Tag Archives: GATA

Bill Murphy: The Fundamentals Will Push Gold & Silver To Spectacular Levels

“Some sort of Black Swan event will come out of nowhere and cause an explosive move in gold and silver” – Bill Murphy on Shadow of Truth

In the absence of intervention, gold and silver would be trading at a level that is a few multiples higher from they “trade” now. At some point, some entity will want to take possession of a big “chunk” of gold or silver and will stand for delivery of the physical with the intent to remove that gold or silver from Comex vaults.

For now the big accumulators of physical gold (China, Russia, India) are content with the current rigged market price of gold as long as the west can continue to make deliveries into these countries. But at some point the west’s “cupboard” will be bare and big buyers will see what the Comex really has in its vaults. It’s at that point when the precious metals market will become interesting.

There is always the threat that the Shanghai Gold Exchange begins arbitraging out the price difference between the physical market (eastern hemisphere) and paper market (Comex, LBMA). Currentlysilver trades in China’s physical settlement market (Shanghai Futures Exchange) at a significant premium to the price on the COMEX paper market. The week of October 17, 2016 the average difference was well above $0.80 per ounce. This represents approximately a 45% difference. How large must the difference become before the physical market naturally overwhelms the paper market? The difference in the physical gold market is not quiet as dramatic as the physical silver market, but it seems a natural progression will occur in the not too distant future. The physical market is filled with people that are not interested in paper contracts. These people are in real markets located in the eastern hemisphere – China, India and other countries. In these countries gold is either part of the culture or there is an understanding of gold’s role as a currency.

In today’s episode with GATA/LeMetropolecafe.com’s Bill “Midas” Murphy about the extreme intervention in the precious metals market and the catalysts that will eventually override the Central Bank intervention.

An Open Letter to Elizabeth Warren on Gold Fraud

The letter posted below is from Stewart Dougherty.   Elizabeth Warren on the surface purports to represent middle class interests by associating herself with the erection of the Consumer Financial Protection Bureau.  But she has turned out to be another faux populist who panders to the public in order to generate voter support and, in reality, sides with the rest of her cronies and looks other way while Corporate America steals our wealth.

The Consumer Financial Protection Bureau is a Trojan horse device which superficially appears to protect the public from Wall Street but in reality does  nothing more than provide a false sense of security. It’s another useless bureaucratic mechanism which serves no purpose other than to create another Government department that vacuums up taxpayer money and employs people who are otherwise unemployable in the private sector.

I ask you this, dear Elizabeth, if your Consumer Financial Protection Financial Bureau serves any purpose, how on earth did Wells Fargo’s billions in checking account fraud go undetected.  I suspect another person with “Warren” in their name had a hand in encouraging you to leave Wells Fargo alone.

And speaking of Wells Fargo, the show you put on the other day verbally “pistol-whipping” Wells Fargo CEO, John Stumpf, was highly entertaining.  But unfortunately, your words are tougher than your actions.  Based on the financial regulations (see FINRA, please) that are in place to punish those caught committing financial market illegalities, Stumpf can be held legally responsible for the actions of those below him – his “agents” is the technical term in case you’ve never studied financial regulations.

The size of what occurred at Wells Fargo qualifies Stumpf and his henchman to be indicted with felony charges.  I recall in 1988 that the Justice Department threatened Drexel Burnham Lambert with RICO charges for its felonious actions.  Of course, that was an era when Congress was not completely captured by Corporate America.

I’m sure your theatrics helped increase your support base in Massachusetts.  It’s too bad no one will hold you accountable.  I also see that your 2nd and 6th largest sources of campaign funds come from laws firms who represent Wall Street banks and from Wall Street itself:  Elizabeth Warren campaign donors.

And speaking of being held accountable, maybe you can explain why you oppose any legislation that would force an open, independent audit  of the Federal Reserve.  I understand why you won’t go after Stumf and Wells Fargo beyond verbal castigation, but your position on an Fed audit ceaselessly baffles me and all of my colleagues…

Dear Senator Warren:

On September 20, 2016, you appropriately excoriated CEO John Stumpf about the consumer fraud that took place at Wells Fargo Bank. Again and again, you used the word “scam” to characterize Wells Fargo’s actions, and this was the proper word for you to use. It was a scam, plain and simple.

Over a period of several years, Wells Fargo created more than 2 million accounts to flatter its numbers and increase its stock value, thereby increasing the value of senior executives’ stock options.

Many of the phony accounts were dormant and incurred no fees, but certain other accounts, such as credit cards, did incur fees.

Erring on the side of excess, let’s assume that the actual cost to Wells Fargo customers was $1,000.00 per phony account. This would mean a $2 billion fraud, in total. If we assume that these accounts were created over a 5 year period (it was probably longer), the scam would have amounted to roughly $400 million per year.

This $2 billion consumer fraud has correctly inflamed members of Congress, making you and your Capitol Hill colleagues irate, as we witnessed during the fiery House and Senate hearings.

Yesterday, October 4, 2016, a different kind of consumer fraud occurred. But this one was more than 100 times greater in amount, in ONE DAY, than Well Fargo’s entire multi-year fraud.

This fraud resulted in the theft of $246,758,400,000.00 ($246.8 BILLION) from people all over the world.

This SCAM affected rural farmers in India; common villagers throughout Africa; elderly retirees in Japan; young newlyweds in China; small shop owners in Tibet; flower merchants in Peru; nurses in Argentina; school teachers in Canada; and people of every type of vocation and station in the United States.

This SCAM hurt people of every single socio-economic class; every race, religion and creed; every age; every ideology, political and otherwise; and every other imaginable human description. And it hurt them in every single nation throughout the entire world. The common strand connecting hundreds of millions of people fleeced by this SCAM is that they are simple, ordinary, everyday human beings trying to enjoy a decent life and future.

From facts documented for more than a decade by formal researchers such as those at an organization known as GATA, we know without a shadow of doubt that this SCAM emanates from the United States, even though it affects people throughout the world.

What we witness is massive, condoned, formal, organized Wall Street theft. And since this type of theft has been happening for years with no Congressional or regulatory action of any kind against it, it also constitutes state sponsored financial terrorism, deliberately intended to inflict financial harm on innocent, honest, hard-working, everyday citizens worldwide.

From the dawn of human civilization, man has searched for honesty in all its glorious forms. Honesty is what makes civilization possible in the first place. When there is no honesty, civilization disintegrates. Where only dishonesty, corruption and deceit prevail, chaos and inhumanity rule.

One of the basic forms of honesty sought by humanity from the beginning was a reliable, truthful money. Honest money is a critical prerequisite to a functioning civilization. Early people discovered such a form of money, and their discovery was so powerful that it has reigned uninterrupted in the mind of man and in markets for more than 5,000 years.

It is called Gold, and perhaps you own some yourself. Perhaps you received it as a keepsake handed down to you by a parent or grandparent, with all its sentimental powers. Perhaps it is a beautiful piece of jewelry given to you by a loved one or yourself, or perhaps you saw a gold coin one day and purchased it for its value and its beauty. Those who own gold cherish it, and I would imagine you cherish yours, too, if you have some.

During this period of 5,000 years, by honest toil, deployment of capital and engineering brilliance, mankind has brought forth from the earth 183,600 metric tonnes of gold, or nearly 6 billion troy ounces. This amounts to not quite 1 troy ounce for every person on earth. In fact, if everyone wanted to own gold equally, they could only possess is 0.77 troy ounces of it. So we see how rare it truly is, despite 5,000 years of struggle to find, mine and distribute it.

Yesterday, October 4, 2016, a day that will live in infamy, the price of gold was crushed $42.00 per ounce by the financial elite (or, what I call, the “eleech”), with full state blessing, for the dual purposes of monetary enforcement and outright theft. The perpetrators of this SCAM walked away with hundreds of millions of dollars of direct, private profits, which they always do when they conduct these repeated attacks on the price of gold.

The citizens of the world were not nearly as fortunate as the fraudulent and thieving eleech. 5.875 billion ounces of gold lost $42.00 per ounce in price, for total global wealth destruction in the amount of $246,758,400,000.00, aka 246.7 BILLION dollars, on that date.

This constitutes one of the largest, outright, one-day THEFTS in human history. History’s other record-setting thefts also cluster around this exact form of fraud, which has been happening now for decades with no Congressional or regulatory action of any kind whatsoever taken to stop it.

Aside from providing a risk-free ability for the Wall Street eleech to steal hundreds of millions of dollars from people around the world, with zero risk of facing any type of criminal charge at all, the purpose of these price attacks on gold is to scare people away from owning it.

The for-profit Central Bankers have monopoly products called fiat currencies. These currencies are deliberately designed to diminish in value. We know this for a fact, because one of the mandates of the Federal Reserve Bank is to create inflation. They actually tell us this in plain English. They want us to believe that the gravest monetary problem we face today is that there is insufficient inflation, and that higher prices would be a great benefit to Us, the People. Naturally, this kind of brazen, self-serving lie is an insult to the People’s intelligence. The people are not stupid, and it is a grave error when politicians, officials and/or the eleech think we are.

People all over the world are waking up to the fact that fiat currencies are a serious danger to their financial well-being, and they are looking for alternatives in order to avert this danger. Historically, tangible things, including precious metals, are a way to achieve this. Given your focus upon matters financial, Ms. Warren, surely I’m not telling you anything you don’t already know.

Monopolists everywhere despise the idea of their monopolies being challenged. They are particularly fearful when the truth starts to leak out about a monopoly product that is drowning in fraud, corruption and lies, and that is defective. When it comes to human perception and understanding, a spark can become a firestorm in the collective consciousness in the proverbial wink of an eye. The absolute last thing corrupt monopolists can permit is a Great Awakening.

For years, and particularly since 2011, when precious metals market forces impressively began to break free and exert themselves, there has been a systematic effort to smash their prices. The technique used to do this is to dump millions of ounces of nakedly shorted paper metals onto the markets in a matter of seconds or minutes, creating a price avalanche.

This is deliberate price manipulation, and therefore fraud. It delivers a handful of eleech insiders huge financial gains, at the expense of everyone else, while also advancing a diabolical and thoroughly dishonest monetary agenda.

This has happened literally hundreds of times over the past four decades, but the problem is getting worse. Apparently, the perpetrators are getting addicted to the huge sums of money they can steal in a mere few hours. It also tells us that the monopolists at the Central Banks are getting very worried about something. Therefore, they are deliberately creating phony metals prices in order to confuse, deceive and create false illusions among the public about their defective monopoly products.

Senator Warren, you have shown extreme interest in and moral repulsion over the $2 billion Wells Fargo SCAM, so I would imagine the $247 billion one-day, oft-repeated SCAM that I have outlined above will pique your interest, too. Yes? I certainly hope so.

On a broader, closing note, Ms. Warren, when one views the current landscape, it appears that our leading national export is Wall Street greed and fraud. This greed and fraud brings shame upon and disgrace to our nation. To any sentient person, it is repulsive. Having watched you grill Mr. Stumpf, I know this kind of avarice and corruption is particularly repulsive to you.

My belief is that the people of the world are waking up to how the Wall Street eleech are financially hurting them, and that the people are rightly getting angry about it. Our standing in the world appears to diminish every day, in large part due to the financial abuse that a tiny, arrogant, greedy, corrupt cabal of American moneysuckers inflict upon decent people throughout the world. The egregious manipulation of gold market is a glaring, nationally embarrassing, “poster child” example of this abuse.

You can help your country and its citizens right now by focusing your energy, intelligence and sense of ethics upon this disgraceful crime.

I will let this message sink in for a day or two, and will then contact you so we can discuss it in further detail, and speak about how this abuse can be stopped.

Respectfully, Stewart Dougherty
October 5, 2016

Gold And Silver: Patience Required

I wanted to share a discussion on the metals that I had with GATA’s Bill “Midas” Murphy this morning.  I had emailed him to ask him if he knew of any reasons the metals were getting slammed today because the dollar was down a bit, the economic reports were poor  and the stock market was selling off –  all three occurrences of which are precious metals-friendly.

As Bill suggested, silver is under more pressure today than gold, with JPM going all out to get the speculative traders to sell, which helps JPM push the price down.  If you look at short term chart, it would appear that silver is forming a head and shoulders “top” formation, something which JPM is trying achieve, as Bill correctly pointed out.

However, technical formations almost NEVER work in the metals. Typically doing the opposite of the what the  formation is indicating works the best over the last 15 years. That would imply a big upleg coming, which supports my view based on the fundamentals, which would support the view of another big move higher on the horizon.

I think JPM is doing whatever it can to minimize the damage from the inevitable. The biggest seasonal physical buying period starts in another couple weeks. Next week is options expiry for Sept silver. They probably want to push silver below $19.50 if they can because the Sept silver put/call structure currently is favorable to the call-writers (i.e. JPM) is silver closes below $19.50 on the 25th. The problem is, the way the economy and the political system is melting down, they can’t control the possibility of a random news event hitting the tape that would send the metals soaring. I believe there’s high probability a news event like that could happen at any time.

Interestingly, the o/i for gold is coming down a bit earlier than usual for the typical contract “roll” period (for Aug) and the Sept silver o/i is coming down. They are covering for a reason, I believe.  (click image to enlarge)

Untitled Silver is up 42.4 % since Dec 14, 2016. That is a HUGE run.  If you look at a 1-yr graph, silver is trending sideways consolidating that gargantuan move it made in just 7 months.  JPM and all of the other technical analysis cretins out there want us to believe that silver is forming a head n shoulders top formation. But it’s not.  It was in danger of going parabolic, something we DON’T want to have happen. Yes, silver could go parabolic up to $50 and still be insanely undervalued relative to the supporting fundamentals, but the huge hedge fund trading algos would not treat it that way.

Silver looks like it will pullback to its 50 dma, which is around $19.15 right now. As long as it holds that level – and they may crush it below that level with A LOT of paper for a few days, it will be ready for the next upleg. Since mid-Dec, we have been in an uptrend that is bouncing off of the 50 dma and moving higher.  The RSI and MACD momentum indicators are signalling the probability that the current move is becoming “exhausted,” with probability weighted toward a move higher soon.

At some point we might see a 200 dma correction. But silver could correct to its “chart” uptrend line around the $17 and still be up 24% since Dec 14.  Anyone who would sneer at that ROR belongs in an asylum or is an internet blog terrorist.

Both gold and silver are in the process of making an eventual move that will shock and awe.  We’re now aware that some of the biggest, most influential money manipulators in the world are shoveling fiat currency confetti into big positions in gold and silver – including the nefarious Rothschild clan:  LINK.  These guys are not buying gold for just a double or triple. They’re buying it because they know that the global fiat paper currency experiment is coming to an end.  And along with it so is the debt-fueled lifestyle America has enjoyed since 1971…

Gold: Welcome To The Weimar Death Spiral

For starters, I want to re-emphasize the importance of getting your money OUT of fiat currency and OUT of U.S. banks.  If you read this article and do not come to that conclusion, you will end up getting what you deserve:  Commerzbank To Hoard Euros  The Fed is devaluing the dollar every day.   My solution for day to day cash management is Bitgold.  I am not an “ambassador” or “affiliate.”  But I am convinced that it’s the best viable means of managing money that requires “fungability” – i.e. that you need for daily expenses.  You can sign-up for Bitgold here:   Gold-Backed “Checking” Account.  Bitgold operates OUTSIDE of the global Central Banking system.

Second, a colleague of mine told me he knows why the stock market is up today – because it’s open.   That’s not entirely a joke.  But what is a joke is the underlying cause:  rampant global money printing disguised as “quantitative easing  – or Central Bank asset monetization.”

Goodbye Keynes, hello Havenstein.  The Fed and the ECB have resorted to Weimar-style money printing.   The lack of transparency makes it easy for them to impose various forms of disguise to hide the outright money printing.   Today the ECB rolled out its program to buy corporate bonds.  It prints money and buys the bonds of U.S. and European corporations.  The disguised name is “quantitative easing.”

It’s a meaningless description.  It’s printing money and giving that money to banks and corporations to spend.   It may not increase the official tabulation of the money supply, but effectively it balloons the supply of money.   After all, money is spending or lending power.   That money sitting on bank balance sheets translates into “high powered” reserve credit.  It multiplies the spending power by 10.  That’s the real supply of “money” in the system.

The precious metals market understands this truth.  The move in gold is “quantitative price appreciation.”   It’s gold’s response to “quantitative easing.”  For the last five years, the Fed and the ECB – and with help from China, I suspect – has been able to further disguise its money printing by using paper derivative forms of gold – OTC derivatives, Comex futures, LBMA forwards, Central Bank lease agreements and hypothecation – to hold down gold’s quantitative price appreciation.

But that ability to keep a lid on the price of gold may well be measurably fatigued.  The demand for deliverable physical gold and silver is starting to offset the price dilution that has been imposed on the precious metals market with printed derivative forms of gold and silver.  GATA – on the foundation of the research done by Frank Veneroso in the mid-1990s (he visited several Central Banks and discovered that they were leasing gold in large quantities to help hold down the price) – predicted that eventually the physical market would overwhelm the paper market and lead to a huge parabolic move in the price of gold.

It’s taken a lot longer than any of us could have imagined.   But something different is occurring in the gold market right now, because all the technical indicators over the last 15 years that have foreshadowed a massive take-down in the price of gold are betraying their promoters.  While the price-rigging schemes may not have completely run out of energy, as John Embry said yesterday:  “I’d much rather be playing our hand than theirs.”

I took profits (265%) on a call option trade on a high quality mining stock that I presented to the subscribers of the Mining Stock Journal in the debut issue.  It was a low-risk proposition.  I rolled the profits into shares of the stock.   I currently am sitting on a 25% gain in a short term trade idea presented to MSJ subscribers less than two weeks ago (a high quality junior stock).  I am looking to make 30-40% in total within another week and then take the profit.  Again, another low-risk trade idea.  In the next issue published tomorrow, I am presenting a high-risk, high-return junior silver mining stock idea.  You can subscribe and get all the back-issues (email delivery) with this link:   Mining Stock Journal.

One more note:  I presented a brand new silver explorer to subscribers of the Short Seller’s Journal on Jan 10th.  That stock is up 663% since then and still has room to double from here.

The U.S. Gold/Silver Price Managers Strike-Out Again

It’s becoming monotonous.   The precious metals get the obligatory price hit at 6 p.m. EST when the CME’s Globex electronic trading system re-opens after taking about an hour break from manipulating markets.  Then gold/silver rally throughout the eastern hemisphere trading hours, which wind down around 3 a.m. EST.   And then gold begins to fade going into the manipulated London a.m. gold price fix.   It typically trades laterally until the Comex gold pit opens (8:20 a.m EST), which is when we get the customary “cliff dive” price drop:

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For 15 years, I have been unable to understand how only the gold investing commnunity – aka “goldbugs,” or just “bugs,” as Dennis Gartman refers to it – seems to discern this daily ritualistic trading pattern in the price of gold/silver. Funny thing, that.

It’s confounding to consider that the regulatory authorities have been able to spot and prosecute interest rate manipulative activities by several banks – LIBOR Rigging – many of these banks are also considered “bullion banks.” Larry Summers updated and augmented Gibson’s Paradox by demonstrating that interest rates could not be manipulated without manipulating the price of gold – Gibson’s Paradox and the Gold Standard.  How is it therefore possible that the bullion banks, who manipulated LIBOR and who were involved in the London Gold Fix, were able to accomplish the former without engaging in the latter? Let’s call this Kranzler’s Enigma.

After this morning’s obligatory Comex floor opening price hit, gold bounced back in “V” formation.  I emailed GATA’s Bill “Murphy” Midas to discuss the trading action, noting that “something is different.”  This “V” bounce has been occurring quite frequently since mid-December.  Historically, once the Comex price-spanking occurred, the trading day for gold traders may as well have been over.   But for some reason the gold cartel banks have been unable to keep their boot pressed on the throat of the gold market.

One other point.   Many of you may have noticed that GLD and the Comex have recently been reporting a large increase in gold vault inventory.   As I said to Midas:  “I’ve noticed in the past that a build-up in reported GLD inventory seems to precede a smash. But it’s been “building up” for a while and no smash. All hits are being bought.

Not sure it means anything, especially if the gold that is being reported in the warehouses at the Comex and GLD exists only as accounting entries, which is very possible if not highly probable.”

I’ll end with a piercing comment from John Embry.   I rhetorically asked him how high the price of gold would be if the regulators prevented Comex market makers from issuing gold contracts in an amount that exceeds more than 110% or 120% of the stated inventory of gold on the Comex:

With respect to your gold question, the price would be much higher but they could still get away with considerable chicanery OTC and on the LBMA. However, since the American government is firmly behind this Ponzi scheme, I am not holding out any hope for help from the regulators. However, things are moving inexorably in our direction, and in my mind, the question only concerns time not the ultimate outcome.Thus as frustrating as it has been I would still rather be playing our hand at this point, not their’s. – John Embry

“In Gold We Trust” – CNBC Asia’s Bernie Lo

Since the bull market in precious metals began in late 2000 / early 2001 the mainstream media has gone out of its way to function as a propaganda tool in the official war on gold conducted by the biggest beneficiaries of the thoroughly corrupted western banking, Central Bank and Government systems.

Quite amazingly, CNBC allows its CNBC Asia affiliate and morning (Asian hours) anchor, Bernie Lo, to host Bill “Midas” Murphy on occasion to discuss the blatant and unfettered manipulation of the gold market.   Bill was on yesterday (Tuesday, Feb 23) for a seven minute segment that’s worth watching, if not for the insight provided my Bill then for the exceptionally rare glimpse of a mainstream media financial programming host who is willing to pullback the media’s propaganda curtain and expose the truth (click on the image or this LINK to watch the broadcast):

Untitled1

Goldman Sachs’ technical analyst, Jeffrey Currie was on CNBC again urging clients and viewers to sell or short gold. With regard to this, I’ll point out that Currie had an $800 price target on gold for quite some time and he moved his target up to $1,000 once he understood the embarrassment of the $800 target.

I honestly don’t know how anyone with more than two brain cells in their skull to rub together would ever pay attention to any market recommendation coming from Goldman given the firm’s track record of taking the other side of their publicly-issued investment “advice.”

Too be sure, at some point the precious metals sector is going to experience a pullback.  Perhaps as early as this week.   But to the extent that inexorable and unfettered official intervention the market has prevented the price of gold/silver from a true price discovery process, it is quite possible for the metals to become extremely “overbought” and stay overbought for an extended period of time.  I’m not making this my forecast  – I’m saying that markets behave in unexpected ways when price-control measures are in place and the “time for a pullback” side of the proverbial ship is getting very crowded.

On a related matter, I featured a junior silver exploration stock in my January 10th Short Seller’s Journal on the premise that investing in mining stocks is a “contra” NYSE stock strategy and therefore a surrogate method of shorting the market.  The stock is up 38% since then (44% in Canadian dollars) and I’m expecting some good news coming from the Company next week.  I’m offering a copy of this issue to new subscribers:  Short Seller’s Journal.

I will also be rolling out a Mining Stock Journal, possibly as early as sometime next week and subscribers to the SSJ will be able to subscribe to the new report for half-price.

Who Cares If The Central Banks Disclose Where Their Gold Is Held?

This article appeared on Zerohedge today and it struck me as being entirely irrelevant:  Central Bank Secrecy – Silence On Gold Storage.   Why does it matter if a Central Bank discloses where its gold is held?  They don’t allow any independent party inspections and audits so it is entirely irrelevant if we know the address of where any specific Central Bank’s gold vaults are located.

We know – or so we’re told – that the Federal Reserve stores some of its custodial in vaults in NYC (it also supposedly has a large portion of its gold in “deep storage” at West Point, but I don’t know anyone who believes that gold is really there in legal title to the U.S. Treasury or other rightful owners).   But just ask Germany what good that knowledge was for them.

Allegedly the Fed keeps German custodial gold in nine different vaults (for security purposes, wink wink).  But when German officials requested a visual inspection of the gold – roughly 1500 tonnes at the time – the Fed would allow the German party that had flown to NYC into only one of the alleged nine vaults.  The Fed permitted only a partial inspection.

ScrapingForGoldWe know how the rest of that story has played out.  An original 674 ton immediate repatriation request in 2013 was transformed into 300 tons over seven years.   To this date, we still don’t know how much or little gold in the last two years has made its way back to Germany. Although some  analysts go by the Fed’s reported vault numbers to infer that some amount less than 100 tons has been sent back to Germany, only a naive fool would trust those numbers.

Make no mistake about it:  the Fed has spent a considerable amount of money over the last 5 years – and hired Enron’s ex-lead lobbyist, Linda Robertson – see this link – in order to sabotage any audit legislation drafted by Congress.   This was specifically directed at quoshing legislation enabling Congress to audit the gold and the gold swap activities of the Fed.

Compiling a list of Central Banks who are willing or unwilling to disclose the location of their gold vaults is a pointless endeavor unless each CB is willing to undergo a completely independent audit of every bar of gold and the associated record-keeping activities connected with each bar.  We have a better chance of finding life on Pluto than getting any Central Bank willing to submit to a legitimate audit open to pubic inspection.

In fact, highlighting the fact that the Bank of England will disclose its vault location in contrast to the CB’s that refuse to disclose only serves the purpose of deceitfully “legitimizing” the BoE’s reported gold holdings.  It’s the exercise of setting up a strawman for the purpose of promoting fraudulent propaganda.

The Bank of England is no more willing to submit to the rigors of a legitimate independent audit than any other Central Bank.  Thus, unfortunately, any reported numbers representing any amount of gold held in these vaults is nothing more than vacuous “hearsay” evidence.  It’s analogous to believing that OJ Simpson was innocent.

SoT #48 – Bill Murphy: Violent And Breathtaking Moves Coming In Gold And Silver

One of my sources says the silver is the most explosive they’ve ever seen it in terms of what is coming down the pike. To get it in size is extremely difficult and they expect it to disappear sometime this fall where you just can’t get it – and they’re adamant about it.  – Bill Murphy, Shadow of Truth

It’s been four-plus years now since the gold and silver markets have been subjected to the complete criminal control of the western Central Banks and their agent bullion banks.

We have all these market where the big banks have been fined for criminality whether its energy, LIBOR, currencies and mortgages – with every other market they’ve found wrongdoing and they can’t find any wrongdoing in the gold/silver market? It’s a joke.  – Bill Murphy

The heart of the precious metals manipulation scheme is to legitimize the manipulation and control over every other major asset market which has been enabled by the Federal Reserve and U.S. Treasury printing presses – dollars and Treasury certificates, respectively. Both of these fraudulent forms of “money” are the mechanisms by which the elitists are sucking the wealth out of the U.S. economic system – a wealth transfer scheme of historically unprecedented size.

The dislocation between the current “price” of gold and the actual fundamental value of gold based on underlying fundamentals is probably the widest valuation dislocation of any asset market in the history of the universe.   It is truly stunning.

Gold Manipulation: It’s Much Bigger Than You Think

From Michael Edwards, editor of the Activist Post:   All of your work is outstanding, but this one goes beyond – wow, thank you very much for your analysis. This is one of those stories that can really open people’s minds on a broad scale that there truly are things called “conspiracies.”  Maybe if people can face the obvious, they will dig even deeper.

The gold price manipulation scheme will go down as the biggest financial market scandal in US history for numerous reasons. They include the destruction of the free market system in the United States. The manipulation of the gold and silver prices eventually led to the manipulation of US interest rates via the Fed, the stock market via the Plunge Protection Team, and to the currency markets.  – Bill Murphy, GATA.org

The gold manipulation scheme has taken on historic proportions.  It’s been going on for several decades – witness the London gold pools of the 1960’s which were implemented to prevent the price of gold from taking off because the U.S. was running out of gold with which to back the Treasury debt it had issued to foreign creditors who were redeeming their Treasury notes for gold per the Bretton Woods Agreement.

Ultimately this scheme failed when Charles de Gaulle famously began redeeming France’s Treasuries for gold because he had calculated that the U.S. had issued significantly more Treasuries than it had gold to back those Treasuries.  France pulled out of the London gold pool operation and a couple years later Nixon was forced close the gold window or, rather, end the convertibility of foreign-owned Treasuries into gold.

Frank Veneroso, who wrote the brilliant “Gold Book” in 1998, told Sprott’s John Embry and I many years ago that the gold price suppression scheme was “much bigger than you think.” Frank found out the US Government was taping his phone calls and ever since has shut up about what GATA has to say. Frank was the one who exposed the gold leasing scheme, which is how The Gold Cartel did their thing so many years ago. It is how GATA knows the central banks have well less than half the gold they say they have in their vaults. Frank got his information from a Bank of England source who has since died.  – Bill Murphy

Each new financial crisis (emerging market debt, Long Term Capital, tech bubble, housing/credit bubble, etc) was met with successively larger amounts of money printing and credit creation.   Print money to keep the banks and the markets from collapsing and create more credit to keep the giant Ponzi scheme going.  Once the gold bull market got underway in late 2000/early 2001, in order support the monetary intervention required to keep the U.S. systemic “shell game” going, the manipulation of the gold markets began to intensify.  It also started to become more obvious in nature to those where researching, trading and investing in the precious metals sector.  GATA was and is instrumental in exposing and reporting the facts about the manipulation of the gold market.

At the end of 2000, the Treasury had $5.6 trillion in debt outstanding.  The current amount is $18.15 trillion but there is a debt issuance ceiling in force now for which the Obama Government is circumventing by raiding Federal pension funds, the Social Security Trust, issuing IOU’s and other cash “reservoirs” that will soon run out.  The debt ceiling will have to be lifted again, like to $20 trillion.  That’s nearly a 400% increase in just Treasury debt since 2000.  At the end of 2000, the Treasury debt to GDP ratio was 54%.  Today it is 102.5% and this does not include the Treasury’s Fannie Mae and Freddie Mac guarantees.  In other words, the amount of Government debt has grown at twice the nominal rate of the U.S. economy in the same time period.  Note: the “wealth” produced by the U.S. is part of the theoretical backing of the dollar.

This is just Government on-balance-sheet debt.  Total Government contingent liabilities, i.e. on-balance-sheet plus off-balance-sheet, is now estimated by several different sources to be at least $200 trillion.  This would include pension, Social Security, and several other Government entitlement programs.  Recently it was estimated that State pension funds are now underfunded by at least $2 trillion.  Student loan debt  is now well over $1 trillion, of which 30%-40% in arrears or in outright/technical default,   Most private pension funds are at least underfunded by 50%.  

An “underfunded” liability is a socially correct term for “debt.”  When the stock and credit markets re-collapse, the underfunded status of most if not all pensions will likely approach more like 90%.  Some pensions will  be wiped out.

Then there’s the derivatives…

The point here is that the fundamentals underpinning the precious metals market have strengthened cumulatively since the gold bull market began.  There has not been one point in time in the last 15 years, in fact, when these fundamentals have weakened.  What has changed is the degree of intervention engaged in by the Central Banks and U.S. Government as a means of preventing the price of gold from rising and signalling to the world that the U.S. political and economic system – the system which issues the world’s reserve currency – is increasingly corrupt, criminal and entirely fraudulent.

Yes, China has its issues as well but it has two things that the U.S. does not:  $3.4 trillion in foreign currency reserves backed by a big trade surplus and a massive amount of gold.  On the other hand, the U.S. foreign reserves are roughly $39 billion and it runs a $40 billion/month trade deficit.  It is highly unlikely that the U.S. Government possesses legal title to little if any gold.

In my opinion, the ability of the U.S. in conjunction with its European vassals and the BIS to keep the U.S. dollar fiat money system in motion is largely dependent on the ability to keep the price of gold suppressed.  In 2011, when silver threatened to take out $50 and gold was headed in the $2000’s, the U.S. elitists were staring into the abyss.  That’s when the gold market intervention took on a whole new dimension.  This is best visualized with this graphic:

FEDBALGOLD1

The dislocation in the correlation between the price of gold and the size of the  Fed balance sheet shown in the graph above is further supported by the manipulation activity reflected in these two graphs (inset chart on the right graph sourced from Zerohedge, with my edits) – click to enlarge image:

UntitledGOLD_Q1

The graph on the left shows the massive paper ambush on the gold futures market on Sunday evening July 19. An enormous amount of paper gold contracts were dumped into the Comex’s globex electronic trading system during one of the slowest trading periods at any point in time during the trading week. A bona fide seller trying to sell a big position at the best possible execution prices would never have dumped a position like this. The only explanation is that someone wanted to drive the price the price of gold lower and make a point of doing so. This particular occurrence in the gold market has been a recurring event over the life of the gold bull market. However, the frequency of the above trading pattern has significantly increased since 2011.

The graph on the right is the daily, year-to-date graph of the price of gold. As you can see, despite the continuous strengthening of the underlying fundamentals supporting the price of gold, including the heightened risk imposed on the global financial system by the probable financial collapse of Greece, the price of gold trended lower during Q1 2015. The inset graphic, however, shows the big spike in gold OTC derivatives issued and held by the big banks, JP Morgan being the largest issuer of OTC gold derivatives. There is a definitive correlation between the big spike in gold OTC derivatives and the downward pressure on the price of gold.

PaperGoldRatio

This graph on the right, prepared by the TFMetalsReport, shows the record level of the ratio of paper gold to physical gold on the Comex – 117x.  You can see the ratio exploded and went vertical starting mid-2013, which is right around the time Bernanke delivered his infamous “QE taper speech.”  This graph unequivocally reflects the sense of desperation by the Fed and the Treasury in its efforts to push the price of gold lower using the extremely fraudulent paper gold market.

Finally, since mid-December, when it seems some sort of derivatives bomb exploded – LINK –  the anti-gold propaganda from the media has significantly intensified.  This especially true since the July 19 ambush.  It’s not just anti-gold propaganda, however,  it’s a grotesque preponderance of insidious misinformation and disinformation.  The blatant manipulation of the gold market in conjunction with the rabid dissemination of anti-gold rhetoric from both the financial press and Wall Street reeks of desperation – desperation to keep a lid on the one market signal that would undermine the elitists’ perpetuation of the U.S. dollar-based systemic Ponzi scheme which enables them to loot and confiscate middle class wealth (“middle class” being defined as anyone not wealthy enough to buy their own politician or not in the privileged position to benefit from the wealth confiscation schemes).

The Shadow of Truth will be releasing a podcast in two-parts of a two hour conversation with Jim Willie sometime tomorrow.  In a portion of the podcast, Jim Willie lays out the elaborate scheme being used to keep interest rates low and to push the dollar higher in one last desperate attempt to maintain the reserve status of the U.S. dollar and global hegemony of the United States, both of which are being systematically dismantled. Keeping a lid on the price of gold is the nexus of the blueprint for implementing the extreme market intervention by the Federal Reserve and the Treasury’s Working Group on Financial markets.

When the intervention in the gold market fails, which it inevitably will as have all other market interventions in history, it will have the systemic affect of delivering a massive blow from a 2 x 4 on the back of the heads of the unsuspecting public in this country.  In other words, be prepared for life to become very uncomfortable in every respect.  My personal view is that will be the case even for those of us who have taken steps to prepare for this inevitability.

Anti-Gold Propaganda Reaches Bubble Proportions

The anti-gold propaganda spewing forth from all corners of the media is greater and more intense than I’ve ever seen any investment propaganda.  Every time I turn on Bloomberg, FoxBiz or CNBC there’s a discussion of how useless gold is.  It’s beyond surreal – it’s criminal.  – Investment Research Dynamics

There’s a new bubble in town.  It’s anti-gold propaganda.  I prefer to reference it as “anti-gold terrorism.”  It’s to the point at which it’s become silly – outright preposterous.  This Orwellian-derived antagonism toward gold reached its apex – at least I so thought – with the “gold is a pet rock” article in the Wall Street Journal:  Let’s Be Honest About Gold:  It’s A Pet Rock.

The article and analysis – or poor excuse for “analysis” contained therein reads like the work of a drunk five-year old.  Shame on Jason  Zweig for attaching his name to it. He can no longer be taken seriously in any regard as a journalist.  Shame on the Wall Street Journal for publishing that fermented piece of scatology.  If Jackson Pollack had produced a painting using fecal matter which lampooned the anti-gold terrorism coming from the media, that’s what it would have looked like.

Perhaps today the absurdity has reached the apex of its crescendo with this utterly ridiculous “letter to gold bug” published by Marketwatch:   It’s time to surrender and let the yellow metal fall to its bear market low

Seriously?  Here’s an open question to Howard Gold:   How can any market be said to be in a “bear” market when the forces driving it lower are Central Banks and Governments who wake up in fear every day over the possibility that gold might exploded higher and reveal the truth about the size of the lie our entire system has become.  Including YOU, Howie.

There are no markets anymore, only interventions (Chris Powell, Treasurer of GATA). Definitionally, the trading of gold can not be termed “a market” because it is not allowed to trade in a legitimate bid/ask exchange.  The “ask” side is nothing but fraudulent paper.  Therefore, it is completely invalid to reference gold as being in “a bear market.”  How about that, Howie, your “letter” is completely invalid – by definition.

What is it that the elitists fear so much that they have resorted to flooding the airwaves and internet with thoroughly foolish propaganda and lies?   I think anyone reading this knows the answer to that rhetorical question.

It’s far worse to be disappointed than pissed off.  I’m no longer pissed off about the unfettered criminality that has engulfed our system.  I’m disappointed by it.  These people have rendered useless and meaningless the efforts of anyone who attempts to conduct their affairs legally and morally.  If the elitists running the system are above the law, why should the masses abide?

The gloves are off.  I would urge everyone who reads this to “tweet” it at Howie:  @howardrgold.   He’s too much of a coward to list an email address on Marketwatch.com.

Of course, all of these so-called “experts” on the gold market in reality know nothing about it.  In fact, the propaganda will likely be for naught.  India a couple weeks away from it’s strongest seasonal period for importing gold.  The country has already imported significantly more gold YTD than 2014, contrary to the fraudulent media reports from Reuters and the UBS research department.

And then there’s China.  China is currently importing gold at a run-rate that exceeds the annual amount of gold produced by mines globally.  It too is getting geared up for another strong seasonal buying period.  It’s interesting that an “object” into which China is converting billions of dollars into has been summarily dismissed as “a pet rock” by Jason Zweig, Rupert Murdoch and the puppets who publish the Wall St. Journal…