Friday’s Gold Smash Reeks Of Central Bank Corruption

It’s no secret that the banking cabal has been going to great lengths to prevent gold from breaking out above its 200 day moving average.   Why?  Because it is likely that if this were to occur, it would “flip” the hedge fund black box algorithms from selling rallies and shorting downside momentum to buying gold sell-offs and chasing upside momentum higher.  In other words, it would make the task of keeping a lid on the price of gold much more difficult.

The effort to keep gold from legitimate price-discovery is understandable – from the elitist banking cabal perspective, at least:   if the price of gold were allowed to trade freely, it would likely find a market-setting price at least 3-5 multiples above where it is right now.   If this occurred, it would completely undermine the Fed’s QE and ZIRP monetary policy.  It would also cripple the Fed’s ability to keep the stock market juiced wreck the carefully crafted illusion that everything is fine in the U.S. economic and financial system.

Today’s gold smack was one of the more blatant displays of the unfettered corruption that has engulfed the paper gold market:

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When I woke up this morning, gold had jumped $13 from its previous day’s close, as both China and the ECB indicated that they would be printing more money to prevent their respective banking systems from collapsing. Out of nowhere, about an hour before the London p.m. fix, the price of gold suddenly “fell” off a cliff.  Initially, 2,692 contracts (7.8 tonnes of paper gold) hit the Comex (Comex floor + the computerized trading system) at 8:58 a.m. EST. From 9:00-9:30, another 21,855 paper bombs were dropped (approximately 63 tonnes) hit the Comex; from 9:30 – 10 a.m. EST 25,914 contracts were launched (75 tonnes). To put this in perspective, the minute before 8:58 a.m. 302 contracts traded. In the 30 minutes following the attack, 8,583 contracts traded.

The p.m. London p.m. gold price fix, which “officially” is set at 10:00 a.m. EST, involved unusually large volume and an unusually large 9 iterations in order to set the price.  The price was “fixed” at $1,161.25, which was $18 below the $1,179.30 high price gold had hit shortly after the ECB announced more QE.

In total over 5 million ounces worth of paper gold traded during the smash. As of today, the Comex vault operators are reporting only 202.3k ounces of gold to be available for delivery.  With no relevant news or events reported, it can only be concluded that the price drop in gold was an attack on the price by entities intent on preventing gold from the process of legitimate price-discovery.  Perhaps worse is the fact that Governmental agencies put in place and funded by the Taxpayers to prevent market corruption are either indifferent to or complicit with the market intervention.

17 thoughts on “Friday’s Gold Smash Reeks Of Central Bank Corruption

  1. Dave…is there anyway to discover, through any type of legal process, who executed the orders? Why is this such a mystery….there’s got to be a way to find out.

  2. Goodbye paper market exchange,
    Depleted uranium strange.
    Weapon of mass gold destruction-
    Greet real metal, open price construction,
    Born of prescient, patrons of change.

  3. When I saw the smash live I thought if this will ever end. One day it will. Sure. But it could take years. Although I have the feeling we’re close the the final showdown.

    1. Not only could it take years, but the risk is that after price manipulation fails, gold confiscation could be the next step. One should not underestimate the energy with which the present system will fight for its survival. The system will not be brought down by trading, regardless whether in paper or in physical. What is at stake is not the system, but the welfare of all elites.

      1. Why would the federal government confiscate gold? Private American citizens do not have enough gold to confiscate, nor do they have enough to make any difference on the price if it was confiscated.

  4. For every seller there is a buyer, so who bought the 70.8 tonnes of gold ‘dumped’ on the COMEX and what are they going to do with it?

    The ‘dumping’ is always mentioned but never any comment on who buys this stuff and why they are so keen to get it that they will buy, in this case, 70.8 tonnes in a matter of a few minutes.

    1. There are always bids/buy orders at prices lower than the current price of the various futures , as there are always offers/sell orders at prices higher than the current price. Large sell orders without discrimination of price, fulfill the buy orders at lower and lower prices until the sell order is fulfilled. There was no one entity that is, “so keen to get it that they will buy, in this case, 70.8 tonnes in a matter of a few minutes.” There are multiple buyers/bids, and there is no way to know what their exact intentions are, except that generally speaking, they want to sell at a higher price. Also, when you ask, “who buys this stuff”, it is important to realize that they are not buying stuff, or anything real. They are buying selling numbers/electrons/paper/futures, none of which they plan to take delivery on, for the most part.

  5. As long as the majority of sovereign governments with central banks are colluding together, in the act of issuing fiat credit and currencies to support non-servicable debt – Precious metal prices will remain in a limbo of perception seeming about to fall down anytime, while being manipulated to squeeze under the pre-determined status-quo limbo stick.
    How long and how low can we go…..

  6. Indeed, this can go on for years. The only way it will break is if the sheep wake up
    and start buying physical…. Don’t hold your breath. iPhone 7 will come out and
    everything will be just fine. ZZZZZzzZZzZzZzzzZzZZzzZZZ

  7. Speaking of incredulous, how in the hell does the strongest storm ever recorded in the western hemisphere, with wind gusts according to the US Navy clocked at 215 knots, cause zero significant damage as it slams into Mexico?

  8. Your last sentence is I think the very first time I have heard GOVERNMENT being blamed for this rigging! Congratulations!

    There are a tiny handful of “rogue traders”. There is the “Fix”. There is trading of gold in USD. But none of these constitute real, massive-scale “manipulation”.

    The REAL manipulation is systemic.

    As long as GOVERNMENT supports, coddles and protects the ability of unbacked paper gold derivatives – futures, options, swaps, ETFs (with their rules designed to prevent the easy acquisition ff smaller amounts of metal), shorted miners and the like – to set “the gold price”, nothing will change.

    The Comex has to be removed as a price-setting mechanism.

    It won’t matter if the paper claims in the Comex playpen exceed the available physical by 10,000 to 1: the players are only BETTORS. They are not the slightest bit interested in obtaining bullion. They are gambling on “the gold price”, and the cumulative result of their gambling is permitted by government to set “the gold price”. No one goes to Comex to obtain bullion, even if the protective rules were removed and it could be easily done.

    SO…the real manipulators here are not the Comex players, not the traders, not even the LBMA, but GOVERNMENT. They will not give this power up without force being applied.

  9. Listened to the SD interview, this stuff does’ get depressing, but when you think about it massive dump in stocks’ then recovery like nothing happened, not one margin call, no North Rock, no Lehman Bros, nothing!! not even a Bernie Madoff!! so must be getting close to tanks’ in the street..because it’s gone from too big to fail, to no one can fail. I suppose what i’m saying is it must be much worse than what any of us think.

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