Tag Archives: LBMA price fix

The Deutsche Bank Gold/Silver Manipulation Settlement: All Show, Little Tell

Until I’m proven wrong, it is likely that the Deutsche Bank gold/silver manipulation settlement with investors will not change the ongoing Central Bank/bullion bank manipulation of the gold and silver markets.

To begin with, the charges and settlement relate to DB’s participation the LBMA gold/silver daily price fix, from which DB removed itself in early 2014.  Deutsche Bank is de facto insolvent.  It would have collapsed under the weight of bad assets and fraudulent OTC derivatives had western Central Banks not cooperated to keep the corpse alive.  Letting DB hang for the sins of the other players was an easy decision.

It’s the Comex that is more relevant than the LBMA with regard to the highly methodical Central Bank intervention in precious metals trading.  The DB settlement isn’t going to change anything – just the names of the players that step in to replace any banks removed from the LBMA.  Why did they wait several months after the LBMA was “reformed” to announce this deal?  Because now they can say “we’ve taken measures to make sure banks like DB can’t manipulate the fix anymore.”  Truth is, all they did is make the process even more opaque and even more susceptible to rigging schemes.  Look at what happened to silver with the 84 cent price plunge at the a.m. silver fix on January 28th. This was  after the so-called reforms were put in place.

One positive note with DB’s settlement agreement:  It’s further vindicated GATA’s efforts to expose the truth about the manipulation that is endemic in the daily trading of gold and silver futures, forwards and OTC derivatives.   Eric Dubin’s (News Doctors) and Jason Burack’s  (Wall St For Main St) Welcome to Dystopia show hosted GATA’s Bill”Midas” Murphy to discuss the DB settlement and factors that are driving gold, silver and mining stock higher right now:

I hope I’m wrong on my assessment of the significance of the DB precious metals manipulation settlement. But everything that has occurred in the financial system over the past couple of decades has happened for a reason.  At the end of the day, the outcome of what appears to be an event that is beneficial to society ultimately turns into yet another device by the big banks to screw the public.

Proof That Gold Is Manipulated Using Paper Gold

It’s so easy to spot, even a caveman using a crayon and a ruler etching lines on graphs and making crystal ball readings could see it (source:  Nick Laird via Ed Steer’s Gold and Silver Daily, edits in color are mine):


This graph shows the average intra-day price movements of gold over a 5-yr period.  As you can see, on average over 5 years, during the time of day when the Asian physical delivery markets are open, the price of gold has positive returns.  During the time period when the Lonon/US fractional-hypothecated fiat paper gold markets are open and Asia is closed, the price of gold declines.

The red circles show the downward spike that occurs going into the London a.m. AND p.m. price “fixings.”  The green circle shows the price adjustment that occurs after NY is closed for the evening and the night time Globex session commences.  This is clearly buyer demand jumping in to buy gold that was artificially taken down in price during London and NY trading hours.

People, this is a 5yr daily data series.  It would be hard to create a data pool with better statistical correlation characteristics using a 99% confidence interval . It shows the behavior, on average of the price of gold over the last five years on a daily basis.  There can me no mistake that the price of gold trades at a higher price level during the Asian trading hours than it does during the London/NY trading hours.  Even more significantly, there can be no argument that the price of gold is manipulated lower going into the “benchmark” price setting London price “fix” operations. The price is fixed alright – it’s fixed lower.  This is evidence that would make the OJ Simpson defense team blush.