Tag Archives: GATA

GATA: Those Who Deny Gold / Silver Manipulation Won’t Answer Basic Questions

IRD Note:  For nearly two decades, GATA has seized on Frank Veneroso’s original research which provided first-hand evidence that Central Banks were actively operating to suppress the gold and has presented direct evidence of precious metals manipulation.  Beyond this, there are public admissions from Henry Kissinger and Alan Greenspan acknowledging this fact.   Unfortunately, those who deny that gold/silver are manipulated have never offered any response to the direct proof that Central Banks intervene directly in gold trading.  The article below presenting just the facts was published by GATA.

Newsletter writer Steve Saville of The Speculative Investor, who long has denied that manipulation of the monetary metals markets means much, has seized on the recent essay by Keith Weiner of Monetary Metals as the conclusive refutation of silver market analyst Ted Butler’s longstanding complaint that JPMorganChase has been rigging the silver market.

Weiner’s analysis, headlined “Thoughtful Disagreement with Ted Butler” and posted here – LINK – argued that JPMorganChase is undertaking only ordinary arbitrage in the silver market, exploiting spreads between bid and ask prices.

Saville, in commentary headlined “A Silver Price-Suppression Theory Gets Debunked” – LINK – cheers Weiner’s essay and goes on to remark: “Entering a debate with someone who is incapable of being swayed by evidence that invalidates his position is a waste of time and energy, so these days I devote no commentary space and minimal blog space to debunking the manipulation-centric gold and silver articles that regularly appear.”

But when has Saville himself ever addressed evidence of manipulation of the gold and silver markets? Of course if he declines to address the evidence, he too can’t be swayed by it. The manipulation deniers never address the evidence. [IRD note: this is similar to Hilary Clinton never denying the allegations of corruption – instead she deflected the issue using the scare tactic of blaming the Russians for making the evidence public]

Weiner’s technical analysis is no refutation of silver market manipulation, for even if JPMorganChase is just doing arbitrage in silver, a judgment on manipulation would require knowing for whom the investment house was doing the arbitrage. JPMorganChase’s former chief of commodity operations, Blythe Masters, said on CNBC five years ago that the investment house had no position of its own in silver and was trading only for clients:  LINK

So might those clients include governments and central banks, entities with nearly infinite resources sufficient to nullify markets?
The question is compelling because filings with the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission by CME Group, operator of the major futures exchanges in the United States, assert that governments and central banks are clients of the exchanges and that the exchanges give them special volume trading discounts for trading all futures contracts, not just financial futures contracts: HERE and HERE

Do Weiner and Saville know that JPMorganChase is not trading silver futures for governments and central banks? Do Weiner and Saville know that governments and central banks are not trading gold and gold derivatives surreptitiously? If Weiner and Saville think they know, they’re wrong, for the Bank for International Settlements admits that it operates as a broker in gold and gold derivatives for its member central banks: BIS admission

Indeed, in 2005 the director of the BIS’ monetary and economic department, William R. White, told a conference at BIS headquarters in Basel, Switzerland, that a primary purpose of international central bank cooperation is “the provision of international credits and joint efforts to influence asset prices (especially gold and foreign exchange) in circumstances where this might be thought useful“: LINK

The BIS even advertises that its services to its member central banks include surreptitious interventions in the gold market: LINK

Anyone who wants to engage in honest argument about gold and silver market manipulation needs to address a few simple questions:

1) Are governments and central banks active in the monetary metals markets or not?
2) Are the documents asserting such activity genuine or forgeries?
3) If governments and central banks are active in the monetary metals markets, is it just for fun or is it for policy purposes?
4) If such activity by governments and central banks is for policy purposes, do those purposes involve the traditional objectives of defeating an independent world currency that competes with government currencies and interferes with government control of interest rates, objectives documented at length by GATA here?: LINK

Of course if largely surreptitious intervention in the monetary metals markets by central banks and governments is ever acknowledged, technical analysis of those markets is meaningless, which may explain why technical analysts like Weiner and Saville avoid the crucial questions and just sneer at those who raise them.

Former FOMC Member Admits The Fed Manipulates Asset Prices

The Fed often treats financial markets as a beast to be tamed, a cub to be coddled, or a market to be manipulated. It appears in thrall to financial markets, and financial markets are in thrall to the Fed, but only one will get the last word. – Former FOMC member, Kevin Warsh – The Fed Needs New Thinking

Please note, a large portion of the source links, plus the idea for this commentary, were sourced from GATA’s latest dispatch regarding the possible appointment of Warsh as the next Fed Chairman.

The quote above is from former FOMC board member,  Kevin Warsh, who appears to be Trump’s top candidate to assume the Fed’s mantle of manipulation from Janet Yellen.   By way of relevant reference, Warsh happens to be the son-in-law of Ronald Lauder,  who is a good friend of Trump’s.  He is also a former Steering Committee member of the Bilderberg Group.    GATA has published a summary reprise of direct evidence from previous written admissions by Warsh the the Fed actively manages financial asset prices, “including bolstering the share price of public companies” (from link above).

In addition to stocks, Warsh admitted in the same essay that, “The Fed seeks to fix interest rates and control foreign-exchange rates simultaneously” (same link above). This task is impossible without suppressing the price of gold, something which began in earnest in 1974 when, under the direction of then Secretary of State, Henry Kissinger, paper gold futures contracts were introduced to the U.S. capital markets. This memo, written by the Deputy assistant Secretary of State for International Finance and Development, was sent to Kissinger and Paul Volcker in March 1974: Gold and the Monetary System:  Potential U.S.-EC Conflict (note:  the source-link is from GATA – it was discovered in the State Department archives by Goldmoney’s John Butler).

The nature of discussions after that memo, the minutes of which are now publicly available, center around the fact that several European Governments were interested in re-introducing gold into the global monetary system.  This movement was in direct conflict with the interests of U.S. elitists and banking aristocrats, as U.S. had successfully established  the petro-dollar as the reserve currency.

In 2009 GATA sent a Freedom Of Information Act request to the Fed in an attempt to get access to documents involving the Fed’s use of gold swaps (this letter written by Warsh confirms the existence of the use of gold swaps).  Warsh, who was the FOMC’s “liaison” between the Fed and Wall Street, wrote a letter back to GATA denying the request.

The fact that Warsh has openly acknowledged that the Fed manipulates assets, including an implicit admission that the Fed seeks to suppress the price of gold,  might give some in the gold community some hope that Warsh, if appointed to the Chair of the Fed, might reign in the Fed’s over interference in the financial markets.

On the contrary, I believe this makes him a bigger threat to democracy, capitalism and freedom than any of his recent predecessors.  Warsh is better “pedigree’d” and politically connected than either Bernanke or Yellen.  His high level involvement in the Bilderberg Group ties him directly to the individual aristocrats who are considered to be the most financially and politically powerful in the western world.    Without a doubt he has far more profound understanding of the significance of gold as a monetary asset than any modern Federal Reserve FOMC member except, perhaps, Alan Greenspan.

The good news for the gold investing community is that it becomes increasingly evident that China, together with Russia and several other eastern bloc countries, is working to remove the dollar as the reserve currency and reintroduce gold into the global monetary system.  A contact and subscriber to my Mining Stock Journal who happens to live and work in Shanghai has sent further evidence  (and here) that China is working toward launching a gold-backed yuan oil futures contract.

This will be a complete game-changer.  It’s also likely why the western Central Banks have doubled their efforts to keep the price of suppressed over the last 6  weeks.   My contact believes there’s a possibility that the contract will be rolled out after Xi is “re-elected” toward the end of October (the Party Congress convenes after the week-long National Holiday observance).

My personal view is that China will work more gradually to roll out a futures contract that effectively “disconnects” the petro-dollar and the dollar’s reserve status in order to minimize the adverse, albeit temporary, consequences of this.  The first iteration could be a simple yuan-denominated contract to get the system working.  The foremost consequence of this, of course, will be the massive transfer of wealth and power from the United States and its European vassal countries to the emerging global power in the eastern hemisphere.

Why Is The BIS Flooding The System With Gold?

A consultant to GATA (Gold Anti-Trust Action Committee) brought to our attention the fact that gold swaps at the BIS have soared from zero in March 2016 to almost 500 tonnes by August 2017 (GATA – BIS Gold Swaps). The outstanding balance is now higher than it was in 2011, leading up to the violent systematically manipulated take-down of the gold price starting in September 2011 (silver was attacked starting in April 2011).

The report stimulated my curiosity because most bloggers reference the BIS or articles about the BIS gold market activity without actually perusing through BIS financial statements and the accompanying footnotes.  Gold swaps work similarly to Fed repo transactions.  When banks need cash liquidity, the Fed extends short term loans to the banks and receives Treasuries as collateral.  QE can be seen as a multi-trillion dollar Permanent Repo operation that involved outright money printing.

Similarly, if the bullion banks (HSBC, JP Morgan, Citigroup, Barclays, etc) need access to a supply of gold, the BIS will “swap” gold for cash.   This would involve BIS or BIS Central Bank member gold which is loaned out to the banks and the banks deposit cash as collateral to against the gold “loan.”   This operation is benignly called a “gold swap.”  The purpose would be to alleviate a short term scarcity of gold in London and put gold into the hands of the bullion banks that can be delivered into the eastern hemisphere countries who are importing large quantities of gold (gold swaps outstanding are referenced beginning in 2010).

I wanted dig into the BIS financials and add some evidence from the GATA consultant’s assertions because, since 2009, there has been a curious inverse correlation between the amount of outstanding gold swaps held by the BIS and the price of gold (as the amount of swaps increase, the price of gold declines).   You’ll note that in the 2009 BIS Annual Report, there is no reference to gold swaps so we must assume the amount outstanding was zero. By 2011 the amount was 409 tonnes.

The gold swaps enable the BIS to “release” physical gold into the banking system which can then be used to help the Central Banks manipulate the price of gold lower.   This explains the jump in BIS gold swaps between March 2016 and March 2017 and the drop in the price of gold from August 2016 until early July 2017.  It also explains the rise in the price of gold between July and September this year, which correlates with a decline in the outstanding gold swaps between April and July .  Finally, the hit on gold that began earlier this month coincides with a sudden jump in BIS gold swaps in the month of August. (Note: there would be a short time-lag between the gold swap operation and the amount of time it takes to “mobilize” the physical gold)

The graphic below shows the increase in gold swaps from March 2016 to March 2017:

As you can see, the total amount of the gold loans outstanding increased by 14.1 billion SDRs (note: the BIS expresses its financials in SDRs). The accompanying note explains that most of this gold loan is comprised of an increase in the BIS’ gold swap contracts outstanding.

I find it interesting that the reports of gold backwardation in London (see James Turk’s interviews on King World News) and the backwardation I have observed between the current-month (delivery month) Comex gold contract and the London gold fixings over the past several months  correlates well with the sudden jump in gold swap activity at the BIS.

Backwardation in any commodity market indicates that the demand for delivery of the underlying commodity is greater than the near-term supply of that commodity.  It’s hard to ignore that the backwardation observed on the LBMA and with Comex gold delivery-month contracts has been accompanied by soaring gold demand from India, as reported by the Economic Times of India (article link):  Gold Imports Jump Three-Fold in April-August.

Furthermore, it appears as if the BIS gold swap activity continued to increase between March 2017 and August 2017, as the BIS’s August Account Statement  shows another 2.2 billion SDR increase in amount of outstanding gold loans (a BIS monthly account statement only reports the balance sheet with no accompanying disclosure). These loans primarily are swaps,  per the disclosure in the 2017 Annual Report.

However, this jump in gold swaps between March and August is somewhat misleading. The outstanding amount of loans declined from 27.2 billion SDRs at the end of March to 24.6 billion SDRs at the end of July.   The price of gold rose over 11% between July and early September.   By the end of August, the BIS balance sheet shows 29.3 billion SDRs.  A jump of 4.7 billion SDRs worth of gold swaps.

It was around April that the World Gold Council began to forecast that India’s gold importation would drop to 95 tonnes per quarter starting in Q2.  As it turns out, India imported 248 tonnes of gold in Q2 2017.  This number does not include smuggled gold. Please note the curious correlation between the jump in BIS gold swap activity at the end of the summer and the unexpected surge in Indian gold imports.

In my view, there is a direct correlation between this sudden leap in the amount of gold swaps conducted by the BIS between July and August and the price attack on gold that began two weeks ago.   The gold swaps provide bullion bar “liquidity” to the bullion banks who can use them to deliver into the rising demand for deliveries from India, China, Turkey, et al.  This in turn relieves the strength and size of “bid” on the LBMA for physical gold which in turn makes it easier for the same bullion banks to attack the price of gold on the Comex using paper gold.  This explains the current manipulated take-down in the price of gold despite the rising seasonal demand from India and China.  

Bloomberg News Admits The Fed Manipulates Gold

“Yellen Can’t Halt Trump Gold Rally That Funds Bet Against” – That was the headline in a Bloomberg news report that was released on Sunday afternoon. There’s a lot going on in that headline – none of it accurate except for the fact that gold is moving higher despite the efforts of western Central Banks to cap the price.

The basic premise of the report is that gold is moving higher in defiance of the Fed’s apparent move to raise interest rates. Reading through the report reveals even more misleading and completely false information than is conveyed by the headline. Here’s a link if you want to read the article:  Bloomberg/Yellen/Gold.

The headline itself and the article content are both highly problematic, riddled with disinformation and completely inaccurate assertions.  Anyone actually who might have read the article and trusted the content has been taken down to “ground zero” intellectually.  Propaganda for the ignorant.  I will be reviewing several ways in which the article content is inaccurate, if not intentionally fraudulent, in the upcoming issue of the Mining Stock Journal.

That said, the headline outright acknowledges that the Fed’s goal with respect to the price of gold is to prevent it from moving higher. The idea that Yellen “can’t halt” the rising price of gold implies that such intervention is part of the Fed’s mandate.  It’s the first time I can recall in 16 years of researching, trading and investing in the precious metals market that the mainstream financial media, unwittingly or not,  has acknowledged that the Federal Reserve attempts to intervene in the gold market.

If the implied message of the headline was inadvertent, it means that conversations with respect to the Fed and its role in preventing the price of gold from rising are actively occurring in meeting rooms and reporter “bullpens” at several financial media organizations, with orders from “above” to never publish the truth.   Imagine if the Washington Post had withheld the news about Watergate…

Today’s action in gold exemplifies the tenor of the Bloomberg report.  Almost as if “on cue,” in deference to Yellen’s attempt to “halt” the gold rally from yesterday, gold was slammed for $9 this morning.  The reason generally attributed is “March rate hike hopes” LINK.   I guess that’s all it takes.  Yellen or some Fed clown exhales “rate hike on the table in March” and gold gets slammed by the trading computers.

Allegedly Germany has repatriated a large portion of its gold ahead of schedule (why it was supposed to take 7 years no one can explain).  Notwithstanding whether or not the gold is actually sitting physically in a Bundesbank vault, the announcement of the early repatriation conveys a sense of urgency to do so.  Furthermore, the eastern hemisphere countries are hoovering gold like there’s no tomorrow for fiat currency.

The Feds and the western Central Banks are exuding fear with respect to gold. The escalation in anti-gold propaganda reflects this sense of desperation, as do the shallow sell-offs followed by a move higher in paper gold that are initiated by LBMA and Comex paper traders after the Asian markets close for the day.  The conclusion remains that all sell-offs in the gold market, like today’s, should be capitalized upon by adding to positions in physical gold and silver and in mining stocks.

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):

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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.