Wednesday, August 8, 2012

Definitive Primer On Gold/Silver Market Manipulation

"If I had to vote for Obama or Romney, I'd shoot myself"  - Marc Faber

"Beware of false knowledge; it is more dangerous than ignorance" - George Bernard Shaw

For those of you who have not seen it yet, I'm posting the interview of GATA's Treasurer, Chris Powell, with Lauren Lyster of Capital Account.  For those of you who were unaware, Capital Account is hosted by, and it does some of the finest truthseeker reporting in media land.  Ms. Lyster interviews Mr. Powell regarding the ongoing gold and silver manipulation, likely being conducted by a few big bullion banks like JP Morgan on behalf of Governments/Central Banks seeking to control interest rates and currency exchange markets.

As Chris points out clearly and with detailed references, agreements to manipulate the gold/silver bullion markets for controlling the currency exchange markets date back to the Gold Reserve Act of 1934, signed by FDR.  As everyone likely knows, the "exchange stabilization fund" created by the Act was amended by Reagan after the 1987 market crash and enables the Government to intervene in any market at any time.  By virtue of these facts alone, anyone who refers to market manipulation allegations as "conspiracy theory" is either completely ignorant of the facts or an interminable idiot. Market manipulation - and specifically gold and silver price suppression by the banks fronting for the Treasury/Fed - is part of the fabric of our system as legislated by Congress and signed by Presidents.

Here is the interview, and I would urge anyone who has not done so yet to take the time to watch the full interview.  Mr. Powell explains clearly, in detail and with source documentation references, how and why the Government manipulates the gold and silver markets:

Anyone who takes the time to watch this video and then research the documentation cited by Chris - most if not all of it can be sourced at - will know more about how our financial markets operate than 99.5% of all humans. Certainly more than 100% of anyone who works at CNBC, Bloomberg or Fox Business.

Like every other Governmental attempt to control the markets and rewrite the natural laws of economics, the price suppression of gold and silver will ultimately fail, sending gold and silver to price levels that will shock everyone except the hardiest of gold bugs,  and thereby signalling the onset of extreme hardship, poverty and totalitarianism in this country.


  1. LMAO. That's a great quote by Faber.

  2. "sending gold and silver to price levels that will shock everyone except the hardiest of gold bugs, and thereby signalling the onset of extreme hardship, poverty and totalitarianism in this country."

    Totalitarianism will try its best to extinguish the gold hoarding seditionists, will it not? (Either via taxation or making possession illegal.)

    1. Gold is so dang portable... and I here the border with Canada is fairly porous... : )

    2. It is porous as hell!! Lots of border crossings "close" at night so other than overhead drones and satellites watching(probably a camera or 2, too) there is little to stop you. In case you need to cross, Walpole Island (Ontario to Michigan-- a lot of illegal aliens from China crossed into the USA that way), the desert near Oroville Washington, and the mountains near Hope, BC (can't remember the name of the dammed lake right on the border but there is a back road to the dam on the USA side and you can just walk into a park in Canada) are the 3 that this law-abiding Canadian knows of right off the bat. I am sure there are many more. Just saying.
      Justin from Canada

  3. Dave, I have 80% of my net worth in physical so don't label me a naysayer but the old adage about "you can't fight city hall" is probably applicable here. I started buying gold at $500 per oz and silver in the single digits. I view it as an insurance policy and will have a hard time sellling but I also have a hard time believing that the government will allow the price to skyrocket. Time will tell but for now I have gold, silver and plenty of lead.

  4. isn't it amazing that the truth about our government is being exposed by forthright people financed by the RUSSIAN GOVERNMENT! Second the Faber quote.

  5. One of the best interviews I have seen so far exposing the manipulation, Chris Powell explains the situation very simply and clearly.

  6. Notice the Bank of England squeaking about Standard and Chartered and Peter Sands being dragged up in New York. The prosecutor is now defending himself. If this is happening in the papers you can imagine what is happening behind closed doors.

  7. Dave can you or do you care to discuss mining junior or mid tier producers by name? I have the ones I like in relatively safe geographical jurisdicitons, growing reseves and hopefully able to finance capex and exploration with internal cash flow. Or like ANV has recently done a bond float to cover expansion.

    I am interested in comparing notes with others here or yourself if you care to.

    If not I understand.

    1. We own ANV. My #1 play is Rye Patch Gold RPM.V/RPMGF. I like Wildcat Silver WS.TO. EXK, TRX for pure silver plays. Osisko. I didn't like it at $14 but I LOVE it below $7, where I reloaded the position in the fund after it was smashed on news that shouldn't have smashed it. I still love at these levels. GORO same deal. Unreasonably smashed for reasons that will be fixed and are non-recurring. Just reloaded SA. Had dumped it in the high teens. Love it here. Has the largest untapped gold resource for sure in North America and I think the world. There's others but that's a good start.

    2. Dave, Thanks for naming names. I agree totally on SA.. have done my DD and I consider this my #1, "Gold in the ground" play. I also have some GORO for the same reasons you sight.. bought it post beat down. I watch the sector like a hawk. I bought JAG after the last beat down and it has been STELLAR for the last few trading days.

      What do you think of the low PE, super Value plays with dividends like GFI and IAG? These seem like no brainers as well to me. Thanks, 1Kg Lunar Dragon

    3. Never liked IAG. Poorly run. I used to play GFI. It's a serial underperformer. My rule of thumb is to look at the stocks John Paulson plays and if I don't like them and he owns them, stay away. IAG, KGC, ABX fall into this category. KGC is also poorly managed and has a lot of strategic/operational issues. The market may float stocks like IAG and KGC but they'll underperform. John Paulson definitively does not know what he's doing in mining stocks.

  8. Hi Dave, " Fannie Mae and Freddie Mac, this week reported some of their best quarterly results since the real estate collapse." Any comments on this piece of news?

    1. Not much to say other than I wouldn't trust the results. Accounting sleight of hand and Government support. They'll go bust eventually.

  9. WS looks good. Maybe a buy for HL which I own. HL the dog everyone hates has very low production costs. SA has a quite low IRR for their project not as good as Hycroft or Hasbouck.
    OSK seems to be a great choice.

    I own a few others with decent growth potential: NGD,KGI and AZK. AZK's Joanna project is also a low IRR so I own less of it.

    Small multiple stocks ATN,LSG and CGR.

    Holding for multi baggers.

    I have not reviewed WS and need to I appreciate your ideas.Thank you.

  10. Thx for your blog.

    Here something from Jim Sinclair's site..

    Dear Mr. Sinclair,

    I would call you Jim, except I have such high regard for you that using your first name when we have not been introduced seems irreverent.

    My experience with trying to go DRS is the same as CIGA William’s. Both TD Ameritrade and EverTrade (using Penson as agent) told me $500 to $600 to register each stock. I sold all my positions and opened an account with ScotTrade. ScotTrade does DRS for eligible stocks for $0.00.

    I found that many companies and Canadian stocks do not use the DRS system. I sold all of those.

    I have little exposure to trading platforms today and am concentrating on the physical.

    Thank you for all your advice and counsel. I feel with your help, we will weather the storm and be ready on the other side to prosper.

    Best wishes to you and your family.

    CIGA SailorSeaman


    And this is exactly what I meant in a comment two or so blogs ago. It is only the precious metal investor doing this and thus selling miners because there is too much BS going on. In a way it forces the Gold believers ever more into physical rather than bother with miners and so at present that void isn't filled by others.

    Wondering how many are actually selling Physical in order to get into miners??

    2008 may have just created this change!

  11. Financial Terrorism in America: Over 1 Million Deaths Annually, 62 Million People With Zero Net Worth, As the Economic Elite Make Off With $46 Trillion

    The article is based on excerpts from the book “The Road Through 2012: Revolution or World War III” written by David DeGraw’s book, the editor and founder of AmpedStatus which will be Released September 28th.

    Abstract :: Welcome to World War III
    Despite increasing personal financial hardship, most Americans remain unaware of the economic world war currently unfolding. An all-pervasive corporate and government propaganda campaign has effectively obscured this blatant reality. After extensive analysis, it is evident that World War III is a war between the richest one-tenth of one percent of the global population and 99.9 percent of humanity. Or, as I have called it, The Economic Elite Vs. The People. This war has been a one-sided attack thus far. However, as we have seen throughout the world in recent months, the people are beginning to fight back. The following report is a statistical analysis of the systemic economic attacks against the American people.

    Propaganda Inflation

    The Bureau of Labor Statistics has twice, since 1980, revised the method to calculate the Consumer Price Index (CPI), which measures inflation.

    Their methodology now masks the severity of inflation, similar to how they mask the severity of unemployment, by heavily discounting the measurement weight of energy, food and education – three of the most significant costs for most American households.

    Tcurrent “official” CPI is at a 3.6% annual rate.

    Calculated the way it was before Greenspan altered it in 1980, it would be 11.1%, three times worse than officially stated.

    So while the government and the Federal Reserve claim that inflation is low, at 3.6% over the past year inflation for the middle class has skyrocketed.

    Food prices increased 39% over the past year.

    U.S. gas prices increased 34% over the same time frame.

    The increase in gas cost over the past one-year masks the severity of total gas price inflation at the pump.

    Gas is currently 125% more expensive since December 2008, increasing from $1.67 per gallon to $3.75.

  12. An excellent interview that explains and exposes the manipulation of silver very clearly. Am now going to watch it again !

  13. Yesterday Was “Relieve Goldman Sachs of Their Legal Exposure” Day

    So Goldman got off for two separate things here, detailed in this contemporaneous report on the SPSCI report: one, the securities fraud elements of lying to their investors and profiting off their lack of disclosure; and two, lying to Congress about it. The Justice Department didn’t see a problem with it. So any upstart investment bank looking to make it in the world, you have your marching orders. You have to lie to your investors, take the other side of the bet on the deals you offer them, and when questioned about it, obfuscate and obstruct the investigatory body. That’s the way to the top.
    I swear that “if the Justice Department saw crimes committed, they would have done something” and “it’s a higher bar” are macros on the keyboards of defenders of the lack of prosecutions. But it’s pretty simple to come up with ways to prosecute on this conduct if you really wanted. Just take the Sarbanes-Oxley Act alone. Section 802 clearly states:
    Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both.

    Goldman has paid $550 million in civil fines (with that ever-present “neither admit nor deny wrongdoing” clause) to the SEC on precisely these types of mortgage backed securities deals. The annual certification was clearly fraudulent, and yet no major investment bank has been prosecuted under that statute.
    However, you can take comfort in the fact that one Goldman Sachs alum was arrested yesterday. That would be the programmer accused of ripping off the company’s source code:

  14. not one mention of Rubicon..RMX..are most of you posting American?..RMX..largest gold find in 3 economical door to Gold Corp..just..FYI..