A Brave, New World for Precious Metals
Written by Jeff Nielson Friday, 02 April 2010 11:22
Articles & Blogs - Gold Commentary
My apologies to regular readers for being one of the last to get to the explosive developments in the precious metals market. I've been making final preparations for a speaking engagement, and had just begun a three-part series on U.S. markets when this news “broke”. I see these events as nothing less than THE biggest “news” in this sector since the world went off of a gold standard.
For those who have missed the news, it is difficult to know where to start. First, there was the appearance of a bona fide precious metals “whistle-blower”: a UK metals trader named Andrew Maguire – on the very eve of the CFTC's hearings into charges of market-manipulation. This news was quickly followed by the refusal of the CFTC to allow Mr. Maguire to testify, despite previously providing the CFTC with two, detailed accounts of market manipulation one of which was a current event – which was described as it happened.
For a more thorough discussion of this, the first place to start is the now-legendary, King World News interview, featuring Andrew Maguire (in his first, public interview). There are also a large number of clips available on the CFTC hearings, themselves, which can be accessed at our web-site.
Among those clips is the startling testimony of Jeffrey Christian of the CPM Group, one of the two “consultancies” who are quasi-official sources for gold and silver supply/demand data. As I have intimated in previous commentaries, they are closely connected to the anti-gold cabal. In attempting to defend the banksters' massive, “short” positions – the largest such concentrations in the history of commodities markets – Christian blurted-out that the bullion banks had leveraged their actual, “physical” bullion by 100:1. Even in the insane, world of greed in which these banksters dwell, that was extraordinary news.
Commentators all over this sector have jumped on Christian's foolish admission, but you will not see one word of it in any mainstream, media outlet. The propaganda-machine will do everything in its power to suppress these huge items – such as the “technical difficulties” which Bill Murphy of GATA experienced, when he tried to present Andrew Maguire's evidence at the CFTC hearings. Murphy was the only CFTC-speaker to encounter such “technical problems”.
Despite the plethora of non-mainstream reports on these incredible events, most specifically the reckless leverage of the banksters' paper-gold, I have not seen one account of the most obvious consequence of this news: that the large, (so-called) “bullion-ETF's” which have “custodian agreements” with the bullion-banks (such as GLD and SLV) are total frauds.
If the same banks who have leveraged their actual bullion by 100:1 are supposedly holding all the “gold” and “silver” of GLD and SLV (and others), then at best, GLD and SLV unit-holders are holding 1% bullion and 99% paper. In reality, they hold 0% bullion, since the banksters can be certain to devote all of their tiny holdings to try to cover their own, personal obligations (i.e. the short positions).
Regular readers will be familiar with the fact that I have been one of the most vocal critics denouncing the obvious shams of GLD and SLV – in numerous, previous commentaries. Among my criticisms was that the “storage” charges which the bullion-banks assessed GLD and SLV to “store” all these hundreds of tons of bullion were ridiculously low – suggesting, by themselves, that all the bullion-banks were really “storing” was a stack of paper. Christian's comments confirm that my own suspicions were completely accurate.
However, there are simply too many enormous repercussions to this news for me to cover, in the level of detail which I would like, at the moment. I promise readers to devote a multi-part series of commentaries to cover these issues, starting with a detailed account of the King interview: where I will take some excerpts as highlights, while interjecting a few comments of my own.
In the meantime, I urge every investor even vaguely interested in precious metals to listen to the King interview. Andrew Maguire is not some “wanna-be”, simply trying to draw attention to himself. He is a veteran metals-trader, with intimate, personal knowledge of trading in the precious metals markets. His brave and principled decision to step forward could very likely destroy his own career.
More generally, through all the years that the anti-gold cabal has attempted to deny their obvious manipulation of the gold and silver metals markets, they have always ridiculed the valiant efforts of GATA (and others) to expose their corruption – because those seeking the truth have never been able to produce an authentic “whistle-blower”: an “insider” to these markets, who could produce the proverbial “smoking gun”.
The fact that the CFTC refused to allow this “smoking gun” to even be presented to them is all we need to know about the corruption of this entity, in general, and the farcical “hearings” it has held – which are obviously nothing but another attempt to cover-up the banksters' nefarious deeds in this sector with another coat of “whitewash”. As an aside, during Christian's testimony, he exchanged pleasantries with CFTC Chairman, Gary Gensler, about their days working for Goldman Sachs.
To expect any useful, legitimate regulatory action from yet another entity infested with Goldman Sachs Stooges would be like expecting Barack Obama to produce “meaningful financial reform” - despite being the largest recipient of campaign-bribes from the banksters, since he first became a Senator.
While I don't expect these sector-altering events to have any immediate impact on precious metals prices (due to the previously mentioned media-censorship), this will truly be a “Happy Easter” for precious metals bulls all over the planet. Not only do we finally have the “smoking gun” which will ultimately put an end to the multi-decade price-fixing of gold and silver, we got a glimpse (through the 'loose lips' of Christian) of exactly how corrupt (and vulnerable) the banksters have become in perverting the fair trading of these two metals.
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written by Jeff Nielson, April 07, 2010
We all know that the real "supply crisis" today is with silver, though gold isn't that far behind.
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written by sailortony, April 07, 2010
The Gold/Silver saga continues. Just released audio by King World News concerns Canada this time:
http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2010/4/7_Andrew_Maguire_&_Adrian_Douglas.html
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written by Jeff Nielson, April 05, 2010
One of the sites where I get a lot of key info on U.S. debt has been "blocked" for months (kind of what Google accuses China of):
http://mwhodges.home.att.net/
You CAN still access some content through "searches", but without ALREADY KNOWING what is on that site, it would be like "looking for a needle in a hay-stack".
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written by mikem54321, April 05, 2010
Oops! Google Chrome could not connect to www.kingworldnews.com
Really makes you wonder.
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written by mikem54321, April 05, 2010
Paranoids have enemies, radical gold bugs have Wall Street
Commentary: Gold-conspiracy theories go mainstream
http://www.marketwatch.com/story/radical-gold-bugs-vs-wall-street-2010-04-05
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written by Jeff Nielson, April 03, 2010
Still haven't been able to get all the way through the zerohedge link, but just wanted to say it was a great read (so far)!
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written by paxjds, April 03, 2010
Price fixing in the late sixties and early seventies got executives jail time. Now we have Obama praising these fixers on national TV. Times are changing as the Republic is starting its final decline.
Jeff talks of the absent news media, Where is the infamous Fox news with balanced reporting? Where is the great CBC 60 minutes with corruption everywhere that matches the finest days of Stalin and Hitler? Cant't Chris Hansen hire one of the millions unemployed and go after the really big crooks mentioned above.
Where are the state and federal attorney generals in all this fraud, theft, and deception? Apparently fixing banksters parking tickets while the
Country is burning using worthless dollars to heat our homes and wipe our hiney's.
Maybe CNN will get out of its bunker and start reporting the massive corruption in the US, instead of going to cocktail parties with the people they are supposed to bring down. In case there are no IQ's at CNN: banksters, wall street, CFTC, SEC, Treasury, Senate, FED, House of REPS, etc are all the problem. CNN, You are not doing your job.
Perhaps CFTC can be brought down with Jeff's help, Mr. McQuire, etc. We can only hope that breaking one corrupt buble will have a domino effect on all the CORRUPT BUBBLES.
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written by breezer1, April 03, 2010
The role of msm in it's absence of these latest developments re manipulation will be the nail in their coffin. they are losing market share by the day , and fully deserving of it.
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written by breezer1, April 03, 2010
Hot off the press at ZH
http://www.zerohedge.com/article/genesis-gold-tungsten-rest-story
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written by Jeff Nielson, April 02, 2010
Yes, the "game" isn't over, the "good guys" just dramatically improved their position. As a long-time chess-player, I'm quite happy to emerge from the CFTC hearings with this much. Unlike some, I had low expectations going in - not of the EFFORTS of GATA, and others (like Andrew MacGuire) to EXPOSE but what was happening - but that they would get a fair hearing.
On the other hand WE, and MANY other gold bulls understand the significance of recent events, and it allows us to buy and to HOLD our positions with much less trepidation.
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written by mikem54321, April 02, 2010
One of the staunchest believers in the allegations of gold manipulation—the chairman of the Gold Anti-Trust Action Committee—will testify as well.
But others, including the CME’s Mr. LaSala and John J. Lothian, a commodity trading advisor, futures broker and the head of a well-known markets newsletter, will urge the CFTC not to pay attention to arguments that there has been manipulation.
“Those who believe gold and silver markets are manipulated to keep prices low are nothing more than politically opportunistic rent seekers in my book,” Mr. Lothian planned to say. “They are parasites on the body public profiting from selling fear and seeking political change that will benefit their world view and related market position.
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written by mikem54321, April 02, 2010
The Bank of Nova Scotia
Barclays Bank Plc
Deutsche Bank
HSBC Bank
Goldman Sachs
JP Morgan Chase Bank
Royal Bank of Canada
Société Générale
UBS AG
These are BIG advertisers in the financial news world. So an attack on them is an attack on their revenues. So...the only press the Wall Street Journal gives GATA and their fight to tell the truth so far:
Jeff it will be an uphill battle to expose the truth and Obama's Plunge Protection Team are laying low at this point. They may not have to do a thing as their crony bankster buddies team up with the CNBC Propaganda machine will probably trash GATA and anyone else who tries to tell the truth about, "Physical gold is only paper!"
Well... I got a chuckle that the Wall Street Journal at least was forced to take the time to trash GATA because they had no choice.
)) Keep up the good work Jeff. If they ever trash you, then you know you are making headway! --Mike
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written by Jeff Nielson, April 02, 2010
While the propaganda-machine will suppress this news to the maximum degree, there are too many NON-mainstream sources, attracting too much attention, for the truth not to eventually filter-out.
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written by swsprime, April 02, 2010
Did you see the movie Independence Day? The countdown thing?
Its' happening here, have you seen that the smallest market precious metals are racing ahead now, and the shorts have been blown away? Next, real soon is Silver, then BOOM!!! - Gold explodes.
Keep telling it like it is.
Stew
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The ScotiaMocatta empty vault should contained at the very least the Gold & Silver bullions of Claymore Investments Inc.
They list on their website,( http://claymoreinvestments.ca/commodities/ ), the bullions they are alleging to have stored there; This, as of yesterday, was $472 millions of gold (GLV) and $77 of silver(SVL.UN) for a total of say $550 m.
Adrian Douglas estimated at only $100 millions what was inventoried in the vault.
This is more than a shortage and Claymore is the smallest bullion fund in Canada.
I own a chunk of these fund and for the last 3 months, I have been asking Claymore for the Ernst & Young audit report of Claymore holdings of this facility and the last response from Claymore was:
"The actual bar audit list is not a public document – E&Y does not allow us to release it for public viewing. The data that is posted on the website is essentially the information attained through the audits."
NOW HEAR THIS:
I am a co-owner.
My depository is Scotia Bank.
My agent is Claymore.
and my auditor is Ernst & Young.
The auditor is paid to confirm to me that what Claymore and Scotia Bank are claiming are facts.
They all claimed the I cannot have access to an audit I paid for from an agent I pay to hold my gold which is apparently not there....
What a racket! I am not sure I will be able to sleep tonight!