorting silver in September by moving in and out of positions using COMEX silver puts can calls” his TV appearance recommendations on August 7th said exactly the opposite. He called for the silver price to breakdown from $28 to $24 over the next two months. He also said the price of silver would fluctuate between $20 and $28 over the next two years. Here’s the BNN clip from August 7th…
How can he be so blatantly wrong on his silver call and tell everybody at he was right and making money for his clients?! In actuality, according to the CFTC’s Bank Participation Report four or less of his “clients”, the big billion banks, have INCREASED THEIR NET SHORT POSITION by 85M ounces in the past few months!
After I got that out of my system I went about the task of explaining to the audience how the manipulation works, who is doing it and where we go from here. I explained that is was all done with silver derivatives and computers on the COMEX and fake physical transactions on the LBMA. I presented the actual 2011 silver market volume numbers and you could hear jaws drop when the audience came to the realization that the “silver market” has nothing at all to do with silver. It is a silver derivative market on steroids. Judge for yourself:
Physical Silver Mined in 2011 was 782M ounces….a record year.
2011 COMEX Futures and Options Statistics
Daily Volume = 389M ounces
Full Year Trades = 98B ounces
2011 LBMA Statistics
Daily Physical Silver “Transfers” = 175M ounces
Full Year Net Physical Silver “Transfers” = 44B ounces
Full Year Gross Physical Silver “Transfers” = 132B ounces
Clearly there is no economic or business justification for this amount of silver related derivative transactions and trading. 132B ounces of physical silver traded hands on the LBMA?…Give me a BREAK! Sure, they are mainly paper ownership transfers but for what legitimate business or economic purpose other than to rig the market?
The reality is that the large bullion banks are trading back and forth to each other at huge volumes to SET the price where ever they want it to go. As a matter of fact, of the 11 “Market Maker Members” in the LBMA 8 of them are under investigation for rigging the $350T LIBOR Markets! Once has even CONFESSED that they DO rig the markets out of theirLondon offices. The same banks using the same “market making” mechanisms in the same down and Jeffrey Christian says there is NO market rigging. Give me a break!
There is much more to report on and I will be summarizing the entire conference on the Private Road next week. Sorry, but there will be no Friday Road Trip this week but now would be an excellent time to go through the Friday Road Trip archives to understand what’s about to hit us…
Friday Road Trip Archives
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Back to the presentations and then I have an interview with David Morgan which will be fun!
May the Road you choose be the Right Road.
PS – A rather humorous moment happened last night was when Jeffrey Christian was an “added surprise guest” on the panel I was on and he was sat right next to me! It was the first time I had met Jeffrey and the first thing he said to me was “I hear you were attacking me in your presentation”. I answered, “I sure was and it really wasn’t that difficult to do!” he chuckled and the panel Q&A was not that controversial. Great stuff to watch though and if anybody got a picture of me and Jeffcuddling up at the podium I love to get my hands on it!