I expect that a similar situation could take place on the COMEX where precious metals prices, gold & silver, have been suppressed for years.
The rule is that a commercial is restricted to a number of shorts. Beyond that, the commercial must have the metal to deliver. In the case of silver, the price lags behind every other commodity. This is particularly interesting since silver is a multi-purpose commodity, having several uses. Add to that the fact that there have been no new silver discoveries. Haven't been in quite some time. It is usually found in limited amounts through copper mining.
JP Morgan handles one of the COMEX certified depositories for silver. I suspect that they are using silver they don't own to mark the reporting books to be in compliance, and the COMEX is looking the other way.
Great article...just one of many more to be written articulating how prevalent corruption and fraud have become in all of these institutions...I guess making money the old fashioned way, just doesn't cut it anymore, for those who are over leveraged and already bankrupt.
How long before we see a run on silver and gold, before they decide to close down those markets, only to have physical delivery become the real barometer of value...as it should be.
Tick, tock...and I don't mean the social media platform...time is running out for these crooks.
To sit back and see Pfizer withdraw EUAs, Biden try to shove the energy blame to Putin, Trudeau using emergency measures and continuing to keep the Canadian border closed to unvaccinated travelers leaving, the CDC hiding data and banks doing what they did in 2008 yielding the symptom such as the failure of the LME… it begs the question as to how many shoes need to drop until the system is fully rebuilt on honesty and transparency and criminal charges for breaking the law.
Follow the money, are they bailing out the chinese firm or the banks that are the clearing counterparties? They couldn't liquidate the positions via auction because they're so far out the money they'd be worthless? For them to crater LME this way suggests that it was either LME or Barclays, Goldman, UBS, Credit Suisse, Deutsche that would have to cough up the billions. Either they let them clear without parent guarantees and way over sane limits, and the whole edifice was inadequately capitalized so as to make it worthless, or the losses are much much bigger than anyone is aware of and the banks called in their chips.
Any coincidence here to Barclays suspending OIL and VXX ETNS...I think so...volatility happens slowly, and then all at once...Houston, we have a liquidity problem...
The LME has always been known in some of the more tuned in circles, as an elitist Brit good old boys club with the stealing rights for their business. Holding ship loads of copper off shore for fake supply, for example.
The fundamentals for two of the important metals reviewed very well here.
Old old copper mines with declining grades. Who could have imagined?
We are confronted with overt fraud all around us. Nobody ever faces justice, excepting the little guys of course--"Joe Six Pack" all the way up to Martha Stewart, but no further.
"The law is a curious net that catches the little fish while the big fish freely pass through"
-Stefan Molyneaux
This has all happened before. Its going to get worse before it gets better. Much worse.
Hit me up when you're all about ready to spit on your hands and hoist the black flag, so to speak. I'll bring the hotdogs.
In the aftermath of the 1985 tin crisis there were predictions of the LME’s imminent demise. It’s still here
The trust horizon is shrinking by the minute. Loved your article but there are a lot of hopefuls hanging on to their trust. Covid showed me that.
"we believe the LME is functionally finished."
Just like all the finance co's from 2008?
Etc etc etc
No way. Doomers never learn.
LME is going nowhere.
Bojo is the metaphor for the LME lack of trust..
I expect that a similar situation could take place on the COMEX where precious metals prices, gold & silver, have been suppressed for years.
The rule is that a commercial is restricted to a number of shorts. Beyond that, the commercial must have the metal to deliver. In the case of silver, the price lags behind every other commodity. This is particularly interesting since silver is a multi-purpose commodity, having several uses. Add to that the fact that there have been no new silver discoveries. Haven't been in quite some time. It is usually found in limited amounts through copper mining.
JP Morgan handles one of the COMEX certified depositories for silver. I suspect that they are using silver they don't own to mark the reporting books to be in compliance, and the COMEX is looking the other way.
Great article...just one of many more to be written articulating how prevalent corruption and fraud have become in all of these institutions...I guess making money the old fashioned way, just doesn't cut it anymore, for those who are over leveraged and already bankrupt.
How long before we see a run on silver and gold, before they decide to close down those markets, only to have physical delivery become the real barometer of value...as it should be.
Tick, tock...and I don't mean the social media platform...time is running out for these crooks.
To sit back and see Pfizer withdraw EUAs, Biden try to shove the energy blame to Putin, Trudeau using emergency measures and continuing to keep the Canadian border closed to unvaccinated travelers leaving, the CDC hiding data and banks doing what they did in 2008 yielding the symptom such as the failure of the LME… it begs the question as to how many shoes need to drop until the system is fully rebuilt on honesty and transparency and criminal charges for breaking the law.
Brilliant article , keep em coming , thanks so much
Follow the money, are they bailing out the chinese firm or the banks that are the clearing counterparties? They couldn't liquidate the positions via auction because they're so far out the money they'd be worthless? For them to crater LME this way suggests that it was either LME or Barclays, Goldman, UBS, Credit Suisse, Deutsche that would have to cough up the billions. Either they let them clear without parent guarantees and way over sane limits, and the whole edifice was inadequately capitalized so as to make it worthless, or the losses are much much bigger than anyone is aware of and the banks called in their chips.
Any coincidence here to Barclays suspending OIL and VXX ETNS...I think so...volatility happens slowly, and then all at once...Houston, we have a liquidity problem...
The LME has always been known in some of the more tuned in circles, as an elitist Brit good old boys club with the stealing rights for their business. Holding ship loads of copper off shore for fake supply, for example.
The fundamentals for two of the important metals reviewed very well here.
Old old copper mines with declining grades. Who could have imagined?
https://aheadoftheherd.com/copper-and-nickel-market-updates/
"Margin Call" is now streaming on Netflix and could pass for a documentary.
RIP LME
Decades when nothing happens.
Weeks when decades happens.
Thx for what u r doing
We are confronted with overt fraud all around us. Nobody ever faces justice, excepting the little guys of course--"Joe Six Pack" all the way up to Martha Stewart, but no further.
"The law is a curious net that catches the little fish while the big fish freely pass through"
-Stefan Molyneaux
This has all happened before. Its going to get worse before it gets better. Much worse.
Hit me up when you're all about ready to spit on your hands and hoist the black flag, so to speak. I'll bring the hotdogs.
Loving the newsletters and podcasts. Keep up the great work