ALERT: 100B/oz in Silver Derivatives Just Went up in Smoke!

Bix Weir

ALERT&##x3a; 100B&##x2f;oz in Silver Derivatives Just Went up in Smoke&##x21;

ALERT: 100B/oz in Silver Derivatives Just Went up in Smoke!

This week the LBMA announced the end of the Silver Fix...Hmmm.

London Silver Fixing to be Scrapped
http://www.forbes.com/sites/kitconews/2014/05/14/london-silver-fixing-to-be-scrapped-lbma-to-study-possible-alternatives/print/

The London Silver Market Fixing Limited said Wednesday it will stop administering the London silver fixing after August 14.

Until then, the organization said, Deutsche Bank, HSBC and Bank of Nova Scotia will continue to administer the benchmark price-setting mechanism.

Analysts offered mixed views of the impact on the market, with some suggesting there will be a void for those institutions that want a benchmark price, while others say the significance had waned anyway as markets become more global and electronic.

"It's disappointing to see a 117-year institution coming to an end," said Ross Norman, CEO of Sharps Pixley. "My personal view is that it's been conducted well….It's not sufficient just to be good. You've got to be seen to be good as well."

END

What does it mean? What are the ramifications? Is it really that big of a deal that a few large banksters declare a price of Silver in London every day at 10am?

On one level no...it's just a silly tradition. On a bigger level YES!!

It is not the effect on the trading of physical silver that matters but the valuation and settlement of all the SILVER DERIVATIVE CONTRACTS! I've said it a million times...the LBMA is NOT a physical market but rather a silver derivative market trading over 100B ounces of paper silver derivatives every year to rig the prices.

Why is the London Fix important?

BECAUSE ALL SILVER DERIVATIVE CONTRACTS ARE BASED ON THE LONDON FIX!!!

Think about that for a second. US Commercial banks alone hold $23B (1.15B oz equivalent) in silver derivatives according to Table 9 of the latest OCC Report...

http://www.occ.gov/topics/capital-markets/financial-markets/trading/derivatives/dq413.pdf

And that's just the US bank positions at a point in time at the end of last year. It says nothing about all the other participants or the trading of these derivatives which can be figured out through the LMBA's Average Daily Transfers of 139M oz per day and an estimated 3x trading volume(JP Morgan offered that trading volume number up years ago).

All together, silver derivative contracts representing over 100B ounces of paper silver have just been thrown into CHAOS!

Winners in the silver derivative contracts will argue the COMEX close should now be considered the London Fix. Losers in the silver derivative contracts will argue that the COMEX close is NOT the London fix and they are not obligated contractually to pay anything.

If the London Silver Fix ends on August 14th - the Silver Derivative Market ceases to exist as well!!

And with no silver derivatives "THEY" can't rig the price of silver.

Yes, the end of the London Silver Fix is a VERY, VERY BIG DEAL!

Now, what's the next move for the cabal? Of course, their walking mouthpiece, Jeffrey Christian, offers up an electronic solution for the problem. Bahaha! An electronic solution to a multi-trillion dollar contractual silver problem. Jeff is smoking his own BS again!

Christian Wants a New "Electronic Fix"
http://www.kitco.com/news/video/show/Metals--Minerals-2014/667/2014-05-14/Silver-Fix-Gone-Is-Gold-Next---Jeff-Christian

But it's interesting that Jeff states that the traders were caught off guard and are scrambling for a solution. WAIT! Don't the silver riggers control all decisions when it comes to markets? were they really caught off guard? Judging from Jeff's response...I THINK THEY WERE!

Yahoo! Sorry about that Jeff but your days are numbered!

And it won't end with the Silver Fix as the Gold Fix will follow very shortly and there is even larger problems there.

Zero Hedge has done a great job exposing the criminal operatives in this article that lists them by NAME! (PS - Who knew the Koch Brothers were knee deep in gold market rigging?!)

From Rothschild To Koch Industries: Meet The People Who "Fix" The Price Of Gold
http://www.zerohedge.com/news/2014-05-14/rothschild-koch-industries-meet-people-who-fix-price-gold

All in all it should be clear to everyone that the take down has gone public.