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

4 thoughts on “The U.S. Gold/Silver Price Managers Strike-Out Again

  1. Somewhat non-sequitur comment to your post….Or maybe not, considering reference to “American govt Ponzi scheme”:

    Heil Hitlery!!!

    (In fact, Hitlery crime syndicate’s association with former treasury secratary Robert Rubin is where all this gold cartel Ponzi scheme intensified. Turning this comment from a non- sequitur to non-non-sequitur.)

    At this point, those who have the capability would probably be better off leaving this decrepit cesspool to places like Switzerland or Singapore. Either that, or for populace in states like Texas clamoring for secession from the Union.

    I’ll take better chances for the former over the latter.

  2. It’s when bullion starts to circulate that the CB’s will support it. They won’t let gold’s price run away as a store of value that sits unemployed.

    There’s no big mystery in that.

  3. A rerun of something I’ve posted previously, but it’s apposite for your above post. Here, “Pyle” = the gold/silver manipulators, and “the obstacle” he keeps failing to climb is inverse to their continuing failed attempts to force the paper prices down:

    1. It will become increasingly more difficult for the shorts as bullion seeps into circulation to support economic activity. This is not so much a price issue in so much as it may be a rate-of-change issue, considering that the addition of bullion to existing liquidity (debt) is in the process of forming a liquidity yin-yang where both components are vital the health of the whole. This requires caution on the part of the debt component (yin) in particular.

      We don’t want any currency crashes, based on any potential “rushes to judgement.”

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