This post was published at SilverDoctors
The Chicago Mercantile Exchange (CME) announced a plan to launch Bitcoin futures by the end of the year. The price of Bitcoin surged to a new record in response to the announcement. It was reminiscent of the dot.com era, when a dot.com stock would jump 10% if Maria Bartiromo merely whispered the name of the company on CNBC.
Ironically, the cheers for this new contract from the Bitcoin faithful could turn out to be analogous to chickens in the barnyard cheering at the appearance of Colonel Sanders.
GATA released an article about the new Bitcoin futures contract titled ‘So Long Cryptos.’ I’m sure that editorial stance puzzled most Bitcoin price-momentum chasers. Crypto aficionados, for now, overlook the fact that CME futures are used aggressively to push around the dollar-based Comex gold and silver futures contracts.
As GATA points out, the ability to manipulate precious metals futures contracts by the official entities motivated to suppress the price of gold is reinforced by the volume trading discounts given from the CME to Governments and Central Banks who trade on the CME.
This post was published at Investment Research Dynamics on November 1, 2017.
IRD Note: For nearly two decades, GATA has seized on Frank Veneroso’s original research which provided first-hand evidence that Central Banks were actively operating to suppress the gold and has presented direct evidence of precious metals manipulation. Beyond this, there are public admissions from Henry Kissinger and Alan Greenspan acknowledging this fact. Unfortunately, those who deny that gold/silver are manipulated have never offered any response to the direct proof that Central Banks intervene directly in gold trading. The article below presenting just the facts was published by GATA.
Newsletter writer Steve Saville of The Speculative Investor, who long has denied that manipulation of the monetary metals markets means much, has seized on the recent essay by Keith Weiner of Monetary Metals as the conclusive refutation of silver market analyst Ted Butler’s longstanding complaint that JPMorganChase has been rigging the silver market.
Weiner’s analysis, headlined ‘Thoughtful Disagreement with Ted Butler’ and posted here – LINK – argued that JPMorganChase is undertaking only ordinary arbitrage in the silver market, exploiting spreads between bid and ask prices.
Saville, in commentary headlined ‘A Silver Price-Suppression Theory Gets Debunked’ – LINK – cheers Weiner’s essay and goes on to remark: ‘Entering a debate with someone who is incapable of being swayed by evidence that invalidates his position is a waste of time and energy, so these days I devote no commentary space and minimal blog space to debunking the manipulation-centric gold and silver articles that regularly appear.’
This post was published at Investment Research Dynamics on October 9, 2017.
The Fed often treats financial markets as a beast to be tamed, a cub to be coddled, or a market to be manipulated. It appears in thrall to financial markets, and financial markets are in thrall to the Fed, but only one will get the last word. – Former FOMC member, Kevin Warsh – The Fed Needs New Thinking
Please note, a large portion of the source links, plus the idea for this commentary, were sourced from GATA’s latest dispatch regarding the possible appointment of Warsh as the next Fed Chairman.
The quote above is from former FOMC board member, Kevin Warsh, who appears to be Trump’s top candidate to assume the Fed’s mantle of manipulation from Janet Yellen. By way of relevant reference, Warsh happens to be the son-in-law of Ronald Lauder, who is a good friend of Trump’s. He is also a former Steering Committee member of the Bilderberg Group. GATA has published a summary reprise of direct evidence from previous written admissions by Warsh the the Fed actively manages financial asset prices, ‘including bolstering the share price of public companies’ (from link above).
In addition to stocks, Warsh admitted in the same essay that, ‘The Fed seeks to fix interest rates and control foreign-exchange rates simultaneously’ (same link above). This task is impossible without suppressing the price of gold, something which began in earnest in 1974 when, under the direction of then Secretary of State, Henry Kissinger, paper gold futures contracts were introduced to the U. S. capital markets. This memo, written by the Deputy assistant Secretary of State for International Finance and Development, was sent to Kissinger and Paul Volcker in March 1974: Gold and the Monetary System: Potential U. S.-EC Conflict (note: the source-link is from GATA – it was discovered in the State Department archives by Goldmoney’s John Butler).
This post was published at Investment Research Dynamics on October 2, 2017.
A consultant to GATA (Gold Anti-Trust Action Committee) brought to our attention the fact that gold swaps at the BIS have soared from zero in March 2016 to almost 500 tonnes by August 2017 (GATA – BIS Gold Swaps). The outstanding balance is now higher than it was in 2011, leading up to the violent systematically manipulated take-down of the gold price starting in September 2011 (silver was attacked starting in April 2011).
The report stimulated my curiosity because most bloggers reference the BIS or articles about the BIS gold market activity without actually perusing through BIS financial statements and the accompanying footnotes. Gold swaps work similarly to Fed report transactions. When banks need cash liquidity, the Fed extends short term loans to the banks and receives Treasuries as collateral. QE can be seen as a multi-trillion dollar Permanent Repo operation that involved outright money printing.
Similarly, if the bullion banks (HSBC, JP Morgan, Citigroup, Barclays, etc) need access to a supply of gold, the BIS will ‘swap’ gold for cash. This would involve BIS or BIS Central Bank member gold which is loaned out to the banks and the banks deposit cash as collateral to against the gold ‘loan.’ This operation is benignly called a ‘gold swap.’ The purpose would be to alleviate a short term scarcity of gold in London and put gold into the hands of the bullion banks that can be delivered into the eastern hemisphere countries who are importing large quantities of gold (gold swaps outstanding are referenced beginning in 2010).
This post was published at Investment Research Dynamics on September 18, 2017.
Chris Powell and Bill Murphy formed the Gold Anti-Trust Action Committee in 1998 and they’ve been stalwart allies in the fight against gold price suppression and manipulation ever since. What a pleasure it was today to get caught up with Chris and get his thoughts on the current state of the global market for gold.
As you listen, you’ll quickly be reminded that Chris is still one of the most informed and well-spoken advocates for our cause. Over the course of this webinar, he addresses a number of current issues including:
the most important lesson he’s learned in the 20 years he’s followed the gold market the strange occurrence of SecTreas Mnuchin visiting Ft Knox and the equally strange television interview of Terry Duffy, the CEO of the CME Group whether the US government would financially benefit from revaluing the price of gold how physical demand will paly a role in finally ending the tyranny of the central banks and bullion banks and much, much more!
This post was published at TF Metals Report on Thursday, August 31, 2017.
‘There are no markets, only interventions’ – Chris Powell, Treasurer and Director of GATA
To refer to the trading of stocks as a ‘market’ is not only an insult to any dictionary in the world that carries the definition of ‘market,’ but it’s an insult the to intelligence of anyone who understands what a market is and the role that a market plays in a free economic system. By the way, without free markets you can’t have a free democratic political system.
The U. S. stock is rigged beyond definition. By this I mean that interference with the stock market by the Federal Reserve in conjunction with the U. S. Government via the Treasury’s Working Group on Financial Markets – collectively, the ‘Plunge Protection Team’ – via ‘quantitative easing’ and the Exchange Stabilization Fund has destroyed the natural price discovery mechanism that is the hallmark of a free market. Capitalism does not work without free markets.
Currently a geopolitically belligerent country is launching ICBM missiles over a G-7 country (Japan). In response to this belligerence, the even more geopolitically belligerent U. S. is testing nuclear bombs in Nevada. The world has not been closer to the use of nuclear weapons since Truman used them on Japan. The stock markets globally should be in free-fall if the price discovery mechanism was functioning properly.
This post was published at Investment Research Dynamics on August 29, 2017.
Bill Murphy of GATA.org returns with key insights on the PMs market. The world’s largest gold producing / consuming nation, China just announced a 10% decrease in production and a 10% increase in consumption. Our guest suggests a gold price target of $3,000-$5,000 to compensate for underlying real inflation levels. Bill Murphy sees signs that indicate price suppression schemes are failing – the PMs could begin the next leg of an epic ascent. Key takeaway: the cartel is losing control, it may be merely a matter of time before the physical gold market overcomes the paper gold schemes as early as Fall of 2017.
This post was published at GoldSeek on 13 August 2017.
The following video was published by SilverDoctors on Jun 13, 2017
Gold and silver are cooling off after a month-long rally triggered by geopolitical termoil, says Chris Powell of GATA. But in the long-run, precious metal prices will be determined by central bank intervention or the lack of it, he believes. Western central banks continue to manipulate the price of gold, he says, in order to prevent it from being used as a world reserve currency. “We do not have free markets anymore,” he continues, “essentially it’s a totalitarian scheme.”
Western central banks conspired about controlling the gold price in the early 1980s because they realized that gold was an indicator of inflation and its rise helped push commodity prices up, according to the second set of archival documents published today by gold researcher Ronan Manly.
But, the documents show, the central bankers also sought to facilitate the flow of low-priced gold to oil-producing countries in exchange for their continuing to supply oil to the West at low prices.
The latter objective, according to one central banker, was to “enable OPEC to acquire some modicum of the chief inflation-proof asset without an excessive rise in the price” and thereby “to prevent gold making its own particular contribution to inflation while the developed world was attempting to bring inflation down and so reduce gold’s own peculiar attraction.”
Manly reports that the deputy governor of the Bank of England was skeptical of trying to duplicate the effort of the London Gold Pool of the 1960s and instead believed that the U.S. government should raise official convertibility of the dollar to $700 per ounce. Manly explains: “This was based on a calculation of U.S. overseas dollar liabilities tallied in a separate document. A similar calculation today would put the U.S. dollar gold price in the many thousands.”
Manly also cites evidence, already called to your attention by GATA, that the Bank for International Settlements was actually running a second gold pool again by 1983 precisely for the purpose of appeasing OPEC — just what the famous “Another” postings at USAGold.com in 1997 and 1998 maintained…
This post was published at GATA
A long memorandum written in March 1974 by a U.S. State Department official for Secretary of State Henry Kissinger and copied to future Federal Reserve Chairman Paul Volcker, then the Treasury Department’s undersecretary for monetary affairs, describes the desire of the United States and its options to prevent European countries from increasing the use of gold in the international financial system.
The memo, titled “Gold and the Monetary System: Potential U.S.-E.C. Conflict,” was recently discovered in the State Department archive by GoldMoney Vice President John Butler and brought to GATA’s attention this week by GoldMoney research chief Alasdair Macleod. It emphasizes the longstanding U.S. government policy of subverting gold as a reserve currency in favor of the Special Drawing Rights issued by the International Monetary Fund, an agency then and now largely controlled by the United States.
The memo’s author, Sidney Weintraub, deputy assistant secretary of state for international finance and development, wrote:
“To encourage and facilitate the eventual demonetization of gold, our position is to keep the present gold price, maintain the present Bretton Woods agreement ban against official gold purchases at above the official price, and encourage the gradual disposition of monetary gold through sales in the private market.”
“An alternative route to demonetization could involve a substitution of SDRs for gold with the IMF, with the latter selling the gold gradually on the private market, and allocating the profits on such sales either to the original gold holders or by other agreement.”
This post was published at GATA
What an opportune time for an A2A webinar with our old friend, Bill Murphy of GATA. Lots of great discussion today about the current state of the metals “markets” so please make some time to give this audio a listen.
Many thanks to Bill for the generous donation of his time today. Among the topics discussed in this webinar:
The latest CoT wash and rinse cycle on The Comex. Are we seeing a capitulation of sentiment in the precious metals sector? Is there any limit to the manipulation and will The Cartel ever break? Will the civil litigation in silver have any price impact? Bill’s 40-yd dash time back when he was a WR with the Boston Patriots. And a whole bunch of stuff in between. Again, please carve out some time to give this a thorough listen. You’ll be glad you did.
This post was published at TF Metals Report on Thursday, May 11, 2017.
Sprott Asset Management founder and philanthropist Eric Sprott, honored last night in Toronto at a retirement testimonial dinner sponsored by the company, praised GATA’s work and called on GATA Chairman Bill Murphy and your secretary/treasurer to stand and be recognized. Some people in the audience of about 200 actually applauded, through the audience consisted mainly of ordinarily respectable people from the Canadian financial industry. Of course they may have just been trying to be polite and to humor Sprott. But some later confessed to following GATA’s work and to have been persuaded by it.
Sprott went on mischievously to contrast what he called “the GATA table,” at which Murphy and your secretary/treasurer were seated with Sprott Asset Management’s John Embry and economist Ian Gordon of Longwave Group, with what he called “the World Gold Council table,” at which two former chairmen of the council were seated: Franco-Nevada founder Pierre Lassonde and Goldcorp Chairman Ian Telfer. Sprott noted that during the dinner no rolls had been thrown from the GATA table toward the World Gold Council table.
Civility and cordiality were maintained though Lassonde repeatedly has dismissed complaints of gold market manipulation and has insisted that central banks couldn’t care less about gold while GATA has dismissed the World Gold Council as an accomplice with central banks in gold price suppression, a facilitator of “paper gold” and the shorting of the monetary metal.
This post was published at GATA
Fear of regulation may impede bank’s from manipulating London’s silver benchmark
New regulations in 2018 have spooked bullion banks and silver fix operators Lack of liquidity in silver fix auction has lead to high volatility in the market Silver benchmark has strayed from spot price multiple times since 2016 No new silver benchmark operator lined up to take over in the Autumn No smoke without fire as actions point to silver price manipulation Silver remains suppressed and at a low price for investors stocking up ***
Simple economics tells us that markets and prices are driven by demand and supply. Unfortunately, this isn’t always the case in the silver market. However, the threat of new regulations may be putting a stop to some bullion banks from fiddling the London silver benchmark.
Silver price manipulation is always a thorny issue and one that has been taken on by academics, lawsuits, by veteran silver analyst Ted Butler and by the Gold Anti-Trust Action Committee (GATA). As we have reported previously, allegations of silver price manipulation are far past the point of rumours, in the last couple of years bullion banks have been called to account for their behaviour. Deutsche bank even agreed to settle out of court and pay $38m, in response to a class-action lawsuit.
This post was published at Gold Core on April 28, 2017.
GATA will participate in Cambridge House’s International Metal Writers Conference in Vancouver on Sunday and Monday, May 28 and 29.
GATA Board of Directors member Ed Steer, publisher of Ed Steer’s Gold & Silver Digest letter, and your secretary/treasurer will be speaking, and GATA Chairman Bill Murphy, proprietor of LeMetropoleCafe.com, will preside over GATA’s reception at the nearby Lions Pub following the conference.
Among other speakers at the conference will be Rick Rule of Sprott U.S. Holdings, David Morgan of The Morgan Report and Silver-Investor.com, Frank Holmes of U.S. Global Investors, Mickey Fulp of MercenaryGeologist.com, and Thom Calandra of The Calandra Report.
The conference aims “to discuss, debate, and forecast the future of the junior mining industry in the junior mining capital of the world.” Of course Vancouver is more than that, especially in the spring, when it is North America’s most spectacular city.
This post was published at GATA
Of course the managers of T.P.’s mining companies are hardly alone. Even the most highly regarded and wealthy managers of companies that mine the monetary metals pretend not to understand this, though one of them, Frank Giustra, indicated in January that he is beginning to suspect that central banks and governments are working against gold prices.
If Giustra, a billionaire and confidant of former President Bill Clinton, ever chose to act on his suspicion, he might change the world.
Then monetary metals mining company investors might urge the managers of their companies to review and try rebutting the extensive documentation of government suppression of monetary metals prices compiled by GATA.
Anyone who reviews those documents will discover that far from being mere “conspiracy theory,” gold price suppression is actually long-established Western government policy, recorded in government archives, both public and secret.
That is, there is no “theory” here, only historical fact.
But as hopeless as the monetary metals mining industry seems, there are reasons for its cowardice.
This post was published at GATA
Keith Weiner of gold fund management company Monetary Metals in Scottsdale, Arizona, is scoffing again at complaints of market manipulation, this time involving the silver market particularly.
In his commentary Sunday, “Why Did Silver Fall?” — Weiner writes: “With no need of evidence — indeed, with no evidence — one can assert this” — that is, market manipulation — “and not be questioned in the gold and silver communities. We have recently come across a term normally used to describe leftists and social justice warriors, ‘virtue signaling.’ One piously declares that one supports the cause, one speaks truth to power, one sticks it to The Man — well, you get the idea. The concept of ‘virtue signaling’ seems equally appropriate to those who sing the chorus on every price drop, ‘manipulation.’”
GATA may be glad if Weiner finds the gold and silver communities overwhelmingly convinced of its years of work, though of course this convincing does not yet seem to have succeeded with gold and silver mining companies themselves. But we can’t be glad that Weiner himself maintains that there is no evidence of this market manipulation — that, to the contrary, he believes, as other technical analysts do, that gold and silver prices are the products of his technical analysis and mathematical formulas.
Documentation of the longstanding Western government policy of gold price suppression, much of it culled from both public and secret government archives, has been compiled by GATA — and Weiner is welcome to rebut even one item, though he writes as if he has never heard even of Deutsche Bank’s recent confession to gold and silver market manipulation and the bank’s incrimination of other investment banks.
This post was published at GATA