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

Thu, Dec 8, 2016 - 1:31pm

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 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.


About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 8, 2016 - 9:11pm

class action suit?

California Lawyer and other legal authorities here: Is there a basis for a class action suit and, if so, where do I send my contribution? I have been getting screwed on pm investments for three decades and have the paper work to prove it. This has to be pursued through private action. The Justice Department (now that's an oxymoron) will never pursue action, not under this corrupt administration or the forthcoming corrupt Trump regime, which so far looks to be exceedingly Wall Street friendly (Sen. Session filing suit against Jamie Dimon? Really?).

Where do I send my $$$?

Dec 8, 2016 - 8:53pm

Don`t get me wrong

I`m not defending the CFTC and their "investigation" into precious metals price manipulation, but didn`t their final statement have wording to the effect that there was no case for them to prosecute "with the law as it stands". I took that to mean that it was government sponsored intervention and that whatever was going on was quite legal, even if "wrong". It doesn`t make any difference I suppose, and now that I have got this far, I wonder why I brought it up.

Dec 8, 2016 - 8:43pm

Not the sharpest spoon in the drawer

Now that there is legal proof of manipulation and noncompliance of their mandate (within the CFTC) isn't there a gov section that reviews effectiveness of government sections within the U.S. and can de-fund them? I remember reading something about that. Why not report the CFTC to them. Get them de-funded. Isn't that a better way to chop the head off the snake? Just asking.

Dec 8, 2016 - 8:40pm

Will the Cartel find a way to cover all their shorts

before true price discovery is allowed to happen?

CC Horses
Dec 8, 2016 - 8:28pm

OT - Thanks JC & Billhilly

Thanks for the kind words JC a few posts back.

Billhilly - Zips Chocolate Chip is a real beauty. Did you see the $4,000 stud fee?

He has sadly passed away at the age of 30.

Thanks also for the kind words. I'm just trying to run with the big dogs here and keep up the good posts as I see them. There are so many good ones posted by you and all the members here. Many times they beat me to the board.

RIP Zips Chocolate Chip

Clarkii Stomias
Dec 8, 2016 - 8:10pm

Turd: A long winded, self serving question for Eric Sprott

<vent on>

I owned a decent number of shares in Atna Resources, a miner operating in Nevada, who had long maintained they needed $1200 gold to be viable. Sprott Inc. owned 12 million shares in them. Atna went bankrupt last December, one month before price recovered from the 6 year walk-down. I think Atna employed around 70-100 people. All out of work now.

You've mentioned it before, but when I sat back today and thoughtof the real world damages those cavalier cartel traders inflicted, it made me sick (and several other unprintable thoughts). Sure, Sprott and I may have lost out on an investment, but there are families out there who lost the ability to subsist. You have no obligation to do this, but when you talk to Eric Sprott tomorrow, I wonder what recourse he thinks investors and miners have with this now proven manipulation? I recognize that Mr. Sprott is limited as to what he can actually say on the air due to his position in the industry, but in this particular case with Atna, it hits home; there was a direct impact to Sprott and his company and reputation. And how the heck does an out-of-work "Joe Miner" in Nevada even begin to attempt recovery from the blithely-IMing, amoral traders who all these years pushed a button on a screen in London and in the real world destroyed their very livelihood in Nevada without their ever knowing it? Short Answer: They don't. Most will never even learn about the manipulation. And that's just one of how many good mining companies that went under?

Sprott is too much of a gentleman to express anger, but I'll bet today was as bittersweet for him and John Embry as it has been for the rest of us, knowing the real world damage that's been inflicted by these bastards has finally been confirmed.

<vent off>

Dec 8, 2016 - 8:04pm

Why would U.S. dollar weaken?

The EU continues their easing policy, while the Fed steers toward tightening. Would stronger dollar make more sense?

Dec 8, 2016 - 7:59pm

The e-mails I would be most interested to see

Are the ones from May 1 and May 2 of 2011 (the Bin Laden's death silver smash) and not of the opportunistic young traders, but their senior fellows at BIS, JPM and PPT/FED.

Dec 8, 2016 - 7:26pm


GLD lost 2.96 T

SLV lost 97 T today.

Dec 8, 2016 - 7:22pm

Good day for GATA

Sure, they deserve that....But to me they are more about going relentlessly after the big fish in this crime (BIS and CBs).... I wish all GATA people well.

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