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Paul Kaminsco's avatar

"What happened behind the scenes"? COMEX did what COMEX does. I said last week that you can't break COMEX with a large position, they will just liquidate your position and settle in cash. They make the rules.

My money would be that they released metal going back to the US Treasury and everybody else was told, "no metal for you!"

None of this is 'normal'. The whole system is dying. They can't stem the gold buying, so they try slamming silver, to shake out the weak hands... but there are no weak hands, as soon as the slam is over, the buyers return.

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Steve Gunther's avatar

Hi Michael.

Your post ends "...It is not apparent how many contracts actually stood for delivery, nor

After the dust settled, ..."

I feel this might have been a mistake?

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Michael Lynch on Gold & Silver's avatar

Thanks. That was accumulated fragments. I deleted them.

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dale's avatar

Wow - just wow. Paper covers rock. Can this well-cloaked strategic maneuver trap precarious shorts? Assuming it happened. And I'm with you on summarily dismissing bookkeeping errors.

I'm beginning to picture a beach ball, under water, filled with helium.

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AussieManDust's avatar

...and that beach ball is in the ass of a Paper Tiger... with an anchor tied to it's paw...

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Ignatius's avatar

So that beach ball is going down, or about to burst and sink to the bottom of the ocean, along with the paper tiger and anchor?

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AussieManDust's avatar

Nope. That ball's gonna FLOAT, right up that paper tiger's butt and EXIT outta it's VERY surprised head...

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Paul Kaminsco's avatar

Hi Michael, we might have a clue about what has been happening with silver.

Alasdair Macleod is telling a story from a mining conference he attended recently. All the miners were saying they are selling doré bars to JPM. They suspect that these bars are going to China for refining - which makes sense because the refineries in the West have no capacity at the moment - too busy with gold. So buying low grade silver at the mines becomes your "alternative venue".

At the same time, China is dumping silver on COMEX, to keep the price down. So that is HSBC's "Customer".

If China buys more doré bars than the silver it sells on COMEX, it is adding to its reserves with 'even cheaper' silver.

When China decides to stop playing this game...

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