Paging Dr. Crane

112
Tue, Oct 8, 2013 - 11:21am

Occasionally, we are allowed glimpses of the inner workings of The Evil Empire. Let's just summarize how this works because, frankly, I'm already so angry that my blood pressure is boiling AND it's only Tuesday.

Back on April 10, two days before the Brutal Beatdown Scheme of April was launched, Goldman Sachs rolled out their "analysts" to report that they were officially forecasting a drop in gold prices. They not only advised clients to sell their gold, they even took the unusual step of recommending their clients to go short. Below is some text from this link:

https://online.wsj.com/article/SB10001424127887324240804578414872583064816.html

Investment bank Goldman Sachs Group Inc. GS +0.29% said Wednesday that gold's prospects for the year have eroded, recommending investors close out long positions and initiate bearish bets, or shorts. The shift in outlook was the latest among banks and investors who have soured on gold as its dozen-year runup has been followed by a 12% decline in the last six months.

Goldman began the year predicting gold would decline in the second half of 2013, but said Wednesday the drop began earlier than expected and doesn't appear likely to reverse. Like others, the firm said the usual catalysts that have been bullish for gold during its run are no longer working.

The precious metal, normally a haven for investors in troubled times, has continued to fall in recent weeks despite persistent concerns about the global economy, including continued euro-zone debt troubles with the bailout of Cypriot banks, an aggressive new economic-stimulus program in Japan and surprisingly weak U.S. jobs data last week that raised questions about the domestic recovery.

"A large rebound in gold prices is unlikely barring an unexpected sharp turn in the U.S. recovery," Goldman's analysts wrote in a research note. "While higher inflation may be the catalyst for the next gold cycle, this is likely several years away." The firm noted that its year-end price targets of $1,450 a troy ounce in 2013 and $1,270 in 2014 are below prices in the futures market pegged to those delivery dates.

On the surface, this worked beautifully for Goldman's clients. Just two days later, gold fell $60 and, on the following Monday, it fell another $140. Wow! Pretty remarkable bit of good timing, wouldn't you say? Tell your clients to short something and then, magically, that "something" falls 13% within the next week!

Of course, you and I know what really happened. Some 400+ metric tonnes of paper gold were dumped onto the Comex at the critical support level of $1525. This supply simply overwhelmed the existing bids and price began to cascade downward as sell-stops were triggered with price breaking down and out of its 19-month range. An excellent summary of the event can be found here: https://news.sharpspixley.com/article/ross-norman-gold-crushed-by-400-tonnes-or-usd20-billion-of-selling-on-comex/159239/ and here: https://www.zerohedge.com/news/2013-04-15/gold-crush-started-400-ton-friday-forced-sale-comex

Having executed The Perfect Crime Trade for their clients, what did Goldman turn around and do next? They bought, of course! From the Q2 updates , we found that the the biggest institutional buyer of the GLD between April 1 and June 30 was...wait for it...GOLDMAN SACHS! See for yourself here: https://www.nasdaq.com/symbol/gld/institutional-holdings/activity

Not only that, as you can see below, almost every other large institution was selling the GLD during this time period:

Owner Name Date Shared Held Change (Shares) Change(%) Value(in 1,000s)
PAULSON & CO INC 06/30/2013 10,234,852 (11,602,700) (53.13) 1,306,377
JPMORGAN CHASE & CO 06/30/2013 8,558,297 (1,597,536) (15.73) 1,092,381
BANK OF AMERICA CORP /DE/ 06/30/2013 7,636,484 (2,384,866) (23.8) 974,721
MORGAN STANLEY 06/30/2013 6,685,898 34,422 .52 853,388
CREDIT SUISSE AG/ 06/30/2013 6,428,901 181,849 2.91 820,585
GOLDMAN SACHS GROUP INC 06/30/2013 4,430,302 3,738,775 540.66 565,484
BLACKROCK ADVISORS LLC 06/30/2013 3,425,203 307,455 9.86 437,193
UBS AG 06/30/2013 3,005,507 (2,712,074) (47.43) 383,623
FIRST EAGLE 06/30/2013 2,787,408 165,200 6.30 355,785
SCHRODER 06/30/2013 2,012,384 (72,899) (3.5) 256,861
SCS CAPITAL MANAGEMENT LLC 06/30/2013 1,911,822 52,035 2.80 244,025
NORTHERN TRUST CORP 06/30/2013 1,909,070 (4,994,140) (72.35) 243,674
ALLIANZ ASSET MANAGEMENT AG 06/30/2013 1,722,280 (1,165,663) (40.36) 219,832
SUNTRUST BANKS INC 06/30/2013 1,660,069 (167,213) (9.15) 211,891
LAZARD ASSET MANAGEMENT LLC 06/30/2013 1,572,703 (399,996) (20.28) 200,740

So, after advising their muppets clients to sell just two days before the deliberate and designed price smash, Goldman used the price weakness to increase their GLD holdings by 541%.

Perhaps now would also be an excellent time to remind you that Goldman is a Authorized Partcipant for the GLD. From the Q2 10-Q (https://www.spdrgoldshares.com/media/GLD/file/SPDR_Gold_Trust_10-Q_(quarter-ended_06_30_13).pdf), here's your current list:

SPDR® Gold Trust is an investment trust that was formed on November 12, 2004 (Date of Inception). The Trust issues baskets of Shares, or Baskets, in exchange for deposits of gold and distributes gold in connection with the redemption of Baskets. The investment objective of the Trust is for the Shares to reflect the performance of the price of gold bullion, less the expenses of the Trust’s operations. The Shares are designed to provide investors with a cost effective and convenient way to invest in gold.

As of the date of this quarterly report, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Goldman Sachs Execution & Clearing, L.P., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Merrill Lynch Professional Clearing Corp., Morgan Stanley & Co. Incorporated, Newedge USA LLC, RBC Capital Markets Corporation, Scotia Capital (USA) Inc., UBS Securities LLC, Virtu Financial Capital Markets, LLC (f/k/a EWT, LLC) and Virtu Financial BD LLC are the only Authorized Participants. An updated list of Authorized Participants can be obtained from the Trustee or the Sponsor.

And then let's throw this log on the fire...On April 10, 2013, the GLD showed an "inventory" of 1,183.53 metric tonnes of "gold". As of last evening, the stated "inventory" was just 899.99 metric tonnes. As an Authorized Participant, how many of these 283.54 metric tonnes of gold has Goldman removed for themselves? Makes you wonder, doesn't it?

OK, let's see if we've got this straight...

  • Two days before the initiation of The Brutal Beatdown Scheme of April was launched, Goldman Sachs advises its clients to not only sell their gold but to take the extra step of shorting it outright.
  • Price is then deliberately smashed and has yet to recover.
  • Goldman uses this price weakness to buy over 3.7MM shares of the GLD, increasing their position by 540%.
  • Only Authorized Participants can redeem shares for gold and Goldman is an Authorized Participant.
  • From April 10 through last evening, the GLD has disgorged itself of 283.54 metric tonnes (24%) of it's inventory.
  • So, now, what do we have this morning that has ole Turd all worked up? Just this:

    https://www.bloomberg.com/news/2013-10-08/goldman-s-currie-says-gold-is-slam-dunk-sell-after-shutdown.html

    From the link:

    Gold, set for its first annual loss in 13 years, is a “slam dunk” sell for next year because the U.S. economy will extend its recovery after lawmakers resolve stalemates over the nation’s budget and debt ceiling, Goldman Sachs Group Inc.’s Jeffrey Currie said.
    The bank has a target for gold prices next year at $1,050 an ounce, Currie, Goldman Sachs’s head of commodities research, said today on a panel in London. The precious metal has tumbled 21 percent this year to $1,322.28 an ounce on speculation that the Federal Reserve would reduce its $85 billion monthly bond-buying program, known as quantitative easing, as the economy recovers. Lawmakers probably will reach an agreement on raising the debt ceiling before the Oct. 17 deadline, Currie said.
    “Once we get past this stalemate in Washington, precious metals are a slam dunk sell at that point,” Currie said. “You have to argue that with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices.”
    Currie and Ric Deverell, the head of commodities research at Credit Suisse AG, both said on a panel at the Commodities Week conference in London today that selling gold is their top recommendation for trading in raw materials in the next year. Gold is heading for its first annual loss since 2000, and is the third-worst performing commodity in the Standard & Poor’s GSCI gauge of 24 raw materials this year, after corn and silver.

    (You might go back up and check to see if Credit Suisse is a GLD Authorized Participant, too. Oh, and look, Credit Suisse was adding GLD shares in Q2, also. Not at the rate GS was, mind you, but a buyer nonetheless. Looks like they wants to get in on the act, too.)

    So, you have been warned. The Head of Commodities Research at Goldman Sachs is on record as predicting a sharp drop in the price of gold as soon as The Great Debt Ceiling Debate is resolved. Instead of price targets of $1450 and $1270, Goldman now claims that gold is heading to $1050.

    How many shares of the GLD did they add in Q3 and how many will they add in Q4? (We'll soon know.) As an Authorized Participant, how many shares will they convert into physical for their own, proprietary accounts? (We'll never know.)

    Clearly, all of this has been orchestrated to trick Speculators into selling paper gold. This price pressure allows banks like Goldman Sachs to buy gold on the cheap and accumulate it before the eventual breakdown of the current, fractional reserve bullion banking system. Obviously, your best move is to NOT be a muppet. You shouldn't be selling gold, you should be buying it. If Goldman and the other criminal banks initiate another raid on price in the days ahead, recall this chart and buy with confidence, knowing that the obvious correlation, which has held since 2002, will soon re-establish itself.

    I pray that, one day soon, these sociopathic bankers will be held accountable for the economic disasters they have inflicted upon the world, all for their own personal gain. "For what does it profit a man to gain the whole world, yet forfeit his soul?"

    TF

    About the Author

    Founder
    turd [at] tfmetalsreport [dot] com ()

      112 Comments

    Kansascrude
    Oct 8, 2013 - 2:18pm

    Looks Like Lloyd has passed on Obummers Direction

    Got to see if anymore PM coinage or scrap can be shook out from the sheeple. Must punish those pesky stackers with lower prices on their stashes. They must be running low on fiat. Maybe we can get some to spec sell hoping for lower prices that won't materialize. Ponzi must be maintained and all but the 1% stripped of all wealth.

    boatman
    Oct 8, 2013 - 2:27pm
    ggnewmex
    Oct 8, 2013 - 2:37pm

    Yeah, this stuff reeks of

    desperation. My gosh, it is non-stop. The world is saying WAKE UP America. The Jakarata Times are mocking us for goodness sake. Meanwhile our media talks about how bad the GOP is for not passing unlimited spending bills.

    Keep stacking my friends. If countries had been able to print their way to prosperity, it would have been done countless times. But, no country has made it work. Watching our elected officials one knows that things will never be "right" again.

    ggnewmex
    Oct 8, 2013 - 3:12pm

    o'bummer

    I just heard him say, " you want oil production?! Blame the GOP for the shutdown and the government not being able to approve permits" ( may be about three words off)

    SERIOUSLY!!! OWOW --- oil production permits are limited because of the shutdown a week ago. WOW
    it is just like entertainment, try to find out when I am telling the truth...

    "Uh Jamie, you are good at passing the buck, you are like teflon.... wanna come up to the Hill and give a press conference for me?"

    John Gotti was teflon, Jamie is too... the prez appears to be on that path

    Kansascrude
    Oct 8, 2013 - 3:42pm

    Miners getting smashed again down 3% on flat PM prices SHEEZE

    Hey Turd what's the over and under on tomorrows Fed minutes? Is the late day softness in PM prices and the miner smash saying the doves are crying tomorrow.....more money and higher PM's. Or Harvey's bet would be price smash as the Banksters are signaling with the miner smash today. Are the rat bastards disguising their intentions better or does chaos reign?

    Hmmmmm

    H8Fiat
    Oct 8, 2013 - 3:43pm

    Miners

    One would think that everyone is opening a mine and finding the shit laying on the ground. Investment or outright burning of cash. Frustrating. GLD must be puking up today.

    NW VIEW
    Oct 8, 2013 - 4:02pm

    @ Mr, F.

    How about "There will be much suffering in Gilder tonight". IF gold drops to $1050, what will GDXJ or NUGT look like after todays crash? There are a few things that some may have done correctly. That concept of getting rid of all cash and retirement accounts over the last two years and buying PM's did not work out well. Timing is what the EE controls and metals. jmo

    tyberious
    Oct 8, 2013 - 4:31pm

    To the center I go!

    https://en.wikipedia.org/wiki/Inner_core

    Composition[edit]

    Based on the relative prevalence of various chemical elements in our solar system, the theory of planetary formation, and constraints imposed or implied by the chemistry of the rest of the Earth's volume, the inner core is believed to consist primarily of a nickel-iron alloy known as NiFe: 'Ni' for nickel, and 'Fe' for ferrum or iron.[11] Because the inner core is denser (12.8 ~ 13.1)gcm³[12] than pure iron or nickel, even under heavy pressures, it is believed that the core also contains enough gold, platinum and other siderophile elements that if extracted and poured onto the Earth's surface it would cover the entire Earth with a coating 0.45 m (1.5 feet) deep.[13] The fact that precious metals and other heavy elements are so much more abundant in the Earth's inner core than in its crust is explained by the theory of the so-called iron catastrophe, an event that occurred before the first eon during the accretion phase of the early Earth.

    Blackshook
    Oct 8, 2013 - 4:32pm

    Miners - what a bummer

    Trouble with miners....

    Physical (Ag or Au) goes up or flat...but overall stock market down.....mining stocks down

    Physical goes down or flat ....but overall stock market UP....mining stocks down

    Mining stocks need BOTH physical up AND overall stock market up to go up.

    Will this shxt ever end.

    Teach
    Oct 8, 2013 - 4:44pm

    I'm pretty sure

    I could score a tube or 5 at $1050 per ounce. Bring it on! great post Turd. I also support making it public.

    1wileyz
    Oct 8, 2013 - 4:44pm

    New $100 Note

    Could any of these shenanigans have something to do with the release of the new and improved $100 note?

    Clarkii Stomias
    Oct 8, 2013 - 4:59pm

    This may help.

    Or it may not...

    SteveW
    Oct 8, 2013 - 5:03pm

    Miners

    From the look of the miners today it would not surprise me for gold to be pushed back to the $1290 we saw at the beginning of the month.

    s1lverbullet
    Oct 8, 2013 - 5:05pm

    Unfortunately, I agree

    Seems like everyday gold is flat and the miners are getting killed they come back for gold the next day. Expect a smash tomorrow.

    G-Rod
    Oct 8, 2013 - 5:19pm

    But then again

    "“You have to argue that with significant recovery in the U.S., tapering of QE should put downward pressure on gold prices.”"

    What recovery?

    What opportunity to Taper?

    Will this clash with JPM's cornering of the long contracts in December?

    Will GS pursue the same strategy twice in a short space of time - or are they mixing it up?

    Dropping Gold to $1000... will crush supply as miners cut back or go broke, and will strip vaults in the West as the East goes on a buying spree.

    The COMEX system is already on shakey ground and the best way to protect it is to raise prices to stimulate supply and restock vaults - you can't run a fractional reserve bullion banking system if you literally have no gold.

    G-Rod Blackshook
    Oct 8, 2013 - 5:25pm

    @Blackshook. On the ASX I

    @Blackshook.

    On the ASX I have seen miners and gold both go up while the overall stock exchange goes down - many times over the last few months.

    However - at the moment, I think that we need a stronger up move in gold (back above $1350) to stimulate the mining stocks to go up while the stock exchange goes down.

    Bollocks
    Oct 8, 2013 - 5:38pm

    G-Rod

    "Dropping Gold to $1000... will crush supply as miners cut back or go broke, and will strip vaults in the West as the East goes on a buying spree."

    Yup. They're totally fucked whatever they do. They're in a Catch-22.

    They're just extending the thieving by manipulating the awareness of the masses as long as possible. When it all collapses - and there's nothing that can be done to stop that - it is inevitable - those who have transferred their wealth out of the currencies into anything that has true, intrinsic value will be the winners.

    G-Rod
    Oct 8, 2013 - 5:42pm

    Oct 8, 2013 - 5:44pm

    In today's podcast

    I go into greater detail as to what the Goldman thingee likely means in the short term. I don't think it's a sign that prices are about to get smashed, not this time. Instead, Goldman is directing their clients to sell AHEAD of a news event that is, historically, gold positive. Just like countless other muppet-fleecing trades, Goldman screws their clients again. Additionally, to hell with Goldman. They're just a minor player in this drama. THE KEY DETERMINANT OF FUTURE PRICE IS JPM'S MASSIVE NET LONG POSITION IN COMEX GOLD. What they do with it as we roll toward December will determine price. Everything else is secondary or tertiary.

    Again, please listen to the podcast for additional color. Will be posting it in about 5 minutes and, at the same time, taking this thread out of The Vault and making it public, as was suggested quite a few times today.

    Island Guy
    Oct 8, 2013 - 6:13pm

    J.P. Morgan Long?

    Last I heard on this site J.P. Morgan was long on precious metals. Has this changed? Are the Morgue and Goldman at opposite purposes?

    Edit: Oops. I sent this in before seeing Turd's last posting.

    Island Guy
    Oct 8, 2013 - 6:17pm

    Please let me clarify

    JPM is NOT "long on precious metals". They are net long COMEX gold futures. It looks to be somewhere in the neighborhood of 70,000 contracts or well in excess of 20% of the non-spread open interest.

    In silver, JPM is still heavily naked short with a controlling position of 15,000-20,000 net short Comex silver.


    Oct 8, 2013 - 6:20pm

    Is this the "economic recovery"

    Is this the "economic recovery" that the Goldman Commodity Goon was mentioning?

    https://www.zerohedge.com/news/2013-10-08/economic-confidence-collapses-fastest-pace-lehman

    Motley Fool
    Oct 8, 2013 - 6:26pm

    Price drop

    To $1050? Awesome, bring it on.

    Hammer
    Oct 8, 2013 - 7:01pm

    JPM and GS are the sham like

    JPM and GS are the sham like this set up. Time to f%$k with the customers

    Telekinetic Coffee Shop Surprise
    Hammer
    Oct 8, 2013 - 7:09pm

    Janet Yellen it is then eh ?

    Janet Yellen it is then eh ? Nominated. Wheeeeeee, free money forever..............


    Oct 8, 2013 - 7:10pm

    Yellen to replace The Bernank

    Done deal. Milhous will announce tomorrow.

    This "Yeswoman" as much if not more dovish and pro-QE than The Bernank.

    buzlightening
    Oct 8, 2013 - 7:20pm

    Brentton Woods Commitee meet the 9th & 10

    All coincidental. No one wants to destroy the USDinker dollar. lil scamBO would never pull an fdr and devalue the dollar suddenly overnight. So much white noise and smoke'n mirrors. Wonder what the real agenda is? Screw the citizen is always part of it but some details would be nice. There's more going on right now behind the scenes than ever:

    2013 International Council Meeting Date: Thu, Oct 10, 2013 12:00pm - 6:00pm Location: Willard Intercontinental Hotel, Washington DC

    As the world marks five years since the economic collapse of 2008, a shared roadmap to lead the international community toward its desired destination – global growth with systemic stability – remains elusive. Economic, regulatory, and financial sector reforms are progressing, but may be taking divergent paths.

    The 2013 Bretton Woods Committee International Council Meeting will explore the road to global financial stability. We will consider whether the actions and incentives driving monetary and fiscal policies, regulatory reforms, and financial market participants are sufficiently aligned to sustain global growth.

    Speakers include:

    • Fahad Almubarak, Governor, Saudi Arabian Monetary Agency
    • Mohamed El-Erian, CEO and co-CIO, PIMCO
    • Stefan Ingves, Governor, Sveriges Riksbank
    • Colm Kelleher, Chairman, Morgan Stanley International
    • Haruhiko Kuroda, Governor, Bank of Japan
    • Christine Lagarde, Managing Director, International Monetary Fund
    • Brian T. Moynihan, Chief Executive Officer, Bank of America
    • Raghuram Rajan, Governor, Reserve Bank of India
    • Tharman Shanmugaratnam, Deputy Prime Minister and Minister of Finance, Singapore
    • Daniel K. Tarullo, Governor, Federal Reserve System of the United States
    • Sir David Walker, Chairman, Barclays
    • And other global leaders. https://www.brettonwoods.org/event/2013-10-10-1200/2013-international-co...
    • .....................................................................................................................................................................................................
    • Noose tightens around all our necks. Pack your economic life boats to the gunnels. Looks like the drop dead day has been pushed back to 10/22: Tuesday for default. Lew found; stole another 40 billion.
    Bollocks
    Oct 8, 2013 - 7:27pm

    Short Mike Maloney preview

    of his next 'Hidden Secrets Of Money' series.

    "Enjoy the preview, and strap in for next week's launch of the full episode."

    https://www.youtube.com/watch?v=rcpBffWwsZc

    Hammer
    Oct 8, 2013 - 7:47pm

    More GS larfs from "The good

    More GS larfs from "The good ole days"

    https://www.gregpalast.com/larry-summers-goldman-sacked/#more-8494

    Larry Summers: Goldman Sacked


    Monday, September 16, 2013

    By Greg Palast for Reader Supported News

    Joseph Stiglitz couldn't believe his ears. Here they were in the White House, with President Bill Clinton asking the chiefs of the US Treasury for guidance on the life and death of America's economy, when the Deputy Secretary of the Treasury Larry Summers turns to his boss, Secretary Robert Rubin, and says, "What would Goldman think of that?"

    Huh?

    Then, at another meeting, Summers said it again: What would Goldman think?A shocked Stiglitz, then Chairman of the President's Council of Economic Advisors, told me he'd turned to Summers, and asked if Summers thought it appropriate to decide US economic policy based on "what Goldman thought." As opposed to say, the facts, or say, the needs of the American public, you know, all that stuff that we heard in Cabinet meetings on The West Wing.

    Summers looked at Stiglitz like Stiglitz was some kind of naive fool who'd read too many civics books.

    Occasnltrvlr
    Oct 8, 2013 - 8:46pm

    Nobody Specifically Asked,...

    ...But that doesn't seem to deter others.

    Here's my prediction:

    There will be some kind of real monetary scare here soon, either on or shortly after the deadline, but it absolutely will not be a default on debt, or on debt service. Probably, there will be a notable drop in the popular equity indices, and maybe social security payment problems, or perhaps an internet or actual violent false flag (which, of course, would have been "prevented" were it not for the "shut down"). Perhaps there will be some mix of these things.

    There will not be any meaningful compromise in implementing Obamacare, although I think the medical devices tax was a red herring from the beginning, and may go.

    It's too early for the currency reset - the alternate internet isn't in place yet. Bretton Woods is meaningless.

    There are three goals: eliminate the debt ceiling, implement Obamacare, and soften peoples' perceptions toward willing acceptance of the forcible purchase of "safe" US Treasuries by their retirement schemes.

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