Proof Of The Fed’s Blatant War On Gold


As everyone knows, the Fed is highly motivated to keep a lid on the price of gold and silver, as they represent real money in relation to the fraudulent, Ponzi scheme unbacked paper fiat dollars printed by the Fed.  Every dollar the price of gold rises invalidates the credibility of the dollar by a dollar.

Ergo, the Fed’s war on gold.  The latest evidence was this morning’s raid at the exact opening of the Comex gold pit trading at 8:20 a.m.   It’s a daily ritual to hit the price of gold automatically at 8:20 a.m. and then again at 8:30 a.m.  8:30 a.m. is typically when the day’s most “important” economic reports are released.    Gold gets bombed automatically regardless of whether the particular report was actually  “gold friendly” or not.

Today, a whopping 4,307 contracts hit the Comex  instantaneously at 8:20 a.m.  To put that size in context, at 8:00 a.m. (EST) the CME was showing a total of 45,000 contracts had traded from 6 p.m. the previous the evening until 8:00 a.m. this morning.   That’s an average of 54 contracts per minute over the 14 hour period.   All of a sudden someone decides they need to sell 4,307 contracts all at once?

The “art of selling” a big position when you need to sell involves hiding the size of the position from the market and feeding your position into the market over time as the liquidity lets you do it without giving away what you are trying to do.

The Fed’s “art of war” on gold involves dumping large quantities of gold contracts, often at times when it wants to make a statement.  The real question in my mind is, why has the Fed all of a sudden become very blatant about its intent to wage a war on gold?

In my view, the Fed’s behavior reflects a growing degree of desperation in its efforts to rig the markets…

18 thoughts on “Proof Of The Fed’s Blatant War On Gold

  1. This is past the point of sounding like a broken record. The professional thieves who run control over the machines which so easily allow for these horrendous dumps in a bogus figure for paper gold and silver will obviously stop at nothing to work it all to their favor.

  2. They are trying to keep sentiment in the US negative or increasing negative. Most American investor/traders are not contrarian value investors. They don’t buy panic and blood on the streets. Most American investor/traders are trend traders or IBD growth investors who write books about buying high and selling even higher. So an enormous effort since the 2011 spike has been put in place to pain the charts as bearish as possible and also to make sentiment as bearish as possible. The problem is Asia and the Middle East keeps buying physical and there is very little that the people in power can do about it. They got India to raise the gold import taxes and it still did not stop demand for gold there.

    1. Ya but silver eagle sales in this country and silver mapes sales in Canada are running at record levels. There’s “stealth” buying by the public going on in this country too.

    1. What manipulation? I was only kidding…LOL

      Hard to say. I think this is the end-game, though, because the Govt has suspended all the rules that apply to the financial markets, especially the metals markets. The cartel is holding a losing hand and the stakes of just folding are very high. I think we’re close to the endgame but I don’t know which “straw” will cripple the camel.

    1. You’ve got to laugh. The Germans have not only had their gold stolen now they are having to pay for it to melted down to kilo bars and sent to China.

      What worries me is Eric Sprott proudly claiming that the Arabs know the business plan of their gold smelting expansion. Increasing gold smelting by 1,400 tons, given a minimum of a five year pay back would imply the West being able to supply gold until 2019.

  3. Are events backing the Saudi petrodollar into a corner? The Saudis cannot straddle, they have to price oil one way or the other. If they jump ship, will they warn us in advance, and will there be anything left the next day?

  4. People who have been injured by the Yankee Government’s subversion of gold markets tend to think that the Bolsheviks running Treasury and the Fed are engaged in a conspiracy to injure them, personally.

    It is understandable how they might jump to this conclusion, but it is not accurate: These traitors have no particular animus towards “gold-bugs,” but they ARE trying desperately to save their administration’s reputation before the 2014 and 2016 elections. Everything they do is “political” in nature, and the injury they do to gold investors is merely a consequence of a greater betrayal.

    The Fed and Treasury are engaged in selling massive amounts of U.S. gold to China in order to appease them, and forestall a China-led switch to an alternative reserve currency (or basket of currencies,) to the great detriment of the dollar. American gold is being “dumped” on world markets, not so much to “slam” the price of gold as to make it available for sale to a gold-ravenous Chinese government, in exchange for some of those $3 Trillion in dollar-denominated assets China holds, or at least used to hold…

    Massive gold sales — like the 320 Tonnes “dumped” on the Asian Market in April of 2013 — benefit the Obama Administration in at least three ways: They temporarily bolster the value of the Dollar relative to other currencies; They preserve the fantasy that our National Debt is “manageable”; And, they maintain the illusion that the Obama Administration is capable of successfully managing the U.S. economy.

      1. I often see something bordering on paranoia among “gold-bugs,” particularly those who have been financially injured by a declining gold price: They seem to think that Obama’s Fed and Obama’s Treasury are intentionally engaged in trying to harm them, personally, because they invest in gold.

        I don’t think the Obama “Administration” has any more of an animus against them than it has against any other conservative, Republican, Caucasian, investor, patriot, or person gainfully employed and paying taxes. It is just that they have been harmed by various misdeeds of the Yankee Government, and assume that it is “personal.”

        To the Obama Administration — like the Corleones before them — “it’s business, not personal…”

        1. I had dinner the other night with a very long-time precious metals market player (like going back to the mid-1970’s) who described the Govt/Wall St. as one big Sicilian-style mafia. That’s how they operate – that’s how they think – that’s how they behave.

          At some point their ability to control will blow up in their face. I think the intensified and blatancy of their operations right now reflects the desperation they are feeling to keep a grip on any kind of control.

          1. Chicago politics is where the communist party, organized crime, black race-hustlers, and the “Democrat” Party formed the alliance that currently IS the Obama Administration…

  5. Well, it’s selling the equivalent of 400k ounces, leveraged paper ounces. If this was physical, it’s be worth about half a billion, but I assume these coordinated HFT smashes could be executed by just about any larger hedge fund too, with much less fiat than that… smash and cover immediately… Nobody in their right mind would sell 12.4 metric tons of metal like that I guess, so it’s just the same old paper games, but they’re having less and less impact, and seem more and more short-lived (?).Is it the Fed? Is it some sort of signal of/for insiders?? Is it the Chinese, or the Russians that just want to push the paper price on the CONeX as low as possible to pick up the physical metal in London as cheap as possible??? We’ll probably never know who is/was behind these “paper trades”, but once of these days, something big will happen. It’s coming, and it’ll be BIG.

    1. To CHX:

      I’m not certain what your point is, but I can assure you that that 320 Tonnes of gold (and a half-dozen or more sales like it) were PHYSICAL GOLD sales.

      This is not like the phenomenon that transpires at the New York COMEX, where the same gold is sold to dozens of buyers simultaneously, each of whom thinks they are the owners of that particular gold bullion (much like a bunch of prospective miners, each of whom has been sold a Quit Claim Deed to the same “stake.”)

      I don’t mean to nit-pick, but 320 Tonnes is NOT 400,000 ounces, it is in fact 11,264,000 ounces, worth approximately $17 Billion at a price of $1,500/ ounce.

      And, while this is small potatoes relative to the $17 TRILLION in American Dollars currently circulating in world currency streams — on the margin — repatriating this money would significantly bolster the Dollar relative to all other currencies, which is why they do it…

      1. @EPH3, well I have no idea where your 320 metic tons come from, certainly not my previous post! Sell orders of ~400k ounces (~12.5 metric tonnes) usually occur in the PAPER MARKET; in the physical market you usually do not get such sell orders (correct me if I’m wrong). Such actions, however scare people (or stop them out of their positions), bring in more short gold speculators, and re-inforce the down move, that was started with nothing but a leveraged paper play. THAT is my point. CHeers, X

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