Something Ain’t Right Out “There”

The overt and blatant manipulation of the gold and silver markets on the Comex reflects frantic desperation – but why?

Perhaps the most unsettling recent event was the announcement by the CME that it was looking at putting daily price limit curbs on gold and silver futures.   Why now?  The daily volatility of gold is at a 4-yr low.  Why were limits not in place a year ago when the bullion banks took the price of gold down $200 in a 24 hour trading period?

The only reason to put price limit curbs in is to prevent true price discovery.   Anyone with a pulse knows that the last year’s manipulated trouncing of the metals using Comex futures triggered an avalanche of physical gold and silver buying globally.    And based on the fact that over 1000 tonnes of gold was removed – and disappeared from sight – from all of the physical gold investment trust globally combined, including over 500 tonnes from GLD, the massive and determined price take-down last year was anything but true price discovery.

But there are other, equally as disturbing smoke signals:

1)  Silver was hammered early this morning, after the a.m. London “price fix” and leading up to and during the opening of Comex futures floor trading.   All of the European/eastern REAL physical markets were closed today – Switzerland, China, Viet Nam, Turkey.  London was not closed but I think we’re fooling ourselves if we consider London a true physical market.  Today was nothing but a pure paper jam job to try to force potential holders of Comex contracts to sell and not stand for delivery.  Note:  no other correlated markets, like the U.S. dollar index or currency futures flinched during the raid on the metals.

2)  Since the beginning of March, 452 tonnes of silver were removed from the Shanghai Futures Exchange + the Comex AND the U.S. exported a record amount of gold to Hong Kong in January.

3)  Deustche Bank resigns from the LBMA  gold and silver fix committee and can’t sell its seat.  Why?  Because why would any prospective buyer pay for the right to fix the price of gold and silver if they won’t be allowed to manipulate it and make money from it.  This is a more significant event than has been attributed to it by anyone.  Those LBMA price fix committee seats have zero value if they can’t be used to manipulate the markets.

4)  What was the emergency and secretive Fed meeting about two days ago?  It certainly had no bearing on the policy announcement from the FOMC yesterday because the FOMC policy was basically unchanged, with the standard fraudulent comments about an improving economy and labor market.

5)  China and Russia shifted into overdrive mode to work toward eliminating the U.S. dollar from their trade activities.  Ironically this was triggered by the U.S. intervention in Ukraine.

6)  Unexplainedly, Belgium in the last 5 months has become one of the largest holders/buyers of U.S. Treasury bonds, amassing a quantity that is roughly 3/4’s the size of the country’s GDP.  Belgium has been running a current account deficit and a trade deficit.  Where are the funds coming from to buy this amount of Treasury paper?  Ironically, Belgium’s holdings jumped up significantly right around the time over $100 billion in Treasuries were removed from the Fed’s foreign custodial account (rumored to have been Russia’s bonds).

Please note:  Brussels is the headquarter city for both the EU and NATO.

Something is seriously wrong behind the scenes and I have a bad feeling – as do many of my colleagues – that we might find out exactly what it is before the end of the summer…

16 thoughts on “Something Ain’t Right Out “There”

  1. It stands to reason that if most of the American public is dumb enough to allow the Crime Made Easy the right to coax them through the house of smoke & mirrors then the American public deserves what they will end up with, namely nothing.

    There is more then enough information for anyone to glean from the www to figure out for themselves NOW is the time to self prepare and what to do about it.

    1. You are right and I am going downtown to buy more silver, in addition to my monthly fixed purchase of PM.

  2. Somewhere in this there should be a line item or 2 giving how much revenue the fedgov was expecting to collect under that new “tax”.

    they’ve gotta be hundreds of billions/year already below their projected revenue they hoped to see by now.

    i think that secret FOMC meeting part with Old Yeller & the other high criminals of conspiracy was to scheme how to go from lying big to lying bigger about tapering.

    Disengage the tapering; engage the taMpering!

    the real fed deficit must be heading to mars by now.

    pretty sure the Walloons aren’t that filthy rich they’ve been buying us debt at that rate these past months.

    http://www.cbo.gov/publication/45230

  3. Today is the 3 year anniversary of the May 1st Silver massacre. Even worse, Silver has had one 7 month long rally since March, 2008 which equates to 91% of the last 6+ years Silver has been smashed, squashed and smothered. All the while equities float higher with Great Depression II as a backdrop.

    As to your article title, I will go out on a strong limb here and state what we are about to witness. A USD crisis so severe that will wake up the sheeple. This will break the Gold/Silver manipulation once and for all. Once this occurs we will see what true price discovery really looks like. COMEX notwithstanding!!

    1. Good comment. I was trying to hint at what you just said there about the dollar w/out making a timeframe predictions.

  4. For those who think there is no PM manipulation by the West.
    Hegemony is still the order of the day, for now, but its days are numbered.
    “He who owns the (physical) gold makes the rules.”

    http://www.gata.org/files/USEmbassyBeijingCable-04-28-2009.txt

    2. U.S. POLICY

    People doubt that Obama will make any
    breakthroughs in the core strategic interests and values of the U.S.
    It is doubtful that he will give up the country’s long-term pursuit
    of hegemony

    3. CHINA’S GOLD RESERVES

    “China increases its gold reserves in order to kill two birds with
    one stone”

    The China Radio International sponsored newspaper World News Journal
    (Shijie Xinwenbao)(04/28): “According to China’s National Foreign
    Exchanges Administration China ‘s gold reserves have recently
    increased. Currently, the majority of its gold reserves have been
    located in the U.S. and European countries. The U.S. and Europe have
    always suppressed the rising price of gold. They intend to weaken
    gold’s function as an international reserve currency. They don’t
    want to see other countries turning to gold reserves instead of the
    U.S. dollar or Euro. Therefore, suppressing the price of gold is
    very beneficial for the U.S. in maintaining the U.S. dollar’s role
    as the international reserve currency. China’s increased gold
    reserves will thus act as a model and lead other countries towards
    reserving more gold. Large gold reserves are also beneficial in
    promoting the internationalization of the RMB.”

    1. Why do people insist at looking at gold as a store of value , only. That’s what a reserve is. When bullion (by weighted denomination) actually circulates , it purges existing fiat debt by supporting much needed liquidity and thereby supports the value of any and all fiat currencies. When they don’t have to carry the full burden of the economic needs, fiat currencies can be withdrawn. The relationship is then symbiotic.

  5. Gold and silver are on fire sale due to manipulations. But, funny how few want to buy except for the Russian, Chinese, and Indian buying with both hands. Wonder what do they know and we don’t?

  6. You are right on Dave. These fools have painted themselves into a corner and
    now they are running scared and panicky. Bad things are coming no matter
    what and with desperate fools at the controls it could get very bad very quick.
    Everything they do now seems to be knee jerk reactions and not a well thought
    out plan.

  7. Some interesting news to think about, or, one more reason to own gold and silver (as if we needed one more)

    http://www.iexpats.com/forget-fatca-new-global-tax-network-coming/

    Forget FATCA – New Global Tax Network Is Coming
    April 30, 2014 By Jim Atkins

    For those who might have missed the news, FATCA (Foreign Account Tax Compliance Act) was passed by congress a few years ago to try to reign in tax cheats.
    FATCA works like this- A foreign country makes a deal with the US to tell the US if any Americans have bank accounts in their country and how much they have, and the US tells the foreign country if any of the foreign country’s citizens have money in US banks and how much. This way both the US and foreign countries can crack down on people trying to evade taxes, since both the US and foreign countries worldwide are broke and hungry for tax revenue. Any foreign bank that refuses to cooperate gets hit with a 30% fine on any profits they make in the US, shares of stock sold in the US, etc.

    To add to the hunt for tax revenue, the Organisation of Economic Co-Operation and Development (OECD) is setting up its own version of FATCA.

    End result- even if you live and work overseas, it is going to get a lot harder to keep money in a foreign bank. Even if you are on the up and up and you are not trying to hide money or anything, and you tell the IRS all about the foreign bank account, you may find yourself forced out of overseas banks. Some banks overseas have decided not to deal with Americans in any way, shape or form and avoid FATCA altogether.

    Meanwhile, gold and silver are flying under the FATCA and OECD radar. No one is trying to track down who has what when it comes to the precious metals, PM’s are as anonymous as they are portable. Foreign banks may not want to deal with Americans but foreign metals buyers are not so picky.

  8. Fear not PMs, 200 trading days of consecutive 1% up moves would translate into ~147 silver or 9500 gold, with which I’d have no problem. But *something* ( e.g. the current pricing mechanism) would/will break way before anyway, with associated default(s) of the LBMA/CONeX. Got phyzz?

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