Wed, Apr 13, 2016 - 9:11pm

For the first time, we have a successful settlement of charges related to silver price manipulation. Also for the first time, the Bank involved is named with other Banks as co-conspirators! From Reuters: "Deutsche Bank AG has agreed to settle U.S. litigation over allegations it illegally conspired with Bank of Nova Scotia and HSBC Holdings Plc to fix silver prices at the expense of investors, a court filing on Wednesday showed."

It is difficult to understate the potential significance of this settlement. Of course, we'll have to see where this takes us and what impact, if any, this news will have on paper prices and the overall paper derivative pricing scheme. However, this is huge news! For the first time, a Bullion Bank has admitted to price manipulation and, just as significantly, it has named names. Specifically listed as co-conspirators with DeutscheBank are:

  • UBS
  • ScotiaBank
  • HSBC

The full link from Reuters is here:

Here is the entire text of the story:

Deutsche Bank AG has agreed to settle U.S. litigation over allegations it illegally conspired with Bank of Nova Scotia and HSBC Holdings Plc to fix silver prices at the expense of investors, a court filing on Wednesday showed.

Terms were not disclosed, but the accord will include a monetary payment by the German bank, a letter filed in Manhattan federal court by lawyers for the investors said.

Deutsche Bank has signed a binding settlement term sheet, and is negotiating a formal settlement agreement to be submitted for approval by U.S. District Judge Valerie Caproni, who oversees the litigation.

A Deutsche Bank spokeswoman declined to comment. Lawyers for the investors did not immediately respond to requests for comment.

Investors accused Deutsche Bank, HSBC and ScotiaBank of abusing their power as three of the world's largest silver bullion banks to dictate the price of silver through a secret, once-a-day meeting known as the Silver Fix.

According to the lawsuit, the defendants distorted prices on the roughly $30 billion of silver and silver financial instruments traded annually, violating U.S. antitrust law.

UBS AG was also named as a defendant. Investors accused the Swiss bank of conspiring to exploit the Silver Fix, though it did not help set the benchmark.

Spokesmen for HSBC and ScotiaBank declined to comment, saying they could not discuss pending litigation. A spokeswoman for UBS did not immediately respond to requests for comment.

The lawsuit is among several in Manhattan federal court in which investors accused banks of conspiring to rig rates or prices in financial and commodities markets.

The case is In re: London Silver Fixing Ltd Antitrust Litigation, U.S. District Court, Southern District of New York, No. 14-md-02573.

(Reporting by Jonathan Stempel in New York; editing by Grant McCool and Diane Craft)

This could very well be the first, concrete step in finally ending the tyrannic reign of The Bullion Banks and their paper derivative pricing scheme. Time will tell. For now, however, be hopeful and rejoice for at last some measure of justice has been served.



As you can see on the document below (click to enlarge), the settlement now regards DeutscheBank's manipulation of "Gold Futures and Options Trading" as well. This story will continue to evolve over the next few days and weeks. We'll keep you posted.

About the Author

turd [at] tfmetalsreport [dot] com ()


Safety Dan
Apr 14, 2016 - 7:21am



Wondering how they are related? Watch this 7: 52min video and understand what happened.

Apr 14, 2016 - 8:30am


now on Zerohedge

Apr 14, 2016 - 8:35am

DB isn't what you all seem to think

Let's not get too excited about all this yet. First of all, I figure the AG manipulators owe me personally, about $1,000,000 and I would just love to put the screws to them to get some back.

But!!! This DB "lawsuit" seems to be over and done with, with no one going to jail, and no changes to any trading processes, or regulatory strengthening.

Like so many Morgue and squid "settlements", I see no admission of guilt in merely paying a fine BEFORE a trial: "has agreed to settle U.S. litigation over allegations"

Just seems like another DOJ shakedown...maybe DB didn't pay their protection money (political contributions to guess who?), or DOJ is making a cash grab at them before they go under.

So, I don't see any admission of guilt, or guilty plea, as without a trial there are only allegations, and just like all the other scumbag bankster settlements, the settlement does not include any admissions of guilt (which would leave DB open to civil damage suits). I think they are getting away with murder, just like their cronies.

Really hope I'm wrong, but can see no reason to believe this "settlement" will lead to anything more.

Apr 14, 2016 - 8:44am

In the words of Clearance Thomas....

"Well, whoop tea fucking do...."

Safety Dan
Apr 14, 2016 - 8:57am

IMF & Other Banks...

IMF: 20% Stock Drop Coming

Photo Credit Philip Taylor

(WASHINGTON) The International Monetary Fund is expecting a 20 percent plunge in the markets in the United States, United Kingdom, Eurozone and China over the coming 24 months, according to a report in the Telegraph.

Jose Vinals, the chief of the organization’s financial stability division, said there are several contributing factors, including a huge “loss of market confidence” that would drag down the markets.

The IMF report, addressing global financial stability, said “financial and economic stagnation” looms unless governments find a way to avoid the “pernicious feedback loop of fragile confidence, weaker growth, low inflation and rising debt burdens.”

IMF Calls For Negative Interest Rates

(Steve Byas) The concept of negative interest rates — in which lenders have to pay to lend money or to invest — has gotten a big boost from the International Monetary Fund. The IMF stated this week that world central banks should move to negative interest rates because the extra monetary stimulus would ease lending conditions. Or so they claim.

José Viñals, the chief financial counselor and director of monetary and capital markets for the IMF, argued for negative interest rates in a research paper, stating, “Although the experience with negative interest rates is limited, we tentatively conclude that overall, they help deliver additional monetary stimulus and easier financial conditions, which support demand and price stability.” Stripped from its statist jargon, what Viñals is saying is that world financial elites want to inflate currencies to cause even more borrowing and lending, partly to keep prices from falling.

During the Great Depression, both Presidents Herbert Hoover and Franklin Roosevelt bought into the thesis that high prices and high wages lead to prosperity. Both championed fiscal and monetary policies that led to a deepening and a prolonging of the Great Depression.

Keeping interest rates artificially low is one way to generate inflation. Another method is what the U.S. Federal Reserve and the Bank of England have adopted since the 2007-09 global financial crisis: so-called quantitative easing — i.e., buying assets to boost the supply of money as an economic stimulus. Since quantitative easing has clearly not worked, and the economy remains stagnant, some supposed experts have now begun to champion the radical proposal of negative interest rates.

Last June, the European Central Bank adopted negative interest rates for the purpose of preventing banks from depositing money with it and instead having them lend to eurozone businesses.

About one-fourth of the world economy by output is presently experiencing official rates that are less than zero.

Some critics of negative interest rates have offered the Keynesian model — increased government spending — as an alternative solution to anemic world economic activity.

BUSTED: 7 Out Of 8 Major Banks FAIL Fed's Bailout Test


JPM, BofA, Wells Fargo, BNY Mellon, State Street, Goldman and Morgan Stanley failed.

There were 2 tests, one conducted by the Fed and another handled by the FDIC. Five banks failed both tests, and two more banks failed one. Only Citigroup passed the 'living wills' test from both regulators. Lord knows how that happened.

The FDIC alone determined that the plan submitted by Goldman Sachs was not credible, while the Federal Reserve Board on its own found Morgan Stanley's plan not credible. Citigroup's living will did pass, but the regulators noted it had "shortcomings."

FDIC Vice Chairman Thomas Hoenig: "No firm yet shows itself capable of being resolved in an orderly fashion through bankruptcy. Thus, the goal to end too big to fail and protect the American taxpayer by ending bailouts remains just that: only a goal."

Five Big Banks' Living Wills Are Rejected by U.S. Regulators

Bloomberg -- JPMorgan Chase & Co., Bank of America Corp. and three other major U.S. banks failed to persuade regulators they could go bankrupt without disrupting the broader financial system and could now face a tighter leash from Washington after government agencies used one of the most significant post-crisis powers bestowed under the Dodd-Frank Act.

The banks -- also including Wells Fargo & Co., Bank of New York Mellon Corp. and State Street Corp. -- must scrap their resolution plans, or living wills, after the Federal Reserve and the Federal Deposit Insurance Corp. said versions submitted last year failed to satisfy their requirements. The lenders will have until Oct. 1 to rewrite the plans -- but under the pressure that another failure would give regulators power to subject them to more capital or liquidity constraints on their businesses.

“The FDIC and Federal Reserve are committed to carrying out the statutory mandate that systemically important financial institutions demonstrate a clear path to an orderly failure under bankruptcy at no cost to taxpayers,” FDIC Chairman Martin Gruenberg said in a statement Wednesday

And the most corrupt bank:

Comptroller General: National Debt Will Soon Eclipse GDP

The U.S. national debt is currently just short of $19.25 trillion. We become more indebted to the tune of $12,000 every second and approximately $1.3 billion every day.


WASHINGTON -- An auditor for the Government Accountability Office told lawmakers Wednesday that in the next few years the federal government will owe more than our entire economy produces.

Gene Dodaro, the comptroller general for the Government Accountability Office, testified at the Senate Budget Committee to provide the results of its audit on the government’s financial books.

“We’re very heavily leveraged in debt. The historical average post-World War II of how much debt we held as a percent of gross domestic product was 43 percent on average; right now we’re at 74 percent.”

“The highest in the United States government’s history of debt held by the public as a percent of gross domestic product was 1946, right after World War II,” he said. “We’re on mark to hit that in the next 15 to 25 years.”

Another economic projection, which assumes that cost controls for Medicare don’t hold and that healthcare costs continue to increase, shows debt rising even further.

“These projections go to 200, 300 percent, and even higher of debt held by the public as a percent of gross domestic product. We’re going to owe more than our entire economy is producing and by definition this is not sustainable.”

Washington Free Beacon...

Most important article of the day:

An Interview with Judge Anna Von Reitz About Our History

5:56 We have all had our identities stolen and have all been removed from our natural birth-right jurisdiction on the land to the foreign international jurisdiction of the sea. Our estates have been held in “abeyance” under international law. That has allowed members of the BAR to come in and act in sedition against our lawful government and against us has allowed us to be plundered and pillaged under the laws of international commerce. Here we are thinking we are protected under the Constitution and that we have certain guarantees, but the Constitution is the law of the land.

Once you incorporate anything, including the franchise of a corporation merely named after you, which is what they’ve done, they can then pretend that you are the same as the corporation, which is the crime of personage and they can bring false claims against that person, which is another crime named barratry named after the BAR association. They have been committing this crime against us, they’ve created these persons, these corporations without our knowledge or consent and that is the person being charged in every single court case that you can bring before me. There are only a limited number of these persons out there and they’re trying to create more all the time. Every single court case that I have ever examined, which are many thousands of court cases by now, has been against a person and not against living people. This is what they’re doing. They are using these two crimes basically identity theft. They’re kidnapping us and our land assets into the international jurisdiction of the sea, which is a crime known as press-ganging.

You’re history buff friends will be reminded that during the Napoleonic Wars the Queen had need for more people to operate his majesties navy. So the British ships would come into a quiet hamlet and sailors would go ashore and get any able bodied man they could find and press-gang him into service in the Navy. All of these farmers were being kidnapped to work on the ships on the sea.
This was finally outlawed and it’s been outlawed for nearly two hundred years and yet they’re doing it today. It’s kidnapping and press-ganging on the high seas. And then, they are additionally plundering our assets on the land – our homes, our businesses, our land assets, everything, which is inland piracy – another capital crime.

Just today I was going over the Nuremburg Trials principles. They violated all seven. There could not possibly be a more serious crime. It’s both a commercial crime and a war crime against defenseless, non-combatant civilians. This had been done to us by foreign governments and international banks. I want everyone to know that the principal banks responsible for this are the Federal Reserve, the World Bank, the International Bank of Reconstruction and Development, and the International Monetary Fund. These four banks are the principal conspirators and they have acted in collusion with each other to front governmental services corporations. Now, under the Constitution the Federal government was given certain duties – certain functions to perform, which are called powers, but should more correctly be called abilities or services to perform. Those nineteen enumerated services are all in international jurisdiction. There isn’t a single one of them that has anything to do with the land or the people on the land. Our government was set up so that there was this strict demarcation to make sure that the Federal government did not usurp upon us.
What has happened here is that there is not a functioning Federal government. There is, in fact, just a governmental services corporation providing these nineteen essential governmental services as convened successors to contract. When you don’t question the change -over then that company that took over can operate on the presumption that they have inherited the contract.....


1:11:26 The other thing that has happened in the last couple of weeks is that we have finally figured out how to invoke the bounty hunter clause of the 14th Amendment – their 14th Amendment, the corporation’s 14th Amendment.

Now, remember that I told you that the IMF is doing business as THE UNITED STATES, INC., which went completely insolvent in March of 2015. They are in receivership and are being liquidated by Swiss banks basically.

In the meantime, the Federal Reserve, newly reconstituted, has come forward as doing business as THE UNITED STATES OF AMERICA, in all capital letters, and that makes them the successor to contract even though we have formally rebuffed them and refused their service except as voluntary acts on their part. Now we’ve got the UNITED STATES OF AMERICA back in here and we’ve got the Federal Reserve back in here acting as the actual service provider of governmental services.

Their corporate constitution is the one they published in 1868. There is no other. So, they are still obligated. If they are going to operate in the public, they are still operating under the old Federal Code and they’re still operating under that constitution – The Constitution of the United States of America that was published in 1868.

If you look at that very closely you’re going to see some very weird things. You’re going to see the Thirteenth Amendment, which proclaims the abolition of slavery doesn’t actually abolish slavery. It actually enshrines slavery and makes it a part of their government forever.

The 13th Amendment actually said it abolishes slavery except the criminals can be enslaved. Then it leaves it up to the Congress to determine who a criminal is or what criminality is. The Congress could make a law that says breathing is criminal and use that as a means to enslave everyone. They actually use that as a means to make a claim for their corporation and for themselves with absolute despotism.

1:14:21 The second thing you will notice if you go down the page is the 14th Amendment in which they gratuitously confer the status of The United States citizen on everyone. This is the basis of their presumption against you and your estate, and name. They just arbitrarily said, “Oh, you are all a part of our casino. You are all employees. You are all obliged and obligated to us.” This new person that we’re creating, this thing that has been named after you at the Federal level, is guilty by definition and it is a slave, by definition, and it cannot even question the public debt.

This is the all capital letters name. This is the Federal level trust that they created in the 14th Amendment. When a court brings a charge against the all capital letters name, that public trust that they created without your knowledge of consent, without your parents’ knowledge and consent, without your grandparents’ knowledge and consent, that entity is already guilty. It’s already a debtor. All that is left to talk about is how much it is going to pay. This is what you see in our courtrooms.

The other interesting thing is when they pull this kind of crap on people in commercial venues they have to give remedy at the same time. So, the remedy is also in the 14th Amendment and that is the bounty hunter clause. That’s also right there in front of you.

The bounty hunter clause has been a cause of debate and concern. People have scratched their heads for generations as to what all of that was really all about and how it can be accessed as a remedy for 14th Amendment citizenship. We finally cracked it. We finally know the process by which people can invoke the bounty hunter clause, set up their own court of record, and go in there and get remedy.

The very first case resulted in a $68 Million judgment in favor of the man who did this and four big law firms were put out of business, approximately 60 lawyers lost their BAR card, and they are all now facing Federal criminal charges. 1:17:35. There is a gag order on it. The guy who did it does not want the notoriety. He has a family to protect. But the process is being fully detailed and it’s going to be employed all across this country. The details of the process will be made public and available to anyone and everyone who has suffered at the hands of these monsters.

AGAU benque
Apr 14, 2016 - 8:59am


From ZH

Maybe this will get some bankers assholes twitchin" now the rats turn on each other At last GATA etc have been clearly vindicated that is reward enough for me ,that and a bif FU to TDan and his ilk!!

Also Gensler ya little goblin and You Chilton the hair - time for you to head to the dock also for covering this up for years, ya shithouses

Maybe Rob Kirby can give us a follow up now that the cats outta the bag?

"In a curious twist, the settlement letter reveals a stunning development, namely that the former members of the manipulation cartel have turned on each other. To wit:

“In addition to valuable monetary consideration, Deutsche Bank has also agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement. In Plaintiff’s estimation, the cooperation to be provided by Deutsche Bank will substantially assist Plaintiffs in the prosecution of their claims against the non-settling defendants"

Whitecastle123 Safety Dan
Apr 14, 2016 - 9:16am

Douche Bank

To name names? This is going to get really good. Get the air nailers ready.

Apr 14, 2016 - 9:19am

DB and other banks

Following the rap sheet of how to lie, steal, and cheat your way to prosperity in a fraudulent/criminal government what do we have?

Manipulation has occurred. They are all busted, the markets are going to crash, the US$ will die, bad shit is coming... What is a bank to do?

Be prosecuted by the US Gov, cop a plea while not exactly accepting any responsibility, pay a yuuuuge fine (which is pennies on the dollar for what they actually stole), and receive IMMUNITY for any and all future civil or criminal pursuits.

Why now? Read the tea leaves... Obama "is big on cracking the whip" on the BIG BANKS, which does nothing but provide protection for the banks while making Obama/Clinton/Biden look good to the idiot voters... These dumbasses will be able to say to people like you and me, "see they got BILLIONS of $ from these banks!!!!"

I decided to increase my metal load this week.

BTW, who really owns the Bank of China? I'm going with SS121 on this one, the ROTHCHILDS! The ultimate con game is coming to a head... Do you think the "elites" give a shit if 10 million people own gold and silver? Hell no. But they will care if 100 million people do! These assholes jerk off watching the Greeks screw for a $1 a pop and WANT more of it!

Apr 14, 2016 - 9:20am

Yep, maybe our collective cynicism is misplaced

ZeroHedge has dug up the actual letter from the attorneys and it includes this:

"In a curious twist, the settlement letter reveals a stunning development, namely that the former members of the manipulation cartel have turned on each other. To wit:

“In addition to valuable monetary consideration, Deutsche Bank has also agreed to provide cooperation to plaintiffs, including the production of instant messages, and other electronic communications, as part of the settlement. In Plaintiff’s estimation, the cooperation to be provided by Deutsche Bank will substantially assist Plaintiffs in the prosecution of their claims against the non-settling defendants.”

Well, well, well. Maybe this is a bigger deal than many thought at first glance. I guess we'll just have to wait to see how this plays out.

Full ZH post here:

Apr 14, 2016 - 9:24am

Silver Riggin "Settlement"

I don't get it. So if the price fixers were not only fixers, but also real price riggers for their own benefit, then that would seem to mean that anyone trading silver during the known rigging periord would have a claim against these price fixers.

So, would everyone who lost money on, for example a COMEX contract have a valid legal claims against these price fixers during the period of known price rigging?

If that is the case then we could really see some fantastic and crazy lawsuits being filed by some big outfits that lost money trading COMEX contracts duing the known rigging period.

franco tacconelli
Apr 14, 2016 - 9:26am

silver manipulation

There are several things that I would comment on

  • I am guessing that this news is related to the recent hints by Rob Kirky about forthcoming revelations. In terms of implications I am not sure whether this lawsuit this will impact on the comex, naked short price setting of the precious metal prices. If this changes things, or has an impact then I suppose time will tell
  • I am some what ambivalent concerning the manipulation because I guess it has meant that I have bought at prices below value and part of me is hoping that it continues for a little while longer so I can continue accumulating. I am happy to do so as long as at some point the paper trading of these commodities brakes down and the physical market sets the price that an upward revaluation will occur. I am happy to wait. Why because I sense that the world economy is declining, I would rather that this be gradual as opposed to an abrupt and violent change. I am apprehensive about what the world with $1,000oz silver would be like. It might be hell on earth. Besides any delay will give the opportunity not just to continue stacking but consider other ways of preparing for the monetary paradigm shift that we all know , we feel it in out bones is coming. I am a stacker because of the abject fear and apprehension about what the future will bring. As a child I always thought the future meant that the world would get better and improve. I cant believe I am living, will be living in a new dark age.
  • I wonder who is taking the legal action, can it be a buyer and I am guessing a precious metal producer.
Apr 14, 2016 - 9:28am

Deutsche Bank

Has bigger problems to deal with than collusion and pales in comparison to what appears to be an event or series of same that are hovering over the world stage. Something big is in the making...Too many high level "emergency" meetings ...the banks, the Fed, the White House, the CME seeking refuge under the Feds funding umbrella, IMF meeting upcoming, G20 backroom deals, the Yen, Ukraine, Syria, South China Sea, Saudia Arabia and 9/11, the Panama Papers, ...too many spinning plates imho. This suit just adds another "snowflake" on top of the pile.


Apr 14, 2016 - 9:32am
Apr 14, 2016 - 9:47am

Wouldn't it be nice for

DB et al, to HAVE to cough up physical, not fiat? Now that would be a judgement. Edit (almost forgot):Rob Kirby for President! If retarTED Cruz can, why not Rob?

Apr 14, 2016 - 9:51am

Manipulation this morning

OK, so it doesn't look like silver is being manipulated this morning, but gold sure as hell does.

Apr 14, 2016 - 9:52am

RK for Prez?

He is and wants to be a Canadian...


Apr 14, 2016 - 9:55am

HUGE NEWS and Our World Just Changed Forever

Wow! I am leaving for a short trip but can't wait to read all this news in detail. Stacking is going to take on a greater urgency while physical is still available. The masses are still in the dark and CNBC as of 9:53 am Eastern Time has not shared anything historical yet.

Keep Stacking and Always Packing

Apr 14, 2016 - 9:56am


Is being capped hard around 16.26

jwmkratz Fred Hayek
Apr 14, 2016 - 10:01am

Fred Hayek

Agree with what you say here...Maybe large specs begin by standing for delivery knowing that the whole thing is stacked against them. There is so little inventory left, the CME has to get protection from the Fed to guarantee their settlements remain cash solvent? The only way they can get additional inventory is by raiding the GLD. And when time runs out on the GLD delivering their product, then a force majeure occurs. Who knows maybe that's already happened.

Anything that brings to light the blatant and corrupted nature of the metals market is no small event. It may look that way to begin with but the damage to credibility and reputation has been done. And when all the players get named included those unnamed today, this will eventually get the legs it deserves.

If there were 25,000 of us "little people" who brought a civil suit on the back of this litigation, there would be some serious punitive damages that just crater one of these banks.

Safety Dan
Apr 14, 2016 - 10:01am

Comment from ZH DB

Comment from ZH DB story:

Thu, 04/14/2016 - 08:37 | 7434768 Theonewhoknows

So let's revise. After 2008 DB has the biggest exposure in derivatives on earth - 10x EU's GDP. It is a ticking bomb waiting for the situation to get worse enough so that other banks will buy swaps on this toxic assets. Which actually makes sense looking at the other banks' health (Italy and its 360 bn EUR ready to fall

Especially when you connect the dots about war on cash, gold being repatriated or sold (Germany or Canada) according to wisdom or stupidity of regimes and continuation of Bubblenomics (the train started in 2009 by the FED, then BOJ and now ECB). These are the ingredients and the result? Inflationary escape from debt.

Safety Dan
Apr 14, 2016 - 10:02am

Ronan Manly: Deutsche Bank

Ronan Manly: Deutsche Bank will give evidence against other banks in silver rigging

Submitted by cpowell on Thu, 2016-04-14 09:15. Section: Daily Dispatches

5:13p SGT Thursday, April 14, 2016

Dear Friend of GATA and Gold:

Elaborating on the draft settlement agreement between Deutsche Bank and the plaintiffs in the U.S. class-action lawsuit charging silver market manipulation, monetary metals researcher Ronan Manly reports that the bank has not only agreed to pay damages but also to provide the plaintiffs with evidence against the other bank defendants in the lawsuit, HSBC and Bank of Nova Scotia.

Manly writes: "Coming on the heels of the unresolved and unexplained fiasco that is the LBMA silver price auction and the broken promises by the London Bullion Market Association about greater auction transparency and wider participation in the new silver auction, it seems difficult to envisage that the LBMA silver price can survive in its current form with its current participants, two of whose remaining five participants are HSBC and Scotia. It will also be interesting to see what the U.K. Financial Conduct Authority will say about this development with Deutsche Bank, especially since HSBC and Scotia are now participating in a 'regulated benchmark,' the LBMA silver price, where price manipulation can be criminally prosecuted."

Manly's analysis is headlined "Deutsche Bank Agrees to Settle with Plaintiffs in London Silver Fixing Litigation" and it's posted at Bullion Star here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Safety Dan
Apr 14, 2016 - 10:06am

Speaking Of Rob Kirby...

I remember a few posts that were ready to burn him at the stake for witchcraft and outright BS..

Seems Mr Kirby was right after all..

and as I previously mentioned, he's one of the good guys..

Now validated and makes history as being one the first to give us the 'Heads Up' big news regarding PM price manipulation.

Thank you RK..

Safety Dan
Apr 14, 2016 - 10:13am

.....Fast forward to the


Fast forward to the first week of 2016 and China is warning foreign banks that they must participate in Yuan-based gold price fixing or lose their Chinese gold import rights. This first-ever Chinese benchmark is set to launch in April of this year and could be a game-changer for gold prices moving forward.

Reuters reported today that:

China has warned foreign banks it could curb their operations in the world’s biggest bullion market if they refuse to participate in the planned launch of a yuan-denominated benchmark price for the metal, sources said.

The world’s top producer and consumer of gold has been pushing to be a price-setter for bullion as part of a broader drive to boost its influence on global markets.

Derived from a contract to be traded on the state-run Shanghai Gold Exchange, the Chinese benchmark is set to launch in April, potentially denting the relevance of the current global standard, the U.S. dollar-denominated London price.

In a trial run for the fix in April 2015, some foreign banks participated along with many major Chinese banks. Traders at those banks said earlier that while they were interested in the benchmarking process, their legal and compliance teams may be reluctant.

Perhaps a little sensationalized, but Jim Willie recently commented:

The Gold market cannot be fixed by paper gold on a repeated basis, surely not in perpuity. When the Shanghai shock comes, all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.

The Shanghai shock is not likely to materialize all at once and cause an immediate collapse of the dollar, the COMEX or our fiat monetary system. However, it is another nail in the proverbial coffin and significantly increases the odds of more honest price discovery in precious metals as it moves from West to East.

The red line in the chart below shows Asian gold reserves as a percentage of total gold reserves. The percentage has been rising steadily for decades, but the pace of the increase has picked up significantly since the 2008/09 financial crisis.

If you believe that the gold price has been suppressed in order to maintain faith in fiat money and allow governments to continue deficit spending to secure their power, it is logical to conclude that gold prices may rise sharply as the disconnect between paper and physical pricing intensifies.

And it would make sense for China, Russia and other BRICS nations to push for such a transition, as it would diminish the dominance of the United States in global trade and finance, leveling the playing field.

In any event, it will be an interesting development to watch during 2016. I believe it could be another catalyst in a long list that could cause a spike in gold and silver prices.

Gold Stock Bull

Keeping with the issue of official sales, governments at present only hold at most 60 million ounces of silver, as compared with 1 billion ounces of gold. Among those who run our world, silver is now far rarer than gold.

However the “natural” ratio including in ground is 9:1 silver/gold therefore if gold hits $64k silver is 9xs less at $7k.

Apr 14, 2016 - 10:15am

Turdite Class Action Suit?

Time to mount a Turdite Class Action Suit through Cal Lawyer?!

If the banks are admitting guilt...I want my pound of flesh!

Would love to see Turd present on behalf.....What do you think Turd?

I'm in!

Apr 14, 2016 - 10:29am

Rob Kirby PM news

was supposed to greatly effect the price.

Gold down $ 8

Silver up $ 0.01

Apr 14, 2016 - 10:32am

DB thieves

I imagine there will plenty of protection for DB etc against any "Follow up" lawsuits - is this not the reason they "settle " a civil case - so no criminal cases get heard?


Apr 14, 2016 - 10:51am


That is the thinking that having taken civil action it someone ends the least in MSM. Actually both are possible with the criminal action normally going first since the standard of proof is "beyond a reasonable doubt". If the criminal action is successful then it is moot on civil action at a preponderance of the evidence. They know a higher standard has been met and ... Then it is settlement time.

The Justice Department continually doing civil settlements is nothing more than a cover up and exposes the Administrative Branch to gross negligence claims and criminal charges. However, for Justice to not do tbeir jobs, it requires direction from the highest levels.

AGAU lakedweller2
Apr 14, 2016 - 10:54am


Thanks for the feedback mate

seems like these assholes are bullet proof -- for the time being anyway?

Longstreet november4
Apr 14, 2016 - 11:02am


My thought exactly....and good luck to us as not a chance!!

Royal Flush
Apr 14, 2016 - 11:15am

@ AlienEyes on April 14, 2016 - 4:22am. #Owtovit

That was fucking beautiful brother! That post had me laughing to my toes!


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3/22 9:45 ET Markit PMIs
3/22 10:00 ET Existing Home Sales
3/22 10:00 ET Wholesale Inventories (Jan)

Key Economic Events Week of 3/11

3/11 8:30 ET Retail Sales (Jan)
3/11 10:00 ET Business Inventories (Dec)
3/12 8:30 ET CPI (Feb)
3/13 8:30 ET Durable Goods (Jan)
3/13 8:30 ET PPI (Feb)
3/14 8:30 ET Import Prices (Feb)
3/14 10:00 ET New Home Sales (Jan)
3/15 8:30 ET Empire State Manu Index
3/15 9:15 ET Cap. Util. & Ind. Prod.

Key Economic Events Week of 3/4

3/5 9:45 ET Markit and ISM services PMIs
3/5 10:00 ET New home sales (Dec)
3/6 8:30 ET Trade Balance (Dec)
3/7 8:30 ET Productivity and Unit Labor Costs
3/8 8:30 ET BLSBS
3/8 8:30 ET Housing starts (Jan)

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