Tag Archives: London gold fix

Proposed Global Class Action Gold & Silver Manipulation Lawsuit

This news was originally disseminated by GATA on February 5th.  A British law firm, Leon Kaye Soliciters, has proposed the initiation of a class-action lawsuit charging that six “well known” financial services groups conspired to manipulate the London Gold Fixing from 2004 – 2014.   The proposal cites the recent settled Deutsche Bank class action suit for in New York and the ongoing billion dollar class action suit in Ontario, Canada.  The class action suit would be open to investors globally.  If interested contact Leon Kaye at info@leonkaye.co.uk.  Here’s a summary of the proposal:

Based on documents in the public domain to which we refer below, we consider that there are good grounds to believe that members of six well-known financial services groups combined together to manipulate the outcome of the London Gold Fixing between about 2004 and 2014 and that members of four of those groups combined to manipulate the outcome of the London Silver Fixing between about 1999 and 2014. The effect of this was to create false market prices, in particular by artificially depressing prices after the 3pm (London time) Gold Price Fixing and to increase bid-offer spreads in physical gold, physical silver and their respective derivative instruments. The relevant institutions did this to increase their profits from their own activities in these markets at the expense of other market participants who have therefore suffered loss and damage, probably running into hundreds of millions of pounds in aggregate.

If it can be established that these financial institutions participated in price fixing then we consider that there can be little doubt that they have breached section 2 of the Competition Act 1998 and are liable to pay damages to any other market participant that suffered loss and damage as a result.

Market participants who have suffered loss and damage are entitled to claim damages in proceedings in the Competition Appeal Tribunal (“CAT”) in a class action pursued either on an ‘opt-out’ or an ‘opt-in’ basis.

You can read the entire announcement here:  Proposed Precious Metals Class Action Suit

While I’m skeptical that this will have an impact on the market, even if the suit is ultimately filed, there’s always the chance that court-ordered discovery – assuming these banks have not destroyed and wiped clean any evidence – could reveal the truth.   And the truth will set the gold/silver price free.

Friday’s Gold Smash Reeks Of Central Bank Corruption

It’s no secret that the banking cabal has been going to great lengths to prevent gold from breaking out above its 200 day moving average.   Why?  Because it is likely that if this were to occur, it would “flip” the hedge fund black box algorithms from selling rallies and shorting downside momentum to buying gold sell-offs and chasing upside momentum higher.  In other words, it would make the task of keeping a lid on the price of gold much more difficult.

The effort to keep gold from legitimate price-discovery is understandable – from the elitist banking cabal perspective, at least:   if the price of gold were allowed to trade freely, it would likely find a market-setting price at least 3-5 multiples above where it is right now.   If this occurred, it would completely undermine the Fed’s QE and ZIRP monetary policy.  It would also cripple the Fed’s ability to keep the stock market juiced wreck the carefully crafted illusion that everything is fine in the U.S. economic and financial system.

Today’s gold smack was one of the more blatant displays of the unfettered corruption that has engulfed the paper gold market:


When I woke up this morning, gold had jumped $13 from its previous day’s close, as both China and the ECB indicated that they would be printing more money to prevent their respective banking systems from collapsing. Out of nowhere, about an hour before the London p.m. fix, the price of gold suddenly “fell” off a cliff.  Initially, 2,692 contracts (7.8 tonnes of paper gold) hit the Comex (Comex floor + the computerized trading system) at 8:58 a.m. EST. From 9:00-9:30, another 21,855 paper bombs were dropped (approximately 63 tonnes) hit the Comex; from 9:30 – 10 a.m. EST 25,914 contracts were launched (75 tonnes). To put this in perspective, the minute before 8:58 a.m. 302 contracts traded. In the 30 minutes following the attack, 8,583 contracts traded.

The p.m. London p.m. gold price fix, which “officially” is set at 10:00 a.m. EST, involved unusually large volume and an unusually large 9 iterations in order to set the price.  The price was “fixed” at $1,161.25, which was $18 below the $1,179.30 high price gold had hit shortly after the ECB announced more QE.

In total over 5 million ounces worth of paper gold traded during the smash. As of today, the Comex vault operators are reporting only 202.3k ounces of gold to be available for delivery.  With no relevant news or events reported, it can only be concluded that the price drop in gold was an attack on the price by entities intent on preventing gold from the process of legitimate price-discovery.  Perhaps worse is the fact that Governmental agencies put in place and funded by the Taxpayers to prevent market corruption are either indifferent to or complicit with the market intervention.

Gold Was “Fixed” At The London A.M. Price Fix

They often “fix” the price of gold at the London a.m. price fix – that’s for sure.  Although the LBMA London gold fix mechanism was supposedly cleaned up and reformed, those of us who have studied the gold market for at least the last 14 years know that the London “fix” is still the same old corrupt price-fix scheme.

Last night was particularly blatant, as gold was threatening to break over the key 200 day moving average technical level ($1,176 on the continuous contract basis) – note:  the x-axis is Mountain Standard Time, all references are in EST – click to enlarge:


As you can see from the graph above, the price of gold was moving laterally during most of Asian/Indian trading hours. Not shown is the $9 gap up in the price of gold about an hour in to the Globex system trading session (9:10 p.m EST) when China devalued the yuan.

In the half-hour of the designated London a.m. “Fix” period, 9,620 paper/electronic Comex gold contracts traded, representing 962,000 ozs of gold (the Fix is a process, not a point in time).  This is compared to the 171k ozs of gold reported by the Comex vault custodians as being “deliverable.”  In the 30-minute period prior to the London “Fix,” a mere 1,260 paper/electronic gold contracts traded.  In the 30-minutes subsequent to the “Fix,” 2,871 contracts exchanged hands.    Please note: there were no news reports or events that would have influenced any of the trading markets during the London “Fix.”

Personally, I’d like to see an independent audit of the bars – visually open to the public – which includes all of the record-keeping associated with each bar.  In other words, contrary to most well-read gold market analysts, I do not trust or believe the vault reports as submitted by the HSBC, Scotia and JP Morgan, who control 96% of the total reported on the Comex.

It’s pretty obvious that as the price of gold threatened to take out a key technical level, a large seller dumped an “electronic contract bomb” on the market, which triggered hedge fund algo technically-driven selling as a means to take the price down.

Interestingly, gold shot right back up after the dismal U.S. retail sales report released at 8:30 a.m. EST.  There’s no question that – at least for now anyway – gold is behaving differently than it has over the past four years.   It seems that price hits are being bought rather than chased lower and moves higher are being chased higher rather than being sold.

Certainly the fundamental support underlying the gold market continues to strengthen every day, as it has for the last 15 years.

Gold, Silver Smashed On Gold-Friendly News Report

Move along regulators and financial media “journalists” – there’s nothing to see here…other than the obvious.  As the open interest, naked short position in silver climbs to an new all-time record and approaches 1 billion ounces of paper silver – most of which is a naked short position – the physical buying markets of the world continue to accumulate massive hoards of gold and silver and the fraudulent paper manipulating world continues to keep the price down for the buyers.

Same story today (click to enlarge):


After yesterday’s take-down of the metals by the Comex criminals, the eastern hemisphere physical gold buyers decided to do more “feeding at the trough.” Gold rose steadily during Mumbai, Hong Kong and Shanghai trading hours.

As soon as Shanghai closes, London opens up and the paper gold bombs start flying.  Gold is immediately hit nearly straight down for the first 30 minutes.  The market rebounds as the naked shorts contemplate the a.m. LBMA pirce “fix.”   Clearly there was an excess of bidders looking for the delivery of physical bars, as the price rose into the 3 – 3:30 a.m. fixing period in order to balance out buyers and sellers (of actual bars).   After the fix it was hit again with more paper.

Of course, gold was banged as soon as the Comex floor opened at 8:20 a.m. NY time.  This is about a 90% occurrence.  Then, about 5 minutes after the GDP 2nd revision report came in as expected, gold was taken off a cliff for another $6.

Any who can’t see the blatant manipulation here is either an idiot or is involved in the corruption.  Clearly, the GDP report should be gold “friendly,” as a negative GDP means th economy is contracting and it reduces or eliminates the probability of any interest rate bumps (which we already know to be the case anyway) and it heightens the possibility of QE4.

I don’t know when this corruption will end, but market intervention and systemic corruption always ends with catastrophic consequences.  Anyone who is not at least moving all of their paper “wealth” out of system – this includes retirements assets – will live to regret it.