Gold is moderately lower in Thursday morning trading even as the slump continues for the U.S. dollar index hitting a two week low. Gold last reported a.m. is $1176.30 and silver is $16.31.
First Majestic Silver Corps. president and CEO Keith Neumeyer, openly questioned the credibility of the U.S. Commodity Futures Trading Commission over concerns of ongoing manipulation in the silver futures markets.
He referenced “a record position change of more than 28,200 net contracts of COMEX silver futures being purchased by traders in the managed money category, the equivalent of around 141 million ounces of silver and 61 days of world mine production.
“The COT report also indicated almost 24,400 net contracts were sold by traders classified as commercials and the equivalent of 122 million ounces and 53 days of world mine production,” he said. “In addition, the report indicated that 8 traders in COMEX silver futures held a net short position of 376 million equivalent ounces of silver, by far the most of any commodity in terms of world production (163 days).”
Neumeyer stated in the letter that he’s confused why a concentrated short position would be so large, adding that the murkiness of who’s trading the contracts and what they are labeled as further muddies the process.
“Since the Commission classifies traders in the managed money category as speculators (as opposed to hedgers) and because there is little evidence from public financial reports that silver producers are represented in the commercial category, it appears the big changes in positions on the COMEX are by speculators and commercials acting as speculators and not by those engaged in bona fide hedging.”
Neumeyer went on to conclude that the CFTC was not working within the confines of commodity law and said that there is an issue with the discovery price process as “real producers and consumers of silver don’t appear to be represented.”
Neumeyer made his thoughts known that there is no doubt the CFTC is behind the repeated manipulation in the suppression of silver prices. “As one of the largest primary silver producers in the world, we feel that an effective and fair pricing mechanism is critical for the healthiness of our industry and for the millions of people impacted by what appears from the outside, to be manipulative practices by a concentration of players.”
It’s become increasingly obvious that “free” markets are a thing of the past. All markets especially those in the U.S. are manipulated by banks as seen by the repeated actions of our own Fed and JP Morgan, just to name two.
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