Tuesday, January 7, 2014

Precious Metals Intervention In The Extreme - Let's Call It What It Is

Anyone who calls what is happening a "flash crash" or hedges on their assertion of "possible" direct intervention is either completely ignorant of the facts or they write their commentary in fear of public ridicule and doubt from other intellectual hedgers.  It is what it is:  a nuclear currency war rooted in the historical intervention of the gold market by the Federal Reserve and the U.S. Treasury.

Forget the "flash crash" story being widely promoted.   The "flash crash" story says that technical and algo trading caused the plunge.  Really?  In the absence of a big dose of intervention, the flash crash never happens.  Therefore, the only attributable cause by anyone who is being intellectually honest - not just with their readers but with themselves - is that INTERVENTION was culprit

In the last two days, 26+ tonnes was delivered on the Shanghai Gold Exchange.  The enormous physical off-take in China is a freight train w/out brakes.  From Standard Bank:
“In the physical market we are witnessing strong demand. Since the start of 2014, the SGE premium has jumped higher, reaching $18/oz this morning. The buying frenzy in especially China comes on the back of the seasonal demand pick-up ahead of the country’s New Year, which starts on 31 January…More broadly we have also noted an improvement in Asia demand for gold since mid-December. This is evident in the pickup of our Standard Bank Gold Physical Flow Index”
The manipulation in the gold market is getting worse by the day as the demand for physical gold from the eastern hemisphere begins to accelerate. It looks like the western Central Banks and their bullion bank market agents are going to work on silver with more focus.  SLV is starting to see physical drawdowns, as is the Comex.  The capping in silver is beyond blatant.   Turkey imported a record amount of silver last year, as did India..  India's demand for silver is the substitution of the gold that was cut off by the U.S. Government-induced Indian import controls.

Make no mistake about it.  In the face of China's moves to move away from the U.S. dollar and bolster their own currency with an historically epochal program of systemic physical gold accumulation,  the U.S Government and the Fed are waging a nuclear currency war with a war on the physical gold market at its nexus.  Anyone who asserts that it is any less than that is a complete coward.


  1. Gold has been a store of value through the ages. We must remember more importantly gold is also a store of credibility. The kitchen sink is being thrown at gold in a desperate attempt to destroy that credibility. Its all perception, attempt to destroy the credibility of gold to maintain the credibility of fiat! I am blown away watching the events that are unfolding in this country. We are watching the death of a fiat currency in real time!

  2. Follow where the physical gold is going and you'll see where the the strength in an economic country-s are. It happened with the U.S.A. back in the 50s-60s and it is happening now in the Asian arena.Sorry America - you're losing it !!
    Americans for the most part have been lobotomized by their government, the central banks , wallstreet , and big business as to the phony credit/currency belief system which has been planted in their heads and is systematically killing them !

  3. After watching numerous media setup platforms notably the interviews with Rickards and Grant by the cheerleaders at MSNBC and a ludicrous performance by Brian Sullivan at CNBC, I am convinced more than ever that we are witnessing the active collusion of the government media mouthpieces with the financial engineers at JPMorgan et al.

    The outright propaganda of political intent applied to the manipulated and stage managed markets has reached epic and even grotesque proportions as of late. The question is if we can ever emerge from the artificially manufactured distortions of statistical chicanery, accounting fraud, regulatory capture, and inflated asset values into authentic price discovery.

    In the case of gold if we honored the actual and accepted government standard metric valuation at 40% of total currency held in trust and in circulation, an adequate price discovery would conservatively be well in excess of $5,000! PE ratios of equites along with asset evaluations would proceed in the opposite direction declining precipitously, while commodities would naturally explode with Au to the upside with crippling hyperinflation.

    The natural tendency in this catastrophic economic debacle which Jim Grant rightly calls a "house of mirrors" would be to capitulate to the criminal fabrication of market valuations, throw in the towel, and concede defeat as the unctuous Stephen Liesman urged upon Grant in advising him to "give up the ghost". Unfortunately for them and those who listen to their lies, these media groundlings only parrot what they are told much like their political counterparts, having no grasp of the real and looming crisis which the basic economic fundamentals are in the final stages of precipitating.

  4. Thanks for your typically unvarnished words, Dave. I'll add that the fact that TPTB have been unable to push gold below $1200, coupled with the almost immediate rebound from the recent "flash crash", suggests strongly that their power to manipulate is nearing an end.

  5. I purchased physical silver and gold a long time ago and still hold it. I have read article after article just as this article, talking about how the Fed manipulates the market. I am not writing to post any type of disagreement with that mentality.

    I just wanted to say that being aware of what they are doing is flat out disgusting and it has hit close to home. And until recently, I never saw a way around it.

    With that, I refuse to sell my metals. But there is a new possibility in town. Bitcoin.

    And with that, I am moving on with Bitcoin. Anyone aware of what is gong on, should study how Bitcoin is the open architecture decentralization of the Banks and you can bet your britches the Fed is going to fight to the end trying to stop it.

    I recommend you educate yourself on Bitcoin and you take up the torch. Perhaps, the End of the Fed can be realized through Bitcoin. Bitcoin = Freedom beyond borders and governments


    1. Read Jim Kunstler's take on Bitcoin. I agree with him. He artfully states in writing what I've been expressing to people for a couple months now about Bitcoin:

      It’s an even more abstract form of “money” than fiat currencies or securities based on fiat currencies. Do we need more abstraction in our economic lives? I don’t think so. I believe the trend will be toward what is real. For the moment, Bitcoin seems to be enjoying some success as it beats back successive crashes. I’m not very comfortable with the idea of investing in an algorithm. I don’t see how it is impervious to government hacking. In fact, I’d bet that somewhere in the DOD or the NSA or the CIA right now some nerd is working on that. Bitcoin is provoking imitators, other new computer “currencies.” Why would Bitcoin necessarily enjoy dominance? And how many competing algorithmic currencies can the world stand? Wouldn’t that defeat the whole purpose of an alternative “go to” currency? All I can say is that I’m not buying Bitcoins


    2. Can't get past the thought of 'cabal' involvement in BC, as an element of the war on gold... does anyone believe the majority of cyber currency investment would not have been in gold if (said currencies) didn't exist?

    3. I would say I used to agree with Jim Kunstler's mentality. And I would also say, he is correct about the nerd in the DOD or the NSA. But what if the nerd was working on trying to make 2+2=5. What kind of argument is that? Just one based on ignorance and make believe. But there is no doubt, Bitcoin won't succeed without support and usage.

      Watch the video link and learn before you just opt out because some nerd exists or volatility. Besides, I would argue Bitcoin is real. If you disagree, at least make a statement on how it is not Real. Unless of course you love centralized bankers because they have profited greatly off their manipulation of the common man.

      If the open manipulation on Gold isn't enough to persuade a person to look into Bitcoin, I would argue, they are part of the problem that allows the Fed to continue.

    4. "If you disagree, at least make a statement on how it is not Real."

      I can't hold it in my hand, I can't put it under the mattress, put it in a safe deposit box, I can't hide it near my home, it is not physical just digital.

      Digital means it exists in cyberspace, not in real space.

      Bitcoin is supposed to be safe on computer servers so no one can access it without proper authorization (cough Stuxnet cough Duqu cough Target- sorry, my throat has been acting up due to the cold temperatures lately.)

      You have been paying attention to what Snowden has said concerning the NSA, haven't you? Do you believe that the US intelligence agencies or China or whoever don't have the keys to the castle to use when they deem necessary?
      The big boys look towards Bitcoin as a threat to the US Dollar and/or a way for terrorists (real or imagined) to move money around, do you think they will sit on their hands and do nothing to discredit or undermine Bitcoin?
      Never underestimate the desperate actions that a man will take to maintain or cling to wealth and power, and that goes double for nations.

    5. I agree with Dave that Bitcoin is a abstraction.
      I posted this on my Twitter account @compwiz4u and I will repeat it here:
      Bitcoin is a sign of hyperinflation, a proxy for Gold & Silver & a scam where inherently worthless "money" has value.
      Who invented Bitcoin? Who benefits? It has to be the banksters/gov't who want to deflect the QE hyperinflation from Gold & Silver.
      A virtual currency like Bitcoin cannot be created out of thin air because somebody benefits unfairly. It has to be backed by something.

    6. "I can't hold it in my hand, I can't put it under the mattress, put it in a safe deposit box, I can't hide it near my home, it is not physical just digital.

      Digital means it exists in cyberspace, not in real space."

      Agreed. Bitcoin i NOT real money but a promise to change it for future goods. A promise. Bitcoin is credit. Like paper. And it can be revalued or fragmented to infinity, which means: Bitcoin is a government's ultimate dream.

    7. Actually, you can hold the private personal code in your hand. You can enter it into a computer. So obviously you have been listening to someone who doesn't know what they are talking about. Based on your reasoning, this response doesn't even exist unless I print it out and show it to you. Ridiculous. Same logic as people saying they can't eat gold. Do you think your bank account is real? Maybe if you are the first to get it all out. But those are just numbers that a Central Bank controls.

      The truth is, Bitcoin is dependent on the internet. And you aren't? You have no idea where they have taken us.

      The only thing I agree with, is the Government can try and use their power to monopolize this technology. And it is up to us to keep that from happening. Spreading BS doesn't help anyone.

      I also know, if I need to flee somewhere, Bitcoin can go with me. If I try to take gold, they can take it away instantly.

      The true reality is we are dealing with lawless crooks and perhaps you still want to negotiate with them. Is that you Obama?

  6. There was a time when I believed the fed would come to their senses and realize the law of
    unintended consequences has resulted in a massive transfer of gold from west to east and
    the best way out of the predicament they've created would be to reverse course immediately.
    But no, the fanatics at the fed have decided to double down and go for broke so it apparently
    will be full speed ahead with their manipulation schemes until every last ounce of gold in the
    west has gobbled up by people with vision who believe a colored piece of paper is just a
    colored piece of paper and the more colored pieces of paper created out of thin air makes
    are previous colored pieces of paper worth less and less until worthless and that day is fast

    1. Check out this video on Bitcoin. Go to 14:40 and watch Reggie knock it out of the park!


    2. Yes, he "equivocates" it to the Internet. Ok then.

  7. “It was never the chairman himself, herself that’s the problem,” Dr.Paul said. “It’s the whole system.”....

    JP Morgan Pays $2 Billion to Avoid Prosecution for Its Involvement In Madoff Ponzi Scheme

    Bernie Madoff has said all along that JP Morgan knew about – and knowingly profited from – his Ponzi schemes.

    So JP Morgan has agreed to pay the government $2 billion to avoid investigation and prosecution.

    While this may sound like a lot of money, it is spare sofa change for a big bank like JP Morgan.

    It’s not just the Madoff scheme.

    As shown below, the big banks – including JP Morgan – are manipulating virtually every market – both in the financial sector and the real economy – and breaking virtually every law on the books.

    Here are just some of the recent improprieties by big banks:


  8. Gold? The West don't need no stinking gold!

    "We were not foolish enough to try to make a currency [backed by] gold of which we had none, but for every mark that was issued we required the equivalent of a mark's worth of work done or goods produced ... we laugh at the time our national financiers held the view that the value of a currency is regulated by the gold and securities lying in the vaults of a state bank."
    -- Adolf Hitler, quoted in "Hitler's Monetary System", citing C. C. Veith, Citadels of Chaos (Meador, 1949)

    1. ...and they've been finding gold that the Nazi's had been stealing from anywhere they could get their hands on it - at the bottom of lakes ,in caves, the Nazi's were even having JP Morgan hold and account for the gold fillings that were extracted from the mouths of their victims. The last person to trust would be Hitler .

  9. Oh, Dave, please stop whining about manipulation. You can do nothing about it. We are here to make money not to seek justice. Why don't you join the cartel and go short precious metals? It's now almost blatantly obvious that they are targeting the 1000 level.

    1. I'm sure glad Patrick Henry didn't have your attitude. Because you would either be speaking Spanish or French or would be British serf.

      This site is free. If you would like to buy my research and analysis on the mining stocks and trading strategies we use for the fund I co-manage, please contact me at my email address listed below. That information is not free.

  10. Seems to me like the gold market (physical that is) is slowly abandoning the West and migrating east. If India elects the pro-gold guy and re-enters the gold market with force, we could be up for a huge bounce in especially gold stocks...

  11. Just watch the tape. Every day or about 9 out of 10 days at 1-2 am EST gold starts falling, usually right thru the london and crimex fix. That pattern has been in place for well over a year. Blatant intervention , only the financial whores in the system who want the entire ponzi to continue refuse to see the obvious. love your posts dave.............

  12. COMEX Needs 50+% More Registered Gold for February

    JP Morgan Stopped 96% of Notices in December
    10,157 December 2013 COMEX Gold future contracts stood for deliver on first notice day November 27th. By December 30th, the end of the contract month 64% or 6,493 delivery notices were issued and stopped. The remaining open interest was lost; possibly to cash settlements or rolled over to new, future dated contracts. JP Morgan house account stopped 6,254 or 96% of the delivery notices. Thus ownership of 625,400 ounces of gold in COMEX registered inventory was transferred to JP Morgan during December. CME Group reporting shows that HSBC, Bank of Nova Scotia, and Jefferies Bache were the largest issuers.

    For comparison, in December 2012 there were 3,253 delivery notices or 46% of the 6,999 contracts that stood for delivery on first notice day. The bar charts below show how deliveries and lost contracts progressed each day of the December contract month.

    JP Morgan Now Owns Most Registered COMEX Gold


  13. To Catch a Trader
    FRONTLINE correspondent Martin Smith goes inside the government’s ongoing, seven-year crackdown on insider trading, drawing on exclusively obtained video of hedge fund titan Steven A. Cohen, incriminating FBI wiretaps of other traders, and interviews with both Wall Street and Justice Department insiders.


  14. U.S. Markets Rigged by its Own Authorities–It Blows the Mind
    Dr. Paul Craig Roberts says, “We have a situation where all the markets are rigged. All the markets are manipulated.” As an example, Dr. Roberts points to the stock market. Dr. Roberts contends, “We have a stock market at all-time highs, and where is the economy? There’s not one. There’s no recovery.” Dr. Roberts goes on to say, “53% of Americans earn less than $30,000 per year. Well, the poverty rate for a family of four is something like $24,000. . . . If there is no income to drive the economy and there is no credit expansion to drive the economy, then how does it go anywhere? You can’t possibly have a recovery.”

    When asked how long can this go on, Dr. Roberts replied, “How long can they fool people?”


    1. I just posted the link before seeing this. He also touches on gold manipulation and how the gold is going to China and at this rate there won't be any left. Dr. Rickards also says that we are headed toward major shortages where there is none to buy. Also interesting it Rickards saying gold was revalued during deflation back in the 1930's and that could happen again. Embry said the same thing, BUT questioned why the fed doesn't just do that to get inflation. He answered his question by saying, because they don't have it. It is either gone or encumbered...

  15. I think this may give you a perspective on why gold is pressured. Negative gofo seems to be taking gold out of GLD and into the leasing market. There is less gold available for leasing, but somehow the system hasn't cracked-yet.


  16. There is an excellent interview just published of former assistant treasury secretary Dr. Paul Craig Roberts by Greg Hunter (link below). It dovetails with what Dave is saying:


  17. PE Firm LLR Hires Former Asst Secretary Of State Hillen

    Philadelphia and Arlington, VA-based private equity firm LLR Partners has hired a former assistant secretary of state.

    John Hillen, who becomes an operating partner at LLR, served from 2005 to 2007 as assistant secretary of state for political-military affairs, responsible for coordinating America’s diplomatic strategy with its military operations. He also oversaw the State Department’s policies for international security, security assistance, military operations, weapons removal and abatement and defense trade.

    Hillen was most recently president and CEO of Sotera Defense Solutions, formerly Global Defense Technology & Systems. Prior to his term as assistant secretary of state, he served as president of CGI Federal, the cleared American subsidiary of Canadian IT firm CGI. Before that he headed the $415 million defense and intelligence business at American Management Systems which was sold to CACI International in 2004.

    Prior to his business career, Hillen worked as a military policy expert and served for 12 years as an army officer.


    see a pattern lately?

  18. There is a heavy hand in the paper gold trade, but a different perspective as to who it is:

    Will the Real Manipulator Please Stand Up:

    1. Let's say it isn't the Fed/JPM doing the manipulation. Then we need to understand, why the law isn't being enforced against entities selling things, they don't own. Perhaps they can't enforce it because there is no law being broken. Which simply means, the trading system we use today was not designed to deal with hi frequency trading and they can shuffle the numbers to look however they want. Why not if it's just paper anyway?

      This is working to simply destroy the current system and the eventual result will be no more trades of anything connected to the current reality. Of course, when that happens and everything moves to the new system, the price of Gold, measured in dollars will, be meaningless. We won't convert gold to dollars to use as currency.

      Maybe we will be converting them to some new type of currency that can be used all over the world. I'm not pushing Bitcoin. I'm just saying. And maybe that decision has already been made and what you are witnessing is the transformation to the new currency.

      In fact, I would argue, there may be 10 Kings that already hold a substantial position in whatever currency arises and if you don't have a part of that currency, you will have a difficult time continuing your existence.

      But what do I know. Hold on to your physical silver and gold.

      I will just add, Bitcoin or some electronic means may be that currency and I tend to think, it is just a matter of time before this reality sets in. But in the end, wisdom tells me Bitcoin or any electronic trading system will not save any of us when there are crooks involved.

  19. There is coming a day when the elaborate liars will be dancing on the red hot embers of truth ! I for one welcome that most cherished moment !!

  20. I lived in Utah for a long time, and know a little about the chain of events that started in 1985-
    1986, when the copper miners went on strike.

    Anaconda Copper at Carr Fork , on the western slope of the Oqquir Mountains, is
    directly across the ridge from Kennecott Copper, and both companies locked out the striking miners.
    Then they spent about half a billion $ completely modernizing the Anaconda mine into a 'DEEP SHAFT COPPER MINE".....I don't think that there are too many of those, so what was the real target?
    Gold, of course, and they hit it big. So big that Kennecott bought Anaconda and spent about
    $1.5 bil (when a billion was still a rarely mentioned amount) to redo their smelter (and upped
    production 10x, and cut jobs by 75%). Then Exxon bought Kennecott, and sold it to BP, which
    promptly sold it to a new entity, Rio Tinto...which still owns it.

    When the new super mine at Carr Fork was demolished, after operating for about a year,
    I bought some of the virtually new steel from the three bin crusher;and ended up walking around to see the site. I met an insider that witnessed the whole thing, by the name of Mike Kallas, who had been the "Head Blaster" for Kennecott for 35 years. He was sitting in the core sample warehouse, and overseeing the demolision. When I asked him about the extensive ore samples that were in endless racks as far as I could see, in the Walmart sized building; he described the Carr Fork mine as the "largest known high grade ore body on the planet"; assaying out to “6-7 oz/ton, gold.
    He said that the deposit was 200 yards in diameter, and went “as far as they have drilled”. the record is there in the samples, which were at the site when I saw them.

    That mine has been shutdown for over 20 years, and all of the new equipment was demolished, except for the 330’ high concrete Head Frame, and the elevators that go down to -7000’. that is the big hidden secret that makes Kennecott so important to the Big Oil people that rotate through the RIO board...Mr. Skinner was president of BP before he was Chairman of RIO.

    There was a big story in the Wall Street Journal a few years ago about a "hostile takeover"of RIO by BHP when ACH (those wise Chinese Billionaires) tried to get a share of the Kennecott Production for $20 Billion; and were turned down. RIO and BHP are the left and right hands of the Oil Barons, who can manipulate the price of copper easily, so the low price was quickly run up to avert the “hostile takeover”, and keep the ownership in the “right hands”.

    My question is: What is RIO doing with the gold that is shipped out of the country everyday as
    “by product” (at the same time that they built the new Carr Fork mine, they spent $1.5 Billion to rework the Kennecot Smelter, which increased output by about 100% cut the work force by 75%, and recovered a lot more “by products”, probably in the range of 500 lbs of gold/day, and who knows how much platinum and other exotics)...just think of how that resource could alter our present Fed operations...if we could get ownership of that lode for the common good...