Tag Archives: anti-gold terrorism

China To Launch A Yuan-Based Gold Fix By Year-End

China has been quite reserved about commenting on the extreme corruption and fraud which pervades the west hemisphere’s Governments, Central Banks and financial markets, especially as it regards the United States and its flagrant manipulation of the currency and precious metals markets.   But China has been quite active with diversifying its sources of revenues and foreign reserves out of the U.S. dollar and in to alternative currencies and hard assets.

Follow the money:  The Shanghai Gold Exchange has announced that it intends to roll-out a renminbi-denominated fix by the end of the year.  The plan is now being reviewed by the Central Bank (the PBoC) for approval:

Pan Gongsheng, a deputy governor of the People’s Bank of China (PBOC), said the bank would continue to support “speedy and healthy growth of the China gold market” and its internationalisation.

Here’s a link to the report:   China’s Yuan-denominated Gold Fix

RMB-world-currency-billboard

I find it quite interesting that China still has not released the highly anticipated update of its current gold reserves.   The blogosphere was rampant that this event would occur this month.

China has an interesting game-theory dilemma.  If it releases a report that shows its current reserves at or near the reported level of U.S. gold reserves (note:  emphasis on “reported”), it risks subverting its massive gold accumulation at current prices because such disclosure would likely cause a parabolic re-set in the global price of gold.

Quite frankly, given the catastrophic level of the paper gold “naked short” position held by the west’s Central Banks and bullion banks, a move like this would cause untenable disruption to global financial markets and commerce.

On the other hand, if China were to release a reserve report that was not significantly greater than its current reported gold reserve of 1,054 tonnes, it would risk losing credibility given the enormous amount of gold flowing into China and being withdrawn from the Shanghai Gold Exchange – not to mention the 400 tonnes of gold per year mined in China that goes completely unaccounted for.

My best guess is that China will continue to play hide and seek with its gold reserves until it feels comfortably hedged from the turmoil that will ensure once the truth is revealed.  This most catastrophic of which will be a collapse in the dollar and a collapse in the value of China’s Treasury holdings.  Please note that Russia is unloading Treasuries quickly in order to side-step this event.

As a former trader, I know that if I were holding China’s cards, I would accumulate a massive position in gold and a massive short in the dollar and then release the truth in shock and awe fashion.  The instantaneous transfer of wealth from the west to the east that will occur when this happens will be spectacular.

 

SoT #39 – Market Update: Is The Comex End-Game In Sight?

The information in this report is take from sources believed to be reliable; however, the Commodity Exchange, Inc disclaims all liability whatsoever to its accuracy or completeness. This report is produced for information purposes only.  – Legal disclaimer at the bottom of the Comex daily gold and silver vault inventory reports

The legal disclaimer showed up one day a couple years ago at the bottom of the Comex vault reports. Every gold and silver – especially silver – analyst on the internet discusses the state of condition of the Comex using these reports as if they are bona fide.

Given the implications of the above legal disclaimer, this is quite disconcerting. Even gold/silver analysts who are critical of the rampant illegal manipulation of the gold and silver markets on the Comex take the data as reported as being legitimate.

CLEARLY, that disclaimer tells us not to take the Comex data reports seriously.  In fact, it suggests the distinct possibility that the reports might not be accurate or complete.  Why? Because the reports largely come from the three primary market making banks on the Comex:  JP Morgan, Scotia and HSBC.

The big banks have been successufully prosecuted and fined for fraud and criminal behavior in just about every business segment of their operations except their gold and silver trading. This includes criminal activity in other commodity markets. If these reports are in fact accurate and bona fide, it would be the ONLY business segment of any of these banks that is reported without any misrepresentation or outright fraud.  The probability of that being the case is 0% using a 100% confidence interval.   Sorry Ted.

The U.S. financial markets are the most corrupt markets in the history of the world.  – Shadow of Truth

We also discuss the TPP Agreement. The TPP Agreement completely incinerates what’s left of the Constitution. It completely usurps U.S. Federal and State laws and hands ultimate legal decision over to a tribunal international multinational corporations. It extends well beyond just trade issues. It completely nullifies the Constitution and States’ Rights. Any signatory to the Agreement agrees to waive its own sovereign laws and abide by the enforcement of laws set forth in the TPP Agreement on any matter involving TPP issues.

The TPP Agreement is the end of any country as it was founded and conceived.

Gold, Silver Smashed On Gold-Friendly News Report

Move along regulators and financial media “journalists” – there’s nothing to see here…other than the obvious.  As the open interest, naked short position in silver climbs to an new all-time record and approaches 1 billion ounces of paper silver – most of which is a naked short position – the physical buying markets of the world continue to accumulate massive hoards of gold and silver and the fraudulent paper manipulating world continues to keep the price down for the buyers.

Same story today (click to enlarge):

ComexGold

After yesterday’s take-down of the metals by the Comex criminals, the eastern hemisphere physical gold buyers decided to do more “feeding at the trough.” Gold rose steadily during Mumbai, Hong Kong and Shanghai trading hours.

As soon as Shanghai closes, London opens up and the paper gold bombs start flying.  Gold is immediately hit nearly straight down for the first 30 minutes.  The market rebounds as the naked shorts contemplate the a.m. LBMA pirce “fix.”   Clearly there was an excess of bidders looking for the delivery of physical bars, as the price rose into the 3 – 3:30 a.m. fixing period in order to balance out buyers and sellers (of actual bars).   After the fix it was hit again with more paper.

Of course, gold was banged as soon as the Comex floor opened at 8:20 a.m. NY time.  This is about a 90% occurrence.  Then, about 5 minutes after the GDP 2nd revision report came in as expected, gold was taken off a cliff for another $6.

Any who can’t see the blatant manipulation here is either an idiot or is involved in the corruption.  Clearly, the GDP report should be gold “friendly,” as a negative GDP means th economy is contracting and it reduces or eliminates the probability of any interest rate bumps (which we already know to be the case anyway) and it heightens the possibility of QE4.

I don’t know when this corruption will end, but market intervention and systemic corruption always ends with catastrophic consequences.  Anyone who is not at least moving all of their paper “wealth” out of system – this includes retirements assets – will live to regret it.

COMPLACENY

“China Gold Demand Picking Up Strongly This Month”

While the London and New York fraudulent paper gold market continues to function as the price-setting markets for the global price of gold, China continues hoovering physical gold. In the latest week reported (June 8-12), 46 tonnes of gold were removed from the Shanghai Gold Exchange.  This puts the year-to-date total at 1,061 tonnes, which is up 20% for the same period over 2014 and 7% over 2013.   Koos Jansen refers to the YTD total as “staggering”  LINK.

The actual amount of gold being “consumed” by China is quite contrary to the flood of bearish media reports on gold this year, including several which characterize China’s demand a weak.  The reports, of course, are entirely misleading as they rely on data from the World Gold Council.  The WGC only tracks and publicizes gold which enters China through Hong Kong.  This is despite the fact that China opened up Beijing and Shanghai for gold imports specifically to mask the amount of gold that it is bringing into the country:

Opening the capital as the third shipment point will help the PBOC keep purchases discreet as it is believed to be adding to its bullion reserves.  – South China Morning Post, April 21, 2014 – LINK

Of course, the western media only uses factual reporting when it fits the propaganda it promotes.

Lawrence Williams has written a short piece describing the facts about the amount of gold flowing into China vs. the media disinformation:

Contrary to a number of media reports telling us China demand for gold has collapsed, and also that premia on the Chinese gold markets have turned to discounts, the latest figures out of Shanghai belie these statements…We have been calculating that perhaps around 40% of Chinese gold imports are now coming in directly rather than via Hong Kong which makes the Hong Kong figures, as reported by the mainstream media, no longer indicative of total Chinese demand.

Here’s the link:  China’s Gold Demand Is Strong

We can pnly wonder how much longer London and NYC can rig the price of gold, as occurred in overnight trading into Monday morning:

GoldJun21Once again gold was somewhat steady during Indian/Asian market hours. Rumors about a deal with Greece started to appear shortly before Asia closed and London opened. Of course the market manipulators used this as an opportunity to put downward pressure on gold.  Then the Comex opened.  Selling hit the Comex floor right at the floor trading opened at 8:20 a.m. EST.  There was no news or events that would have triggered selling by an investment account that was long gold futures.  This was yet another blatant paper attack on the price of gold by the banks, acting on behalf of the policy-makers at the Fed and the U.S. Treasury – collectively the “Plunge Protection Team.”

Of course, it’s easy to put the blame on an HFT hedge fund.  But this is nothing more than a shameless manner in which the truth gets repackaged by the elitists and served up the masses wallowing  in a cesspool of denial and hungry for a fairytale.

But here’s the truth:

COMPLACENY

 

Russia Continues To Dump Dollars And Buy Gold

The enormous effort by eastern hemisphere countries to diversify their reserves out of the dollar and into physical gold is quite remarkable.  The latest reports out of Russia show that is has cut its dollar exposure in half since January 2014 and appears to be accelerating its accumulation of gold:

OUT OF DOLLARS (source: Smaulgld.com, U.S. Treasury):

RussiaDollars

AND IN TO MORE GOLD:

RussiaGold

Meanwhile, physical gold held in western custodial accounts at Central Banks and trading exchanges continues its exodus.

Koos Jansen has reported that custodial gold at the Bank of England dropped another 351 tonnes in the latest reporting period: Bank of England Custodial Gold Drops 351 tonnes

Craig Hemke of TF Metals Report did some sleuth-work on the Comex vault data and discovered that over 37 tonnes of gold was removed from Scotia Bank’s customer custodial account at the Comex:   Investor Gold Flees Scotia’s Comex Vault

Finally, since February 11 this year, over 72 tonnes of gold has been removed from the GLD trust.  The only way gold is removed from the GLD trust is if any of the Approved Participant banks – the usual suspected criminals – redeems 100,000 share baskets of GLD stock in exchange for physical gold bars held in Trust.   In fact, I have heard reports from several credible sources in London that big investment accounts which have tried to exchange shares for gold have been denied.  If you read through the fine-print of the GLD prospectus, you’ll find that the Trustee indeed has the option of denying exchange for physical requests.

The big question in my mind – and one which we’ll never know the answer to until it’s too late for the victims- is whether or not the gold being removed from custodial accounts held at banks, Central Banks, exchanges and GLD is being delivered to their rightful titled owners or if its being hypothecated by the bullion banks and shipped to the east.

I have a instinctual belief that when the “gold grab” begins in earnest in the west, and the trusting entities/individuals who trusted their gold with criminal bullion banks look to take delivery, we will find that “Mother Hubbard’s Cupboard is bare.”

We are in an era in which Rule of Law has been replaced by Rule By Those In Power.  There is no accountability for the wealthy elite and, and the political puppets of those elite, as they continue their massive theft of wealth from the western economic and financial system.

Eric Dubin – The News Doctors: Unusual Trading Patterns In Gold/Silver

There are no markets anymore – only interventions.  – Chris Powell, Co-Founder & Treasure of GATA

There’s no question right now that the Fed/Treasury/Banks – collectively the Plunge Protection Team – are putting a great deal of effort into keeping a strong bid underneath the S&P 500.  Of course, there’s slippage in other areas (click to enlarge):

DJTThe Dow Jones Transports have been in a definitive downtrend now since the beginning of the year.  It is diverging negatively from the heavily manipulated S&P 500.  More important, the DJT represents shipping and transportation companies which are directly tied to any consumption-based economic activity.  If consumers are not spending money, it shows up directly in the bottom line of most of the companies in the DJT.

Eric Dubin of The News Doctors has noticed some intervention slippage in the trading patterns of gold and silver:

Yesterday’s pop higher after Janet Yellen and her marry band of central bankers pushed expectations for interest rate normalization further out in time.  Gold and silver shot higher.  But what was far more interesting was precious metals trading during the 48 hours prior to the FOMC announcement.  On Tuesday, there was a small raid, but gold and silver reversed and recouped about 75% of the damage within just a few hours.  

There’s no question that the metals are behaving differently right now.  It seems that, rather than having an unfettered ability to push the metals lower – as has been the case for the last four years – the manipulators are working feverishly to keep the metals from streaking higher.   One obvious indicator is the record level of open interest, most of which represents naked shorting, in Comex paper silver futures.

Eric has detailed some other interestingly unusual activity and you can read his article here:  Silver & Gold Update – The News Doctors.

Gold And Silver Bounce After Blatant Paper Attack

The financial markets are more distorted and perverted than ever; and there is no sign that dynamic will end for the foreseeable future.  – The King Report, June 16, 2015

Today is one of those days when the Fed’s footprints were all over the markets. Yesterday’s negative economic reports – industrial production declined .2% for May and was revised lower for April to -.5% from -.3%;  NY Fed manufacturing survey plunged into contraction and has been declining for five straight months – were followed up by an 11% plunge in housing starts in May.

This is the type of news that should have sent the stock market plunging and the precious metals flying higher.   Instead, the S&P 500 rallied from down over 10 points overnight to its current level of up over 12 points from yesterday’s market close.  Gold and silver were hit twice after Asia’s physical bullion markets closed and the west’s fraudulent paper markets opened – intraday gold and silver – click to enlarge:

AugustGoldIntradaySilver

While the Fed was busying putting in S&P 500 emini orders which would be front-run by the big hedge fund HFT trading algos, the Fed’s agent bullion banks on the Comex – JP Morgan, HSBC and Scotia – were busy dumping a payload of gold and silver contracts onto the Comex floor at 9:11 a.m. NY time. Again, no apparent news or event triggers. Just pure, unadulterated market manipulation.

With the economy quickly contracting beneath the facade of Orwellian media disinformation and with the situation in Europe with Greece growing more perilous by the hour, the Fed is in full combat mode, working frantically to keep the stock market above its 126 day moving average and to keep a heavy lid on the price of gold and silver.

The Fed’s “Maginot Line” – click to enlarge

maginotline

RealMaginotLine

But gold and silver have bounced back, with silver briefly bouncing back to above where it was when the 9:11 Comex bombing was initiated.  In fact, silver once again is holding $16. Moreover, silver continues to carve out a pattern a higher lows:

1yrSilver

For now, both gold and silver continue to defy the endless parade of R.I.P. bearish Wall Street and financial media pundit price forecasts. Meanwhile, despite media pronouncements that Indian and Chinese demand for gold and silver is dying out, India is on track to import a record amount of silver this year and China is on track to import a record amount of gold. Incidentally, India which just released its gold import report for May which showed at 10.5% gain over May 2014 to $2.42 billion, or 60+ tonnes. This is a big number for India for the month of May…

Comex Paper Silver: New Record Naked Short Interest

2014 total GLOBAL mine supply 877.5 million ozs. So Comex OI is now 110% of annual mine supply. What a sick joke.  – Craig “Turd Ferguson” Hemke on Twitter

I need to make a slight correction to Craig’s analysis.  2014 silver production is already used up.  70% of all silver produced is used up in manufacturing processes.  The other 30% produced in 2014 is sitting in jewelry boxes across India and China or in fabricated bullion form in private investment hands around the globe.

Because most silver is produced as a by-product of mining base metals, and because the world economy slowed drastically or contracted, it is likely that base metal mining production declined.  It is thus likely that silver output is declining in 2015.  Therefore, the open interest in silver futures on the Comex is likely even greater than the 110% of 2014 production cited by Craig.

Please note:  any open interest in silver futures on the Comex that is in excess of the amount of silver available for delivery – i.e. the “registered” account in the Comex vaults – is considered a “naked short.”  This is because paper obligations have been issued against physical silver that does not exist to be delivered.  In any other market, this activity would be stopped immediately by the regulators – FINRA, the SEC and the Justice Department. But the regulators blatantly ignore the most manipulated in the history of the world.   Click to enlarge:

SilverOI

This table above is the silver trading and open interest data from Friday’s Comex trading session in silver.  It includes the electronic Globex trading plus the Comex floor activity.  As you can see, the total open interest moved up to 192,527 contracts.   This represents 962 million ozs of silver – 110% of 2014 global silver production but likely a much larger percentage of the current 2015 global silver production.

To put the 962 million ozs in context:  the total amount of silver reported to be in Comex vaults is 179.8 million ozs;  the “registered”  and available to be delivered amount is 57.8 million ozs.  Please note:  the numbers reported by the Comex banks are suspect as to their validity, as banks have been successfully prosecuted for reporting fraud in other areas of their business activity and JP Morgan has been fined and censured by the CFTC for its Commitment of Traders data reporting.

Based on the numbers above, the amount of naked short interest on the Comex is 904.2 million ounces, which is the amount by which the total paper open interest exceeds the amount of silver – 57.8 million ounces – that has been made available for delivery.  Anyone see a problem here with the integrity of the Comex and its regulators?

The amount of July open interest – 456.2 million ozs – is 7.8x greater than the registered silver and 2.5x greater than the total amount of silver on the Comex.  The total open interest exceeds the registered silver by 16.6x and exceeds the total amount of Comex silver by 5.3x.

This market imbalance represents first and foremost a degree of market intervention and price-setting collusion that has never been witnessed in the history of any market, let alone the history of what is supposedly a country devoted to free markets and Rule of Law.

There’s a reason the Government is enabling this illegal activity to persist and to grow more extreme.  I have a bad feeling that no one wants to see this reason and I have a worse feeling that we may find out this year.

Spinning Out Of Control – A Conversation With TF Metals Report

Craig “Turd Ferguson” Hemke invited me on to his weekly podcast show this week.  Some of the topics included in our conversation:

The fact that the U.S. economy is starting to contract and why Wall Street, DC and the mainstream media are working overtime to spread propaganda and disinformation;  the cesspool of global derivatives bets that threaten to collapse the financial system; the true state of the U.S. housing market and why a the housing market is headed for another big decline; the prospect of the Government making gold illegal again.

You can access Craig’s site and the podcast here:   TF Metals Report.

mushroomcloud

Silver Manipulation May Be The Most Extreme In History

Much has been made in this commentary of the soaring silver open interest, which ought to be unprecedented in commodity market history.  – Bill “Midas” Murphy, co-founder and Chairman of GATA

The open interest in Comex silver hit another new all-time high yesterday.  As of Wednesday’s final open interest report, the open interest in silver was 189.7k contracts. This is the highest the open interest has been based on data I have going back to April 2005.

189.7k contracts translates into 948.5 million ounces of silver.  According to the Silver Institute, the total global silver mine output for 2014 was 877 million ozs.  The amount of paper silver open interest on the Comex is thus greater than the amount of silver mined in a year globally.

The ratio of silver futures open interest to the amount of silver warehoused on the Comex is even more absurdly disproportionate.   As of Wednesday, June 10 the Comex vault operators (JP Morgan, Scotia, HSBC, Delaware Depository, CNT and Brink’s) were reporting a total of 179.7 million ozs of silver in Comex vaults.  Of that, 57.8 ozs were classified as “registered,” or available for delivery (the rest was being “safekept” at the Comex by investors or commercial users of silver).

Based on these numbers, the silver open interest is now 5.3x higher than the total amount of silver on the Comex and 16.4x the amount of silver that has been made available for delivery.

GoldSilverManipulationNever in the history of the commodities markets has the amount of futures outstanding for any commodity been this extraordinarily disconnected from the amount of the physical supply produced and available for delivery.

Anyone who asserts that gold and silver are not manipulated using paper derivatives just based on the market action alone is either completely corrupted – with a motivated financial interest in denying the obvious – or is a total idiot.  But upon examining the Comex data for silver – and accepting it prima facie, which I do not (I believe the real numbers are even more extreme) – anyone who denies that silver is manipulated in extremis has likely received a full frontal lobotomy.

The blatant takedown in gold and silver signals to me that something is coming. I enjoyed Keith Neumeyer’s letter to the CFTC. When a major producer like First Majestic raises the issue I think the CFTC will have a more difficult time blowing it off than another diatribe from Ted Butler.  – John Embry

Briefly, the price of gold/silver is manipulated in two ways.  The first method involves “bombing” the Comex (either the trading floor or the electronic Globex trading system) will massive futures sell orders, typically during periods of low liquidity or when economic reports are released.   This causes the sharp sell-offs.   The second method involves price capping, which is achieved by meeting periods increased demand from buyers with added supply of futures.

If the allowable amount of gold/silver futures open interest was pegged to the amount of physical gold/silver available for delivery, it would be impossible for the banks to print an infinite supply of paper contracts to meet demand from buyers.  This is how every other commodities product operates.   In fact, isn’t this how every other commercial product market typically operates?

The motivation by the Fed/Government to keep a lid on the price of precious metals is certainly understandable.  If gold and silver were allowed to operate in a market of bona fide price discovery, they would almost instantaneously re-price at significantly higher levels.  This event would completely undermine the legitimacy of the dollar.  It would disrupt entire the massive wealth transfer mechanism being operated by America’s corporate, banking and political elite.   We’re talking about blood money.

There’s no telling how much longer this extreme manipulation can continue.  History has shown that market interventions eventually fail – often with serious consequences.  As I have suggested in recent commentary, I believe that the credit market is sending signals which indicate that western Central Banks and Governments are beginning to lose their ability to control the markets.

This whole thing is totally nuts. I still think silver will go bonkers within the next few months. Maybe that is a hope trade of mine, but I smell it as much as I smelled my biggest winner, the copper move of 1987.  – Bill Murphy