Audacious Gold Manipulation

Mon, Feb 27, 2012 - 4:13pm

Look, we all know that gold and silver have been manipulated and suppressed for years. For traders and stackers, the ongoing manipulation has just become a simple fact of life. The suppression is so regular that it can be used as a sort solunar table for those only wishing to "hunt" at the optimal hour.

However, this regularity and predictability should gall you instead. At it's core, it is sheer lawlessness or, stated differently, an absolute indifference to the rule of law or the concept of free markets. In a "normal" course of events, one wouldn't dare attempt to manipulate a market for fear of being caught. This fear would undoubtedly cause someone attempting to manipulate a market to do so in darkness, so as to avoid detection and, ultimately, prosecution.

What are we to make, then, of blatant manipulation in broad daylight? The simplest answer, I believe, is that the manipulator has no fear of being caught. If the manipulator knows full well that he is acting on behalf of his sponsor and that his sponsor will never prosecute him, the manipulator will audaciously act in bright light and open spaces for he no longer has anything to fear. As an example, if you desire to rob a bank but fear the police and potential jail time, you might rob the bank late at night or over a long weekend. If, however, you have the police and the judge in your back pocket, you could just walk in during business hours and make off with the loot.

I point out all of this because of the two charts below. I posted the one on the left back on Friday afternoon. That The Cartel would "trim" price by $7, at 2:20 pm, two days in a row was audacious enough. However, you must also check out the chart on the right. Another $7 at exactly 2:20 pm today. Sickening.

Again, only a criminal with no fear of prosecution acts this brazenly and predictably.

So, what do we make of this. As a practical matter, the suppression has worked. Without three, consecutive days of $7 Globex raids, gold would be trading at $1790 instead of $1769. Every dollar counts, whether it's taken out on the Comex, the LBMA or the Globex. However, on the bright side, how close must we be to a breakout? If The Cartel feels so threatened that they have to resort to bald-faced Globex manipulation, how desperate must they be and how worried are they about gold moving to $1800+? This is The Battle Royale, everyone. Be prepared for more dirty tricks but do not be afraid. We are winning and they know it.

Gold found support overnight where where I'd hoped it would, namely 1765 or so. Now the question becomes will it hold that area overnight tonight? It's hard to say. I wouldn't be surprised by a dip to 1750 and, if it does, I'll be looking to add some.

Amazingly, silver remains stronger than mustard gas. The area between 35.15 and 35.30 looks like pretty good support but a concerted raid could drive price all the way down toward 34.50. If that were to happen, I'd be an aggressive buyer. The only concern is the continued drop in 1-month lease rates, which appear to have fallen today to -0.46%, though I haven't seen anything "official" yet. Again, these plunging lease rates in silver are not a 100%-certain indicator of impending doom. They are just a warning flag. Additionally, while silver traded down 21 cents on Friday, open interest actually expanded by 2,300 contracts. More EE naked shorting in an attempt to keep silver below the Battle Royale level of 35.50- 36.00? I think so. Also, the March12 OI only fell by 1200 contracts on Friday and entered today at 20,160. This left today, Tuesday and Wednesday as the final three trading days where longs could be persuaded to dump March for May. Can't wait to see the numbers tomorrow!

Here are two charts of questionable value. On the left is a daily POSX but, as you know, my Forex TA ability is dubious, at best. On the right is a 2-hour crude. My TA in crude is a little better but, in a market that is primarily being driven by geo-political events, TA is almost useless. That said, if you're looking to join the crude "party", a dip toward $106 might be your opportunity.

Lastly, I traded a few emails today with Jim Quinn of The Burning Platform. I thought I'd blown a little time writing up my Saturday missive but it turns out the Jim took it even farther. He worked all day Saturday and most of Sunday on his latest post. Again, Jim does this out of passion and a genuine desire to make a difference. I encourage you to support his efforts by heading directly to his site to read his latest blog as soon as you are finished here.

That's all for today. Keep an eye on things overnight and expect the usual 3:00 am London raid. Then, let's see what tomorrow brings ahead of the all-important, Wednesday LTRO expansion info. Keep the faith. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


Feb 27, 2012 - 4:43pm

Audacious, yessir

Turd is on a roll. Thanks for so much good stuff. One thought to add to your lead above:

"If, however, you have the police and the judge in your back pocket, you could just walk in during business hours and make off with the loot."

Actually the Bankster Robber Barrons have more cover than the cops and judges. The BANKERS themselves welcome them, open the safe, help them haul the loot to the getaway truck (borrowed from the same bank) and pay them a small fee to take it. At night, in the morning, in broad daylight... no matter.

But there is no worry, nothing to see. It's just going down the street where it is currently needed to temporarily shore up some Balance Sheets. The "loot" will be returned soon. Then the whole thing happens all over again. Until the PAGE trucks show up.

Feb 27, 2012 - 4:53pm


Thanks for the new thread.

I'm starting to wonder if they are indeed actually invincible or they only think they are.

If they are actually invincible legally (due to political connections) then this gets strung out for quite a bit longer. If they just think they are bullet proof then it's their blind spot and that makes them very vulnerable and possibly sooner then they realize. If their blinded by greed then they'll over reach at some point. I'm leaning towards them being greedy and myopic and having a blind spot but with a heavy dose of political/legal cover being a close second at this moment. How long has the manipulation been going on? 10, 20 50, 100 yrs? More? Whomever originally conceived of this was a genius way back then. JPM?

I think we'll know for sure one way or another once PAGE opens how strong of a grip they really have on the PM markets. PAGE sounds like it's the apple that will upset the cart. I'm not so sure of that. Not right away at least. I hope I'm wrong.

NY and London might bring "brazen" to a whole new level once PAGE happens. But for how long?

Feb 27, 2012 - 4:55pm


It's a repost but maybe some new Turds would enjoy

  • How many times do you have to read " you should have insured with Torgerson's" , to avoid those costly boating accidents?

    Sincerely, Murphy, authorized agent for Ferd. with remittance of 2 ASE's I will put a good word in for you and bring your policy application to the top of the pile. We now are also offering policies to protect against accidents caused by natural causes as well. If you act now you can bring a friend and get our special buy 2 get 1 policy free.
Dr G
Feb 27, 2012 - 4:59pm

Of course the manipulators

Of course the manipulators have no fear of getting caught. It's obvious.

When I did my residency training in NY, I met many a patients who honestly believed that everything west of Pennsylvania or Florida was just cowboys and cattle. Many times I was asked if the western states (where I'm from) have paved roads. They thought that once you crossed the Mississippi river it was the wild west.

You know what IS the wild west? Metals futures trading. It's just out of control. No sheriff that can stand up to the bad guys because "the law" is getting paid off by the bad guys. Not much different than a podunk western town in the 1800s. Complete chaos in the metals markets. Everybody that should be protecting the free market and the customer simply look the other way while crimes are committed on a daily basis. On an hourly basis.

I'm convinced that we will win this Battle Royale in relatively short order. I don't think it will drag on for weeks and weeks. EE is up against a wall and they know it. Stack it up.

Feb 27, 2012 - 4:59pm

Side note about Kitco Silver site

In the middle, between the 3-day and NY market price charts, there is currently a link: pointing to a movie 'Silver Circle' (whose homepage seems to be down). Correct me if I'm wrong, but with 'analysts' like Nadler, this company did not seem in the past to be a very reliable source of info. So why are they linking to a movie like this: (except for that whole BK/receivership thing...) Trailer here -- wonder if it will ever be allowed to come out:

Dr G
Feb 27, 2012 - 5:02pm

Nadler is a douche. Stackers

Nadler is a douche.

Stackers & traders, don't forget about Bernanke on Wed

Feb 27, 2012 - 5:12pm

The Setup is Here and Now

Jim Sinclair's latest post is a pleasant read:

February 27, 2012, at 2:38 pm by Jim Sinclair in the category Jim's Mailbox | Print This Post | Email This Post

Is That A Bell I Hear Ringing?

CIGA Bill Holter.

Dear CIGAs,

Attached is a chart ( for the HUI index going back 3 years on a weekly basis. I usually do not talk or write about charts because they can and are "painted" to make a picture that the "planners" want us to see. In my opinion, they have painted themselves into a corner where the mining stocks are concerned. So what does this mean to you? It means that IF you have endured and held on to your mining shares and not been scared out, you will FINALLY get paid and get paid BIG! Let me explain.

If you look at the chart, you will see the MACD at the bottom (moving average convergence divergence), these are the two squiggly red and black lines that keep crossing over each other. Whenever the black line crosses over the red line from a high point or low point, it usually tells you the direction of the index for the next couple of months or so. You will notice that the highest crossover point where black crossed red to the downside was back in 2009 (after the ’08 crash). Each successive rally reached a lower height on the MACD’s and the low point crossovers were successively lower. This, while the HUI index is just a little bit higher but has been basically "marking time". During this period, Gold has outperformed the shares in a huge way. Another way of saying this is that the shares are now more undervalued vs. Gold than they have been over these 3 years. In fact, the shares have only been this undervalued twice since the bull market began, 2001 and 2008.

OK, so let’s put this sucker together. The MACD is right now crossing over to the upside from a very low point AFTER Gold has doubled in value and the shares have gone nowhere for 2 to 3 years. The RSI (relative strength) at the top of the chart is nowhere near overbought, the index is above the 200 week moving average and bumping up against the 50 week moving average (after trading below it for much of last year). What I am describing is a coiled spring! I am not saying that we go straight up from here, I am saying that the "trend" should be UP for the next 2-3 years while the weeklies work their way back upwards on a cyclical basis.

Charts can be painted yes, which is why I say the "planners" have painted themselves into a corner! The have "painted" the mining shares into a position where the weak hands have already exited and are now owned by strong hands. Of course, this "painting" that I speak of has been done by "shorts" bombing the shares in the hopes of depressing their prices and "bust" various companies. It has worked to some extent but now the shorts must implement their "exit strategy". The shorts who have painted SUCH a pretty chart for us now must buy! Their own chart says so! Forget charts, the fundamentals say so. Fundamentally there were only 2 previous times in the last 10+ years to buy mining shares as cheaply as they are today relative to Gold.

THIS is exactly what Jim Sinclair was saying last night and this morning on his e blast, the shorts are about to get the daylights squeezed out of them as they compete with the entire list of buyers! This list included everyone, technical traders, fundamental buyers, weak hands looking to get back in, strong hands looking to add, sovereign wealth funds wanting to lock up resources etc.. Last but not least on this list are the shorts themselves, both legal and illegal shorts will now be forced to compete with each other to cover the BILLIONS of shares they have already sold some of which never even borrowed or exist!

Charts are usually "backed up" and explained later by fundamental events. The list of potential Gold/mining share bullish fundamental events today is very, very long indeed. Continued printing on top of already bloated central bank balance sheets and money supplies, defaults of banks, central banks and sovereigns, war, a derivatives meltdown to name just a few obvious ones. The point I am trying to make is that the "setup" is here and now. The possible fundamental events exist at the same time the chart says that something BIG is coming!

Can we go through another "paint job"? Of course we can. Does it take another 6 months before this scenario takes place from a more oversold fundamental and technical position? Of course. …but I don’t think so. I believe here and right now, the mining shares begin to accelerate and we will finally get paid in a huge way for gutting it out! I believed a couple of weeks back that another raid would take place which I do believe "they tried" and failed at. Now, I think I can hear the bell (that they never ring for the masses to hear) ringing! I think right now, you need to be as "long" as you can be, the mania stage is just beginning…finally! Regards,
CIGA Bill H.


Feb 27, 2012 - 5:15pm

Yes, broad daylight crimes

But don't you break the law or even give any indication whatsoever that you might be breaking any laws.

Man Arrested, Charged With Possession of Firearm, & Strip-Searched After 4 Year Old Daughter Draws Picture of Daddy Shooting at Monsters

​North American educators and law enforcement officials continue to take zero-tolerance gun policies to obscenely ridiculous levels. The latest hypersensitive over-reaction comes to us from Canada, where educators contacted local law enforcement after a 4 year old kindergartener drew a picture of her daddy shooting a gun at monsters and bad guys.

Jessie Sansone and his family are reeling after he was arrested and strip searched by police after his four-year-old daughter drew a picture of a man with a gun in her Kitchener, Ont., kindergarten class.

While Sansone was being strip searched at the police station: told to disrobe, lift his testicles and bend over, his wife was home with their 15-month-old daughter.

“They came to my house, told my wife that I had been charged with possession of firearms, that she would have to come with them, and that Sundae (their infant daughter) would have to go with the social worker,” said Sansone. Stephanie called her Mom who rushed over to take Sundae instead.

The “gun” his children told police about? A toy pistol that shoots foam darts, which police discovered during a search of his house.

Full article:

Feb 27, 2012 - 5:22pm

Are boating jokes back in vogue?

I don't think this outing is going to end well

Feb 27, 2012 - 5:22pm



Bill Haines mentioned on his interview this weekend with Eric King that buying was still slow. He went on to say that there was more selling. Haines says that when there is more selling, in the past it means that the price of gold and silver are still going higher. If we look at the US Mint figures that were just updated we see that SILVER EAGLES are still outpacing GOLD EAGLES:

2011 JAN-FEB Gold Eagles = 226,000

2012 JAN-FEB Gold Eagles - 146,500 (35% decline)

2011 JAN-FEB Silver Eagles = 9,662,000

2012 JAN-FEb Silver Eagles = 7,527,000 ( 22% decline)


Turd did a great job in his weekend blog piece. Things will get interesting this week in gold and silver. I like many here read a great deal of articles on gold and silver. I found it quite interesting to come across Richard (Rick) Mills last two articles. It was quite ironic that his titles and subject matter was very similar to my last two articles. First, the title of my last two articles:

Silver Sales Up As Supply Slips

Steve St. Angelo

January 23, 2012 - 4:52pm

For the first time in history, Silver Eagle & Maple Leaf sales will surpass domestic silver production in the U.S. and Canada in 2011

The demand for American Silver Eagles and Canadian Maple Leaf coins has increased tremendously over the past several years. 2011 will be the first year in which official coin sales will surpass domestic silver production in both countries.

Even though each country has seen declines in their domestic silver production over the past decade, U.S. silver production declined a whopping 30% yoy (year over year) in October.According to the USGS in their most recent Silver Mineral Industry Survey, silver production fell to 81,400 kilograms in October— compared to 117,000 kilograms the same time last year.


The Coming Paradigm Shift in Silver

Steve St. Angelo

|January 30, 2012 - 7:15am

The biggest problem for investors today in trying to forecast the future price of silver is the enormous amount of contradictory analysis on the Internet.There are bulls, bears, paper traders, physical buyers, technical analysts, hedge funds, commercial banks and silver manufacturers all trying to play a part in this highly volatile silver market.Trying to sift through the huge volumes of silver analysis on the internet can be extremely frustrating.In addition, some of this information is not meant to inform, but rather to confuse or mislead the investor.


Now here is Richard (Rick) Mills last two articles:

Silver Eagles Soar

Richard (Rick) Mills

|February 17, 2012 - 7:32am

According to the USGS’s most recent Silver Mineral Industry Survey, silver production fell to 37 tonnes in October - compared to 53 tonnes year over year (yoy).

In 2011, the United States produced approximately 1,054 tonnes of silver – down from 2010’s production of 1,154 tonnes and down from 2007’s production of 1,163 tonnes.

The US imported 6,600,000 oz of silver for consumption in 2011 – up from 2007’s imports of 4,830,000 oz.

In 2011 the US Mint sold 39,868,500 Bullion American Silver Eagle Coins.

2011 was the first year in which official coin sales will surpass domestic silver production.


Metals and Mining Paradigm Shift, Exiting Easy And Cheap

Commodities / Metals & MiningFeb 25, 2012 - 03:24 AM

By: Richard_Mills

-------------------------------------------------------- be the judge.

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