Gold Price "Manipulated For A Decade", Repeatedly Slammed ...

Gold Price "Manipulated For A Decade", Repeatedly Slammed ...
London Gold Price Fix Is Manipulated Although Evidence Exists For ...
Silver and Gold Prices: The Gold Price Closed at $1,321.60
Gold Price Analysis- March 3, 2014 - DailyForex.com
Gold price bounces on Yellen's taper comments | MINING.com

Posted: 28 Feb 2014 08:26 AM PST

While the FT promptly retracted an article on precisely the topic of gold manipulation from earlier this week (recorded for posterity here), Bloomberg appears to not have had the same "editorial" concerns and pressures, and today released an article once again slamming the final conspiracy theory that while every other asset class is manipulated, gold is in a pristine class of its own, untouched by close-banging, price fixing traders or central bankers, and reports that "the London gold fix, the benchmark used by miners, jewelers and central banks to value the metal, may have been manipulated for a decade by the banks setting it, researchers say."

Of course, over the past 5 years we have reported time and again how official gold manipulation started in earnest some time in the 1960s (who can forget the "reshuffle club") but we will start with a decade.

Here is what BBG finds:

Unusual trading patterns around 3 p.m. in London, when the so-called afternoon fix is set on a private conference call between five of the biggest gold dealers, are a sign of collusive behavior and should be investigated, New York University's Stern School of Business Professor Rosa Abrantes-Metz and Albert Metz, a managing director at Moody's Investors Service, wrote in a draft research paper.

"The structure of the benchmark is certainly conducive to collusion and manipulation, and the empirical data are consistent with price artificiality," they say in the report, which hasn't yet been submitted for publication. "It is likely that co-operation between participants may be occurring."

The paper is the first to raise the possibility that the five banks overseeing the century-old rate -- Barclays Plc, Deutsche Bank AG, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA -- may have been actively working together to manipulate the benchmark. It also adds to pressure on the firms to overhaul the way the rate is calculated. Authorities around the world, already investigating the manipulation of benchmarks from interest rates to foreign exchange, are examining the $20 trillion gold market for signs of wrongdoing.

Tell us something we didn't already know. Then again, this time may be different, because one of the authors, Abrantes-Metz, advises the European Union and the International Organization of Securities Commissions on financial benchmarks. According to Bloomberg, her 2008 paper "Libor Manipulation?" helped uncover the rigging of the London interbank offered rate, which has led financial firms including Barclays Plc and UBS AG to be fined about $6 billion in total. She is a paid expert witness to lawyers, providing economic analysis for litigation. Metz heads credit policy research at ratings company Moody's.

By way of background, the history of gold price fixing is well-known and is one of the longest running traditions in banking:

The rate-setting ritual dates back to 1919. Dealers in the early years met in a wood-paneled room in Rothschild's office in the City of London and raised little Union Jacks to indicate interest. Now the fix is calculated twice a day on telephone conferences at 10:30 a.m. and 3 p.m. London time. The calls usually last 10 minutes, though they can run more than an hour.

So what exactly did this "erudite" authority on manipulation uncover?

Abrantes-Metz and Metz screened intraday trading in the spot gold market from 2001 to 2013 for sudden, unexplained moves that may indicate illegal behavior. From 2004, they observed frequent spikes in spot gold prices during the afternoon call. The moves weren't replicated during the morning call and hadn't happened before 2004, they found.

There's no obvious explanation as to why the patterns began in 2004, why they were more prevalent in the afternoon fixing, and why price moves tended to be downwards, Abrantes-Metz said in a telephone interview this week.

"This is a first attempt to uncover potentially manipulative behavior and the results are concerning," she said. "It's down to regulators to establish why there are such striking patterns but banks have the means, motive and opportunity to manipulate the fixing. The results are consistent with the possibility of collusion."

And the punchline:

Large price moves during the afternoon call were also overwhelmingly in the same direction: down. On days when the authors identified large price moves during the fix, they were downwards at least two-thirds of the time in six different years between 2004 and 2013. In 2010, large moves during the fix were negative 92 percent of the time, the authors found.

Unpossible - the bank prop traders manipulating gold and the central banks for whom precious metals are the holy water that can destroy their fractional reserve ponzi scheme would never lie. Because otherwise the historic silver slam from May 1, 2011, in which silver cratered by $6, or about 15%, in milliseconds and ended the parabolic rise higher in the metal could be... gasp... criminal.

In other news, we may have officially run out of conspiracy theories.

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London Gold Price Fix Is Manipulated Although Evidence Exists For ...

Posted: 02 Mar 2014 09:43 PM PST

Commodities / Gold and Silver 2014 Mar 03, 2014 - 06:43 AM GMT

By: GoldSilverWorlds

It was only a week ago when we wrote that the Financial Times removed the article "Gold Price Rigging Fears Put Investors On Alert" from their website, a couple of hours after being published. We were able to dig up the original article in Google's caching memory and took screenshots of the removed article.

Less than a week later, it is Bloomberg releases the article "Gold Fix Study Shows Signs of Decade of Bank Manipulation."

From Bloomberg (source):

The London gold fix, the benchmark used by miners, jewelers and central banks to value the metal, may have been manipulated for a decade by the banks setting it, researchers say.

Unusual trading patterns around 3 p.m. in London, when the so-called afternoon fix is set on a private conference call between five of the biggest gold dealers, are a sign of collusive behavior and should be investigated, New York University's Stern School of Business Professor Rosa Abrantes-Metz and Albert Metz, a managing director at Moody's Investors Service, wrote in a draft research paper.

"The structure of the benchmark is certainly conducive to collusion and manipulation, and the empirical data are consistent with price artificiality," they say in the report, which hasn't yet been submitted for publication. "It is likely that co-operation between participants may be occurring."

The remainder of the article does not add particularly interesting information.

We have no interest in analyzing the findings of the research. Readers interested in a critical analysis should read Ross Norman's comments, managing director of bullion company SharpsPixley in London (read analysis).

We would like to point out how Bloomberg's news is no news at all. In the past two years, we released several articles in which gold and silver price manipulation was discussed at length, based on facts and figures, without any bias. Obviously, there was no reference from the mainstream media to any of these findings on our site or on similar precious metals sites (think of GATA, Goldseek, and the likes).

First, on November 30th 2012, a year and a half ago, we released an interview with statistical researcher Dimitri Speck. We explained that his research showed evidence of central banks influencing systematically the price of gold as of August 1993. Mr. Speck's conclusion comes from intraday price statistics, where he observed several anomalies. First, since 1993, the price has been falling systematically during the trading session of COMEX in NY. Another trading anomaly is that during the PM fix the price systematically tends to drop significantly. The following chart is the result of 16 years of recording intraday data. The sudden price drops are so sharp and systematic, that it can only point to intervention.

It was not only us who released this information. Dimitri Speck's own website had existed for much longer and his work was released by GATA long before. The gold price manipulation during the London Fix was clearly much longer visible.

Bloomberg comes indeed very late with the "discovery" of gold price manipulation. Ironically, just two weeks ago, precious metals analyst Ted Butler explained here that Bear Stearns went bankrupt mainly because of excessive short positions on gold and silver in 2008. Butler wrote "What baffles me today is that no well-known journalist from outside the gold and silver world has yet picked up on what is an easy-to-document story of epic historical proportions. It's the story of why Bear Stearns went under, and how the gold and silver price manipulation continued since the day JPMorgan took over Bear."

Butler has provided evidence of gold and silver manipulation for several years. The key findings of Butler are based on COMEX gold and silver dominant positions by Bear Stearns and JP Morgan. Since the fall of Bear Stearns, JP Morgan has taken over those dominant positions in the futures markets, allowing them to set the direction of the price.

Backed by evidence and facts from the official COT reports (released by the CME group), Butler wrote in JP Morgan's Perfect Silver Manipulation Cannot Last Forever:

JPMorgan's real crime resides in its ability to sell unlimited quantities of COMEX silver contracts short on the way up in price to the point of creating unprecedented levels of market share and concentration. In December 2009, JPMorgan held more than 40% of the entire short side of COMEX silver and close to that market share on other occasions. To my knowledge, there has never been a greater market share or corner in any major market in history. These unlimited short sales by JPMorgan inevitably satisfy technical buying interest and then that technical buying turns to selling at some point, with JPMorgan then working to induce the tech funds into selling. The buying back by JPMorgan is the illegal ringing of the cash register and closing out of the manipulative silver short positions sold at higher prices.

Moreover, in 2013 – The Year of JPMorgan, Butler discussed evidence of JP Morgan's market corners in both gold and silver:

It is well-established that a market corner is against commodity law. In fact, this is the most important aspect to commodity law, because market corners are unquestioned proof of manipulation. CFTC data indicate that JPMorgan held short market corners in COMEX gold and silver at the start of the year and that this crooked bank holds a long market corner currently in COMEX gold. There can be no question that JPMorgan held and holds market corners in COMEX gold and silver based upon market share.

While the London Fix price manipulation was already known for years (for instance by research from Dimitri Speck documented on several sites including ours), it is the COMEX futures dominant positions of JP Morgan that is an even bigger act of price manipulation. As usual, the mainstream media are running behind the truth and are not able to report on the most relevant facts.

Source - http://goldsilverworlds.com/price/bloomberg-reports-london...

© 2014 Copyright goldsilverworlds - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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Silver and Gold Prices: The Gold Price Closed at $1,321.60

Posted: 28 Feb 2014 07:44 PM PST

Gold Price Close Today : 1,321.60
Gold Price Close 21-Feb-14 : 1,323.90
Change : -2.30 or -0.17%

Silver Price Close Today : 21.20
Silver Price Close 21-Feb-14 : 21.782
Change : -46.80 or -2.67%

Gold Silver Ratio Today : 62.33
Gold Silver Ratio 21-Feb-14 : 60.780
Change : 1.55 or 2.55%

Franklin is going to the Space Center in Huntsville with his grandchildren and will publish commentary again Monday.

Y'all enjoy your weekend!

Argentum et aurum comparenda sunt -- -- Gold and silver must be bought.

- Franklin Sanders, The Moneychanger
The-MoneyChanger.com

© 2014, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 18 ounces of silver. or 18 ounces of silver. US $ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

WARNING AND DISCLAIMER. Be advised and warned:

Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.

NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.

NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.

NOR do I recommend buying gold and silver on margin or with debt.

What DO I recommend? Physical gold and silver coins and bars in your own hands.

One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Gold Price Analysis- March 3, 2014 - DailyForex.com

Posted: 03 Mar 2014 01:14 AM PST

Start Trading Gold Now!

By: DailyFoex.com

The XAU/USD pair posted first weekly loss in four weeks as heightened appetite for more conventional assets such as stocks lured some investors away from the shiny metal. Gold traded as low as $1319.68 an ounce after the Chicago purchasing managers index came out stronger than expected with a print of 59.8 and the University of Michigan reported that its consumer sentiment index climbed to 81.6 from 81.2 a month earlier.

Commerce Department's gross domestic product data were weak but were more or less in line with market expectations. The first week of the month is always a busy one for the central banks. This week also sees the usual release of PMI (Purchasing Managers' Index) reports from important economies around the world. The highlight of the week will come on Friday when the U.S. Labor Department releases its employment report for February.

Because of that, I think gold prices will probably tend toward consolidation for a while. Speaking strictly based on the charts, it seems that there is still some room for the pair to run higher, if the bulls manage to hold the market above the Ichimoku cloud on the 4-hour time frame. In other words, we might see the pair revisiting 1337/8 resistance unless the 1312 support level where the bottom of the cloud currently resides is breached.

In order to gain more traction and start a new journey to the 1346 level, the bulls have to break through 1337/8 (61.8 Fibonacci retracement). If the downward pressure continues and we break below 1312, I think the market will be testing 1307 next. Closing below 1307 means it is possible to see a bearish continuation to the next key support level of 1293.

Gold price bounces on Yellen's taper comments | MINING.com

Posted: 27 Feb 2014 11:21 AM PST

The gold price regained some of yesterday's losses on Thursday, after US Federal Reserve chair Janet Yellen said the bank may revisit the rate at which it is cutting back on its economic stimulus program.

On the Comex division of the New York Mercantile Exchange, gold futures for April delivery – the most active contract – last traded at $1,334.30 an ounce, up $6.30 from yesterday's close and near its highs for the trading day.

Yellen told the Senate Banking Committee "asset purchases are not on a preset course, so if there's a significant change in the outlook certainly we would be open to reconsidering, but I wouldn't want to jump to conclusions here."

Yellen said the bank has seen "quite a bit of soft data" but it is unclear how much of the recent deterioration in US economic growth was due to the weather.

What officials "need to do… is to try to get a firmer handle on exactly how much of that set of softer data can be explained by weather and what portion if any is due to a softer outlook," she said.

Recent poor economic data comes on the heels of two disappointing jobs reports – the Fed's key measure in deciding interest rates – in December and January which have strengthened the hands of supporters of the Fed's economic stimulus program. The next release of official US jobs numbers is next Friday.

It not the first time Yellen has left the door open to pause the tapering of $65 billion a month – down from $85 billion a month in December – asset purchases under its quantitative easing program of which she was one of the chief architects.

Monetary expansion, particularly since the financial crisis, has been a massive boon for the gold price. Gold was trading around $830 an ounce when previous chairman Ben Bernanke announced QE1 in November 2008.

The QE program together with other stimulus measures saw the balance sheet of the Fed cross the $4 trillion mark in January, up 400% in seven years.

Gold and the US dollar usually moves in the opposite directions and gold's perceived status as a hedge against inflation is also burnished when central banks flood markets with money.

The price of gold slid close to 28% in 2013 – the worst annual performance since 1980 – in anticipation of an end to the ultra-loose monetary policy, but has enjoyed double digit gains in 2013.

Gold Price "Manipulated For A Decade", Repeatedly Slammed ...

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