• Tag Archives Manipulation
  • Ted Butler Quote of the Day 06-16-17

    As I see it, this is the defining moment for James McDonald, the new enforcement director for the CFTC. Either he will do something about the continuing silver manipulation or he won’t. In the event he doesn’t do anything to interrupt the big commercials like JP Morgan from continuing to snooker the managed money technical funds into and out of COMEX futures positions by illegal spoofing and other dirty market tricks, it will fall to something and someone else. I’m not worried that the silver manipulation won’t end dramatically and soon, but it is not written in stone that it will be the defining moment that McDonald will look back on with satisfaction many years from now. Defining moments can be either good or bad and by definition last forever.

    But it would be a mistake to underestimate the pressure he is under not to do the right thing. Essentially, for him to dismantle the crooked price discovery mechanism on the COMEX for silver (and gold) and on other futures exchanges for other commodities, he must repudiate more than 30 years of prior agency thinking, as well as overcome the secret and illegal agreement made between the U.S. Government and JP Morgan, on the occasion of JPM taking over Bear Stearns in 2008. Admittedly, that’s a very tall order. But the taller the order, the greater the defining moment.

    Certainly, the inability to overcome the standard line from the CFTC for decades, namely, that no manipulation was possible in silver, has plagued others who set out to do so. Gary Gensler comes to mind because he started off in hitting the road running to establish legitimate position limits in 2009 and seemed to be on the right path to doing so. Even Bart Chilton, the former and very outspoken commissioner who talked openly of the silver manipulation, eventually lost his public voice for the same reason as Gensler failed – neither could overcome the illegal agreement with JPM.

    A small excerpt from Ted Butler’s subscription letter on 14 June 2017.

    More precious metals news & information available at
    Ed Steer’s Gold & Silver Digest.
     


  • Gold Market Morning: June-14-2017 — Gold waiting for the Fed!

    Gold Today – New York closed at $1,268.60 yesterday after closing at $1,268.90 Monday. London opened at $1,267.24 today.
    Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
    – The $: was slightly weaker at $1.1217 after yesterday’s $1.1212: 1.
    – The Dollar index was weaker at 96.92 after yesterday’s 97.04.
    – The Yen was slightly stronger at 110.14 after yesterday’s 110.16:$1.
    – The Yuan was slightly stronger at 6.7976 after yesterday’s 6.7979: $1.
    – The Pound Sterling was stronger at $1.2785 after yesterday’s $1.2700: 1.
    Yuan Gold Fix
    As you can see from the above, Shanghai traded both yesterday and today lower than New York and London. This was the first time we have seen that happen! New York closed higher than Shanghai yesterday and London opened higher than Shanghai. On these numbers Shanghai is not a buyer from the west today.
    We have heard that China stands accused of gold price manipulation. They are accused of keeping prices low until they have acquired a particular number of tonnes. Meanwhile, Shanghai prices have consistently been at a premium to western prices. This is not the path down.

    This post was published at GoldSeek on 14 June 2017.


  • Chinese Companies Ask Employees To Buy Their Stock, Promise To Cover Losses

    Just when we thought there were no surprises left in the world’s foremost incubator of “financial engineering” that is China, we got a stark lesson in never underestimating China’s market manipulating ingenuity.
    According to Caixin, around two dozen Chinese companies recently offered their employees a deal: buy company shares while guaranteeing that any losses would be covered.
    While employees think they may be getting an unbeatable deal – who can say no when your employer promises you all the upside and no downside – the reality is that any participants in such scheme are merely locking in their fates with that of their soon to be insolvent employer, who desperately needs to raise the price of their stock to fend off collateral calls on stock-backed loans usually made by founders and other major sharehholders.
    As Reuters points out, attracted by guarantees that their principal is “safe”, workers have eagerly stepped up to take advantage of the “offer” even as it remains far from clear how these guarantees would work, with employees in some cases being asked to buy shares and hold them for at least 12 months. Details aside, many of the companies that resorted to this drastic stock price manipulation were quickly rewarded and saw their share prices spike.
    The entire farcical episode is reminiscent of what happened in 2015 when China’s stock bubble grew exponentially, then burst just as dramatically. At the time, there were similar efforts, but then it was the government appealing to major shareholders’ patriotism to buy and hold shares in what Beijing said was as a battle against speculators, both domestic and foreign. This time, with the proposal centered entirely on the private sector, the motive is different and is the result of companies using their own stocks as loan collateral, a practice that according to Reuters’ estimates has quadrupled in China over the past two years, and which is driven mostly by founders and major shareholders posting large batches of stock as loan collateral in recent months.

    This post was published at Zero Hedge on Jun 9, 2017.


  • HSBC faces fresh suit alleging forex manipulation

    HSBC is facing a fresh legal battle over allegations that its traders manipulated foreign exchange markets for their own profit at the expense of their clients, with the allegations centering on trades from more than a decade ago.
    ECU Group, a U.K.-based currency investment firm, has filed an application to London’s commercial court asking for HSBC to be required to hand over records relating to three large foreign exchange orders it executed in 2006.
    The court filing — seen by the Financial Times — comes after regulators uncovered systematic rigging of the $5 trillion-a-day foreign exchange market by traders at HSBC and several other global banks, which were fined $4.3 billion three years ago. At the time of ECU’s 2006 forex trades, the firm suspected it was being ripped off by HSBC traders “front running” its forex orders. When it complained, the bank promised a full internal inquiry, only to report back that it had found no wrongdoing.

    This post was published at Financial Times


  • Central Banks Now Own Stocks And Bonds Worth Trillions – And They Could Crash The Markets By Selling Them

    Have you ever wondered why stocks just seem to keep going up no matter what happens? For years, financial markets have been behaving in ways that seem to defy any rational explanation, but once you understand the role that central banks have been playing everything begins to make sense. In the aftermath of the great financial crisis of 2008, global central banks began to buy stocks, bonds and other financial assets in very large quantities and they haven’t stopped since. In fact, as you will see below, global central banks are on pace to buy 3.6 trillion dollars worth of stocks and bonds this year alone. At this point, the Swiss National Bank owns more publicly-traded shares of Facebook than Mark Zuckerberg does, and the Bank of Japan is now a top-five owner in 81 different large Japanese firms. These global central banks are shamelessly pumping up global stock markets, but because they now have such vast holdings they could also cause a devastating global stock market crash simply by starting to sell off their portfolios.
    Over the years I have often been asked about the ‘plunge protection team’, but the truth is that global central banks are the real ‘plunge protection team’. If stocks start surging higher on any particular day for seemingly no reason, it is probably the work of a central bank. Because they can inject billions of dollars into the markets whenever they want, that essentially allows them to ‘play god’ and move the markets in any direction that they please.
    But of course what they have done is essentially destroy the marketplace. A ‘free market’ for stocks basically no longer exists because of all this central bank manipulation. I really like how Bruce Wilds made this point…

    This post was published at The Economic Collapse Blog on June 7th, 2017.


  • Ted Butler: Surprise CFTC Announcement

    I was shocked by Friday’s announcement by the CFTC of an order and simultaneous settlement of manipulation charges in COMEX gold and silver futures. I first saw it in a Zero Hedge article and subsequent articles on Bloomberg and in The Wall Street Journal, but all those accounts were somewhat off target compared to the CFTC announcement itself. This was one of those rare cases where the source announcement was much clearer than the articles describing it. I would ask you to take the time to read and reread the actual announcement from the CFTC, including both the press release itself and the complete order.
    In essence, for the first time in history, the Commodity Futures Trading Commission has brought charges against someone for manipulating the gold and silver markets exactly in the manner I have described for decades. This is so astounding on its face, that I hardly know where to begin. In addition, I am writing this less than 24 hours after reading the announcement, so I reserve the right to alter my opinion as time evolves. But there is much to say at this point.
    While it is true that the agency brought these charges against a former junior trader of an unnamed foreign bank (said to be Deutsche Bank), the price manipulation occurred during the time of the CFTC’s infamous five-year formal silver investigation. You’ll remember that the original investigation by its Enforcement Division previously concluded that there were no manipulation charges worthy of pursuing. Clearly, something changed the CFTC’s mind. Also, please note that all the alleged price manipulation took place on the cesspool also known as the COMEX and not on any of the foreign exchanges often bandied about.

    This post was published at Silverseek


  • BLS B.S.: 93% Of New Jobs Since 2008 Were Birth/Death Model Estimates

    A research report from Morningside Hill Capital sourced from Zerohedge shows that 93% of the jobs ‘created’ since 2008 were Birth/Death model estimates. While some portion of those jobs were no doubt legitimately created, the issue is over-estimation of jobs created by new businesses net of jobs lost from failed businesses. As it turns out, most of the job growth that has been reported by the Government since 2008 – and which in turn fueled some massive stock rallies – never existed.
    Ronald Reagan’s administration was the ‘culprit’ behind the creation of the Birth/Death model because apparently Reagan was complaining that the BLS was undercounting the jobs he ‘created’ (from the link above, pg 11).
    The source of estimation error derived from the methodology used by the Census Bureau is highly flawed because it extrapolates B/D growth estimates based on historical experience. When the economic activity in the current period is below the historical rate of economic activity (real economic activity, not inflation-generated growth or growth fashioned from data manipulation), the slow-down in new business formation that occurs in reality is not picked up by the B/D model.

    This post was published at Investment Research Dynamics on June 3, 2017.


  • Is China manipulating the gold market?

    Hedge fund, PhD statistician claims gold market is ‘the most blatant case of manipulation’ PhD: ‘Statistically impossible unless there’s manipulation occurring’ Gold serves as political chips on the world’s financial stage. Price is being suppressed until China gets the gold that they need Gold will go higher when all central banks ‘confront the next global liquidity crisis’ ‘When that happens, physical gold may not be available at all.’ Jim Rickards: The Golden Conspiracy
    Is there gold price manipulation going on? Absolutely. There’s no question about it. That’s not just an opinion.
    There is statistical evidence piling up to make the case, in addition to anecdotal evidence and forensic evidence. The evidence is very clear, in fact.
    These are the opening lines of Jim Rickards’ piece ‘The Golden Conspiracy’, an op-ed that may surprise even the most seasoned followers of gold markets.
    Gold and silver price manipulation is not a new topic to regular readers. For years the idea that precious metals markets are subject to more than just free market forces has been dismissed by the mainstream. Many have referred to gold and silver manipulation as topic fodder for the conspiracy and deep web forums. This is despite evidence to the contrary.

    This post was published at Gold Core on May 31, 2017.


  • The Golden Conspiracy

    Authored by Jim Rickards via The Daily Reckoning blog,
    Is there gold price manipulation going on? Absolutely. There’s no question about it. That’s not just an opinion.
    There is statistical evidence piling up to make the case, in addition to anecdotal evidence and forensic evidence. The evidence is very clear, in fact.
    I’ve spoken to members of Congress. I’ve spoken to people in the intelligence community, in the defense community, very senior people at the IMF. I don’t believe in making strong claims without strong evidence, and the evidence is all there.
    spoke to a PhD statistician who works for one of the biggest hedge funds in the world. I can’t mention the fund’s name but it’s a household name. You’ve probably heard of it. He looked at COMEX (the primary market for gold) opening prices and COMEX closing prices for a 10-year period. He was dumbfounded.
    He said it was is the most blatant case of manipulation he’d ever seen. He said if you went into the aftermarket, bought after the close and sold before the opening every day, you would make risk-free profits.
    He said statistically that’s impossible unless there’s manipulation occurring.

    This post was published at Zero Hedge on May 27, 2017.


  • Jim Rickards: The Golden Conspiracy

    Is there gold price manipulation going on? Absolutely. There’s no question about it. That’s not just an opinion.
    There is statistical evidence piling up to make the case, in addition to anecdotal evidence and forensic evidence. The evidence is very clear, in fact.
    I’ve spoken to members of Congress. I’ve spoken to people in the intelligence community, in the defense community, very senior people at the IMF. I don’t believe in making strong claims without strong evidence, and the evidence is all there.
    I spoke to a PhD statistician who works for one of the biggest hedge funds in the world. I can’t mention the fund’s name but it’s a household name. You’ve probably heard of it. He looked at COMEX (the primary market for gold) opening prices and COMEX closing prices for a 10-year period. He was dumbfounded.
    He said it was is the most blatant case of manipulation he’d ever seen. He said if you went into the aftermarket, bought after the close and sold before the opening every day, you would make risk-free profits. He said statistically that’s impossible unless there’s manipulation occurring.

    This post was published at Daily Reckoning


  • Another Rigged Market: Scientific Study Finds Systemic VIX Auction Manipulation

    To the list of ‘rigged’ markets (e.g. Libor, FX, Silver, Treasuries…) we can now add VIX (which explains a lot) as two University of Texas at Austin finance professors find “large transient deviations in VIX prices” around the morning auction, “consistent with market manipulation.”
    ***
    As Bloomberg reports, in addition to being an index that is much quoted in articles about market complacency, the VIX is used as a reference price for derivatives: If you want to bet that stock-market volatility will go up, or down, you can buy or sell futures or options on the VIX. These products are cash settled: The VIX is not a thing you can own, so if your option ends up in the money you just get paid cash for the value of the VIX at settlement.

    This post was published at Zero Hedge on May 25, 2017.


  • Should I Invest My Fortune in Gold? Inaugural Lecture by Dr Brian Lucey

    PRESENTATION HIGHLIGHTS
    – Should I invest my fortune in gold?
    – Lessons from gold and silver: Reviewing the research
    – What precious metals can tell us about finance?
    – What are precious metals and why should we care?
    – What size of market and how evolved over time?
    – Long and detailed history of gold and silver as money
    – What does a tonne of gold look like?
    – Research on precious metals including volatility and inflation
    – Where produced and where demand from and how evolved and who studying precious metals
    – Game of Thrones & Scrooge McDuck’s gold and the Hyperinflation of Smaug
    – Gold and silver manipulation – ‘Was the fix a fix’?
    – Gold a ‘permabubble’ or in correction?
    – Gold costs $1,000/oz to mine so unlikely to fall below that level
    – Drivers of retail coin and bar investment
    – How does sentiment and mood affect precious metals?
    – Why do central banks continue to buy and hold gold?
    – Historical studies of precious metals
    – How much to hold and when?
    – Gold is proven safe haven – rises sharply when uncertainty and in economic crisis
    – Research says 10% a good allocation; 30% is high
    – Silver similar – 1% to 5% and 10% allocation good in crisis
    – One of Ireland’s great exporting services, small to medium size enterprise (SME) is here in the form of GoldCore and can help
    – Do not spend too long staring at and obsessing about gold or might turn into Gollum
    – Question and answer session
    How the economics of gold and silver can help us understand the challenges facing financial economics and whether we should invest in gold and silver was explored in an inaugural lecture by Professor Brian Lucey, Professor of International Finance and Commodities in Trinity Business School.
    In the lecture, entitled Golden Opportunities: What precious metals can tell us about finance, Professor Lucey examined the research space in the financial economics of precious metals.

    This post was published at Gold Core on May 25, 2017.


  • Asian Metals Market Update: May-22-2017

    There are lots of Federal Reserve speakers this week as well as economic data releases. These numbers will be taken seriously by the markets as they are pre FOMC data. The FOMC meet is on 14th June. UK elections are also nearing. Lowering of North Korean risk and other Asian geopolitical risk will be bearish for bullion. Demand is not that much. $1250 is the middle of the road price gold. +/-$50 either side move can happen very quickly. Gold should delink from currency price moves this week (as observed last week).
    Silver is stuck between the devil and the deep sea. In the short term, silver is not yet out of the bearish shadow. Low silver demand is preventing silver prices from a rise. The price of silver has been subdued to manipulation by a cartel of large banks. Silver is a great long term investment but I see a big price rise only from 2019. Between now and end 2018, $1470 and $2290 are the key break points. In the short term silver can see rallies. But to attract long term investors silver prices have to show a solid price bottom formation.
    Long term copper is also bullish as supplies move into a deficit zone from the last quarter of the year. In the short term copper can see sharp corrections, depending upon moves in the currency markets. As long as copper trades over $236 chances of a rise to $323 will be very high for the rest of the year. The risk to copper prices will be a war with North Korea as it will adversely affect Chinese exports and Chinese demand.

    This post was published at GoldSeek on 22 May 2017.


  • $50+ Silver & Remonetization of the Metal | Lior Gantz

    The following video was published by SilverDoctors on May 18, 2017
    Lior Gantz says JPMorgan, and other large banks, are running the world’s most monopolized market, the silver market. Lior Gantz says most likely, while JPMorgan is shorting paper silver, they are hoarding the physical metal. In the next couple years, Gantz sees the price manipulation coming to an end.
    The gold/silver price ratio is completely out of wack. Gantz says governments could remonetize silver, and the gold/silver price ratio could return to its historic ratio of 16:1.


  • Ted Butler Quote of the Day 05-17-17

    Not only has the crooked COMEX futures positioning scam become obvious to more observers than ever based upon the explosion in COT commentary, we are now seeing clear signs of adjustment to it in actual trading (apart from the large core non-technical fund managed money long position). Never before have the other large reporting traders and the smaller non-reporting traders bought so aggressively on sharply lower prices than they have over the past three weeks. Clearly, these traders have seen the COMEX wash, rinse, repeat cycle often enough over the years that they know what to expect, namely, when the technical funds are done selling to the downside, then up we go in price. Same as I preach here.

    Simply put, other futures traders see what is going on and are reacting to it. So here we have not only growing and widespread commentary and a substantial and growing core non-technical fund managed money long position, we now have bona fide evidence of other traders entering the fray opposite to the technical funds. I know the CFTC pretends not to see what many more are reacting to, but let me ask you this – with such strong and varied evidence that more are reacting to the COMEX silver manipulation, does this sound like something that will reach a ripe older age…or does it not have the elements of blowing up shortly?

    A small excerpt from Ted Butler’s subscription letter on 13 May 2017.

      More precious metals news & information available at
    Ed Steer’s Gold & Silver Digest.


  • ‘WE ARE SEEING NO SELLING OF PHYSICAL GOLD OR SILVER’

    Time and time again we are seeing fraud taking place in the precious metals’ market. Thousands of tonnes of paper silver and paper gold are being dumped over just a few hours or days. For anyone who doesn’t understand what is happening, let me categorically state that this has nothing to do with the real physical market in gold and silver. No, this is blatant manipulation by governments and bullion banks as well as speculators. And since governments are involved, it is sanctioned by them with no consequences for the traders who are rigging the market.
    BULLION BANKS FEAR THE DAY THEY MUST TURN PAPER GOLD INTO PHYSICAL What is happening has nothing to do with real markets or real supply and demand. What we are seeing is governments trying to obfuscate their total mismanagement of the economy and the currency. So far, the bullion banks have been fortunate that gold and silver paper holders haven’t called their bluff and asked for physical delivery. Because we know and the banks know that the day they will need to come up with the real gold and silver bars, it is game over. Because they haven’t got physical gold or silver to cover even a fraction of their paper shorts. Between futures exchanges, bullion banks, including precious metals derivates contracts, there are hundreds of ounces of paper gold and silver outstanding for every ounce of physical backing.
    The problem is that it is not only the bankers that are the culprits in this game. No, governments are just as culpable. Western banks officially hold 30,000 tonnes of gold. Virtually no Western central bank has ever had a physical audit of their gold. The US had their last audit during Eisenhower’s reign in 1953?
    Western central banks have in the last few decades been liquidating a major part of their gold holdings. For example, he UK sold half of their gold holdings at the end of the 1990s and Switzerland sold over half. Norway sold ALL their holdings in the early 2000s.

    This post was published at GoldSwitzerland on May 12, 2017.


  • A2A with Bill Murphy of 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.


  • Ted Butler Quote of the Day 05-12-17

    While the biggest single change in the composition of the concentrated COMEX short position has been the defection of JP Morgan to becoming net long by virtue of its physical metal accumulation, there are some other more subtle changes, including the complete absence of any economic legitimacy to the current short position. In essence, there are no legitimate shorts on the COMEX, in terms of miners hedging future production or those hedging against existing physical inventory. The big shorts, apart from JP Morgan, appear to be mostly foreign banks according to CFTC data and definitely not miners from the earnings statements from public mining companies. The speculating foreign banks are precisely the type of short sellers most likely to panic when silver prices start to rally and it begins to take hold on them that JP Morgan is no longer the shorts’ protector and short seller of last resort

    I have been studying the silver manipulation for more than 30 years — and over that time I have seen it spread to other commodities, certainly to gold, copper, crude oil and just about every market where the technical funds have risen as a potent market force to be manipulated and harvested. But no market has been as manipulated as has COMEX silver, thanks to the level of concentrated short selling compared to real world supplies. The recent selloff has affected many commodities and I do expect a vigorous turn up in gold, copper, crude oil, platinum and other markets once the technical fund selling is complete, but the rally to come in silver should far outdistance any other commodity rally.

    A small excerpt from Ted Butler’s subscription letter on 10 May 2017.

    More precious metals news & information available at
    Ed Steer’s Gold & Silver Digest.