Tag Archives: gold cartel

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.

Someone Dumped 70 Tons Of Paper Gold At 8:30 a.m.

At 8:30 a.m. this morning, 10 minutes after the Comex gold pit opens, over 70 tons of gold was dropped into the entire Comex trading system.  If this happened on the NYSE, one of the ECN’s (usually BATS) would have mysteriously “broke” and trading would have been halted – before the damaging effects of the systemic paper overload hit the market.

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From 8:30 to 9:30 a.m. EST, a total of 6,289,900 ozs of paper gold, or 196.5 tons was unloaded on the Comex.   To put this in perspective, the Comex is reporting 2.37 million ounces of gold in its registered account (the gold that can be delivered).  That amount of paper gold that would unloaded was 2.7x the amount of gold available to be delivered.   It represents 58% of the entire amount of gold reported to be in Comex vaults.

It’s hard to find any specific news trigger that would have motivated anyone to sell one ounce of gold, let alone nearly 3x the amount of physical gold available to be delivered.

Perhaps the worst economic news reported was retail sales, which dropped .3% in August vs. the expectation of no change.  This is the 4th month in a row retail sales have dropped on monthly sequential basis.  Retail sales have declined 6 out of 8 months this year.

There’s probably nothing to see in that chart above – just like the allegations of Hillary’s poor health…

 

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

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.

Paper Gold Manipulation And India’s Physical Demand

I had to laugh yesterday when a colleague sent me a news report that the CFTC filed a civil enforecement Complaint against Kraft Foods for manipulating wheat futures.  Thank GOD the Government has decided to crack down on wheat futures manipulation.   Of course, I would bet that no one in the world other than wheat traders knew that the manipulation was occurring.

Contrast this to the incessant and escalating manipulation of the gold futures market by the U.S. Treasury’s Exchange Stabilization Fund in conjunction with the NY Fed and the big bullion banks like JP Morgan, HSBC, Scotia Mocatta and Citigroup.  Everyone in the precious metals market knows about this manipulation.  GATA has exhaustively produced evidence, including FOIA inquiries which produced information from the Fed verifying that gold is manipulated.  For some reason the CFTC just can’t see it.

After spiking higher yesterday on the release of very bearish economic and geopolitical reports which signify the continued collapse of the U.S. economy and sphere of global influence (see my earlier post on the AIIB), the gold manipulation cartel took advantage of the fact that India is closed Thursday and Friday and hit the price of gold on non-event news:

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The factory orders report for February was released at 10:00 a.m.  It came it slighly higher than the consensus expectations BUT the previous month’s report was revised substantially lower from -.2% to -.7%.  Net-net the report reflected a significantly weakening U.S. economy, which should be bullish for gold.

As you can see from the graph above, the paper gold market was smashed at 10:00 a.m. EST.  3,326 contracts were unloaded onto the Comex (both the floor and electronically.  This was 15x greater than the minute by minute average volume during the previous hour of trading.

The mechanism that enabled the paper manipulators to throw this much paper onto the market was India’s absence from the physical gold market last night and tonight (India’s markets are closed today and tomorrow).

However, on balance, it appears as if India’s demand for gold significantly increased this year, including the expectation that India may have imported 100 tonnes in March.  John Brimelow tracks India’s gold market in his “Gold Jottings” subscription report.  The major gold dealing city of Ahemedabad is reporting that 20.73 tonnes of gold were imported into that city in March.  This was vs. 5 tonnes over the previous three months.  As JB says:

There was talk recently that Indian March gold imports as a whole might have doubled over the preceding month to 100 tonnes. A quadrupling of imports by this key Province is something the Bears ought to think about.

It appears to me that something fundamental has changed in the gold market.  I believe it’s based on an enormous uptick in demand from China (after its Lunar New Year) and from India.  At some point the physical gold market will overwhelm and “break” the ability of the United States to control the price of gold with paper.   I believe that this control is beginning to fade now.