John Manfred user


The business media is not reporting what should be the biggest story in gold/silver in years. On Saturday, the Hong Kong futures exchange collapsed. That's right, folks, it closed its doors, and instructed clearing agents to settle gold and silver contracts in cash, rather than delivering the physical metal that long buyers had contracted for! The clearing brokers agreed to settle for cash, at whatever the price of gold and silver happened to be on the morning of May 20th.

Now, friends, you can better understand last night's volatility. This is why gold and silver prices went crazy down, in Asian trading, and trading in silver was so crazy that CME's automatic trading stops went into effect. ending trading 4x last night (Eastern time night that is - Chinese day). The usual suspects, who are COMEX and HKMEx clearing members, were simply manipulating prices. 

The thieves did their best to torpedo prices. Now, the amount of cash they must pay, given that it was determined at near the fake low, is FAR less than what they should pay. And, the unfortunate customers who thought they were buyng gold, but ended up buying nothing but paper, must pay to convert that cash to real gold or silver. Not only were they cheated on the price, which is now much higher than the settlement time earlier this morning, but the real price of gold, in Hong Kong, now, is a $50 per ounce premium ABOVE the spot price now, so it is even worse than that!

ALL, except one, of the clearing brokers of HKMEx are also clearing brokers at COMEX! Why couldn't these supposedly "venerable" clearing houses deliver real gold and silver bars, rather than cash, regardless of the closure of the exchange? After all, that is what they owed on the futures contracts which matured last Monday! The buyers had already put down their cash, and they were paying in full for gold and silver bars, NOT to trade cash for cash.

The clearing brokers of HKMEx/COMEX are certainly NOT acting like there is a "bear market" in gold or silver. If that were the case, they would be happy to get rid of a few more barbaric relics, especially when they have predicted that the relics will keep going down in price like "a knife slicing through butter"? Instead, they are either refusing to part with whatever gold and silver bars they may have, or they don't have any to deliver. This tells us all we need to know.

The bull market is ALIVE AND WELL, and the derivatives markets, as we long predicted, as imploding. It is quite possible that the next futures exchange to default on physical delivery will be COMEX. Keep in mind that the clearing brokers of HKMEx include Morgan Stanley and NewEdge (a joint venture Societe Generale and Credit Agricole). All these characters have been working very hard to spread propaganda to discredit gold, especially immediately prior to the latest takedown. Will they get away with all this without going to jail? I hope not, but, given the corruption that is rampant in governments and markets, all over the world, they may walk.

The clearing members of COMEX have now DEFAULTED in Hong Kong, as of this morning. Their home market in New York, it seems to me, might be next. Admittedly, they've got a goodly sum of gold sitting in their COMEX warehouses, or at least they say they do. But, if a significant number of long buyers demand delivery, goodbye COMEX, and goodbye JP Morgan, Morgan Stanley, Goldman Sachs, Societe Generale, Credit Suisse, Credite Agricole, et. al. Goodbye, banksters! 

So, next, comes COMEX, where the same folks also "clear" trades, and which has a big gold delivery month in June...