Manipulation of the gold and silver markets

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#1 Thu, Jun 16, 2011 - 2:12am
bensgone
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Manipulation of the gold and silver markets

In an earlier RANT, I gave statistics showing how, in the first quarter of 2011, the HUI gold miners index experienced an intraday decline of, on average, more than 3% on MORE THAN HALF OF ALL TRADING DAYS, despite the fact that, during that period of time, gold was UP 8% and silver 22%. 1. Cartel “Plan A”, which is to slam the gold price in the thinnest time of the global trading period, usually centered around 3 AM EST. 1 AM MST gold prices tended to fall sharply at 3 AM EST an inordinate amount of times. 2. THE NY PREMARKET GOLD/SILVER FADE (7:00 AM – 8:20 AM EST) so it’s 5:00 AM to 6:20 AM MST At 6 AM EST (which also coincides with the closing of Hong Kong trading), it was one of gold’s better premarket days, attempting to actually rise a buck or two before abruptly changing course at around 7 AM and then, of course, falling further when the COMEX opened at 8:20 (see below). A recently created Cartel algorithm (as in, roughly six months ago) in which the price of gold at this time of day is tightly controlled by further manipulations in the price of WTI Crude Oil. Essentially EVERY DAY, the WTI oil price will have some kind of sharp tumble, ranging anywhere from $0.50/bbl to $1.00+/bbl. It doesn’t matter if the price is up sharply or down sharply to start with, or if there is any kind of “news” to account for it; irrespective, there is ALWAYS some type of WTI oil price correction, and when it occurs, the gold price ALWAYS falls sharply, nearly ALWAYS by a higher percentage than oil itself. Moreover, often the WTI drop is NOT mirrored by Brent Crude, making this manipulation that much more obvious. And furthermore, that sharp WTI oil price drop is nearly always followed by a recovery, often to a higher level than when the correction started, but I would wager that 90% of the time the gold price does not similarly recover. 3. THE NY COMEX OPEN GOLD/SILVER SLAM (8:20 AM EST) - Of all the Cartel felonies in the PM market, this is the most obvious to even the casual investor. The New York COMEX, known to many as the CRIMEX, opens dutifully at 8:20 AM EST with its primary mission of suppressing the prices of PAPER gold and silver. This timing works out wonderfully for the Cartel, as they have 70 minutes to work over gold and silver prices with naked shorting of futures contracts before the NYSE opens. On 95%+ of days, the opening smash of PAPER gold and silver has the duel effect of dampening sentiment toward PM mining stocks, particularly because the opening hour of trading (often referred to as “amateur hour”) is when the largest percentage of stock trading typically occurs. The AM Fix, in which PHYSICAL pricing is executed in London, occurs at 5:30 AM EST, in other words BEFORE the NY COMEX opens, while the PM fix occurs at 10:00 AM EST, after the COMEX has been open for 1 hour and 40 minutes. Gold was up 24% in 2010, more than essentially any asset class on earth (except silver, which was up a whopping 61%), yet the PM fix NEVER was 2% higher than the AM fix, and was only more than 1% higher on TWO TRADING DAYS all year????? Again, what this means is that in the first hour and 40 minutes of COMEX trading, from 8:20 AM to 10:00 AM EST,6:20 AM MST TO 8:00 AM MST which as I noted above is when the highest proportion of trading occurs, the BEST PERFORMING ASSET CLASS on earth only traded more than 1% higher on TWO OCCASIONS all year! The Cartel (and piggyback traders) have recently started to front run the COMEX open by shorting GLD and SLV at 8:00-8:20 am EST, 6:00-6:20 AM MST, so often the weakness starts just before the open at 8:20 am. The most important U.S. economic releases (or fudged versions thereof) are released at 8:30 am EST,6:30 AM MST just ten minutes after the COMEX open. Thus, the opening PM smash typically sets the tone going into those releases, most importantly the employment report, PPI, CPI, and jobless claims numbers. 4. THE LONDON P.M. FIX GOLD/SILVER SMASH (10:00 AM EST) – As noted above, the conclusion of global PHYSICAL trading of gold and silver occurs at 10:00 EST, when the London PM fix occurs. At this point, all that’s left trading worldwide is the CRIMEX futures market and the equally criminal GLD and SLV ETF’s. In other words, it is the time when the cats go away, so the mice play, and I would bet the price of gold declines at or around this time (give or take a few minutes) on roughly 75% of ALL trading days. a lesser Cartel trick of attacking gold late in afternoons before weekends and holidays (great for demoralization), the gold price was suppressed the entire way up, with three of the four Cartel tricks noted above working as a charm up until the PM fix at 10:00 AM EST. 5. THE NEVER- FAILING 12:00 PM EST, 10:00 AM MST END OF DAY CAPPING – This is one of the most damaging of all the Cartel tricks, but doesn’t get as much attention in because it usual is a CAP, rather than the SMASHES that are more regular at 3:00 AM EST, 8:20 AM EST, 6:20 AM MST, and 10:00 AM EST, 8:00 AM MST. But it is extremely integral to the Cartel strategy of never allowing material gains in the PM sector, particularly late in the day because that might engender late edition media attention and, more importantly, follow-up buying in Asia. Events to smash the gold price: 1. The unemployment report (their all-time favorite gold smash time) 2. sometimes it’s an “economic event” such as a G-7 meeting 3. A monthly Fed interest rate decision (their second favorite gold smash time) 4. A speech by Bernanke, Obama, or essentially anyone from the Fed, a rate decision by the ECB or the BOE, or, if bonds happen to be weak (not allowed anymore due to accelerated QE), a rigged T-Bond auction. Some of the biggest gold/silver hits have been reserved for the day or two (or even hour or two) before Fed meetings are concluded7. GOLD or SILVER or PM STOCKS – Yes, I know, the title of this trick is a bit ambiguous, but after such a long missive I need to keep readers’ mind’s sharp. What this trick entails is making sure that we NEVER see gold, silver, AND the PM stocks all act well SIMULTANEOUSLY. In other words, if one of the three is acting “too well”, perhaps due to particularly strong demand flows that day, they just double their efforts to make sure at least one of the other two does not. 8. PM Mining Stock ALGORITMS or better put “GOVERNMENT COMPUTERS” HFT trading now accounts for roughly 75% of ALL NYSE trading, and if you took it away you’d see multi-year lows in trading volume. Goldman Sachs, otherwise known as “Government Sachs” due to its widespread and blatant infiltration of the Federal Government, now represents MORE THAN HALF of all HFT trading 9. Attacking gold, silver, and PM mining stocks before EACH AND EVERY COMEX options expiry day 10. Fraudulent COMEX and U.S. Treasury accounting for gold and silver reserves and leases 11. Anti- gold/silver propaganda perpetrated by the media. Solicitation of PM industry insiders to spew lies, such as Jon Nadler of Kitco, Phillip Klapwijk of GFMX, and Jeffrey Christian of the CPM Group. 12. Raising margin requirements on options Ranting Andy: Cartel Secrets Revealed https://babybulltwits.wordpress.com/2011/05/31/ranting-andy-cartel-secre...

Edited by: bensgone on Nov 8, 2014 - 5:27am
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