Gold and Silver Hacked on Futures Expiration

By Tom Luongo in Gold and Oil News | November 28, 2012 23:40 | Tags: , , ,

I know that it must sound like a broken record but this literally happens so often anymore that it is beginning to defy description.  After watching a two day blocking action in both gold and silver from the 15 minutes after the popped higher on Black Friday to yesterday’s skirmishes which sent the metals slightly lower, you would have known that this something was being set up for the last day of the COMEX contracts for December delivery.  At the open of COMEX trading this morning Gold was hit with a block sell order of 7784 contracts or the equivalent of 24 tons of gold.

24 tons, and 200 million ounces of silver for good measure.

But, I’m sure the seller really did need to raise cash to avoid paying higher taxes before the Bush tax cuts expired right?  Or was it just afat finger? No, really the kind of finger involved was more of the ‘next to the index finger’ variety.  This tok the price down by $30 nearly immediately and then the price was held below the original blocking price of $1725 from last week for the rest of the day.  Someone was under water at $1730 Gold that didn’t want to be and it was worth an awful lot to someone else to ensure that they did not fail.

Add in yesterday’s news that one of the five COMEX warehouses in New York had declared force majeure and would be unable to deliver Gold against December contracts and the picture becomes a little more complete.  At this point for anyone to stand still and blankly state that the markets are not being manipulated is simply talking their book.   Of course they are.  And in the name of ‘stability’ everyone who is not a part of the banking class elite is to be bankrupted who stands against them.

Now that this has happened once, expect it to happen again multiple times in 2013.  Force Majeure is the last card the exchanges have to play before they are invalidated completely.  There will be even less volume on the COMEX next month.


About Tom Luongo
Tom is a professional chemist and self-taught economist who has been following and trading stocks for nearly 12 years. He has no formal ties to the financial industry and considers that an asset in his analysis of the interplay between monetary policy and capital markets.

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