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Silver Derivative Shorts Prepare for “Force Majeure” Claims

by Bix Weir, Road To Roota:

We are approaching another “I told you so” moment on the Road to Roota.

Word is that just two days away from the end of the “Silver Fix” and the implementation of the new “London Silver Price” there are still no major participants and no information on how the new system works: Participants in the New Silver Fix”Unclear” Three Days Before it Goes Live

With only three trading days left until the new electronic, auction-based and auditable substitute for the 117-year old silver fix goes live there is still no certainty over who will take part on Friday… According to FT, the first users of the new price setting process should be the 11 market-making members of the London Bullion Market Association, which include Credit Suisse, JPMorgan, Goldman Sachs and UBS… None of them, however, has publicly stepped forward to say they will be involved in the Chicago Mercantile Exchange/Thomson Reuters-run price setting method.

Yes – of course! The plan all along was to destroy the pricing mechanism for silver! Not that there was a real one anyways. 3 old guys sitting in a room and deciding where they want to “place” the price each day in London was hardly a true market for silver.

There is no PHYSICAL silver market. There never has been

So how can these new “London Silver Price” fixers even fake that there is any legitimacy at all in the pricing of silver? Oh, they will try but they will fail miserably (HINT: after claiming it’s a huge success in the first few weeks! :)

The TRUTH lies in a much more sinister operation yet completely obvious…

The end of the silver derivative market and the claims of “Force Majeure” by the Silver Shorts due to the chaos caused by the switch over to the new benchmark.

DUH!

More in this weeks Road Trip where I will spell out the expected fallout.

Buckle up for insanity!!

Bix Weir
RoadToRoota.com

picture credit: mining.com

28 comments to Silver Derivative Shorts Prepare for “Force Majeure” Claims

  • petedivine

    If the silver fix mechanism is not replaced. Then the price discovery mechanism will most likely move to shanghai’s physical silver exchange. Interestingly, that exchange has lost 90% of its silver over the last year. We also had Dennis Gartman discussing PMs and this is what he said”… the “Force” will have to work very hard today to defend its authority. The question shall be, “Will it?” I’ve never seen Dennis Gartman as a cheerleader of PM investing.

    I’ve never been a fan of Bix, but if there were going to be a force majeur, then I’d imagine the price of silver would be as low as “the force” could push it. Something seems to be going on.

    • Tom Aumeg

      The question is, given that the contracts were written with the London Fix specifically as the benchmark for silver price, how you would legally mandate that the contracts be honored when that benchmark doesn’t exist. You can’t just say “replace it with this or that.” The contract language is very specific.

      • Ed_B

        Not being a contract attorney, it seems to me that the contract would be null and void unless renegotiated between the buyer and seller in mutually beneficial terms of something that does exist.

  • rich

    A great song on gold and the Fed

    Michael Belkin, founder of the Belkin Report sent us his new song. He told us he just started this band who focus their songs on gold and central banks. I was skeptical at first but this first song is actually quite catchy and entertaining. The lyrics are posted below the player.

    The stock market is a casino
    where losers place their bets
    They call it investing but it’s Russian Roulette
    Not one person in a million
    knows the Federal Reserve is disgusting
    They’ll print and they’ll print ‘till our money’s worth nothing
    The greenback ain’t no standard
    ain’t no standard at all
    The greenback’s a funny money government standard
    The gold’s all gone, the gold’s all gone, the gold’s all gone, yeah the gold’s all gone.
    The poor live on credit cards and foodstamps
    electronic benefit cards
    The rich are getting richer and driving fancy cars
    Congress spends every penny it can borrow
    our budget is self-destructing
    They’ll spend and they’ll spend ‘till our money’s worth nothing
    The greenback ain’t no standard
    ain’t no standard at all
    The greenback’s a funny money government standard
    The gold’s all gone, the gold’s all gone, the gold’s all gone, yeah the gold’s all gone.

    http://www.kereport.com/2014/08/06/great-song-gold-fed/

  • Tom Aumeg

    From the beginning, Kerry Lutz (a lawyer by training) pointed out that the silver contracts may be void. The term is “impossibility to perform”, since the benchmark stipulated in the contract no longer exists. So if silver runs to 100, and the holder of the contract tries to collect, the shortie just says “I’m only bound to what the London Fix said, and it no longer exists. The contract is void, and you can’t ask me to heed what Shanghai is charging.” A court might rule that the premium must be refunded, or the price be the last one from the London Fix, or some other measure. But the short will likely be off the hook for $100 silver.

  • glitter 1

    I for one think there is some truth to a “Force Majeur”in the works/approaching.If there is a huge Repricing/Reset of the values of Gold and Silver and I believe it is coming,then it stands to reason that the “Shorts”will “Break The Banks” so to speak.So of course The Banks want to/look to get out of their loosing position ahead of “The Derivative Bomb” detonation.So either the Commercials,i.e. JPM,Goldman Sachs,Citi,HSBC,BofA et al,will look for a way to somehow escape out through the back door/window or find a way to leave some sucker(s)holding “The Bag”, or this could be how they allow the whole system to self destruct via the “Derivative Complex”.Starting with Deutsche Bank,which will then ignite the cascading defaults.What’s going on throughout/on in the World Stage will pale in comparison to the fallout from a World Banking Callapse.Then It All Begins!

  • Hannon

    If all goes well, in the future our silver will be priced by it’s own weight and purity. I’ve stopped worrying about the money changers game and I’m enjoy the subsidized prices while they last. Soon enough we’ll have to work ourselves a lot harder for a lot less shinny stuff, and everything else we buy. Don’t hasten the day, I hope they’ve got enough steam in their engine to last a few more years :)

    • Angel

      Here, here, though “a few” might be a bit long for my liking. But it will be what it will be, regardless. And it leaves us no excuses for neglecting our preparations with that time frame.

      • Ed_B

        No, Angel, it does not. We are getting the benefit of some extra time here but this is only of value if we actually use it to good purpose. If it is wasted, it might as well have never been.

        I also agree with Hannon. These subsidized prices are great for stackers. $20 silver is a no-brainer. So is $1300 gold. Collect all you can while you can. Once China and Russia have as much gold as they think they need for their purposes, they will be the ones who have most of the gold and they will be the ones who decide what it costs. It will be in their best interests if gold is VERY high in price. At that point, we either have our gold and silver or we do not. The train will have left the station by then and anyone not on it when it pulls out won’t be getting on it.

        • Angel

          Yes, and there’s no doubt that China/Russia are also taking full advantage of the time. What’s good for them is good for us. You could bet on that. Don’t let a good opportunity go to waste,

      • Angel

        I meant Hear, Hear.

  • Sam

    Whenever the fiat debt note masters lose control of their market price manipulation mechanisms, it will become very interesting….especially for those that are betting on the proven multi-thousand year real deal stuff. Would not enjoy being part of a “force majeur” trade. I’ve got a few more coin due in by the end of the week and with the findamentals screaming, stacking couldn’t be finer.

  • The Truth

    The U.S dollar will be 43yrs (add the 4+3=7) as a FIAT currency on 08-15-2014. Also in the date(08-15-2014) you get 8-15=-7(drop the “-” sign like IMF Christine said) and with the year you get 2+0+1+4=7 go figure(remember the numerology number by the IMF chief of 7). Well check this video by MrCati on youtube.

    https://www.youtube.com/watch?v=jT6oOAzW-Dw

    8-17 he said is the date that is critical. I looked at the numbers and got 8-1=7 lets us see what happens come Monday. “7″ is a number for completion and this may be the end of the dollar’s reign.

  • The Truth

    P.S remember the U.S dollar was first a silver coin of honest weight and it will be ironic that the end of the manipulation in the price of silver is the reason the U.S dollar Federal Reserve Note goes up in smoke! As it was in the beginning, so shall it be in the end!

  • AgShaman

    They will adopt some variant of the COMEX’s rule 104.36

    If they don’t have the metal of choice…they will need to use some other commodity, or most likely paper (read: ETF shares in something) derivatives of some sort.

    Non-disclosure policies will keep the traders silent and the music going a little longer…until the last of the wet brained traders figure out the casino is a complete sham and they must eventually consider a new profession that doesn’t involve channeling remora

  • CalSailX

    You want to know what a once of silver is worth, find out how many ounces of silver I’ll take to produce 100 rounds of .30-06 ammo before and after their… FIX.

  • CalSailX

    Pretty unfair I know… because when your when disarming the American People thinking you can make us helpless. All I can say is you don’t know us at all… yes I’m chuckling they have no idea the shit they are stepping into.

  • ArvUK

    Hi all,

    I work in the City of London. It’s 8:02 AM on Thursday 14th Aug. I just logged into my online banking and saw this message:

    ======

    Important Information – Cash Withdrawals14 Aug 14

    We are undertaking essential maintenance to our systems, which will mean you will be unable to use your Lloyds Bank debit or Cashpoint cards at any ATM (UK or abroad) between 1:30am and approximately 7am on the morning of Sunday 17th August. In addition, all Lloyds Bank ATMs will be unavailable for use during this period.

    Other services will continue as usual:

    Internet and telephone banking will be unaffected.
    Your debit cards will continue to work for online and over the counter purchases.
    Credit cards will be unaffected and work as normal.

    ======

    Needless to say, it may be a good weekend to have a large amount of cash on hand, and also next weekend is a bank holiday weekend here in the UK.

    Stay ahead of the pack gang.

    ArvUK

  • Gnostic

    My bank had an IMPORTANT MESSAGE,-THANKS SUCKERS- it was quickly deleted & the Banker who wrote it Suicided. LOL

  • Angus

    sure whatever Gnostic got the link toughguy ??

  • Check Mate

    Looks like the market may corner itself. Who needs the Koch brothers.

    When the music stops, I hope you have a chair to sit and are strapped in. I hear the G-forces on take off are incredible!

  • Angus 16oz

    Bix is misleading again – why is he given an audience by all these websites. I read the transcript from ISDA and it is a model clause that parties can put into their contracts voluntarily. It merely states that the price is now called London Silver price and is the reference price that was before the Silver Fix. Bix said that is mandatory in one of his previous posts for parties to use this and this is not true. ISDA has no authority over private contracts.

    Please Bix quit the drama and misleading stories. Please SGT and Silver Docs, stop posting from this guy. You are adding to this disinfo.

    In closing – Ron Paul and Sarah Palin for Republican ticket – need I say more!

  • Angus 16oz

    Why is BIX given an audience by all these websites.

    Please Bix quit the drama and misleading stories. Please SGT and Silver Docs, stop posting from this guy. You are adding to this disinfo.

    In closing – Ron Paul and Sarah Palin for Republican ticket – need I say more. His track record speaks for itself.

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