Tuesday’s Paper Gold Raid And Fake Journalism

“Central banks stand ready to lease gold in increasing quantities should the price rise.” – Alan Greenspan, July 1998 testimony to Congress

At 8:39 a.m. EST 523,200 ozs of paper gold were unloaded onto the Comex in the space of less one minute:

Anyone who’s traded big positions on a trading desk knows that the best way to unload a position that is larger than the immediate liquidity of the market in which the security trades (yes, Comex contracts are “securities,” not actual physical gold) is to feed it out over time.

In that chart above, why wouldn’t the seller try to sell its position in a way that would enable it to get a price for the entire position that was in the vicinity of the market price at the time the sell-order was executed? After all, the market has clearly rebounded to the price level at the time massive sell-order bombed the trading systems, suggesting that the seller could have achieved much larger sell proceeds with a little bit of patience in its selling

This is all rhetorical, of course, because the all-too familiar “fishing line” 1-minute chart is the blatant footprint of market manipulation. Of course, Kitco’s “reporter” on the scene chose to attribute the sudden price plunge to a market “hamstrung by not much risk aversion in the world marketplace” Kitco.com.

It’s hard to believe an educated person wrote that commentary (“Gold Prices Sink To 4-Month Low On Scant Risk Aversion” by Jim Wycoff). Honestly, that headline makes me chuckle. Well then, Jim, the Dow is now up 153 points as I write this 5 hours later, which by your logic would imply there’s even less risk aversion than the “scant” risk aversion at 8:39 a.m.  How come, Jim,  the price of gold rebounded to the level where it was trading when fear of “scant” risk aversion triggered someone to unload 16 tons of paper gold in less than 60 seconds if indeed fear of scant risk aversion was the catalyst for sell order?

7 thoughts on “Tuesday’s Paper Gold Raid And Fake Journalism

  1. One would also have to call NUGT & JNUG criminal enterprises also. Believe it has to be 2-3 TBTF banks algo selling to drive them down and then covering/buying at much lower prices. Making money the criminal way.

  2. Just checked on Silver:
    At the same time 1613 Contracts sold corresponding to 8065000 OzT, or almost 251 tons of silver. By pure coincidence at exactly the same time.

  3. What I take away from this:

    1. The market dump only achieved a measly six Shrivels in price change. The market came back and closed almost the same as before. The market manipulation looks now less than useless. It costs physical gold.

    2. The market looks through the manipulations.

    3. The rationing system for big investors has not received its proper recognition. Price manipulation in a savvy market is only possible if the outflow of physical gold can be controlled. Hence the enormous amount of Exchange for Physical contracts. This is Uncle Sam and his henchmen pulling the guns at foreign central banks. Nothing of substance has changed since the shout out at the OK Corral.

  4. Are they whacking the metals so hard because they are going to announce a rate cut or at least make dovish statements next week?

  5. It’s amazing the length’s many in the financial community (and the gold mining companies themselves) will go to avoid the obvious. Either they lack the ability to apply critical thinking and logic or their analysis and reporting is somewhat dishonest. What for-profit seller would unload a position in such a manner? I’ve asked that question to ‘not manipulated gold market’ believers and have never received an answer. The answer they refuse to provide is absolutely nobody would ever trade like that unless their objective was to either lose money or move the price substantially lower. And tell me what entities have absolutely no concern for losing money as they can create as much as they desire? So either the BIS, BOE, Fed and their commercial bank agents. Some of them or all of them.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.