This is what a 6.5% fall in silver looks like..
On Wednesday 29th February, in the space of minutes, gold fell by 5% and silver by 6.4% on the COMEX. A growing chorus of managers and market analysts are suggesting the market pummelling was more than just volatility at work:
- Spokesman for CIBC World Markets: http://www.goldalert.com/2012/
- Caesar Bryan, 25 year veteran Gabelli Gold Fund manager: http://kingworldnews.
com/kingworldnews/KWN_ DailyWeb/Entries/2012/3/1_ Caesar_Bryan__Yesterdays_Gold_ Selling_Raises_Serious_Red_ Flags.html
- Hugo Salinas Price, president of the Mexican Civic Association for Silver: http://kingworldnews.com/
kingworldnews/KWN_DailyWeb/ Entries/2012/3/1_Billionaire_ Hugo_Salinas_Price_-_Central_ Banks_Smashed_Gold.html
- Ross Norman, Sharps Pixley, London: http://www.sharpspixley.com/
comment/gold-fall-creates-a- fantastic-window-of- opportunity-for-potential- buyers/108251
- William O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey on Bloomberg: http://www.bloomberg.com/news/
2012-02-29/gold-falls-most- this-year-as-bernanke-gives- no-signal-of-any-new-stimulus. html "and it almost seemed as if Bernanke was trying to take the steam out of the commodity market.”
- JS Kim, http://www.
theundergroundinvestor.com/ 2012/03/smartknowledgeu- discusses-gold-silver- manipulation-on-the-keiser- report/
- Single 31 tonne sale on the CME: http://www.zerohedge.com/news/
asia-buys-gold-after-massive- single-trade-sell-during- bernanke’s-testimony
kingworldnews/KWN_DailyWeb/ Entries/2012/2/29_Embry_-_ Gold_%26_Silver_Smash_ Temporary%2C_Oil_to_Super- Spike.html
- Jim Sinclair described it as an Intervention: http://www.
jsmineset.com/2012/02/29/ todays-window-dressing-fall- in-gold/
- What reason to liquidate a big position?: http://jessescrossroadscafe.blogspot.com.au/2012/03/single-large-seller-smashed-gold-market.html
- Resource Investor: "no reason to justify massive selloff": http://www.blogger.com/goog_154617741resourceinvestor.com/2012/03/01/plunge-called-temporary-smash-paper-fiasco?ref=hp
- 225,000,000oz dumped in minutes?: http://jessescrossroadscafe.blogspot.com.au/2012/02/today-is-first-notice-day-for-silver.html
- Fascinating charts of the event: http://www.321gold.com/editorials/nichols/nichols030212.html
- Gold fell more than $60 in minutes and can be manipulated on COMEX by big forward paper sales: http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=146665&sn=Detail&pid=110649
- Who sold millions of ounces of silver?: http://www.youtube.com/watch?v=YU_a5VHU3Lc&feature=player_embedded
- James Turk - Intervention out of desperation: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/3/5_Turk_-_Central_Banks_Intervened_in_Gold_Out_of_Desperation.html
- Andrew McGuire, silver whistleblower - massive paper contracts hitting the market on no real news: http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2012/3/2_Andrew_Maguire.html
- Dan Norcinini - Orchestrated hit to prop up bond market: http://traderdannorcini.blogspot.com.au/2012/03/bonds-and-other-assorted-topics.html
A common theme among all the reports above is that a single seller dumped massive quantities of futures into the market without regard to obtaining the best possible price. Fortunately whether the selling was a deliberate attempt to influence the market or not, we needn't fear. The Dodd-Frank legislation enacted last year is designed to enable regulators to prosecute reckless behaviour regardless of intent. One would therefore expect the controversial legislation to trigger sufficient grounds to investigate Wednesday's chaos. Of course any CFTC comments regarding their intentions would be most welcomed by the public.
As to the possible identity of the alleged seller, the Bank of International Settlements is so far the one of the select few entities to lay claim to being the mastermind behind precious metals market manipulation: http://comexwehaveaproblem.blogspot.com.au/2012/02/bis-advertises-gold-market-intervention.html. However to corroborate such claims and give a clue as to how such gold and silver operations may be affected, the Bank of Japan was reported by the Wall St Journal on Feb 7th to have revealed it has engaged commercial entities to assist with secret currency interventions. It does not require a large leap of the imagination therefore to wonder if central bankers may have found the occasion of Wednesday's appearance before the House Committee and Speech by their most prominent member, a tempting occasion to intervene in the gold and silver markets via the commercial banks.
Now my hypothetical question to the regulators is this: If the CFTC investigated such an occasion as Wednesday's gold and silver smash as they should, and found a commercial entity 'intervening' recklessly in the gold and/or silver market at the behest of a central bank, would that entity share the same immunity from prosecution as its central bank sponsor and if so, what oversight measures may there be to ensure the bank involved was not tempted to trade its own account for illegitimate profit as it carried out its sanctioned government business?