Unbridled Anti-Gold Financial Terrorism

The western Central Banks/bullion banks have assumed a “take no prisoners” policy with regard to the precious metals market.  They have been printing up and selling into the market paper gold futures contracts and other paper claims (ETF certificates, leases, gold “bullion” investment accounts, and other various sordid forms of paper derivatives) in an effort to offset the enormous amount of physical gold being accumulated by the east in order to hold down the price of gold/silver.   The reason for this is to prevent these two monetary metals from going parabolic and signalling to the world the severity of the west’s catastrophic financial and economic situation.

It’s unmitigated anti-gold/financial terrorism.   Here’s what that looks like:

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The graph above shows the ratio of open interest in Comex gold futures to the amount of “registered” gold in Comex vaults.   “Registered” is the gold that has been designated as available for delivery.  As you can see, this ratio went parabolic in mid-2013.   It is likely then that the enormous amount of physical gold being swallowed by China, India and Russia began to “stress” the ability of the Fed/bullion banks to keep a lid on the price of gold.   It also, coincidentally or not, happens to coincide with the timeframe that I have identified as the peak of the current housing market mini-bubble (July 2013).    In other words, I believe the wheels began come off our economy in the summer of 2013.

Here’s an example of the anti-gold terrorism in action last Friday, just prior to the release of the non-farm payroll report (source:  TF Metals Report):

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This graph shows the trading activity right before and after the release of the jobs report.  You see that heavy selling started in gold futures right before 8:30 a.m. EST.   But the report had not hit the newswires yet.  The metals bounced a bit and paused.  The report hit the tape at 8:31 a.m. and the price of gold was “flushed.”

If the fear was that the report would trigger a small interest hike from the Fed, that fear didn’t grip the stock market until later in the morning.   Furthermore, the S&P 500 seemed to rid itself of that fear today, rising over 8 points while gold finished flat and silver was down 15 cents.   There is a clear agenda to keep the price of gold/silver capped with paper derivatives.

Here is the commentary from MKS – an Australian broker – and John Brimelow with regard to Friday’s trading activity (sourced from Brimelow’s Gold Jottings Newsletter).

MKS also notes that on Friday:  “On Friday the main flows were from macro accounts which initially prompted the move lower pre-NFP, with a number of accounts trimming long positions into the figure.”

Brimelow:   Thus confirming that the payroll news was front-run.   MKS notes further GLOBEX selling in the face of Asian buying this morning (Monday March 9): a Bear raid of this magnitude in likely to be defended.  Friday saw a large-scale Bear raid on the precious metals.

That, in a nutshell, is anti-gold terrorism.   I don’t know how much longer this can go on. Nor do I know what will cause the Fed/bullion banks to lose control of their ability to manipulate gold and silver.  I do know, interestingly, that JP Morgan took delivery of over 6 million ounces of silver in its own house account last week.   I also find it most curious that HSBC has told its clients that it is closing all of its non-GLD gold vaults in London (more on that soon).

I also know that history teaches us that price controls never last very long and when they fall apart the ensuing collapse is disastrous.    When the Fed loses control of this scheme, it will be one for the ages…

7 thoughts on “Unbridled Anti-Gold Financial Terrorism

  1. WOW! Great post! Thanks, Dave! Well done, man!

    When I look at your COMEX gold leverage ratio chart I feel like taking out my pump gun – if I had one – and kill some assholes on WallSt. I wouldn’t be too selective to be honest. Damn, now the NSA will watch my ass. 😉

    Dave, do you know how the amount of registered gold developed over the last years? It was very little lately. Only about 10t or so. Is there anything suspicious about the eligible gold too or the the total sum of registered and eligible gold?

    Anyways, great post! That should open they eyes to a lot of people.

  2. So how are the banks getting away with this BS. Isn’t that illegal selling something that doesnt’t exist. I, for one, am getting so sick and tired of the banks getting away with this. I have been watching it for years and have lost almost 50% of my imvestments in precious metals. The corruption and manipulation is now way out of control.
    Am hoping for 2 things to happen this month:

    1. The US will not be able to raise their debt limit on the 16th and hopefully go bankrupt thus bringing an end to this madness
    2. That when China starts to voice their concerns on the 20th as they will be involved in the gold fix.

    See what happens……probably nothing because the system is so corrupt. What we need is a currency reset

    1. Dirk, you’re day dreaming. The US will never hit a debt limit. Forgot that they have a huge printing press?

    2. @Dirk’s confession: “I have been watching it for years and have lost almost 50% of my imvestments in precious metals.”

      In math & technology there is a model of real and imaginary numbers or physical representations. Think of imaginary money (paper money) and real money (PM). Real physical magnitudes may result in power. Imaginary physical magnitudes do not produce power. They only contribute to losses. Sometimes imaginary magnitudes may overwhelm the physical magnitudes. In that case the system merely produces losses. That’s the kind of we are in now. Just wait for the final collaps. It is not going to last very long. The Comex vault is to be closed next month. Don’t sell your prociosities…

  3. Dave, Thanks for you pain staking analysis. I just
    listened to the Dr. Paul Roberts interview and felt
    that Dr. Roberts sounded a bit exacerbated in the
    interview. Dr. Roberts seems to think that this lying
    Ponzi scheme can continue for years(yikes and ouch).
    I also came across an article by Richard Russell this
    morning who believes that at some point China will
    gold back the RMB. In my own humble opinion I think
    T.P.T.B. have a time table set up and that the clock is
    running with no time outs. People should not look at
    their gold in dollar terms other then trading devaluing
    dollars for hard money. When the time comes dollars
    will not be what you measure your gold’s value by.
    What will your gold buy you will ultimately determine
    the value. I’m no gold bug, just using logic and current
    events to determine course of action. Too many
    people know the price of everything and the value
    of nothing.

    1. Way back in the day there was an investment maxim coined by a guy named Marty Zweig. Everyone knew it by heart.

      “Don’t fight the Fed.”

      According to Marty it meant that if interest rates were going down, stocks would go up, and vice versa. He never extended it to the gold market, but it wouldn’t have been hard to do so back when gold was still in a bull market.

      Everybody knows the Fed hates gold. We know they don’t want it to go up, and we know that they want to keep interest rates down. Ergo, we should have been smart and gone with the Fed and put our money in the markets instead of gold.

      The Fed is going to get what it wants by hook or by crook, one way or another. It was clear long before the bailouts that the Fed was in the employ of the banks, and yet I along with many other chose to bet with the “free” markets instead of with the Fed.

      How naive, no, how stupid I was and how stupid anyone is who believes that economic forces are going to dictate asset values.

      These people have unlimited money, unlimited power, unlimited propaganda, and unlimited military force and violence at their disposal to get what they want. What they want is what they have, and they intend to keep it.

      It matters not what China wants, or what Russia wants, or what anyone else wants. The people who run this country have not spent their lives gaining and controlling power and finance just to let it all evaporate because some other stupid country wants to try and push them around.

      There will be lots of blood before that happens.

      There will be a change eventually, but it will not happen until the people who run this country want it to happen, and not a moment sooner. Any attempts to push the issue before then will result in war, and the result of it all will probably be war anyway, but on their schedule, and no one else’s.

      At this point I’m looking for a good bounce to lighten my position substantially, with losses. I won’t liquidate, because in the long run the markets will correct when they are allowed to. Remember what Keynes said though.

      In the long run we’re all dead.

  4. Dave, as for the first chart, as I think you have pointed out before the Banker’s meeting at the White House in April 2013 looks more and more like a “Oh shit”/strategy/marching orders meeting in terms of G+S and the economy.

    Seeing many millions, if not billions, of people getting mauled by the coming economic storm is going to be horrifying.

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