Friday, June 15, 2018

Gold and silver price crushed under $34 billion in derivative shorts on quad witching day

Just as gold and silver prices were really starting to gain some traction after going above $1300 and $17 respectively yesterday, it appears that the cartel needed an excuse to crush prices severely and they found it in during the market's periodic Quad Witching day.

Quadruple witching refers to an expiration date that includes stock index futures, stock index options, stock options and single stock futures. While stock options contracts and index options expire on the third Friday of every month, all four asset classes expire simultaneously on the third Friday of March, June, September and December. Much of the action surrounding futures and options on quadruple witching days is focused on offsetting, closing or rolling out positions, as well as arbitrage trades, with the result being elevated volume, particularly in the last hour of trading.


However it also appears that this was not simply an ordinary beatdown of the metals as the central and bullion banks have spent at least $34 billion in shorting gold and silver through derivative paper contracts, and have been able to move the price lower by more than $20 in just two hours.

Gold and silver both should have soared rather than declined thanks to central banks scuttling their QE programs, and begun conducting rate raising policies that would have required equity holders to look for much more safe haven assets.  But since the metals market is completely controlled by the derivative paper market, the price can easily be manipulated at any time, such as with this morning when all fundamentals were in place for gold to move higher.

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