End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix. $TNR.v $MUX $GLD $ABX

 

Jim Puplava: The Swiss Gold Initiative With Luzi Stamm, Member of the Swiss National Council $TNR.v $MUX $GLD $GDX

  "Jim Puplava discusses the groundbreaking developments in Switzerland where the real democracy can be in action now. Even debates about the Gold and Money Printing will be unprecedented on the national level and if this decision finds the support of the people Central Planers will be in horror."

Kirill Klip.:

End Gold Manipulation: The Stunner From Today's Round Table Debate To "Fix" The London Gold Fix.

 ZeroHedge reports on this very important topic, which I follow on my blog:

  "As those following the saga of the rigged for decades and soon to be history (in its current incarnation) London gold fix know, today was the date when the World Gold Council held its "Modernising the London Gold Fix: IOSCO and beyond" round table session.

  Specifically, as the WGC explained, "The World Gold Council will be holding a round table debate on the reform of the London Gold Fix and the modernisation of the London gold market. Many aspects of the existing price benchmark process are viewed favourably by market participants, however, other elements are in need of reform if IOSCO compliance is to be achieved. The World Gold Council is seeking views from both users and service providers on the optimal characteristics of any reformed system. We will also debate whether IOSCO compliance is enough or should the industry be seeking to modernise more than just the price benchmark?" ZeroHedge."

I Vote To End Gold Manipulation: FSA Fines Barclays For Manipulation Of Gold Price - Join Me.

 "Manipulation cannot lasts forever even if the very powerful forces are behind it. You already know that I am not talking here just about one trader, one bank or even one country. We are talking here about the highest levels of power involved in this masquerade.

   Why Gold is so important for everyone, not just for the super wealthy who can afford to put it aside for the rainy day? Gold is the most important indicator of the rate at which FIAT money are losing its value - its real purchasing power. If you can manipulate it - you can pretend that everything is fine and DOW and S&P 500 will beat All-Time-High every month as we have now. But just look below at your childhood McDonalds Menu - something is not so right, isn't it?  My personal vote is nothing, but if I am not alone it will be finished one day. Please donate your tweet for the good cause and share this post if you want to change it as well.

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

  "This picture above is stronger than thousand words written by the FED's hired academics and even Austrian School of Economics - it cuts through the verbal mist to the bone of Inflation definition and what it really means. It means that your FIAT money are losing it purchasing power. It happens every day, day by the day. How much you can see from the McDonald's menu from 70s. 

  And below is the chart representing "Strong US Dollar Policy" in action implemented by FED from the day of its inception in 1913. Some people even think that Federal Reserve is as Federal as Federal Express, but we will not go that road today.

  Inflation is the dirty open secret of all Central Banks in the world. It creates the Inflation Tax by gradually stealing from the value of your savings and deflating the government's obligations on all social programs. It is the way for governments to finance wars and "Inflate away" their debts without taxing you "directly". Inflation follows currency debasement - organised by money printing or by QE in the iPad's century - and it is making its dirty work by itself.

  Why Gold is so important here? It is the real measure of the rate of Currency Debasement and Inflation: Gold is the Real Money, not dollars. That is why it is manipulated so heavily:

  I will address you to James Rickards' books: "Currency Wars" and "The Death of Money" to get more information in depth on these subjects and Gold Manipulation is widely discussed on the web today. Read more."

  

  This particular case is not more than a slap on the wrist for Barclays, but it is the beginning. Now Gold Manipulation will be more difficult. Will we ever have the real free market? I doubt it personally, but it is the very good start and Naked Short Selling could be the very good follow up:

Market Manipulations, NI 43-101 And How The Honest Person Can Survive In Junior Mining.

 "Manipulation is rampant in all markets: HFT Flash Boys, LIBOR, FOREX, Pensions, Energy ... Gold. Some of the former conspiracy theories are going in the court rooms now, others are still waiting for their time. But nothing could be compared with naked shorting and manipulations in the illiquid junior mining stocks. Dirty tactics are used all over the market like the banging the juniors into the close, suppressing the prices during the accumulation. You can get the idea from the reports made by Jim Puplava  on Financial Sense and the summary: Naked Short Selling: The Problem.  Not a lot of people are talking about it - not a lot of us have the voice. And that is the real problem. Read more."

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Kirill Klip.: Bullish For Metals?! Missing Collateral in China, Follow The Trail of Loans, Copper and Fraud.

Kirill Klip.:

Bullish For Metals?! Missing Collateral in China, Follow The Trail of Loans, Copper and Fraud.

  "As we have discussed before, nothing on my blog represents the investment advice of any kind. I am only sharing my thoughts on the markets, our industries and our companies. It is important to keep the big picture in front of our eyes: not only headlines, but what is actually people with money are doing by using every manufactured opportunity to acquire The Real Assets at the Lower Price:

"China continues its buying spree of copper assets all over the Globe: last month the huge Las Bambas copper project in Peru was bought by Minmetals Group for $5.85 B and now Guandong is bidding for PanAust. Reuters reports on the deal and you can notice how the activity in M&A by Chinese companies is picking up during the "soft market". It is the very important indication of the major bottom in the mining cycle: it is cheaper "to dig" for Copper and Gold on the Stock Exchanges now, when valuations of assets in the ground of listed companies are discounted by the depressed mining markets. Read more."

 And for all its followers as a great contrarian indicator Goldman Sachs came out with the major piece on the risks related to the China's Commodities Unwind Zerohedge: Goldman Explains How Big Is China's Rehypothecation Problem Is (Hint: Very):

"Step 4: Repeat Step 1-Step 3 as many times as possible, during the period of LC (usually 6 months, with range of 3-12 months). This could be 10-30 times over the course of the 6 month LC, with the limitation being the amount of time it takes to clear the paperwork. In this way, the total notional LCs issued over a particular tonne of bonded or inbound copper over the course of a year would be 10-30 times the value of the physical copper involved, depending on the LC duration. ZeroHedge."

  Today Reuters reports: "CITIC Resources warns over China port probe; private metals firm investigated":

"(Reuters) - China is investigating a private metals trading firm over a suspected metal financing scam at Qingdao port, police sources said, as CITIC Resources Holdings Ltd warned that metal it owns at the port may be affected by the probe. Reuters."

  I find it quite interesting that really "Everybody Does It!" Matt Taibi: "Accidentally Released - and Incredibly Embarrassing - Documents Show How Goldman et al Engaged in "Naked Short Selling":

"It doesn’t happen often, but sometimes God smiles on us. Last week, he smiled on investigative reporters everywhere, when the lawyers for Goldman, Sachs slipped on one whopper of a legal banana peel, inadvertently delivering some of the bank’s darker secrets into the hands of the public.

The lawyers for Goldman and Bank of America/Merrill Lynch have been involved in a legal battle for some time – primarily with the retail giant Overstock.com, but also with Rolling Stone, the Economist, Bloomberg, and the New York Times. The banks have been fighting us to keep sealed certain documents that surfaced in the discovery process of an ultimately unsuccessful lawsuit filed by Overstock against the banks. Rolling Stone."

Market Manipulations, NI 43-101 And How The Honest Person Can Survive In Junior Mining.

"Manipulation is rampant in all markets: HFT Flash Boys, LIBOR, FOREX, Pensions, Energy ... Gold. Some of the former conspiracy theories are going in the court rooms now, others are still waiting for their time. But nothing could be compared with naked shorting and manipulations in the illiquid junior mining stocks. Dirty tactics are used all over the market like the banging the juniors into the close, suppressing the prices during the accumulation. You can get the idea from the reports made by Jim Puplava  on Financial Sense and the summary: Naked Short Selling: The Problem.  Not a lot of people are talking about it - not a lot of us have the voice. And that is the real problem.  Read more."

  In my personal opinion, we are witnessing the same game of the rehypothecation as it is happening with FED, BIS, Investment Banks and Gold. This, actually missing metal as collateral, will be the very bullish set up for the commodities markets. After initial selling due to the margin calls and unwinding of Paper Positions in the market, Mr Market will realise that all these metal accounted for the supply and demand picture is NOT there. Industrial demand will stay in place, but Supply which was supposed to be hoarded in the warehouses is missing: the collateral was used a few times for the different transactions. You can study this subject more with explanation in plane English in the very good podcast I have published yesterday:

Sufiy: Federal Reserve Is As "federal" As Federal Express: Massive Conflict Of Interest In This Private Central Bank.

  "In my personal quest for answers how does the world really work? I came across a lot of conspiracy theories and "tin foil characters", but to my very personal surprise a lot of these theories ... are happen to be true and the real secrets are hidden in the plain sight. I do not talk about any politics here, but in order to have All our Big Picture in place we must consider all options of How To Win Strategy is applied  in The Art Of War, which employs Any Rules of Breaking The Rules. Read more."

The Gold Cartel Crackdown: FSA Fines Barclays For Manipulation Of Gold Price $TNR.v $MUX $ABX $GDX $GLD

  

  Manipulation cannot lasts forever even if the very powerful forces are behind it. You already know that we are not talking here just about one trader, one bank or even one country. We are talking here about The Gold Cartel: FED, BIS, Western Central Banks and highest levels of power involved in this masquerade.

Kirill Klip.:

TNR Gold: Shotgun Gold Project - Why Do We Need New Gold Deposits?

  

  This picture above is stronger than thousand words written by the FED's hired academics and even Austrian School of Economics - it cuts through the verbal mist to the bone of Inflation definition and what it really means. It means that your FIAT money are losing it purchasing power. It happens every day, day by the day. How much you can see from the McDonald's menu from 70s. 

  And below is the chart representing "Strong US Dollar Policy" in action implemented by FED from the day of its inception in 1913. Some people even think that Federal Reserve is as Federal as Federal Express, but we will not go that road today.

  Inflation is the dirty open secret of all Central Banks in the world. It creates the Inflation Tax by gradually stealing from the value of your savings and deflating the government's obligations on all social programs. It is the way for governments to finance wars and "Inflate away" their debts without taxing you "directly". Inflation follows currency debasement - organised by money printing or by QE in the iPad's century - and it is making its dirty work by itself. 

  Why Gold is so important here? It is the real measure of the rate of Currency Debasement and Inflation: Gold is the Real Money, not dollars. That is why it is manipulated so heavily:

  "Manipulation is rampant in all markets: HFT Flash Boys, LIBOR, FOREX, Pensions, Energy ... Gold. Some of the former conspiracy theories are going in the court rooms now, others are still waiting for their time." 

  I will address you to James Rickards' books: "Currency Wars" and "The Death of Money" to get more information in depth on these subjects and Gold Manipulation is widely discussed on the web today. Read more."

  This particular case is not more than a slap on the wrist for Barclays, but it is the beginning. Now Gold Manipulation will be more difficult. Will we ever have the real free market? We doubt it here, but it is the very good start and Naked Short Selling could be the very good follow up:

Kirill Klip.:

Market Manipulations, NI 43-101 And How The Honest Person Can Survive In Junior Mining.

 "Manipulation is rampant in all markets: HFT Flash Boys, LIBOR, FOREX, Pensions, Energy ... Gold. Some of the former conspiracy theories are going in the court rooms now, others are still waiting for their time. But nothing could be compared with naked shorting and manipulations in the illiquid junior mining stocks. Dirty tactics are used all over the market like the banging the juniors into the close, suppressing the prices during the accumulation. You can get the idea from the reports made by Jim Puplava  on Financial Sense and the summary: Naked Short Selling: The Problem.
  Not a lot of people are talking about it - not a lot of us have the voice. And that is the real problem. Read more."

ZeroHedge:

Barclays Fined For Manipulating Price Of Gold For A Decade; Sending "Bursts" Of Sell Orders

"It was almost inevitable: a week after we wrote "From Rothschild To Koch Industries: Meet The People Who "Fix" The Price Of Gold" and days after "Barclays' Head Of Gold Trading, And Gold "Fixer", Is Leaving The Bank", earlier today the UK Financial Conduct Authority finally formalized what most in the "tin-foil" hat community had known for years, when it announced that it fined Barclays £26 million for manipulating "the setting of the price of gold in order to avoid paying out on a client order." Furthermore, the FCA confirmed that those inexplicable gold raids which come as if out of nowhere, and slam gold with a vicious force so strong sometime they halt the entire market, had a very specific source:Barclays, whose trader "Daniel James Plunkett, sent out a burst of orders aimed at moving the price of the yellow metal." Read more"

Koos Jansen: Gold Price Manipulation Goes Mainstream On German TV $TNR.v $MUX $GLD $GDX $ABX

  

  Koos Jansen continues his great work for the benefit of all Gold community.  His work is highly recommended and he is the person to Follow in Gold market and China. He has allowed us to use his articles here, but visit his website for more info - it will be the great investment in your education. 

  Manipulations cannot go forever. Just today in the news that Goldman Sachs, JP Morgan and Morgan Stanley are exiting the Commodity business. More and more FOREX traders are being investigated now and we guess that Commodity business is not as profitable without its manipulation?

Kirill Klip: Market Manipulations, NI 43-101 And How The Honest Person Can Survive In Junior Mining. TNR.v ILC.v MUX

 "We have another "freedom fighter" joining our blogosphere and raising concerns about the ongoing manipulations in all markets, including Gold, and junior mining particularly. The only weapon against the darkness is the light. Lets support the Voice, donate your tweets and likes and follow for this one. Respect. By the way US Dollar is ... up now at 79.25! No there is Nothing to talk here about!"

In Gold We Trust:

Gold Price Manipulation Goes Mainstream On German TV

Public TV channel 3sat, which is a cooperation between Germany, Austria and Switzerland, broadcasted a short documentary on gold price manipulation on May 9, 2014. More and more mainstream news outlets are covering the allegedly gold price manipulation, after evidence is pilling up and many other market manipulations, like LIBOR, are coming out. From the Financial Times February 23, 2014:

Global gold prices may have been manipulated on 50 per cent of occasions between January 2010 and December 2013, according to analysis by Fideres, a consultancy.

The findings come amid a probe by German and UK regulators into alleged manipulation of the gold price, which is set twice a day by Deutsche Bank, HSBC, Barclays, Bank of Nova Scotia and Société Générale in a process known as the “London gold fixing”.

Fideres’ research found the gold price frequently climbs (or falls) once a twice-daily conference call between the five banks begins, peaks (or troughs) almost exactly as the call ends and then experiences a sharp reversal, a pattern it alleged may be evidence of “collusive behaviour”.

“The behaviour of the gold price is very suspicious in 50 per cent of the cases. This is not something you would expect to see if you take into account normal market factors,“ said Alberto Thomas, a partner at Fideres.

Oddly enough this article from the Financial Times was removed from their website two days after publication.

One of the most extensive researches that has been done on gold price manipulation is by Dimitri Speck in his book “The Gold Cartel”. On his website there is a chart that illustrates what Fideres’ found about the London gold fix. Dimitri Speck was, amongst others, interviewed by 3sat for the documentary.

I do not agree with everything that’s being said in the video, for example they state Chinese gold demand was 1066 tonnes in 2013, which is based upon numbers from the World Gold Council I happen to disagree with, or that it’s not necessary to invest in physical gold stored outside the banking system, though I thought it was worth sharing this clip with subtitles for the English speaking world. Germany is one of the few Western countries where there is a broad consensus about the importance of gold and sound money.

Press the captions button and choose English. Translated by Behfar Bastani.

Transcript:

Presenter: Good evening and welcome to the business magazine Makro. For many people, the purchase of gold represents a safe reserve for bad times. No wonder that, at the height of the financial crisis savers were queuing up at gold dealers. Throughout history, gold has served as a promise of reliability and stability. But today there are considerable doubts as to whether that promise remains valid, because an examination of gold prices reveals machinations fit for a financial thriller.

Narrator: London, the most important gold market in the world. Whether the price of gold rises or falls is determined here. Twice a day, a handful of bankers confer on the phone to fix the daily price of the precious metal. Thus arises the most important reference value for physical gold, used by businesses ranging from jewellers to gold mines. There is no public oversight for the “Fixing”. Apparently, this lack of restraint has led to serious manipulations of the gold price, as pointed out by a current investigation which has detected strange price movements spanning a number of years.

Rosa Abrantes-Metz: The setting of the gold fixing is, in my view, problematic. It opens the door for abuse and manipulation. There is absolutely no transparency in the arrangements made during the private phone conversations of this small group of participants as they decide what the price of gold should be.

Narrator: Experts have long complained that this system is particularly susceptible to manipulation. Only five banks participate in the London gold fix, thus far including the Deutsche Bank. In the more extreme futures markets, where bets are made on gold price developments in future months, the quantities that exchange hands are of quite different magnitudes.

Folker Hellmeyer: We have a situation where this market is dominated by three essential players, three banks, in the USA. These banks have a market share on the order of 80 percent. In other words, we are talking about an almost monopolistic structure which of course also provides the power to manipulate the market.

Narrator: And which power is apparently being abundantly used. The futures market, intended to provide predictability and stability for future prices, is controlled by the following three banks: HSBC, Citibank, and JP Morgan. Their tool: paper gold securities.

Thorsten Schulte: It is possible to simply sell scraps of paper, thereby creating fear, especially fear among those who possess gold in its physical form, and who may then arrange to sell their metal, eventually resulting in such a a wave of fear …

Narrator: The gold price has been attacked in this fashion time and again, often with massive price declines within a matter of a few minutes. Yet, there is quite a bit more to the story.

Dimitri Speck: Gold is the opponent of debt based moneys, i.e. currencies, and in particular the US Dollar. Therefore, the US Federal Reserve has an interest in a weak gold price, and the US government protects the manipulation of the gold price by the private banks.

Narrator: For years, the US Federal Reserve has served as the lender of last resort. Gold must be weak if a loss of confidence in the US Dollar is to be averted. It has been difficult to prove that this is a rigged game with a stacked deck, but if the gold market manipulations are indeed encouraged in addition to being condoned, that would explain why oversight bodies have thus far turned a blind eye to it, despite years of massive conspicuous activities in the futures markets, as with the gold fixing in London.

Presenter: Incidentally, the Deutsche Bank intends to withdraw from the gold fix. As of now, no other bank has expressed an interest
in filling that spot. Too many banks are scared to damage their good reputation in London. Gold is a speculation commodity with a high symbolic power. Its price is therefore strongly influenced by many fears and hopes. Here are a few facts about that from our Makroskop.

Narrator: 31.1 grams, the weight of one ounce of refined gold. The precious metal is regarded foremost as protection in times of crisis. Gold climbed rapidly during the financial and economic crisis. Currently gold trades for about USD $1300 per ounce. Yet the more hopes grow for an end to the international economic slowdown, the more the price of gold declines. The US government continues to hold the largest governmental gold reserves at 261.6 million ounces, over 8100 metric tonnes. The US is followed by Germany, Italy, France, and China. But the largest demand comes from the Middle Kingdom. From gold coins to gold bars, the Chinese are accumulating large quantities. In 2013 the Chinese acquired 1065.8 tonnes, moving for the first time ahead of the Indians who purchased 974.8 tonnes in 2013. Jewellery accounts for the highest portion of the demand. In China, jewellery sales have tripled since 2004. They represent about 30 percent of worldwide demand. About 400 tonnes was purchased by businesses. In particular, China’s electronic manufacturers need industrial gold for production. Meanwhile, in the mining sector, China has risen from being a small player to become the number one gold producing country. In the past tens years, Chinese gold production has more than doubled from 217 to 437 tonnes.

Presenter: Today, the course of the gold market is being set by China. What are the worldwide consequences of this? Let’s talk about that with the chief editor of the Frankfurter Börsenbrief.

Presenter: A very good evening to you, Mr. Bernhard Klinzing. These days the flow of gold seems to be from the west to the east, as we have just seen. There are considerably more buyers in Asia than in the developed western countries. What do you attribute this to?

Klinzing: The reason is that India and China, which together make up half the gold market, do not have state provided elder care, which is valued differently there. Inflation fears are another factor. “The Chinese are the Germans of Asia”, it is said, and so they sit on gold.

Presenter: We have seen that the price of gold is heavily manipulated. There are manipulators that are apparently backed
from the highest places. Do you believe that, or do you regard it as a conspiracy theory?

Klinzing: I don’t believe that based on the Deutsche Bank and the London fix, but based on what we just saw from the Americans I absolutely do see that danger, because there is a quasi “Edward Snowden”. His name is Paul Roberts and he worked at the US treasury department and he has confirmed that the Fed, together with a number of banks, are preventing gold from rising above $1400 per ounce by continually providing gold bids which put downward pressure on the price.

Presenter: Given the unsound loans that came to light in the Libor scandal or the forex markets, do you believe that this is only the tip of the iceberg in the gold trade?

Klinzing: I would say that we are only seeing a snow ball from the iceberg while a lot more is hidden at the bottom. The banks earn a hefty sum whenever they fix the gold price by as little as 1/10th of a US Dollar upwards or downwards. You can see that with Goldman Sachs who published studies predicting gold’s decline to $950 per ounce while at the same time increasing their own gold positions by 20%. That does not match up. Presenter: What are some consequences for other market participants? You stated that the banks are lining their pockets, but what are some of the consequences?

Klinzing: Yes, there is a hedge fund manager by the name of William Kaye who has said that the German gold is no longer stored in the vaults of the Fed in New York, but has already found its way to China because the Fed needed the gold in order to carry out its market manipulations. This is as yet only a suspicion, and it may even be a conspiracy theory, but the Germans were denied an opportunity to touch or take samples of their own gold in New York.

Presenter: One could hardly think up a better plot for an economic thriller. I would like to talk about investors again. Is gold a good investment for the, let’s say, small investor?

Klinzing: One should not construct a portfolio with only gold, that much should be clear. But of course gold is a very attractive portfolio addition, whereby investors can insure the value of their portfolio against currency risks. Because if the Euro rises, the value of gold falls, so you can participate only less than possible, therefore invest always in a currency protected fashion.

Presenter: How can I do that as an investor?

Klinzing: There are certificates for doing this, there is no need for an investor to store gold in their own vault or under their pillow. For that there are very good solutions on the financial markets.

Presenter: Before we wrap up, what are your thoughts on how the gold price develops further from here?

Klinzing: We can see that in China the standard of living is rising, the middle class will grow from 300 million people to 500 million by 2020, and urbanization is accelerating. This means that there will be much more demand for gold from China, as well as from India. I don’t believe that gold will break $1400 per ounce this year, but we will see a new gold rally in the next few years.

Presenter: An overview of the gold price from Bernhard Klinzing of the Frankfurter Börsenbrief. Thank you for being on the show with us tonight. Dear viewers, if you have any questions for our studio guest, please visit the Makro blog where Mr. Klinzing will be available for a little while longer after the show. On our homepage you will also find additional background material on the topic of gold.

In Gold We Trust"