Over just the last couple of weeks we have seen several mainstream media headlines about “gold manipulation.” The Financial Times as you know did an article that was promptly “pulled” as it was called a “mistake.” All that is left of this one is:
Then 2 or 3 days later, Bloomberg put out an article on the same subject, asking if the London gold fix is “fixed.” The German publication Handesblatt and the London Evening Standard also reprinted the manipulation story here. These articles have all come out after the shock and awe of Elke Koenig’s (Bafin) statement of early January, Bloomberg reported it with the headline “Metals, Currency Rigging Is Worse than LIBOR.” The headline was a bit misleading though as Ms. Koenig prefaced those words with “possible” which means “if.” Please also recall that Deutsche Bank withdrew from the London gold fix at approximately the same time.
OK, so let’s do a little math here, 5 articles from 4 different and VERY “main” stream media sources (from 3 different countries) with the addition of a global banking behemoth’s withdrawal from the gold “fix” …topped off by a top financial regulator using the words “gold” and “manipulation” in the same sentence. What do we have? “Nothing to see here, please move along” or “we told you so and we did report on it?” Why, after all these years where multiple “whackos” (such as me) have screamed “manipulation” does the mainstream media all of a sudden give us ANY credibility whatsoever?
Please understand that writing this piece is a little “self-serving”. Maybe “self-serving” is too strong of a phrase, maybe “self-satisfying” is better. Going back to 1997 I believed that there was something very very wrong in the gold market. I can still remember speaking with the late Harry Bingham of Van Eck about this topic sometime in ’97, he said, “Something is very wrong yet no one will believe it, you can’t say anything publicly because they’ll brand you a conspiracy nut.” I only wish he could have lived to see how far we have now come.
The “other side,” those who look at what is obvious to me (probably you too) and disagree, they claim that “free markets” describe gold and silver. It doesn’t matter if we know for a fact that currencies, interest rates, stocks and bonds are all “manipulated”…gold and silver “would never, COULD never” be manipulated…oh the sacrilege! In fact, Ross Norman of Sharps-Pixley chimed in on Friday with an article that denied any “fixing” of the fix. In this short piece, Norman reprimands the Bloomberg author for his “motivation” in writing about manipulation and suggests that he might be talking his own book. I don’t know for a fact but I believe that I know where his “answers” came from. I believe they came from a former trader (who is very bullish gold by the way) who says, “I was a trader at several big bullion banks and I never saw any signs of collusion or manipulation so there couldn’t have been any.” I would simply ask him if the right hand, left hand or nearly any hand “knew of the big picture” like with the Manhattan project. It is estimated that with the “Manhattan project” only a very small handful of people (2 or 3 dozen) had knowledge of the big picture even though well more than 100,000 people worked on this project…in more than a dozen U.S. states, in Canada and in collaboration with Britain. If a project as “physical” as the Manhattan project could be kept a secret then why couldn’t something as esoteric as selling unbacked gold futures contracts be kept a secret? Does this former trader really believe he had enough “stroke” that he would have been allowed to see the machinations of the big picture? I believe that the manipulation gears have changed; it has become so brazen that you don’t even have to be “my cousin Vinny” to now see it. Yet, we still hear that “manipulation is impossible, I would have known and someone surely would have already spilled the beans.” My opinion is that it’s obvious to anyone willing to look with an open mind and a 3rd grade education!
Norman also denies that any trading desks could have survived being short gold during the 6 fold price rise. Really? Why not? Because they would have lost too much money and gone bust. I will admit that he “would be correct” in a free and honest world…but this is not the world that we currently live in. I would simply ask him a few questions such as 1. Have you ever heard of the wonderful Patriot act? 2. Did you know that within this act, U.S. financial institutions need not disclose anything that might harm our national security…not even huge losses depending on where they came from? 3. Were you aware that the Federal Reserve “lent” out $17 trillion all over the world in late 2008…that “we” peons weren’t made aware of until a couple of years later and the discovery was “found” rather than “reported” to us? 4. Did it ever occur to you that if a “desk” were to get into trouble, maybe, just maybe they could get a “little help” from the Fed on the QT…Because it could be viewed as “necessary?” Is this impossible? Or would it maybe fall under the scope of “in the national interest” section? Do you really believe that “they” would tell us???
The Norman article by the way only speaks to the London gold fix, if you are rebutting manipulation then why not explain how more than 50% of global silver production could have been sold last April in 36 hours? And much of it sold when the markets were the most illiquid? Why have “time and sales” reports not been pulled and produced to show us “see, these were merely ‘hedges’ of existing holders of silver.”
How is it possible that these were not “concentrated and colluded” sales? Are we to believe that all of a sudden orders came in from all over the world in the exact same “milliseconds” to crush the price? A coincidence? Please, get real and use your brain…or, stop “apologizing” for the obvious manipulation that has been occurring everywhere else (and readily admitted to) but “not in gold or silver!”
So why is it that all of a sudden “manipulation” is being taken up by the MSM? Is it because they feel sorry for those of us who have been boisterous for long in our search for proof of the truth? No of course not, in my opinion it is because the game is very very close to blowing up and “they” know it. “They” are being the “elites” who run the world. In my opinion the elites consider it “bad form” not to at least warn the sheep before they are sheared. I believe that this is why the rash of articles in the 3 most important English speaking countries and from the very mainstream media outlets FT, Bloomberg, London Evening Standard and Handesblatt. I also believe that after this whole thing goes down, blows up, collapses or however you’d like to describe it, the “elite thought process” will be …you had fair warning ahead of time and you could have acted on it. You were warned…this is why we are the elites and you are the schmucks!