I got your portfolio change email earlier tonight. (I won't go into detail since I assume you prefer to keep that for subscribers). I see your point about the dollar, but does that mean your expectation of a short-term stock market correction has changed? Thanks.
go and get some gold bullions and there is a news just up in NY post, U.S and AU...all about manipulation....has gone onto mainstream media...keep google it and get some gold bars....
It's funny how the rally has come about shortly after the manipulation has been exposure in main stream media...coincidence? Perhaps, perhaps not.
I also find it ironically hilarious that you are quick to dismiss the manipulation theories based on "no evidence" and then make the call that there mustn't be manipulation based on a short rally. Are we to believe that this 10 out of 11 day rally is your "evidence" of there being no manipulation?
Perhaps you should spend less time trying to make a case against manipulation and more time working out what cycle we are in, because you seem to be changing your mind every other week recently.
Trust me the government has bigger things to worry about than the price of a shiny piece of metal.
Jim Rogers and Marc Faber both scoffed at the notion of manipulation. George Soros and John Paulson both have big positions in gold and miners. Do you really think some of the smartest people in the world would invest in a sector if they thought it was being suppressed?
Gary, if it corrects from here on now, you would consider the move till date as A-wave, and the correction as B-wave, right? If, yes, what point exactly do you expect us to go all-in or like you mentioned previously, leverage ourselves 110% ? :)
I think the leverage part is done since we don't really have anyway to tell if this is an A wave or not.
I will move up to 100% as soon as the stock market corrects but I do so fully realizing that this may be an A-wave and I'm going to have to ride the ups and downs, probably for months.
The government is large enough to worry about everything, but they fix nothing. If they need more people to worry about things, they will just contract them out. They own it all.
Could it be that the manipulators are now pushing gold up? After all, I think this is the A-wave (whether or not we look for a 'confirmation' or not). ...
Part I BOMBSHELL – Whistle Blower Comes Forward With Solid Proof The Price Of Gold And Silver Is Being Manipulated By Major Financial Institutions
Posted on 04/12/10 at 2:13am by Michael Snyder For a long time many of us have had very serious suspicions that the prices of gold and silver were being highly manipulated. But now, thanks to the mind blowing testimony of one very brave whistle blower, the blatant manipulation of the world gold and silver markets is being blown wide open. What you are about to read below is absolutely staggering. Once the American people learn how incredibly corrupt the world financial system is, it is going to change everything. The government that we are all trusting to guard the integrity of the financial system is failing to do that job. It turns out that the Commodities Futures Trading Commission has been sitting on solid evidence that the elite banking powers have been openly and blatantly manipulating the price of gold and silver. Even though they were basically handed a "smoking gun", they have done absolutely nothing with it. But now the information has gone public and the CFTC is red-faced. Back in November 2009, Andrew Maguire, a former Goldman Sachs silver trader in Goldman's London office, contacted the CFTC's Enforcement Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase. Maguire told the CFTC how silver traders at JPMorgan Chase openly bragged about their exploits - including how they sent a signal to the market in advance so that other traders could make a profit during price suppression episodes. Traders would recognize these signals and would make money shorting precious metals alongside JPMorgan Chase. Maguire explained to the CFTC how there would routinely be market manipulations at the time of option expiries, during non-farm payroll data releases, during commodities exchange contract rollovers, as well as at other times if it was deemed necessary.
Part II On February 3rd, Maguire gave the CFTC a two day warning of a market manipulation event by email to Eliud Ramirez, who is a senior investigator for the CFTC’s Enforcement Division. Maguire warned Ramirez that the price of precious metals would be suppressed upon the release of non-farm payroll data on February 5th. As the manipulation of the precious metals markets was unfolding on February 5th, Maguire sent additional emails to Ramirez explaining exactly what was going on. And it wasn't just that Maguire predicted that the price would be forced down. It was the level of precision that he was able to communicate to the CFTC that was the most stunning. He warned the CFTC that the price of silver was to be taken down regardless of what happened to the employment numbers and that the price of silver would end up below $15 per ounce. Over the next couple of days, the price of silver was indeed taken down from $16.17 per ounce down to a low of $14.62 per ounce. Because of Maguire’s warning, the CFTC was able to watch a crime unfold, right in front of their eyes, in real time. So what did the CFTC do about it? Nothing. Absolutely nothing. Which is extremely alarming, because the size of this fraud absolutely dwarfs the Madoff or Enron scandals. In fact, this fraud is so gigantic that it is not even worth comparing to any of the other major financial scandals of recent times. But Maguire did not give up. He sent several more emails to the CFTC detailing the open manipulation of the gold and silver markets. The CFTC did not reply. Finally he sent them a final email: "I have honored my commitment to assist you and keep any information we discuss private, however if you are going to ignore my information I will deem that commitment to have expired." The reply by the CFTC? "I have received and reviewed your email communications. Thank you so very much for your observations." No action. No acknowledgement that anything was wrong. No recognition that a massive crime had been committed. Fortunately, that was not the end of it. On March 25th, the CFTC held a hearing on alleged manipulation in the gold market by the major banking powers. Maguire wanted to testify during that hearing but he was not invited. But William Murphy, chairman of Gold Anti-Trust Action (GATA), was invited to testify. GATA has been compiling data on the manipulation of the gold and silver markets for quite a long time now. Murphy was only given five minutes to deliver his testimony. He raced through his presentation so that he could get as much information on the record as possible. Very curiously, the live television broadcast of the CFTC hearing suffered a technical failure the minute before Murphy began his testimony. The technical failure was corrected the minute after Murphy was finished. Coincidence?
Part III Maguire and his wife were subsequently injured and hospitalized when their car was struck by a hit-and-run driver in the London suburbs. When a bystander who saw the "accident" tried to block the other driver from getting away, the other driver accelerated directly towards the witness, forcing him to leap out of the way to avoid being hit. The hit-and-run driver’s car then hit two additional cars as he left the area. But Maguire and his wife were fortunate. In the past, other would-be whistle blowers that had evidence regarding the manipulation in the gold and silver markets died in "unusual accidents" before they were able to bring their evidence to light. But there were even more "coincidences" surrounding this hearing. A week before the hearing, the CFTC announced that they had had a fire in the room where its gold and silver records are held. Isn't that convenient? In addition, after the hearing was over, Murphy was contacted by a number of major media outlets for interviews. Within 24 hours, every single interview was cancelled. Every single one. Is that a coincidence too? It appears that some very powerful people do not want this information to get out. It also shows how corrupt the mainstream media has become. This is a story that is so much bigger than the Madoff scandal or the Enron scandal that it is not even funny. And yet the mainstream media is avoiding it like the plague. But there were additional bombshells that came out during the hearing as well. During the hearing it was revealed that the gold manipulators have accumulated a huge short position in gold and that these huge short positions are "naked", which means that these positions are not hedged. These massive short positions have put some of the largest financial institutions in the world in an extremely vulnerable position.
Part IV In addition, it has now come out that most "gold" that is traded is not backed by the actual metal itself. For years, most people have assumed that the London Bullion Market Association (LBMA), the world's largest gold market, had actual gold to back up the massive "gold deposits" at the major LBMA banks. But that is not the case. People are now realizing that there is very little actual gold in the LBMA system. When people think they are buying "gold", they are actually just buying pieces of paper that say they own gold. In fact, during the CFTC hearings, Jeffrey Christian of CPM Group confirmed that the LBMA banks actually have approximately a hundred times more gold deposits than actual gold bullion. Uh oh. So what happens if everyone decides that they want actual physical delivery of their gold? It would be such a mess that it is painful even to think about it. The truth is that right now most of the trading activities on the London exchange are just paper for paper. But people get into gold because they want to be in a real commodity. In fact, there are thousands of clients around the globe who think they own huge deposits of gold bullion, and are being charged large storage fees on that imaginary bullion, but what they really own are a bunch of pieces of paper. If there comes a time when everyone starts asking for their gold it is going to create a squeeze of unimaginable proportions. Maguire explains this situation this way: "for 100 customers who show up there is only one guy who is going to get his gold or silver and there’s 99 who will be disappointed, so without any new money coming into the market, just asking for that gold and silver will create a default." The truth is that it is absolutely impossible for the LBMA to ever deliver all the gold and silver owed to the owners of contracts. Yes, it is a gigantic mess. But this type of things is not entirely unprecedented. For example, Morgan Stanley paid out several million dollars back in 2007 to settle claims that it had charged 22,000 clients storage fees on silver bullion that did not exist. But the scale of the fraud going on now is absolutely mind blowing. The following video contains footage from the hearing related to these issues.... So what is the bottom line? The bottom line is that the precious metals markets are cesspools of fraud and manipulation. The markets have been suppressed by the major financial institutions for years, and this has created the potential for a "squeeze" in the precious metals markets that could send the prices of gold and silver into the stratosphere. You see, the reality is that there would be no gold left in the entire world if all the Gold ETFs (Exchange Traded Funds) asked for physical delivery. Are you starting to get the picture? In fact, Maguire claims that the naked short selling scam by the major financial institutions is well into the trillions of dollars, making it by far the biggest financial fraud in history.
Part V Maguire calls what has been going on "financial terrorism", and he accuses the financial institutions involved in this fraud of "treason" for putting national security at risk. And national security is at risk. Because if the true extent of this fraud comes out, it could collapse the entire financial system. If you have never heard an interview with Andrew Maguire, we encourage you to listen to the audio interview posted below. It will really open your eyes to what is going on in the precious metals markets.... The Century's Biggest Fraud Revealed This is one of the biggest financial stories of the decade. Because it is complex, most Americans will not understand it. But the fraud and manipulation in the gold and silver markets has the potential to cause a massive economic collapse even without all of the other factors talked about on this blog. Some very powerful people have been doing some really, really bad things. Once people understand the truth, they will never look at the financial markets the same way again. Already, faith in the major financial institutions of this country has been shaken by revelations about what has been going on over at Goldman Sachs. The American people have no more appetite for any more financial scandals or for any more Wall Street bailouts. But if the fraud and manipulation taking place in the precious metal markets ever gets totally exposed it will change the U.S. financial system forever. Please get this information out to as many people as you can. There are a number of very powerful people who are not going to be pleased that sites like this are attempting to get the truth about this massive scandal out.
AAR Reports Sharp Traffic Gains on U.S. Railroads for Most Recent Week Carloads Up for Sixth Straight Week; Intermodal Up for Twelfth Straight Week
WASHINGTON, D.C. - April 8, 2010 - The Association of American Railroads today reported that U.S. railroads saw sharp gains in traffic for the week ending April 3, 2010, compared with levels from one year ago. U.S. railroads originated 290,217 carloads during the week, up 10.7 percent from the comparable week in 2009. This was the sixth consecutive week carload volume has topped year-over-year levels compared with 2009, while traffic was still down 11.8 percent compared with 2008.
In order to offer a complete picture of the progress in rail traffic, AAR now reports 2010 weekly rail traffic with comparison weeks in both 2009 and 2008. Good Friday, which is observed as a holiday on many railroads, occurred during the 2010 week but not in the comparison weeks from 2009 and 2008.
Intermodal traffic totaled 196,257 trailers and containers, up 6.2 percent from last year but down 9.4 percent compared with 2008. Compared with the same week in 2009, container volume increased 7.8 percent and trailer volume dipped 1.5 percent. Compared with the same week in 2008, container volume was down 1.9 percent while trailer volume fell 35 percent. This was the twelfth straight week intermodal volume was above 2009 levels.
Total volume for the week was estimated at 31.3 billion ton-miles, up 11 percent from last year, but down 9.3 percent from 2008.
In the Western U.S., carloads were up 12.7 percent compared with the same week last year, but off 9.2 percent compared with 2008. In the Eastern U.S., carloads were up 7.8 percent compared with 2009, but down 15.3 percent compared with 2008.
Seventeen of 19 carload commodity groups showed gains from a year ago, with the largest coming from products associated with metals: metallic ores, up 104.2 percent; metals, up 84.1 percent; scrap, up 39.8 percent; and coke, up 30.3 percent. Other notable increases included motor vehicles and equipment, 21.3 percent; grain, 18 percent; primary forest products, 34.8 percent; lumber, 21.6 percent; and chemicals, 11.5 percent. Loadings of pulp, paper and allied products were off 5.1 percent.
For the first 13 weeks of 2010, U.S. railroads reported cumulative volume of 3,590,628 carloads, up 2.2 percent from 2009, but down 14.7 percent from 2008; 2,627,231 trailers or containers, up 8.4 percent from 2009, but down 8.5 percent from 2008, and total volume of an estimated 390.1 billion ton-miles, up 3.1 percent from 2009 but down 11.8 percent from 2008.
Canadian railroads reported volume of 70,786 cars for the week, up 14.8 percent from last year, and 42,025 trailers or containers, up 6.1 percent from 2009. For the first 13 weeks of 2010, Canadian railroads reported cumulative volume of 933,743 carloads, up 15.9 percent from last year, and 568,737 trailers or containers, up 7.4 percent from last year. Carload volume on Canadian railroads has been ahead of year ago levels every one of the first 13 weeks this year.
Mexican railroads reported originated volume of 11,267 cars, up 4.3 percent from the same week last year, and 5,069 trailers or containers, up 0.4 percent. Cumulative volume on Mexican railroads for the first 13 weeks of 2010 was reported as 172,819 carloads, up 20 percent from last year; and 83,544 trailers or containers, up 37.3 percent.
Combined North American rail volume for the first 13 weeks of 2010 on 13 reporting U.S., Canadian and Mexican railroads totaled 4,697,190 carloads, up 5.2 percent from last year, and 3,279,512 trailers and containers, up 8.8 percent from last year.
Gary, I feel sorry for you. Whenever I read through the comments section of these financial blogs, I feel like I'm being struck with a radioactive dose of stupidity. I do my best to avoid it.
Right now, I this is in reference to the manipulation theorist, but there are endless variations on the themes.
I've said it before and I'll say it again. All markets will be manipulated from time to time. Short term certainly gold could be affected. But any serious manipulation would only act to drive prices much much higher than they normally would be.
So all this drivel trying to prove that gold is being supressed is just crazy. If it's actually happening then it's the reason gold is as high as it is not the reason it isn't higher.
Any huge short positions have to be covered when price runs over them thus sending gold rocketing much higher than it would normally.
Apparently the conspiracy theorists don't understand how markets work. If they did they would be cheering on the manipulators.
But then all this nonsense isn't really about whether gold is tampered with, it's about needing an excuse for why gold doesn't do what they want it to do when they want it to do it.
Gary, I was looking at the chart (danger) and just going back to November, that's when I jumped short and lost a bit. My point after chart gazing is - Could Nov. been the start of A wave, with B wave retesting the whole move, followed by the C wave that's topping out now?
I agree with Gary - C wave ended in December. D-wave always goes down WITH the market - would you agree Gary?
I still think we're in the A wave - started Feb5/8th. Won't top until after reaching 1186. The A-wave PEAK should occur around the same time that major indexes are hitting NEW LOWS. The divergences should take place with their pivots being within a couple weeks of one another.
Whew I would certainly be afraid to bet on that trade. I think Ben has pretty much proved his point that with an unrestrained printing press deflation has no chance.
Bernanke has proved nothing except that he is exceedingly short-sighted and incognizant of the damage wrought by his increasingly desperate efforts at preventing the deflationary collapse.
Since most people think of inflation strictly in terms of pricing, I have to wonder where is the inflation in, say, corn and wheat? Oil is a scarce resource, it is no surprise to see a price increase as global demand ramps up.
I think anyone in the deflation camp by this time is in severe denial. Oil is hardly in short supply. We have so much of it we are running out of storage.
Certainly some things with very low demand are not increasing but most commodities other than grains and nat gas have been soaring since last year. resturant prices are up considerably over the last 5 years. health care is skyrocketing. Medical bills and tuitions are up. Most service industry pricing is up considerably over the last 5 years.
Inflation is a monetary phenomenon. Rising prices are just a symptom. We certainly have expanding monetary bases and monstrously expanding credit (government).
Medicine is an oligarchy, the perpetual shortage of US doctors is a deliberate policy of AMA to keep doctor wages high. In a free market, prices in this area would plainly fall. Doesn't the US have one of the most expensive medical systems in the entire world?
Restaurant prices up considerably? Perhaps at Ruth Chris steak house, but the general populace doesn't eat there. At McDonalds, I would say that prices haven't gone up much, if at all, and they have also introduced some lower price options on their menu. Like the McSnack or whatever the hell it is called.
Yes, asset prices are being bid up in a liquidity-fueled frenzy. When everybody is all in on the inflation trade, those prices will have nowhere else to go but...down.
How is your aluminum hoard coming along? Alcoa sees increasing prices. I see them going bankrupt in a few more quarters. ;-)
And finally, the highlight of this depression is going to be the refutation of monetarist nonsense. A hundred years from now, some dumbass fedhead will be thanking some theoretical economist for pointing out the errors of Bernanke and claiming, "Yes, we did it. But thanks to you, it won't happen again." (Note that the proposed refutation has already occurred in Japan, but Anglo-Saxon types are convinced that the Japanese are "different". Sure they are.)
If you will notice prices aren't falling. In a deflation prices should be falling. Even grains and nat gas are just stagnate. Even housing prices have ground to a standstill.
If we were really experiencng deflation prices of everything would be dropping like a rock...just like they did in 08.
Gary of SMT blog said: "Do you really think some of the smartest people in the world would invest in a sector if they thought it was being suppressed?"
Eric Sprott: "I’m a 100% believer that central banks have suppressed the price of Gold."
Do I take the word of a random blogger or a chairman, ceo & portfolio manager with $5 billion under management? hmmm...
Greg, Do you really consider any of this as serious evidence of anything other than short term manipulation (happens in every market).
My gosh on Feb. 5th the market was moving into an intermediate cycle low. There was margin selling across the board in everything. To expect that to not effect the metals would be ludicrous.
I think part five makes a perfect case for owning gold. If there are outlandishly large short positions they will have to be covered when price rolls over them. That means gold will rocket higher. What's bad about that? Isn't that what we want to happen?
Why are you concerned about something that's guaranteed to send gold soaring?
And all this based on some trader who openly admits to making money of the manipulation. Why did he now all of a sudden decide to kill the goose that lays the golden eggs.
Perhaps you might want to read a little commonsense once in a while.
After looking at the posts here, I see that they are all pretty ancient.... around April of 2010, and at this time of this posting, it is near the end of August 2011.
Of course gold is being manipulated, only a village idiot would think otherwise. However, with patience, and if you already have physical gold, (the only real money saved toward your retirement), then play the waiting game. For the past ten years it's been a case of three steps forward and two steps back, at times it was four steps backward, but not very often, all in all, it's been a steady move forward for gold, and a steep decline for Ben Bernanke and his ilk's paper dollar.
Wait... let those with billions continue to sucker in the rubes by raising the price of gold with their paper purchases. The rubes seeing the price of gold rising then jump in hoping to become wealthy also. When enough of the simpletons have invested their life savings, the Wise Guys bail out taking all of the gullible ones money with them. A few weeks are allowed to pass in order to let the sheep forget, then the game begins, over and over, and over again. You don't have to go back very far to see how much gold has increased, or if you prefer, how much the Dollar has collapsed.
January of 2010 saw a gold price of $1097.30 Sit on your golden egg until the "hatching" is complete. Wait until long AFTER the crap has hit the fan.
Gold is up due to GATA's efforts in exposing manipulators/
ReplyDeleteGary,
ReplyDeleteI got your portfolio change email earlier tonight. (I won't go into detail since I assume you prefer to keep that for subscribers). I see your point about the dollar, but does that mean your expectation of a short-term stock market correction has changed? Thanks.
go and get some gold bullions and there is a news just up in NY post, U.S and AU...all about manipulation....has gone onto mainstream media...keep google it and get some gold bars....
ReplyDeletecheck it out then
ReplyDeletehttp://news.goldseek.com/GoldSeek/1271052300.php
no, let me apologize: why have you been so wrong so often this year?
ReplyDeleteJim,
ReplyDeleteNo I still expect a correction. I just added a small amount as a sacrifice to the market gods is all :)
Gary,
ReplyDeleteIt's funny how the rally has come about shortly after the manipulation has been exposure in main stream media...coincidence? Perhaps, perhaps not.
I also find it ironically hilarious that you are quick to dismiss the manipulation theories based on "no evidence" and then make the call that there mustn't be manipulation based on a short rally. Are we to believe that this 10 out of 11 day rally is your "evidence" of there being no manipulation?
Perhaps you should spend less time trying to make a case against manipulation and more time working out what cycle we are in, because you seem to be changing your mind every other week recently.
Joseph
Give me a break. GATA has been "exposing" for years. Seriously people wake up and smell the coffee.
ReplyDeleteThere were people trying to expose Madoff for years before his ponzi scheme blew up as well.
ReplyDeleteJoseph
Trust me the government has bigger things to worry about than the price of a shiny piece of metal.
ReplyDeleteJim Rogers and Marc Faber both scoffed at the notion of manipulation. George Soros and John Paulson both have big positions in gold and miners. Do you really think some of the smartest people in the world would invest in a sector if they thought it was being suppressed?
Gary, if it corrects from here on now, you would consider the move till date as A-wave, and the correction as B-wave, right? If, yes, what point exactly do you expect us to go all-in or like you mentioned previously, leverage ourselves 110% ? :)
ReplyDeleteI think the leverage part is done since we don't really have anyway to tell if this is an A wave or not.
ReplyDeleteI will move up to 100% as soon as the stock market corrects but I do so fully realizing that this may be an A-wave and I'm going to have to ride the ups and downs, probably for months.
The government is large enough to worry about everything, but they fix nothing. If they need more people to worry about things, they will just contract them out. They own it all.
ReplyDeleteCould it be that the manipulators are now pushing gold up? After all, I think this is the A-wave (whether or not we look for a 'confirmation' or not). ...
ReplyDeletePart I
ReplyDeleteBOMBSHELL – Whistle Blower Comes Forward With Solid
Proof The Price Of Gold And Silver Is Being Manipulated By Major Financial
Institutions
Posted on
04/12/10 at 2:13am by Michael
Snyder
For a long time many of us have had very
serious suspicions that the prices of gold and silver were being highly
manipulated. But now, thanks to the mind blowing testimony of one very brave
whistle blower, the blatant manipulation of the world gold and silver markets
is being blown wide open. What you are about to read below is absolutely
staggering. Once the American people learn how incredibly
corrupt the world financial system is, it is going to change
everything. The government that we are all trusting to guard the
integrity of the financial system is failing to do that job. It
turns out that the Commodities Futures Trading
Commission has been sitting on solid evidence that the elite banking
powers have been openly and blatantly manipulating the price of gold and silver. Even
though they were basically handed a "smoking gun", they have done
absolutely nothing with it. But now the information has gone public and
the CFTC is red-faced.
Back in November 2009, Andrew Maguire, a former Goldman Sachs
silver trader in Goldman's London office, contacted the CFTC's Enforcement
Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.
Maguire told the CFTC how silver
traders at JPMorgan Chase openly bragged about their exploits - including
how they sent a signal to the market in advance so that other traders
could make a profit during price suppression episodes.
Traders would recognize these
signals and would make money shorting precious metals alongside JPMorgan
Chase. Maguire explained to the CFTC how
there would routinely be market manipulations at the time of
option expiries, during non-farm payroll data releases, during commodities
exchange contract rollovers, as well as at other times if it was deemed
necessary.
Part II
ReplyDeleteOn February 3rd, Maguire gave the
CFTC a two day warning of a market manipulation event by email to Eliud
Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.
Maguire warned Ramirez that the price of
precious metals would be suppressed upon the release of non-farm payroll
data on February 5th. As the manipulation of the precious
metals markets was unfolding on February 5th, Maguire sent additional
emails to Ramirez explaining exactly what was going on.
And it wasn't just that Maguire predicted
that the price would be forced down. It was the level of precision that
he was able to communicate to the CFTC that was the most stunning. He
warned the CFTC that the price of silver was to be taken
down regardless of what happened to the employment numbers and that the
price of silver would end up below $15 per ounce. Over the next
couple of days, the price of silver was indeed taken down from $16.17
per ounce down to a low of $14.62 per ounce.
Because of Maguire’s warning,
the CFTC was able to watch a crime unfold, right in front
of their eyes, in real time.
So what did the CFTC do about it?
Nothing.
Absolutely nothing.
Which is extremely alarming, because the
size of this fraud absolutely dwarfs the Madoff or Enron scandals. In
fact, this fraud is so gigantic that it is not even worth comparing to any of
the other major financial scandals of recent times.
But Maguire did not give up. He
sent several more emails to the CFTC detailing the open manipulation of the
gold and silver markets.
The CFTC did not reply.
Finally he sent them a final email: "I
have honored my commitment to assist you and keep any information we discuss
private, however if you are going to ignore my information I will deem that
commitment to have expired."
The reply by the CFTC?
"I have received and reviewed your
email communications. Thank you so very much for your observations."
No action.
No acknowledgement that anything was
wrong.
No recognition that a massive crime had
been committed.
Fortunately, that was not the end of it.
On March 25th, the CFTC held
a hearing on alleged manipulation in the gold market by the major
banking powers.
Maguire wanted to testify during that
hearing but he was not invited.
But William Murphy, chairman of Gold Anti-Trust Action (GATA), was invited to
testify. GATA has been compiling data on the manipulation of the gold and
silver markets for quite a long time now.
Murphy was only given five minutes to
deliver his testimony. He raced through his presentation so that he could
get as much information on the record as possible.
Very curiously, the live television
broadcast of the CFTC hearing suffered a technical failure the minute
before Murphy began his testimony. The technical failure was
corrected the minute after Murphy was finished.
Coincidence?
Part III
ReplyDeleteMaguire and his wife were subsequently injured and hospitalized when their car
was struck by a hit-and-run driver in the London suburbs.
When a bystander who saw
the "accident" tried to block the other driver from getting
away, the other driver accelerated directly towards the
witness, forcing him to leap out of the way to avoid being hit.
The hit-and-run driver’s car then hit two additional cars as he left
the area.
But Maguire and his wife were fortunate.
In the past, other would-be whistle
blowers that had evidence regarding the manipulation in the gold and
silver markets died in "unusual accidents" before they were able to
bring their evidence to light.
But there were even more
"coincidences" surrounding this hearing.
A week before the hearing, the CFTC
announced that they had had a fire in the room where its gold and silver
records are held.
Isn't that convenient?
In addition, after the hearing was
over, Murphy was contacted by a number of major media outlets
for interviews.
Within 24 hours, every single interview
was cancelled.
Every single one.
Is that a coincidence too?
It appears that some very powerful people
do not want this information to get out.
It also shows how corrupt the mainstream
media has become.
This is a story that is so much bigger
than the Madoff scandal or the Enron scandal that it is not even funny.
And yet the mainstream media is avoiding
it like the plague.
But there were additional bombshells that
came out during the hearing as well.
During the hearing it was revealed that
the gold manipulators have accumulated a huge short position in gold and
that these huge short positions are "naked", which means that
these positions are not hedged.
These massive short positions have put
some of the largest financial institutions in the world in an extremely
vulnerable position.
Part IV
ReplyDeleteIn addition, it has now come out that
most "gold" that is traded is not backed by the actual metal
itself. For years, most people have assumed that the London
Bullion Market Association (LBMA), the world's
largest gold market, had actual gold to back up the massive "gold
deposits" at the major LBMA banks.
But that is not the case.
People are now realizing that there
is very little actual gold in the LBMA system.
When people think they are buying
"gold", they are actually just buying pieces of paper that say they
own gold.
In fact, during the CFTC hearings,
Jeffrey Christian of CPM Group confirmed
that the LBMA banks actually have approximately a hundred times more gold
deposits than actual gold bullion.
Uh oh.
So what happens if everyone decides that
they want actual physical delivery of their gold?
It would be such a mess that it is
painful even to think about it.
The truth is that right now most of the
trading activities on the London exchange are just paper for paper.
But people get into gold because they
want to be in a real commodity.
In fact, there are thousands of
clients around the globe who think they own huge
deposits of gold bullion, and are being charged large storage fees on
that imaginary bullion, but what they really own are a bunch of pieces of
paper.
If there comes a time when everyone
starts asking for their gold it is going to create a squeeze of unimaginable
proportions.
Maguire
explains this situation this way: "for 100 customers who
show up there is only one guy who is going to get his gold or silver and
there’s 99 who will be disappointed, so without any new money coming into the
market, just asking for that gold and silver will create a default."
The truth is that it is absolutely
impossible for the LBMA to ever deliver all the gold and silver owed to
the owners of contracts.
Yes, it is a gigantic mess.
But this type of things is not entirely
unprecedented. For example, Morgan Stanley paid out several million
dollars back in 2007 to settle claims that it had charged 22,000
clients storage fees on silver bullion that did not exist.
But the scale of the fraud going on now
is absolutely mind blowing. The following video contains footage from the
hearing related to these issues....
So what is the bottom line?
The bottom line is that the precious
metals markets are cesspools of fraud and manipulation.
The markets have been suppressed by
the major financial institutions for years, and this has created the potential
for a "squeeze" in the precious metals markets that could send the
prices of gold and silver into the stratosphere.
You see, the reality is that there
would be no gold left in the entire world if all the Gold ETFs (Exchange Traded Funds) asked for physical
delivery.
Are you starting to get the picture?
In fact, Maguire claims that
the naked short selling scam by the major financial institutions is well
into the trillions of dollars, making it by far the biggest financial fraud in
history.
Part V
ReplyDeleteMaguire calls what has been going
on "financial terrorism", and he accuses the financial
institutions involved in this fraud of "treason" for putting
national security at risk.
And national security is at risk.
Because if the true extent of this fraud
comes out, it could collapse the entire financial system.
If you have never heard an interview
with Andrew Maguire, we encourage you to listen to the audio interview
posted below. It will really open your eyes to what is going on in the
precious metals markets....
The
Century's Biggest Fraud Revealed
This is one of the biggest financial
stories of the decade. Because it is complex, most Americans will not
understand it. But the fraud and manipulation in the gold and silver
markets has the potential to cause a massive economic collapse even
without all of the other factors talked about on this blog.
Some very powerful people have been doing
some really, really bad things. Once people understand the truth, they
will never look at the financial markets the same way again. Already,
faith in the major financial institutions of this country has been shaken by
revelations about what has been going on over at Goldman Sachs. The
American people have no more appetite for any more financial scandals or for
any more Wall Street bailouts. But if the fraud and
manipulation taking place in the precious metal markets ever gets
totally exposed it will change the U.S. financial system
forever.
Please get this information out to as
many people as you can. There are a number of very
powerful people who are not going to be pleased that sites like this are
attempting to get the truth about this massive scandal out.
An Indicator?
ReplyDeleteAAR Reports Sharp Traffic Gains on U.S. Railroads for Most Recent Week
Carloads Up for Sixth Straight Week; Intermodal Up for Twelfth Straight Week
WASHINGTON, D.C. - April 8, 2010 - The Association of American Railroads today reported that U.S. railroads saw sharp gains in traffic for the week ending April 3, 2010, compared with levels from one year ago. U.S. railroads originated 290,217 carloads during the week, up 10.7 percent from the comparable week in 2009. This was the sixth consecutive week carload volume has topped year-over-year levels compared with 2009, while traffic was still down 11.8 percent compared with 2008.
In order to offer a complete picture of the progress in rail traffic, AAR now reports 2010 weekly rail traffic with comparison weeks in both 2009 and 2008. Good Friday, which is observed as a holiday on many railroads, occurred during the 2010 week but not in the comparison weeks from 2009 and 2008.
Intermodal traffic totaled 196,257 trailers and containers, up 6.2 percent from last year but down 9.4 percent compared with 2008. Compared with the same week in 2009, container volume increased 7.8 percent and trailer volume dipped 1.5 percent. Compared with the same week in 2008, container volume was down 1.9 percent while trailer volume fell 35 percent. This was the twelfth straight week intermodal volume was above 2009 levels.
Total volume for the week was estimated at 31.3 billion ton-miles, up 11 percent from last year, but down 9.3 percent from 2008.
In the Western U.S., carloads were up 12.7 percent compared with the same week last year, but off 9.2 percent compared with 2008. In the Eastern U.S., carloads were up 7.8 percent compared with 2009, but down 15.3 percent compared with 2008.
Seventeen of 19 carload commodity groups showed gains from a year ago, with the largest coming from products associated with metals: metallic ores, up 104.2 percent; metals, up 84.1 percent; scrap, up 39.8 percent; and coke, up 30.3 percent. Other notable increases included motor vehicles and equipment, 21.3 percent; grain, 18 percent; primary forest products, 34.8 percent; lumber, 21.6 percent; and chemicals, 11.5 percent. Loadings of pulp, paper and allied products were off 5.1 percent.
For the first 13 weeks of 2010, U.S. railroads reported cumulative volume of 3,590,628 carloads, up 2.2 percent from 2009, but down 14.7 percent from 2008; 2,627,231 trailers or containers, up 8.4 percent from 2009, but down 8.5 percent from 2008, and total volume of an estimated 390.1 billion ton-miles, up 3.1 percent from 2009 but down 11.8 percent from 2008.
Canadian railroads reported volume of 70,786 cars for the week, up 14.8 percent from last year, and 42,025 trailers or containers, up 6.1 percent from 2009. For the first 13 weeks of 2010, Canadian railroads reported cumulative volume of 933,743 carloads, up 15.9 percent from last year, and 568,737 trailers or containers, up 7.4 percent from last year. Carload volume on Canadian railroads has been ahead of year ago levels every one of the first 13 weeks this year.
Mexican railroads reported originated volume of 11,267 cars, up 4.3 percent from the same week last year, and 5,069 trailers or containers, up 0.4 percent. Cumulative volume on Mexican railroads for the first 13 weeks of 2010 was reported as 172,819 carloads, up 20 percent from last year; and 83,544 trailers or containers, up 37.3 percent.
Combined North American rail volume for the first 13 weeks of 2010 on 13 reporting U.S., Canadian and Mexican railroads totaled 4,697,190 carloads, up 5.2 percent from last year, and 3,279,512 trailers and containers, up 8.8 percent from last year.
Gary, I feel sorry for you. Whenever I read through the comments section of these financial blogs, I feel like I'm being struck with a radioactive dose of stupidity. I do my best to avoid it.
ReplyDeleteRight now, I this is in reference to the manipulation theorist, but there are endless variations on the themes.
You're a brave man for exposing yourself to this.
I've said it before and I'll say it again. All markets will be manipulated from time to time. Short term certainly gold could be affected. But any serious manipulation would only act to drive prices much much higher than they normally would be.
ReplyDeleteSo all this drivel trying to prove that gold is being supressed is just crazy. If it's actually happening then it's the reason gold is as high as it is not the reason it isn't higher.
Any huge short positions have to be covered when price runs over them thus sending gold rocketing much higher than it would normally.
Apparently the conspiracy theorists don't understand how markets work. If they did they would be cheering on the manipulators.
But then all this nonsense isn't really about whether gold is tampered with, it's about needing an excuse for why gold doesn't do what they want it to do when they want it to do it.
Gold is doing what I want it to do!
ReplyDeleteGary,
ReplyDeleteI was looking at the chart (danger) and just going back to November, that's when I jumped short and lost a bit. My point after chart gazing is - Could Nov. been the start of A wave, with B wave retesting the whole move, followed by the C wave that's topping out now?
I think the move into Dec. was clearly a C-wave.
ReplyDeleteI agree with Gary - C wave ended in December. D-wave always goes down WITH the market - would you agree Gary?
ReplyDeleteI still think we're in the A wave - started Feb5/8th. Won't top until after reaching 1186. The A-wave PEAK should occur around the same time that major indexes are hitting NEW LOWS. The divergences should take place with their pivots being within a couple weeks of one another.
Top is in?; big selling of SPY $201MM):
ReplyDeletehttp://online.wsj.com/mdc/public/page/2_3022-mflppg-moneyflow.html?mod=topnav_2_3000
Deflation all the way...
ReplyDeleteGold back to 1000
Oil to 30
We are close to the top in equities...
Dawler higher...
Whew I would certainly be afraid to bet on that trade. I think Ben has pretty much proved his point that with an unrestrained printing press deflation has no chance.
ReplyDeleteBernanke has proved nothing except that he is exceedingly short-sighted and incognizant of the damage wrought by his increasingly desperate efforts at preventing the deflationary collapse.
ReplyDeleteSince most people think of inflation strictly in terms of pricing, I have to wonder where is the inflation in, say, corn and wheat? Oil is a scarce resource, it is no surprise to see a price increase as global demand ramps up.
I think anyone in the deflation camp by this time is in severe denial. Oil is hardly in short supply. We have so much of it we are running out of storage.
ReplyDeleteCertainly some things with very low demand are not increasing but most commodities other than grains and nat gas have been soaring since last year. resturant prices are up considerably over the last 5 years. health care is skyrocketing. Medical bills and tuitions are up. Most service industry pricing is up considerably over the last 5 years.
Inflation is a monetary phenomenon. Rising prices are just a symptom. We certainly have expanding monetary bases and monstrously expanding credit (government).
That money is going unevenly into asset markets.
Medicine is an oligarchy, the perpetual shortage of US doctors is a deliberate policy of AMA to keep doctor wages high. In a free market, prices in this area would plainly fall. Doesn't the US have one of the most expensive medical systems in the entire world?
ReplyDeleteRestaurant prices up considerably? Perhaps at Ruth Chris steak house, but the general populace doesn't eat there. At McDonalds, I would say that prices haven't gone up much, if at all, and they have also introduced some lower price options on their menu. Like the McSnack or whatever the hell it is called.
Yes, asset prices are being bid up in a liquidity-fueled frenzy. When everybody is all in on the inflation trade, those prices will have nowhere else to go but...down.
How is your aluminum hoard coming along? Alcoa sees increasing prices. I see them going bankrupt in a few more quarters. ;-)
And finally, the highlight of this depression is going to be the refutation of monetarist nonsense. A hundred years from now, some dumbass fedhead will be thanking some theoretical economist for pointing out the errors of Bernanke and claiming, "Yes, we did it. But thanks to you, it won't happen again." (Note that the proposed refutation has already occurred in Japan, but Anglo-Saxon types are convinced that the Japanese are "different". Sure they are.)
If you will notice prices aren't falling. In a deflation prices should be falling. Even grains and nat gas are just stagnate. Even housing prices have ground to a standstill.
ReplyDeleteIf we were really experiencng deflation prices of everything would be dropping like a rock...just like they did in 08.
That's just not happening anywhere.
Gary of SMT blog said: "Do you really think some of the smartest people in the world would invest in a sector if they thought it was being suppressed?"
ReplyDeleteEric Sprott: "I’m a 100% believer that central banks have suppressed the price of Gold."
Do I take the word of a random blogger or a chairman, ceo & portfolio manager with $5 billion under management? hmmm...
Joseph
Do I trust Eric Sprott or Jim Rogers, Marc Faber, George Soros, John Paulson, etc.
ReplyDeleteI think I got to go with the big boys :)
Greg,
ReplyDeleteDo you really consider any of this as serious evidence of anything other than short term manipulation (happens in every market).
My gosh on Feb. 5th the market was moving into an intermediate cycle low. There was margin selling across the board in everything. To expect that to not effect the metals would be ludicrous.
I think part five makes a perfect case for owning gold. If there are outlandishly large short positions they will have to be covered when price rolls over them. That means gold will rocket higher. What's bad about that? Isn't that what we want to happen?
Why are you concerned about something that's guaranteed to send gold soaring?
And all this based on some trader who openly admits to making money of the manipulation. Why did he now all of a sudden decide to kill the goose that lays the golden eggs.
Perhaps you might want to read a little commonsense once in a while.
http://www.safehaven.com/article/16285/what-isnt-manipulated
http://www.safehaven.com/article/16285/what-isnt-manipulated
ReplyDeleteHmmm. This bozo doesn't know the difference between conscious and conscience.
After looking at the posts here, I see that they are all pretty ancient.... around April of 2010, and at this time of this posting, it is near the end of August 2011.
ReplyDeleteOf course gold is being manipulated, only a village idiot would think otherwise.
However, with patience, and if you already have physical gold, (the only real money saved toward your retirement), then play the waiting game.
For the past ten years it's been a case of three steps forward and two steps back, at times it was four steps backward, but not very often, all in all, it's been a steady move forward for gold, and a steep decline for Ben Bernanke and his ilk's paper dollar.
Wait... let those with billions continue to sucker in the rubes by raising the price of gold with their paper purchases. The rubes seeing the price of gold rising then jump in hoping to become wealthy also.
When enough of the simpletons have invested their life savings, the Wise Guys bail out taking all of the gullible ones money with them.
A few weeks are allowed to pass in order to let the sheep forget, then the game begins, over and over, and over again.
You don't have to go back very far to see how much gold has increased, or if you prefer, how much the Dollar has collapsed.
January of 2010 saw a gold price of $1097.30
Sit on your golden egg until the "hatching" is complete.
Wait until long AFTER the crap has hit the fan.