CASE CLOSED: The Fact of Bullion Bank Gold and Silver Price Manipulation

Back in April, the Cartel Shills and Apologists attempted to minimize the news that a settlement had been reached regarding a "nuisance lawsuit" alleging price rigging in gold and silver. As we told you at the time and on many occasions since, this case is instead quite significant and very important. The latest update on the case, released late yesterday, sheds more light upon what we've always known was taking place behind the scenes in the "free and fair precious metals markets".

First, just another reminder of the two key points:

  1. Because of Deutschebank's settlement offer and willingness to turn "state's evidence" in the case, for the very first time a civil lawsuit regarding gold and/or silver price manipulation is being allowed to move forward into the legal discovery phase. This means depositions, affidavits and subpoenas. Never before has a case been allowed into this phase as all previous civil suits were thrown out by Bank-favored judges before discovery could begin.
  2. With Deutschebank now having agreed to nearly $100MM in settlements in the case, there is now the proverbial "blood in the water" for every class action attorney in the world. This current laswuit is just one case and this Deutschebank settlement is just one small part of it. There will now be countless new lawsuits filed, each of them seeking damages from The Bullion Banks for the now-discovered and proven collusion and manipulation of precious metals prices. Potential claimants range from mining companies to shareholders to day traders to investors/stackers.

So, what did we learn today. Here are two links...one from Reuters and the other is a more detailed analysis from ZeroHedge. We strongy urge you to read both.

And here are the amended full filings from the case:

Silver Rigging 1 by zerohedge on Scribd

Silver Rigging 2 by zerohedge on Scribd

From the ZeroHedge article, here are two text exchanges that have been unearthed and submitted only because of the Deutschebank cooperation and legal discovery. There will be many, many more. Of that you can be certain. (click to enlarge)

As an aside, note the date of the exchanges posted above....May and June of 2011. After reviewing this evidence of direct collusion between The Bullion Banks, do you have any remaining doubt as to the origin of the trades in the May Day Massacre of Sunday, May 1, 2011? That sudden $6 drop in silver brought an abrupt end to the Cartel short squeeze that had pushed silver from $38 to $48 in April of that year. What followed were five CME margin hikes in nine days and silver falling to $38 in days and $26 within weeks. Again, after reading the text messages above, you now know precisely how this was accomplished.

Additionally and on a personal level, you now have confirmation of why TFMR exists in the first place. We gained notoriety in 2010 because we were able to offer precise guidance on price due to recoginition that Cartel traders were colluding to move price, run stops and paint charts. Because we could predict in advance where these traders would act, TFMR rapidly grew and ultimately became what it is today. Though we've since shifted our focus to broader topics, rooting out and exposing The Bullion Bank Cartel remains our focus. Bringing about an end to the manipulation and the Bullion Bank Paper Derivative Pricing Scheme will always be our ultimate goal.

But this is far from over. If we know anything about the legal process it's that it takes time and there are always delays, filings, briefs etc. Therefore, do not expect an abrupt end to the Bullion Bank price manipulation in the next few weeks. Instead, recognize these key takeaways:

  1. The potential monetary liabilities alone will now force many smaller players in bullion banking to exit the sector. Even some of the larger Banks, sensing the declining profits and increasing liabilities will close up shop.
  2. The mining companies and their executives, now finally faced with the truth about their alleged allies The Bullion Banks, will soon begin shifting their hedging and financing activities away from The Billion Banks and the LBMA.
  3. Points number 1 and 2 will lead to an ever-decreasing market share and dominance of fraudulent LBMA and Comex system.
  4. As the Paper Derivative Pricing Scheme loses influence and importance, a shift toward true physical price discovery will move to the forefront.

What does this mean to you?

Since you now know with certainty that the "price" derived through the digital exchange of paper derivatives is false and manipulated, you MUST use this knowledge to your advantage. Remember, physical gold and silver are priced as if they are abundant when they are not. What IS abundant is the paper dervivative that is used to set the price. As derivative trading fades away, physical trading and pricing will take over. And the price discovered in a truly physical market will most assuredly NOT be $1200 or $17 per ounce.

Have a great day, confident in knowing that you have been proven correct and that you are winning.

TF

www.tfmetalsreport.com/subscribe

     

    133 Comments

    ancientmoney's picture

    #1

    second time this week!

    Clarki Stomias's picture

    One more link to the manipulation story

    Here's one more article from NASDAQ for posterity, Turd. 

    http://www.nasdaq.com/article/heres-proof-that-deutsche-bank-and-ubs-traders-rigged-the-silver-market-cm718543#ixzz4SH3p0USn

    I just love the opening line.

    "In a curious twist, the settlement letter revealed that the former members of the manipulation cartel have turned on each other "

    (Aww, that's terrible. devil)

    One more good extract from the article:

    "If the plaintiff request for an expanded lawsuit is granted, we expect many more fireworks as other banks rush to settle on their own and provide even more documentary proof of unprecedented precious metal market manipulation, until there is just one bank left standing, ostensibly the one slammed with the biggest fine of all, perhaps even leading to prison time for some of the market riggers."

    Jail time? Maybe it's the years of injustice building up my cynicism, but I'm not holding my breath that criminal punishment gets any higher than the traders on the ground. It's never the management.

    tommy's picture

    Just amazing stuff + first top ten??

    This report is just a treasure trove. I remember those days well. Being glued to my screens, seeing the manipulation and telling people around me who would look at me as if I was crazy:) Luckily I quit in 2011 and went back to university, but kept my mining shares that would become almost worthless in the years that followed. Sometimes I think its more fun to tell people I used to be a millionaire then to actually be one:) Just amazing to get an insight into the workings at 'the other side'. Gives me a good feeling that we were actually right!!!! I've always seen myself as an activist investor, silver being the holy grail to obtain our financial sovereignty. We might have been clobbered, but we didn't sell our soul like these guys...

    April 1, 2011

    UBS [Trader A]: trying to coordinate moves together here

    UBS [Trader A]: ok we both bid at 60 * * *

    UBS [Trader A]: we gotta do it the same time next time . . .

    UBS [Trader A]: if we are correct and do it together, we screw other people harder 

    83

    August 5, 2011

    UBS [Trader A]: bro lets make a slight adjustment to our plan today

    Deutsche Bank [Trader B]: k

    UBS [Trader A]: depending on where the mark is we go short around 11-11:30am i makesure to let u know if i do something

    Deutsche Bank [Trader B]: ok im definitely going short lol

    UBS [Trader A]: lol revenge huh? That’s whats driving u . . .

    Deutsche Bank [Trader B]: it is but i dun care

    UBS [Trader A]: u love the 11 oclock rule don’t ya

    July 26, 2011

    UBS [Trader A]: short 50k silver thinking bring short 50k don’t hurt

    Deutsche Bank [Trader B]: ur level my average is 42 not the best

    UBS [Trader A]: silver 40.10

    Deutsche Bank [Trader B]: agreed on both silver like u said much easier to short

    UBS [Trader A]: and intraday wise we killed a lot of people

    Deutsche Bank [Trader B]: volume is very poor

    UBS [Trader A]: just jobbing them between me and u theres 100k pnl taken out of the market

    92

    Thor's picture

    Thanks again for a great

    Thanks again for a great post!

    RickshawETF's picture

    Fifth!

    Ahhh, to score the Top Five (without jeopardizing Marchas' coveted fourth!) . . .

    Keep Stacking

    ArtL's picture

    This was a good read!

    We surely have to thank BAFIN for forcing DB to confess and settle.

    tommy's picture

    February 9, 2011 : Deutsche

    February 9, 2011

    : Deutsche Bank [Trader B]: dude

    Deutsche Bank [Trader B]: do you know hsbc and barx

    Deutsche Bank [Trader B]: i might as well add u into this chat

    Deutsche Bank [Trader B]: if u keen

    UBS [Trader A]: who from hsbc and barx?

    Deutsche Bank [Trader B]: [HSBC Trader B] and [Barclays Trader A] * * *

    Deutsche Bank [Trader B]: i added u . . . UBS [Trader A]: wow this is going to be the mother of all chats

    Once inside, a trader had access to a wealth of non-public information that otherwise would not be available outside the cartel. For example, FINMA uncovered evidence that Defendant UBS’s precious metals traders, who transacted in both physical silver and silver financial instruments, shared information with third-parties including (a) the trigger prices of client stop-loss orders; (b) “flow information” about incoming and pending client orders; and (c) other positional information from Defendant UBS’s order book.

    107

    106

    Poundwize's picture

    Thanks Tommy

    Appreciate you pulling out the nuggets.  God damn this makes me madder than hell!!!

    Boxingbuddha's picture

    encouraging

    what surprises me is that I don't see any mention of JPM? I am sure it will come, the plaintiffs should also demand an immediate ban for these banks to participate any longer in the market, otherwise they will just put some dough aside for fines and will simply increase their margins. Further the key is to demand if they acted on behalf of or simply for the house account and were they acting just because they could or was there an other motivation?

    vittorioturd's picture

    I called First Majestic Investor relations and....

    Turd,

    I called First Majestic Investor relations to ask what they may do about the manipulation. I also asked if they are going to sell Silver in China since the HUGE premium there.

    The reply was really discouraging!!!

    They told me their lawyers are looking into the manipulation case but when I went into the details of the manipulation AND the SGE premium I discovered they know NOTHING!!!!

    Oh BTW selling in China is too difficult, they are not in the business of shipping silver so they just sell at the London (much lower) spot price, fantastic....

    It is embarrassing, I am just an engineer and thanks to tfmetals, zerohedge, Ted Butler, Koos etc. I know MUCH more about the manipulation and the SGE details (the guy did not even know about the kilobar standard!!!) than professionals in the mining industry!!!!!

    Ridiculous!!!

    Anyway the guy said that he thinks class actions make only the lawyers rich (so I added  lets just keep BB happily manipulating the market forever). Fantastic reply isn't it!?!?!

    Turd Ferguson's picture

    This is just ONE lawsuit

    MODERATOR

    And, as this focuses upon the Fixes in London, JPM wasn't included in this particular lawsuit.

    Ummm...let's just say that it's highly likely they'll be included in future lawsuits as they're filed.

    Response to: encouraging
    Turd Ferguson's picture

    That's just their investor relations dept

    MODERATOR

    You can be certain that the CEO knows all about it and will be at the forefront of the changes.

    ancientmoney's picture

    And the CFTC's 5-year "investigation" covered this period...

    Gary Gensler for Secretary of Treasury!!  Yes, the very same who ran the CFTC then...

    canary's picture

    Reading from ZH....A lot of HAHA...BUHAHA...HAHAHA

    Let's go and smash it together...HaHaHa...deh deh deh....We smashed it good...HaHaHa...Buhaha...HaHaHa.

    These are young traders...What about the older brains behind that decades lasting crime? For every year of HaHa-manipulation, Five years of Buhaha-jail-time.

    Turd Ferguson's picture

    yes

    MODERATOR

    And Andy told them all about these chatrooms and how they used them undercover to collude. The utterly worthless CFTC simply turned a blind eye. Remember this?

    https://www.tfmetalsreport.com/blog/4413/low-e

    Poundwize's picture

    Future Chat

    Deutsche Bank [Trader A]: dude, I just got f***** by my cell mate Tyrone

    UBS [Trader B]: yesterday I got shived in the shower room

    Deutsche Bank [Trader A]: sorry man - dude named Rico lookin 4 u in the yard. he got teardrop tattoo

    UBS [Trader B]: shit ... what do i do?!?! 

    ArtL's picture

    Investor Relations Department

    usually a recent college grad, that knows almost nothing about the business, and are only allowed to talk about publicly released financial filings (which they barely understand). They are usually kept in the dark about future plans so as to not inadvertently say something that might violate the law. They are the last people to know what the company is planning. Don't get stressed over their ignorance.

    ancientmoney's picture

    Turd re: yes...

    I had Low-E regarding the CFTC "findings" as well.  The CFTC was, and continues to be a complete tool of the bankers.  It does not "regulate" commodities--at least not the PMs.

    It runs interference so nobody will interfere with the bankers' years long, continuous manipulation of gold and silver.

    It is a bankster-enabling part of the government, taken over by the shadow government, like many, if not all of the other agencies.

    silverflower's picture

    These guys in the banks

    do a "..HaHaHa...deh deh deh....We smashed it good...HaHaHa...Buhaha...HaHaHa"

    but as Turd ones said, people who work in the mining industry trying to feed their families with what they earn from their daily job salary .......do they also laugh and making jokes when their business/jobs goes to hell by the games of these bankster crooks?

    Most certainly not. 

    tommy's picture

    these are just worker drones

    They are paid very well, but I don't believe these guys aren't getting orders/guidelines from above...

    ancientmoney's picture

    Who is going to question the CFTC about this now?

    Washington Post, maybe? Ha-ha.

    Maybe GATA can get someone to do an interview with the current CFTC chairman to see if they will now "reopen" their investigation...

    Blaggers's picture

    VXX and GDX

    Volatility index on the rise. S & P and Dow both overbought. Seems like they are looking for a pin to burst this bubble???

    GDX tested a rising trendline support twice today and bounced off it.

    Blaggers's picture

    S & P testing some

    S & P testing some support trendlines now.

    If it breaks down (if) - it will be interesting to see if any money comes back into the PM's.

    SquibLoad's picture

    Job opportunity!

    Ya know. I may just apply for one of the open positions at the CTFC:
    http://www.cftc.gov/About/Careers/index.htm

    They're essentially all no show jobs right? My plan is to show up wearing dark glasses and using a white cane. I suspect that once they see my props they'll hire me on the spot without so much as an interview or reference review. You know they wouldn't check any of it out anyway!

    ancientmoney's picture

    Re: Job Opportunity...

    Sorry, SquibLoad. 

    The CFTC already hired three new people: See No Evil, Speak No Evil, and Hear No Evil.

    ReachWest's picture

    Blonde CFTC Dude

    Where is that blonde ex-CFTC moron with the wierd haircut working now? Can't remember his name .. 

    GOLDDOC's picture

    ANY CLASS ACTION LAWSUITS IN MOTION ?

    I have been screwed for 30 years buying mining stocks.  The first chance to even the  score, count me in !!!!!!

    GOLDDOC's picture

    ANY CLASS ACTION LAWSUITS IN MOTION ?

    I have been screwed for 30 years buying mining stocks.  The first chance to even the  score, count me in !!!!!!

    vittorioturd's picture

    You Bet!!!!

    Let's get them!!!

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