The “New” LBMA Gold Fix Is Just As Rigged As The Old One

As my undergrad English major advisor used to say:  “This is old wine in a new bottle.”   Meaning, you can dress up a pig but underneath the fancy clothes it’s still a pig.  The “new” London gold fix will enable the big bullion banks to continue rigging the paper gold market and looting investor money.  They are now emboldened to do it in broad daylight and without masks.

This applies wholeheartedly to the “new” LBMA fix.  Given that the reporting of the GOFO rates has been eliminated and the “new” price data has fancy lipstick but is even less informative than the LBMA’s old data reporting, the “new” London gold price fix is at least – if not more – corrupted than the old fix.

As I expected, the “new” LBMA gold fix will even more opaque  than the previous process, despite the appearance of more transparency.  Four banks have already been named:  Scotia, HSBC, SocGen and Barclays.   Seen those names before?  Here’s a brief update:  LINK.

Scotia is one of the most corrupt bullion banks and one of the primary paper manipulators of gold and silver on the Comex.  If you keep your bullion at Scotia, get it out.  If you read thru custodial documents available from funds who “safekeep” metal at Scotia, you see that there’s a good chance your gold and silver bars have been hypothecated.

HSBC – not much needs to be said there.  HSBC has been one of the most frequently prosecuted and fined banks for market manipulation in areas other than precious metals.  Sure, HSBC rigs the trading and its books in every other business line it operates but not precious metals…Of course, there is the issue of HSBC closing its NYC “retail” vaults in 2009 and its London “retail” vaults this year…

SocGen and Barclays – both primary LBMA bullion banks who participate openly in market rigging and gold leasing.

We don’t know who the last two banks will be, but up to this point the Intercontinental Exchange (ICE) – which will administer and manage the “new” gold fix process – has indicated that a Chinese bank will not be involved.

The likely candidates to fill the remaining two spots include JP Morgan and Citibank.  I don’t think anything more needs to be said about this matter.   The crooks who control the paper gold trading markets in London and NYC have been enabled to continue their illegal trading activities and looting of investor money.

Ronan Manly of Bullionstar has written an excellent description of the “new” gold fix:   London Gold Fixing.

13 thoughts on “The “New” LBMA Gold Fix Is Just As Rigged As The Old One

  1. It would appear that the only hope of breaking this Cartel is either a failure to deliver or a crash in the derivative complex. Which the Banks have managed to offset with legislation that will bail them out ( or us in ).

    Dave, am I missing something ? Is there any option where we could see these criminals completely exposed ? They have the Law, the Politicians, and the Media covering for them. What’s going to break them ?

      1. The only problem is that if the dollar goes down stocks goes up or am I missing something (comparing with other markets)
        Generally it works that way.
        Please educate an idiotic Swede.

        1. You are not idiotic, Lars, you just forgot the cardinal rule of today’s investment world – Everything is crooked.

          Its a sad day indeed when a huckster offering three card Monte or the shell game to the rubes is more honest and trustworthy than all the banksters and Wall Street shills combined.

          Also consider the algorithms running the roboinvestors/HFT that front run human investors. The machines make the market by buying and selling at lightening speed, and with all of the computers monitoring what all of the other computers are doing they all end up doing the exact same thing with no need to look at frivolous details like profitability, actual sales of products, etc.

          Its like the whole investing world has turned into one big bucket shop, with only those connected to the shop coming out as winners. Heck, even Vegas allows the occasional little guy to win big, but not so for these fraudsters on Wall Street

      2. OMG! Sometimes the answer is so easy. Good you are running this blog! Saved my day and a few more! 🙂

  2. At some point physical demand has to over ride the paper price…or maybe not? Seem like two different worlds, physical vs paper ponzi price..

  3. No Chinese banks were in on the fix. Notice how the fixers kept the closing price under $1185 resistance point. Hopefully, the rumors of a new Chinese physical backed exchange will open soon and make the corrupt LMBA and Comex relics of the past.

    1. Why would a Chinese bank want to do that, at this time?
      As an old saying goes, “Don’t look a gift horse in the mouth”!
      The gold cartel is doing a good job (for the Chinese) capping the price.
      The Chinese can belly up to the gold trough and have their fill.
      Only when there’s nothing left, will you see the Chinese want control.

  4. The stock market continues higher. Gold hit resistance at 1185.
    Gold headed to below 1000.
    Looks like the game will continue for much longer.

    Buy moar stocks.

    China plans yuan-denominated gold fix this year -sources
    March 20, 2015 [One of many new physical price setting ventures in 2015, without the LBMA fake prestige, status]
    From CNBC – EXCERPT:
    “China plans to launch a yuan-denominated gold fix this year to be set through trading on an exchange, sources familiar with the matter said, as the world’s second-biggest bullion consumer seeks to gain more say over the pricing of the precious metal.
    The Chinese benchmark would be derived from a new 1 kg contract to be launched on the state-run Shanghai Gold Exchange, a senior source directly involved in the process told Reuters.
    China, also the top producer of gold, feels its market weight should entitle it to be a price-setter for bullion and it is asserting itself at a time when the established benchmark, the century-old London fix, is under scrutiny because of alleged price-manipulation.
    If the Chinese fix takes off, it could add to the pressure on the London benchmark, which is used worldwide by producers, refiners and central banks to price holdings and contracts, although the two could exist side-by-side…”
    Gold is going to take over from the US dollar as the next favorite currency for speculators – Peter Cooper
    — 20 March 2015

    “The US dollar has topped out with its spectacular recent spike followed by a five per cent crash on Wednesday. That’s the conclusion of HSBC today, although something like the bankruptcy of Greece could still push the euro underwater again…

    Gold has actually been tracking the US dollar’s advance but it has now decoupled and should go in the opposite direction. Gold is after all the classic hedge for dollar weakness. There’s another reason to think the price of bullion will surge from here.

    Low rates

    The argument that higher US interest rates are coming is what has kept the price of gold down. That’s what the Goldman Sachs’ research department has been telling us.
    Now that the Fed has taken its foot off the pedal for interest rates therefore gold prices should no longer stay low. And once investors wake up to the fact that interest rates are actually going to stay low for much longer then logically gold prices should be heading up and up.
    A Greek exit from the euro and national bankruptcy may also be finally about to happen. That’s a hugely positive event for gold as a safe haven asset…”

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