The LBMA Strikes Back

We were alerted on Tuesday to an interesting new development in the Physical Exchange Wars. While we all patiently await the arrival of the Allocated Bullion Exchange, the LBMA has clearly cast its lot and support behind something called Allocated Bullion Solutions. If this sounds fishy to you...well, you're not the only one.

Just a refresher...Allocated Bullion Exchange is the brain child of Tom Coughlin, CEO of Bullion Capital. This new exchange, which is still coming by the way, seeks to make the paper-based LBMA obsolete in the global "price discovery" process. We first brought ABX to your attention back in 2015 and you can learn more about it here: http://www.tfmetalsreport.com/podcast/6685/making-lbma-obsolete

The process of bringing this game-changing new exchange online has been daunting and delays have frustrated all of us. However, Tom has assured me that "2016 is going to be a big year" for ABX.

With this in mind, check out what our pal Ned Naylor-Leyland discovered earlier this week. In this month's edition of "The Alchemist", the LBMA's own magazine (and what a perfect name!), you'll find a lengthy introduction of a brand new exchange that is designed to help with the "wholesale physical markets" which are "broken". The article can be found on page 3 here: http://www.lbma.org.uk/assets/blog/alchemist_articles/Alch80Complete.pdf

Did you happen to catch the name of this new exchange...the one that the LBMA is so eager to publicize? It's called "Allocated Bullion Solutions"! Yep, that's right. Allocated Bullion Solutions versus Allocated Bullion Exchange. And the similarities don't stop there.

Below is a screenshot of the Bullion Capital platform that will likely be utilized within ABX. Take a good look:

Now compare that to this screenshot of the Allocated Bullion Solutions platform. Do you notice any similarities in color scheme and layout? I'm sure it's just a coincidence...

More details can be found at the Bullion Capital and ABX websites: https://www.bullioncapital.com/ & https://abx.com

And more details on the copycat ABS can be found here: https://www.allocatedbullion.sg

Here's the text of Ned's email from earlier:

I spotted an article in this months copy of LBMA rag The Alchemist entitled:
 
'Wholesale Physical Markets are broken'
 
http://www.lbma.org.uk/assets/blog/alchemist_articles/Alch80Complete.pdf
 
This piqued my interest (to say the least) seeing as it was in The Alchemist.  Intrigued as to who the author Seamus Donogue is, we discovered that he is the principal of ABS (https://www.linkedin.com/in/seamus-donoghue-2504115a).  Allocated Bullion Solutions.  www.allocatedbullion.sg
 
Having dug about yesterday pm I can say with a good degree of confidence that ABS is the LBMA’s preferred version of the already developing, active and independent ABX.  A brazen copy of the ABX model (including branding, imagery, the trading system etc) - except, crucially, as Seamus puts in his article:

'There would be no change in counterparties, clients, settlement processes or delivery locations'
 
Suddenly now when you google ABX you instead find ABS at the top of the search.  The whole idea of ABX is that is it an anonymous allocated exchange that sits entirely outside the control of the LBMA, custody, settlement, etc.
 
I suspected that some attempt to block the impending disintermediation may be coming, as in April 2014 the Telegraph Business section mentioned that the LBMA were suddenly planning a modern electronic exchange to resolve the old-school nature of the Gold market.  That Telegraph article came out a few short months after I first publicly discussed ABX/Bullion Capital and its potential for LBMA disintermediation on the Keiser Report.
 
As an extra aside, I particularly enjoyed Seamus' comment on Page 2:
 
'There are supply constraints in physical markets that do not exist in OTC markets...'
 
Ho Ho.
 
Ned

So, we'll see where this all heads from here. Clearly, the LBMA has recognized the threat that new platforms like the ABX pose and they are moving to squash the competition. Will they be successful? Well, I guess that remains to be seen. Hopefully, Tom will get his new exchange fully operational soon and we'll find out. In the meantime, understand and never forget that The Old Guard is fully invested in keeping/protecting their stranglehold on the global gold market. Anything that we can do to strike a blow to their efforts is a step in the right direction.

TF

124 Comments

BIGNASTY's picture

furst

I am going to have a fine day! Keep stacking!

sengfarmer's picture

wake up

in at the top.

legacyelectric's picture

2

come on silver

oops 3rd...

Kuchek's picture

4th for Marchas

Keep stacking. 

bookers126's picture

Not Again

Just saw GSR spiked for an instant to 79.51 about when silver dropped to 14.1 (it is back up to 14.40). Seems like a clear signal to let da boys know silver about to be slammed again so they can fix thing accordingly. 

Pining 4 the Fjords's picture

Anyone on a futures trading platform?

Did the spike down in price appear on your screens?  Or was it just an interruption on the retail feeds?

I ask because that spike could well be the warning shot, as we have seen before (as sharp Turdites already noted)...  BUT it could also be stop running if the cartel wanted to hoover-up some longs prior to a rise to clean up their position...   anyone who has gotten long silver in the last week and done well, then moved up their trailing stop, just got run.  IF that spike down happened in the futures market, too.

Let us know what you saw, please...

Marchas45's picture

Boy Turd

Your to Early Today. Lol Keep Stacking

Lemming's picture

Bad News is Good News Once Again

Durable goods orders were down 5.1% against an expected -.6%. So the Stawk Mawket rockets up? Sheesh

So everyone was excited recently when when the Comex paper to gold ratio got to 500:1? If the silver supression continues to succeed it may take 500 ounces of silver to buy 1 oz of gold!

Sometimes I feel like Lemming in Wonderland...............

Barfly's picture

And I wonder.....

Where oh where did the LBMA get all those specs and development that ABX put their hearts and souls into? Hmmmmmm..... I wonder.....Agent Andy? Funny how he's always an inside man on all these projects that constantly get cock-blocked by the Cabal. Who writes his checks again? I'm sure he's going to release those screen shots any day now.

Lemming's picture

Bookers & Pining Nailed It!

Silver & Gold just collapsed.........

Blythesshrink's picture

"Just saw GSR spiked for an

"Just saw GSR spiked for an instant to 79.51 about when silver dropped to 14.1 (it is back up to 14.40). Seems like a clear signal to let da boys know silver about to be slammed again so they can fix thing accordingly. "

You may be right - there's another scenario too though - taking out the stops below 14.40 will have allowed the banks to cover some shorts in the process, and destroy weak spec longs that just added - this could be an initial manipulation down to clear the way for allow the price to move up.  The last COT would tend to indicate we ought to go higher before they really come in force to slam it.

Blythesshrink's picture

Then again - maybe not!

Then again - maybe not!

rxman's picture

yep

$10 crash straight down in gold shows on investing.com f ers are looking for the the best profit point again. sarc.

rxman

Blythesshrink's picture

Desperately trying to deter

Desperately trying to deter people from standing for delivery?

ReachWest's picture

Groundhog Day Yet Again

This truly never gets old. Argh. Not surprised, though. 3 steps forward and wham.

And - a copycat of ABX. At the end of the day they will be expected to protect their 'crooked' world because their livelihoods, wealth and power is on the line.

Slimeballs.

sander25nl's picture

expiration

What time is expiration today ? (or is it tomorrow?)

thx

Sander.

4 oz's picture

Today!

Marchas45's picture

Just Sold

My Miners. Just In Time?????? Mmmmmm Keep Stacking 

canary's picture

Hello, Mother...What you have in store for us today?

4 oz's picture

More Excellent Analysis~~~

Ya wont hear this on CNBS~~~

Gamble's picture

Phizz BUY day

Ready set go!

gamble must make fiat gamble 

Turd Ferguson's picture

Reminder

MODERATOR

Again, always keep in mind that this is Feb futures "expiration" day. All holders who don't wish to put up 100% margin and/or stand for delivery must be out by the close.

This almost ALWAYS means market manipulation....and not just by the usual suspects. When you see BIG drafts down on expiration day, what you are likely seeing is a spread being "legged out". What does that mean?

Say you have a spread of 1000 longs vs 1000 shorts. By blowing out the long end in one massive trade, you can dramatically influence price to the downside, as we've already seen this morning in gold. Then, once the damage has been done, you buy back and cover your short end. It all happens intraday so the entity is never naked or in any kind of margin violation and the entity makes/saves a tidy sum for the effort.

This simple "market manipulation" trick has been going on for decades and you are no doubt seeing it again today in Feb gold.

Bluebellkid's picture

4 oz.

Is that Gary Savage?

Gamble's picture

I suspect we will get something similar

Out of the comex. 

Gamble living life gamble

Dr Jerome's picture

Any why do we think metals are headed back up?

Usually, the clear manipulative pushback against metals prices doesn't end in a day or after one takedown...  We have had a nearly uninterrupted $60 rise in gold. They have covered quite a few shorts, and I don't think they want gold to continue this steady climb while stocks languish and the FED is admitting it doesn't know what it is doing.

trade carefully

stack recklessly

Gamble's picture

This is why I think we have time

To wait for any significant rise in pm's , the masters are the game , they make the rules and they control where and how this game is played. So when the price of gold gets slammed for 20 it's because they wanted it too and when it rises it's because they want it to rise. Eventually they will want the price of gold to rise but it's when they are prepared , and when they can benefit the most . We are slaves to the pm's but really we are slaves to are masters!

gamble bug out gamble 

lakedweller2's picture

Manipulation of the Day

Other than the BOJ buying dollars... The Saudis announce they are "considering" reducing production.  Pop down in gold ...pop up in oil.. And most likely the hedgies ride them both ways today...several times while mainstream watches.

joeblack's picture

Silver and gold futures

usk's picture

It is pathetic

It is pathetic to see the SNB boys trying to save their ass with AAPL.  What a bunch of idiots.

I can tell you that most of my swiss friends are NOT pleased about this scam.

SilverX3's picture

@ Dr J, Gamble

I find that both of you gentlemen are correct, Dr J in the short term, and Gamble in the future.

We are taking a breather here as pointed out by Dr J. No surprise as HUI was due for one, and silver is not "ready" yet to go higher, but it will, as the Specs have not fully loaded the boat on the long side. 

Yes, Mr Gamble Gamble. We are slaves to the Masters who run this paper game. They are doing their daily thing to delay the inevitable, and, gold price will not go up unless they are prepared and on the right side (i.e. long).

Such is the life of a gold investor.

Syndicate contentComments for "The LBMA Strikes Back"