In my continuing coverage of the “Crime of the Century,” I have done further research that proves, beyond the shadow of a doubt (at least in civil court), the point I have been making for the past ten years. That is, that nefarious forces operate in the PAPER gold and silver markets to depress prices, day in and day out. Actually, before I get started I want to acknowledge the effort of James West, one of the smartest commentators in the sector, for attempting to produce a like-named movie in 2008, focused principally on illegal gold and silver suppression.
As hard as he tried, he could not get the movie funded due to the universal fear potential donators had of the ramifications of their involvement, both in the U.S. and – surprisingly – his native Canada. If I remember correctly, he also was subjected to other forms of “persuasion” – i.e. harassment – ultimately yielding his decision to abandon the project. Think of the multitude of films depicting the fall of Wall Street Banks at that time (Margin Call, Too Big to Fail, The Last Days of Lehman Brothers, etc.), yet none of those films went unfunded, and none of their producers harassed.
ONLY the deepest, darkest secret of TPTB – the linchpin of the global financial system – is prohibited from being exposed, or for that matter even investigated. The Cartel may be a bunch of boorish thugs, but they are smart enough to know that losing control of the only REAL MONEY the world has ever known, the “Once and Future King” GOLD, will destroy their power base forever. This is why I am so excited about Silver Circle – The Movie, which doesn’t directly attack important figures but makes its point loud and clear!
Crime of the Century – The Movie – James West
I looked back at every trading day since Labor Day and manually counted the “Chutes” and “Ladders,” a description emanating from one of my favorite childhood games aptly named Chutes and Ladders. Essentially, a chute is a steep decline – in the game, a slide – and a ladder the opposite, a sharp rise. For purposes of this study, and EXACT definitions of “chutes” and “ladders” are neither necessary nor productive, as spotting “Cartel fingerprints” was my primary goal, easily done qualitatively.
That said, to put some type of structure to my work, I arbitrarily defined a “chute” as an $8 decline in a 30-minute period and a “ladder” as an $8 increase in that period. I used $8 because it roughly equates to a 0.5% change in the gold price, equivalent to a roughly 65 point drop in the Dow. Food for thought – when was the last time the Dow fell 65 points in a half-hour, and can you imagine the uproar if it did so – on average – EVERY DAY as is the case with gold?
For this brief analysis, I focused ONLY on the absolute amount of chutes and ladders, not the timing or size. However, simple observation made it obvious what the conclusions would be if further studies were made on the topic, such as the following:
1. On average, chutes were MUCH larger than ladders
2. Despite trading on a 24-hour basis, roughly 90% of all chutes and ladders occurred during NY COMEX trading hours
3. COMEX-traded ladders are typically confined to the first two hours of trading (a Cartel CONTROL tactic), while COMEX-traded ladders often occurred later in the session – such as at the 12:00 PM EST “cap of last resort”
4. Many COMEX-traded ladders were immediately followed by chutes, thus mitigating their impact
Now that those points are clear – which should not surprise anyone, particularly long-time readers – let’s get to the data itself. Per the table below, over a 5½ month period entailing roughly 125 trading days, gold experienced 176 chutes (1.4/day) and 106 ladders (0.8/day). In other words, nearly twice as many, or more accurately 1.7x more. Over the six months included in this sample, gold declined by 11%, or 2% per month. Three of the six months registered declines – ALL due to “named storm” blitzkrieg attacks; in September, “OPERATION PM ANNIHILATION I”; in December, “OPERATION PM ANNIHILATION II”; and in March, the “LEAP DAY VIOLATION.” Two of the months – October and February – registered gains, while prices were largely unchanged in November.
|
MONTH |
CHUTES |
LADDERS |
RATIO |
Gold Change |
|
Sep-11 |
50 |
30 |
1.7 |
-15% |
|
Oct-11 |
35 |
17 |
2.1 |
6% |
|
Nov-11 |
21 |
19 |
1.1 |
0% |
|
Dec-11 |
26 |
14 |
1.9 |
-7% |
|
Jan-12 |
13 |
12 |
1.1 |
9% |
|
Feb-12 |
23 |
11 |
2.1 |
3% |
|
Mar-12 |
8 |
3 |
2.7 |
-5% |
|
Total |
176 |
106 |
1.7 |
-11% |
|
Average |
25 |
15 |
1.7 |
-2% |
It’s hard to be surprised by this data, although the astonishing 50 chutes in September, starting hours after the Labor Day weekend with gold sitting at its ALL-TIME HIGH of $1,920/oz, even in hindsight is quite a large number (more than 2x per day). However even I was surprised by what I view to be the most telling statistic of all – even during months when gold traded higher, there were still more chutes than ladders.
Anyone observing this market knows that such anomalies are just the tip of the iceberg, culminating in the “smoking gun” that ends all skepticism of the topic of gold manipulation – the fact that, over the ENTIRE 12-YEAR BULL MARKET, gold prices are cumulatively down in New York PAPER trading yet up in all other markets. Yes, the market where 90% of all price moves occur is net down amidst a seven-fold increase, the most blatantly obvious evidence of manipulation imaginable.
In other words, the best way to PROTECT YOURSELF is to ignore all New York PAPER trading and simply focus on accumulating as much PHYSICAL gold and silver as you can. PAPER trading is 100% manipulated, with as much bearing on reality as the illusions of the illusions of the Matrix. And by the way, what a crazy revelation I just had looking at this chart, which I have been watching since 2003 but hadn’t realized until just now!
The reason why gold is smashed at 3:00 AM EST is because the AM Fix is at 5:30 AM EST. Like the PM Fix at 10:00 AM EST – which I spend more time focusing on, the Cartel purposely smashes gold down beforehand to subdue “official” prices. I’d bet they somehow earn more money on the spread, too – likely in illicit fashion – but that’s another story for another day.
PROTECT YOURSELF, and do it NOW!
It is clear to this untrained financial observer that the PM cartel is manipulating the price of both gold and silver for their own benefit. Further, they are in collusion with the governments that exist where they do. If this were not so, their activities would be far less pronounced and obvious and we would be seeing prosecutions of these people for theft, fraud, and securities law violations. The fact that we are not seeing this is proof positive that we are no longer a nation of laws but of men… and some men are more equal than others. I believe that this is not only allowed to occur but is actively encouraged because governments are well aware of the fragility of the paper money Ponzi scheme that they have created. They also know that if this ever becomes obvious to Mr. and Mrs. Average American, it will be game-over for this scheme because all Americans would exit paper money and paper financial assets for physical gold and silver ownership. This would have at least 2 immediate and, from the elitist / government point of view, disastrous consequences. 1st, paper money would become worth less and less very quickly, soon becoming genuinely worthless. 2nd, all this money rushing into gold and silver would cause the prices of these assets to sky-rocket upwards, essentially preventing the un-backed paper money scheme from ever being used again. TPTB derive ALL of their power from this scheme, so will not give it up lightly. They will do whatever it takes to maintain this fiction, including allowing the robbing of customers ala MF Global, covering derivative losses with freshly printed fiat currency, initiating wars of distraction, and otherwise defending the mega banks at all times, no matter the cost to American citizens or the US economy. After all, those who control the money supply, control the nation that issues that money. Bribing as many politicians as necessary isn’t really a significant obstacle to world domination, now, is it?
Ed,
Mr. and Mrs. Average American WILL understand this shortly, when HYPERINFLATION explodes!
Andy
I am starting to painfully realize that what you say about paper trading being 100% manipulated is true and that one should start accumulating physical. Protect yourself and do it now is advice well heeded. I was wondering what your thoughts on diversifying gold holdings with St. Gaudens and or Libertys instead of just having gold Eagles. This may, and I stress the word may, protect one somewhat from some form of confiscation should that occur. Also is there a silver eagle counter part to the St. Gaudens and Libertys that you would suggest?
Chuck,
I’d say better late than never, but we are still WAY early in the game as PM prices are still artificially suppressed, which I assure you won’t continue forever.
Due to the low price of silver in general, numismatics are generally not a good bet – as opposed gold, where certain pre-1933 coins are trading at historically low premiums to melt value.
That said, I am far from an expert on the topic. Please call Miles Franklin at 800-822-8080, and one of our brokers will answer all your questions.
Thanks.
Andy
Hi Andy.. I am always reading and sifting through your wise words and great updates.. We are sure getting close.. I can see and imagine all the tie ins also with the big war machinery too. .. Obama and his near future…. election timing.. seems to me to be a short time away from more war plans on the middle east.. Its crazy.. but it does take money.. .. lots of it and lots of oil to make war. There is also so much going on behind Mr and Mrs American who have no clue… I can tell you that here on Lanai.. I ONLY seem to get ideas that make sense from the few businessmen who from time to time ride my bus.. its rare.. but the smart ones are or have been protecting their own families using good real estate long range holding or buying PM.. I feel I am so far ahead far ahead of the game luckily. I also know that all your info helps me tons to just keep my cool and to do what I need to do in saving and buying more PM over time as I can.. Its amzing how few people even know the price of Gold here on Lanai. I often ask people on the bus too.. nobody knows it seems.. ONe day I do think we are looking at the 3000 an ounce price.. and silver surely will blast off too.. as Ted Butler says.. ( I read him each week too) . FYI.. I now read 4 writers… Sinclair , Butler , Sprott and yourself.. .. I cant go wrong on info at all now. only when I get it… and thats sweet!!! Aloha and big Mahalos… Terry
Terry,
Thankfully, SOME people will understand in time to do something about it.
One day, hopefully I’ll be back on Lanai to say hi.
Much appreciated putting me in those three’s company!
Andy
You are a mensch Andy!! So many people who follow these markets suspect foul play, but they don’t have the cojones to follow the evidence to its LOGICAL CONCLUSION. They’re cowards afraid to be dubbed “conspiracy theorists” and be considered unserious by the propagandists in control. The herd instinct is a depressing, lamentable phenomenon in action, and thank God there exist people like who will serve truth, consequences be damned! I hate seeing all these financial blogs pretending that the PMs trade more or less freely, and rationalizing these bizarre takedowns as normal (always ready to slur the skeptics with ad hominems). Especially when they try justifying it with some stupid TA analysis which is as scientific as reading the tea leaves. OBVIOUSLY every waterfall decline can have a rational explanation when viewed in isolation, but it’s the concordance and aggregation of evidence that needs to be looked at with a clear head and an unflinching eye, but who’s strong enough for that?
Montgomery,
Thank you, thank you, thank you!
You couldn’t have said it better in one paragraph if you tried.
Nothing makes me angrier than when the “good guys” act ignorant as well, and some of those guys are so good I wouldn’t dare put their names here out of respect!
Andy