Comex Floor Trader Confirms Silver Manipulation

(Text on screen): Jim Puplava of
interviews David Morgan. Announcer: The Financial Sense midweek edition,
with Jim Puplava. Delving in-depth with authors and experts
into the key economic issues. Jim Puplava: Joining me on the program today
is Dave Morgan of The Morgan Report, and Dave, why don’t we begin with the bullion itself.
I have heard all kinds of explanations given as to why gold is where it is today versus
where it should be, or at least where people thought it was going to be, given QE3 and
QE4. Now, I have some of my own thoughts, but I’d
like to get your own. David Morgan: Well, that drills right to,
I think, the main topic that’s debated more and more, and that’s the market manipulation.
First of all, for the record, I believe almost all markets are manipulated. Maybe not tick
by tick, minute by minute every part of it. I’ve been on record, I think on your show
first, stating that the overall trend can’t be manipulated, but within the trend it certainly
can be and has been. Jim, I want to digress to something that was
said to me years and years ago, and you’ll get the idea as I read this letter from a
floor trader that was sent to me. What we’re talking about in this manipulation issue,
because of the price I’m going to read. It says, “Dear Mr. Morgan, I enjoyed your
newsletter excerpt of Feb. 12, which I found on the Kitco website. I guess I’m part of
the problem. I’ve traded COMEX futures aggressively from the pit for over 15 years. Over the year,
the amount of futures contracts that we’ve traded have surely dwarfed the actual physical
market, making it difficult for silver to manifest its true fundamentals. As you alluded, it’s ‘Groundhog Day’ again
on the floor. Over the past month, I wanted one fund accumulate an eye-popping long position,
and I followed its progress as best I could through the open interest and commitment figures.
When prices started slipping away from last week’s test of the $4.85 to $4.90 level, I
could hardly believe my eyes when I saw early evidence that this fund was starting to sell.
I went across the pit to the trader whom I knew was trying to stick with his longs and
I said, quote, ‘I’ve got bad news for you. That selling you see over there’ that will
take three weeks.’ End quote. The fund sold heavily all last week. The usual
bank traders were sopping it up, secretly relieved, I think, that prices failed to break
into ground they could not control. Younger traders ask me how these funds kept getting
chopped up like this. They don’t realize that a 30-cent chop in silver is a minor inconvenience
compared to the strong positions most of these guys have in gold and crude. As you know, the banks will continue to play
puppet master as long as the silver game remains quote-unquote ‘closed’. (Text on screen): Full interview in the Members
Only Section.

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