In my section today, I will feature JPMorgan and their role in the on-going gold manipulation…
The financial press continues to go with the story that inflation and unemployment are not a problem, and that the economy is on the mend.
On the street, there is a different reality. One in six American’s now live in poverty. Cutting back on liquidity and allowing interest rates to rise is not the best idea under these circumstances.
Headline on Kitco: “Gold Slumps To 6-Month Low Post-FOMC, And Amid Stronger U.S. Dollar.” The last time I checked, the dollar was 80.06. Stronger? This is about where it stood before the Fed made its announcement. This has nothing to do with the dollar – it’s JPMorgan and the hedge funds playing their usual games. When gold falls, those unwilling to acknowledge the paper manipulation always fall back on a strong or rising dollar.
Who do you think is benefiting from the engineered drop in the price of gold? This is what they had to say over at Zero Hedge…
Submitted by Tyler Durden on 12/19/2013 17:04 -0500
As we reported consistently, at times on a daily basis, one of the more memorable stories of the summer of 2013, was the rampant and furious depletion of gold (both eligible and – mostly – registered) stored deep in the gold vault of JPMorgan located under 1 Chase Manhattan Plaza, since sold to a Chinese conglomerate (understandable considering China’s insatiable appetite for the yellow metal in physical, not paper form). This culminated with some truly impressive multi-way vault rearrangements in which the other 4 Comex members would provide gold to JPM on an almost daily basis (see here and here). But while Chinese demand may explain the outflow of physical, what is head scratching is the just as furious scramble by JPM to obtain gold in the past few weeks.
As persistent trackers of the CME’s daily depository statistics update are well aware, over the past week, JPM has been accumulating an impressive amount of gold, and what is more curious, it has been precisely in increments of 64,300 ounces of eligible gold on a daily basis. Putting this scramble in context, two months ago JPM had only 181K ounces of eligible gold. And yet, just today, the Comex announced that JPM’s eligible vault gold rose by almost that amount, increasing by 125K to a reputable 1.2 million eligible ounces.
Here is some interesting data from LeMetropole Café. Note the “not for profit” selling, whose only purpose is to dictate the price (down). $1,180 is the target. And it appears that JPMorgan is, as usual, the winner.
12/19 “Was As Bizarre As Anything I Have Witnessed In Thirty-Eight Years In This Industry” … MLB
The gold market has become little more than scheduled carpet bombings. The brazen nature of the assaults keeps reaching new heights. The scheduled flash crashes around 3:00 AM, 8:00 AM, Comex open, 9:30 AM and 10:00 AM are nothing more than pure unadulterated cartel hits. Incredibly 1.327 million ounces of paper gold was sold in just 6 flash crash minutes. That’s a total of 46.66 tons at an average of 1 ton sold every 7 seconds. No legitimate trading could ever go down like this.
2:40 AM: 1,262 Feb. contracts sold -126,200 oz. / 3.94 tons
2:41 AM: 3,709 Feb. contracts sold – 370,900 oz./ 11.59 tons
8:21 AM: 1,654 Feb contracts sold – 165,400 oz./ 5.17 tons
8:47 AM: 2,295 Feb contracts sold – 229,500 oz./ 7.17 tons
10:00 AM: 2,530 Feb contracts sold – 253,000 oz./ 7.91 tons
10:06 AM: 3,482 Feb contracts sold – 348,200 oz./ 10.88 Tons
2:40- 2:41 AM was the biggy.
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If you are upset by the fall in the price of gold, you are missing the bigger picture. The demand for physical gold is off the charts. The Chinese want gold, not dollars. I know it seems counter-intuitive, because the price is dropping (on COMEX), but the supply/demand fundamentals always take the lead. And they are so very positive for gold.
Here is how it works… JPMorgan orchestrates the gold price takedowns, without any interference from the regulatory agencies. Here is an interesting article from Ed Steer:
December 20, 2013
It was another textbook case of a JPMorgan Chase et al-engineered price smash. As Ted Butler keeps mentioning to all those who are not willfully blind—first their high-frequency traders set the prices lower in the most thinly-traded markets, tripping sell stops—and then the technical fund/small traders are either forced to sell more long positions, or may decide to put on short positions for technical reasons. Either way, the collusive commercial traders are there to scoop up all the longs sold, or take the long side of the short sale. This scenario has been going on for many years—and should be completely obvious to you by now, dear reader.
But what was really impressive about yesterday was all the mainstream media press that occurred at the same time that this price smash was taking place. As I’ve said before, I don’t know why JPMorgan didn’t hire a brass band—and/or take out a front-page ad in either The New York Times or The Wall Street Journal, because what their doing is becoming blatantly obvious to all—well, almost all.
If you read the Bloomberg story in the Critical Reads section that contained Dimitri Speck’s famous charts from this latest book, then you need to look at these same charts as produced by Nick Laird. These are five-year rolling charts for both gold and silver.
–Casey Research, December 20, 2013
Here is an article from Zero Hedge in regards to how the Chinese don’t want dollars anymore:
Submitted by Tyler Durden on 12/19/2013 22:01 -0500
Today gold slid under $1200 per ounce, dropping to a level not seen in three years. Judging by the price action one would think that gold is not only overflowing from precious metal vaults everywhere, but can be found thrown away on the street, where nobody even bothers to pick it up. One would be wrong. In fact, as Bloomberg’s Ken Goldman reports, “you could walk into a vault in London and they were packed to the rafter with gold, and the gold would trade from me to you to somebody else. You could walk into these vaults today and they are virtually empty. All that gold has been transferred out of London, 26 million ounces….” To find out where it has gone and why it is never coming back, watch the clip below (spoiler alert: listen for the line: “the Chinese don’t want US dollars anymore, they want gold”).