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How High Would Gold & Silver Prices Go if GS, JPM and HSBC Were Barred from Participation in Gold/Silver Markets?

smartknowledgeu's picture




 

Back on May 17, 2010, I granted an interview to Lars Schall
of MMNews Germany
, in which I stated, “if U.S. regulators stepped in and said
Goldman Sachs, HSBC and JPMorgan couldn’t participate in the gold and silver
futures market for three weeks, I really think you would see the gold and
silver price more than double in that time.”


Though HSBC is the principal manipulator in the gold futures
markets and JP Morgan the principal manipulator in the silver futures markets
(always manipulating price downward), I included Goldman Sachs in the above
stable of primary PM manipulators for GS’s notable and likely deliberately-executed
lies about gold that unfortunately influence global purchases of gold
worldwide. For example at the end of 2007, Goldman Sachs listed shorting gold
as one of their top 10 trades for 2008, after which gold promptly rose about
18% in less than three months. Though gold barely closed in 2008 higher than
where it started, the price of gold immediately dropped right after Goldman’s
announcement, at which point I suspect that they bought more gold for their
proprietary accounts.

 

In September of 2009, Goldman Sachs publicly issued the following
statement about gold,

“On a relative basis, we believe gold equities will
underperform other cyclical equities.   We believe the price of gold
is likely to be range bound for the following reasons: One of the key drivers,
its defensive status, is no longer attractive given the backdrop of a recovery
in the global economy. The US dollar, another key driver, has dropped 13% from its recent high, which
is largely priced in, in our view. We forecast the price of gold in 2010E to be
US$964/oz.”


Deliberate disinformation of the type regularly released by
Goldman Sachs about gold plays a critical role in suppressing gold prices.
During my interview with MMNews Germany in May, 2010, Mr. Schall asked of me
the following question:

 

As you know, one organization that tries to expose the
rigging of the gold market for years, the Gold Anti-Trust Action Committee
(GATA), faces huge problems to get “air time” since its founding in 1999. Why
do you think that especially the US and British media is so silent about what
GATA has to say? Isn’t it an indicator among others that journalism itself is
in a profound crisis of its own?

 

My response was as follows:

Yes, I believe it is. I believe that investigative
journalism is almost dead. You have better investigative journalism regarding
the financial markets on financial blogs today and in independent newspapers
than you ever would receive in the mass media. I think that’s an indictment of
how far mass media journalism has fallen from its once lofty perch.

I should know more about media outside the United States,
but I know within in the United States, the bankers have always made an effort
to control the media. I know that the Rockefellers, for example, have in the
past thanked Time Magazine for its silence about some of their financial
initiatives, stating had it not been for their silence, that they wouldn’t have
been able to accomplish the vast majority of their financial objectives. And in
the US, I do know as well that there are only a handful of companies that control
90% of all media -that’s all TV, radio and newspapers.

So I think either the truth is outright censored or there is
actually a concept in journalism that is called self-censorship. Journalists
learn by the pattern of promotion within the newspaper, the Radio station, or
TV station they work for, what they can or cannot say. They actually
self-censor themselves over time as well, which is a shame, but that’s just the
way it is.


Since the Goldman proclamation in September, 2009 to sell gold stocks, the HUI AMEX Gold Bugs index has risen
more than 56%. Furthermore, Goldman Sachs is known to be one of the traders
that has artificially suppressed the prices of gold mining stocks by staking
out massive short positions in gold mining stocks while holding long positions
in gold futures. The underperformance of gold/silver stocks over the past several years
has undoubtedly also prevented investors in gold/silver stocks from purchasing
as much physical gold/silver as they may have had gold/silver stock prices not
been artificially suppressed as well (underperformance in as much as gold/silver stocks typically leverage the price of the PM to significantly outperform the performance of the underlying PM).

 

This past week, we saw the effect that public KNOWLEDGE
regarding fraud can have upon markets. Since CFTC Commissioner Bart Chilton
released an official statement in which he stated, “there have been repeated
attempts to influence prices in the silver markets”
, in the ensuing 7 trading
days, the price of silver has risen an astounding 11.93%!
I still contend today
that if regulators barred just Goldman Sachs, HSBC and JP Morgan from any type
of participation in the gold/silver markets (futures, mining stocks, and
releasing deliberate disinformation), that gold/silver prices would double in
less than three weeks as gold/silver would be relatively free to reach their
free market prices.

 

One month ago, on October 6th, I wrote an article titled,
Gold & Silver, This Time it IS Different” in which I stated:

 

While is true that gold/silver are heavily overbought now
and PM stocks are either in heavily overbought territory or rapidly approaching
heavily overbought territory, during strong runs in past gold/silver bulls, the
underlying metal prices and stock prices have remained in overbought territory
for months on end. This alone is not a reason for a correction as Central
Bankers have been fighting the fundamental weaknesses in their fraudulent
global monetary system daily for quite some time now. When bankers legalize
fraud through the legislation they sponsor/endorse, technical analysis is
insufficient to ascertain the short-term direction of not only stock markets
but also gold/silver markets. One must understand the history of Central Banker
engineered attacks and price suppression schemes against gold and silver to
estimate the probabilities of short-term corrections in addition to the use of
technical analysis.


Today, Central Bankers are increasingly having a more and
more difficult time suppressing the price of gold and silver. This is a marked
departure from years past, even as recently as 2008, when they engineered a
gold/silver crash to coincide with their engineered stock market crash. Though
they still have the power to engineer short-term corrections in gold/silver
markets, their power to do so has been fading this past year. They must resort
to more and more trickery to engineer these collapses. If they decide to
engineer a strong rapid decline in major US indexes in the near future, you can
be sure that they will use this event to also use all of their abilities to
engineer a simultaneous sell-off in gold and silver. Still, any correction we
receive in gold/silver markets before the end of the year will be likely to be
very short-lived as various global players will step in, stop the decline with
buying, and continue the rising trend in gold/silver prices.

 

Now that the price suppression schemes against gold and
silver are gaining mainstream recognition around the world, I believe that the
type of frothy price action we have just witnessed in the PM markets since Mr.
Chilton’s announcement will serve as a sneak peak into the massive leaps higher
in gold/silver prices in the years to come as the criminal banking cartel loses
its grip over gold/silver prices.

 

About the Author: 
JS Kim is the Founder and Managing Director of SmartKnowledge Pte.
Limited,
a fiercely independent investment research & consulting firm that
seeks to protect Main Street from the fraud of Wall Street.  A $1,000,000 portfolio invested in the
SmartKnowledgeU Crisis Investment Opportunities newsletter portfolio on its
launch date on June 15, 2007, portfolio, would have grown to $2,444,088 as of
November 3, 2009 (in a tax-deferred account).

 

 

 

 

 

 

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Fri, 11/05/2010 - 12:59 | 702948 topshelfstuff
topshelfstuff's picture

I think its more to the point of how much the drop in the value of a current USD would be with the Gold & Silver price manipulation brought to an end.

I've mentioned two possibilities 1) move the decimal point resulting in the "New" dollars being worth 1/10 the current. That would make Gold priced today at about $13,800 in these "New" USD's, just slide the decimal point which would take Silver to about $260 today. [ mortgage debt remains fixed at current and made payable with the New. And all mortgages would be redone, all investigations halted, so basicaly the mortgage fiasco can be ended ]. Also each $1,000 in US Debt would get $1,000 paid, but paid in USD that would be the "New" variety [at least these 2 items part of the change]....or

2) Peg the USD to China's Yuan, at current value, making the USD equal to about 16 current cents

we would have about one week to turn in current paper dollars for new ones, after that week they wouldn't be valid

Fri, 11/05/2010 - 11:49 | 702763 Lndmvr
Lndmvr's picture

My 92 year old mother in law asked me to get her some silver with the csh we took out of her banks 2 years go and put under the mattress. Does this call a top or not?

Fri, 11/05/2010 - 12:39 | 702906 CitizenPete
CitizenPete's picture

NO.  What is does say is that your granny is one smart cookie and not amongst the average sheople.

 

only 2% for all Americans are invested in GOLD -- what does that tell you?   If you could trade food stamps for Gold some of the ones who might start to understand would be sending in their coupons for silver I would expect. 

Fri, 11/05/2010 - 11:46 | 702744 RockyRacoon
RockyRacoon's picture
                 Ron Paul Gains Clout Over Mint
This article was originally printed in Numismatic News.

Congressional Demo-crats had the stuffings kicked out of them Nov. 2 suffering many more than the 39 needed to turn over control of the House of Representatives to the GOP and making John Boehner of Ohio the new Speaker of the House and giving Rep. Ron Paul a subcommittee chairmanship from which to wield an increased influence.

Republicans needed a gain of 39 seats to obtain control in the House, but picked up more than 60 seats. There are 435 members in the House, with 218 seats needed for operational control.

The GOP came up short in the U.S. Senate. The party gained at least six seats but needed 10. Some races were still too close to call at press time. Battles will be decided within the next week or so.

With the election losses, a number of changes are anticipated that will affect coin and currency matters. The House Financial Services Committee, once known as the Banking & Currency Committee, which has been chaired by Rep. Barney Frank of Massachussetts will now see Rep. Spencer Bachus of Alabama take over. The subcommittees will also change as well as seniority rankings.

Gone from the House GOP list will be Rep. Mike Castle of Delaware, who lost a Senate primary. He was second ranking on the committee. The Subcommittee on Financial Institutions and Consumer Credit goes from Rep. Luis Gutierrez of Illinois to Rep Jeb Hensarling of Texas, now the Ranking GOP Member.

Subcommittee on Domestic Monetary Policy and Technology will see its chair go from Rep Melvin Watt of North Carolina to Rep Ron Paul of Texas. This subcommittee was in the spotlight recently as the place where Mint Director Ed Moy said in July that it might be possible to strike proof silver American Eagles this year as well as its Goldline hearing in September. Paul’s son Rand is a new senator from Kentucky.

Subcommittee on International Monetary Policy and Trade sees Rep. Gregory Meeks of New York leave as chair to be succeeded by today’s ranking minority member, Rep. Gary G Miller of California. Subcommittee on Oversight and Investigations will go from Rep. Dennis Moore of Kansas to Rep. Judy Biggert of Illinois.

All of these changes might impact coinage if the jurisdictions of the subcommittees are altered, as some believe they will be. The issue will be to divide this responsibility: “oversight hearings about the state of U.S. coins and currency” and examining “the roles the Bureau of Engraving and Printing, U.S. Mint, Federal Reserve and United States Secret Service play in managing the circulation of all U.S. coins and currency and in implementing anti-counterfeiting measures to safeguard the U.S. money supply.” Also at issue: the federal government’s response to the rising costs of copper and nickel and metals used to manufacture coins.

House Appropriations Committee Chairman David Obey of Wisconsin, who retired, will be succeeded by Rep. Jerry Lewis of California. Lewis chaired the committee from 2005-2007. Mint and BEP matters are headed up by Rep. José E. Serrano of New York, but now likely go to Rep. Jo Ann Emerson of Missouri.

Ways & Means, which raises money (including surcharges on commemorative coins) will likely see Rep. Dave Camp of Michigan as the new chair.

In the Senate, which the Democrats held, the Banking Committee Chair, Sen. Chris Dodd of Connecticut retired after 30 years. Tim Johnson of South Dakota currently is the ranking Democrat.

There will be more changes as the parties caucus in the next several weeks, choosing their committee chairs as well as membership and working out agendas.

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Fri, 11/05/2010 - 12:10 | 702841 Stuck on Zero
Stuck on Zero's picture

I'm so happy that the tax and spend party is replaced by the spend and tax party.  Or did I get that backwards?

Fri, 11/05/2010 - 11:00 | 702609 Dan The Man
Dan The Man's picture

Germany and China have expressed concerns over US plans to pump $600bn (£373bn) into the US economy.

http://www.bbc.co.uk/news/business-11697483

This is pretty blunt in political circles.  If faith is lost in the dollar, a separate issue from devaluation, moments like this compounding are what will allow it to happen.

Bring on the amero...

 

Fri, 11/05/2010 - 10:42 | 702544 chubbar
chubbar's picture

If JPM, et al, are putting on these trades at the behest of the banking cabal then they won't have to cover them. They'll just keep paying the margin calls with money printed by those with access to unlimited amounts of FRN's. The idiots that piggybacked their trades will get crushed though, I like that :).

Fri, 11/05/2010 - 10:29 | 702508 JimboJammer
JimboJammer's picture

when  the  other  97 %  of  the  people  figure  this  out..

the  US  Dollar  is  toast ...  Silver  is  king...

Fri, 11/05/2010 - 10:20 | 702482 Endstrategy
Endstrategy's picture

When are we going to see PM coins imprinted with Bernanke, Obama, or Greenspan on the ass side?

Fri, 11/05/2010 - 10:16 | 702468 MGA_1
MGA_1's picture

Well, the price doubles and then what?  It's a long term bull market that may see extremes in the metals market.

Fri, 11/05/2010 - 09:26 | 702335 Reishi-self
Reishi-self's picture

May I offer that the marriage contract you create be manifest among the two parties and God - however you name or experience God (consciousness) and not the corporation,referred to at times as [state] which is a manifestation of black hole consciousness,  referred to by some as Santanic - luciferian consciousness.

Fri, 11/05/2010 - 09:17 | 702309 Stuck on Zero
Stuck on Zero's picture

If you want to destroy these Wall Street miscreants simply buy metal and hold it.  If a hundred million people were to order a few gold coins the spot price would go to $10,000 all the naked shorts would be wiped out.

Fri, 11/05/2010 - 10:47 | 702560 Rahm
Rahm's picture

^^THIS^^

Fri, 11/05/2010 - 09:00 | 702264 Kina
Kina's picture

If they gave prison terms to a few lower operators involved  in silver gold manipulation you can be sure of a whole bunch more whistleblowers.

 

Prosecuting companies has little effect. Fines are just the cost of doing business. $10m fine in making $100m profit is acceptable. However going the man, putting people in prison, will change behavior.

Fri, 11/05/2010 - 11:18 | 702658 SWRichmond
SWRichmond's picture

...and that is exactly why that course is not being pursued by the "justice" department.  The whole damned thing would fall apart as wave after wave of corrupt officials and insiders started spilling their guts in search of a deal with the proescutors.  Life is nothing but a long series of deals, it seems.

Fri, 11/05/2010 - 08:58 | 702259 mogul rider
mogul rider's picture

I don't care who manipulates the silver market as long as I can flip the Obama funded concentation camp guard a maple and he let's me slip out unnoticed.

 

Now THAT is the power of PM's baby

Fri, 11/05/2010 - 09:11 | 702291 Miss Expectations
Miss Expectations's picture

And then you get escorted to a private room for a cavity search.

Fri, 11/05/2010 - 12:11 | 702845 mogul rider
mogul rider's picture

LOL, +1

that's why I have more. I figure it'll take 6 to secure my freedom getting thrugh the republican could be problematic since the Squid has them all buttered up.They may be looking for 3-4 each.

Wouldn't it be a bitch if my cell mate had 7 though?

Kinda like what is happening now, i'll bid 1389 - no i'll bid 1390, no i'll 1391 and so on.

Fri, 11/05/2010 - 09:53 | 702412 A Nanny Moose
A Nanny Moose's picture

Now now. Let's keep the fetishes out of this

Fri, 11/05/2010 - 08:40 | 702227 Azannoth
Azannoth's picture

I can tell my story how I was cheated out of good money because of price manipulation, I bought SLW at 16 in 2008 than the price of silver got pushed lower and SLW went to 6 when I got stopped out by a margin call (I didnt realy want to sell) than SLW dropped to 3(I felt pretty good cuz i 'sold' at 6) I pretty much lost all confidence in silver and bought a REIT(what was I thinking, dividend ?) for all the proceeds from SLW at 6 subsequently the REIT went bust and I lost all of about 10 grand

Fri, 11/05/2010 - 08:38 | 702221 Kina
Kina's picture

If you see them taking down gold and silver again today you will know they totally own the CFTC and judiciary. It will show they think the cases against them a joke, or know the judiciary will protect their activity. It will be sure evidence that rule of law is the US is totally broken and is only applied to bashing the little people.

Fri, 11/05/2010 - 08:37 | 702220 Grand Supercycle
Grand Supercycle's picture

Daily and weekly overbought charts are now at an extreme level. Similar extreme conditions were detected before the correction started in mid 2007.

http://stockmarket618.wordpress.com

Fri, 11/05/2010 - 08:16 | 702165 Basia
Basia's picture

@smartknowledgeu

 

Great overview and summary.  Thanks !

Fri, 11/05/2010 - 08:10 | 702158 eigenvalue
eigenvalue's picture

When silver breaks $30, I will go and look for a girlfriend. When silver breaks $50, I will get married.

Fri, 11/05/2010 - 10:46 | 702557 JohnG
JohnG's picture

A toast:

To our wives and girlfriends.  May they never meet.

Fri, 11/05/2010 - 10:45 | 702552 Rahm
Rahm's picture

Start shopping for a ring...

Fri, 11/05/2010 - 11:07 | 702613 tamboo
Fri, 11/05/2010 - 09:12 | 702296 Montgomery Burns
Montgomery Burns's picture

You're gay, right?

Fri, 11/05/2010 - 08:59 | 702262 waterdog
waterdog's picture

Your girlfriend will take half of what you have. Your wife will take the rest.

Fri, 11/05/2010 - 08:20 | 702173 Downtoolong
Downtoolong's picture

Forget about silver. Go look for a girlfriend now with a solid government job, pension, and full family health benefits. That's a better long term investment.

If she's really good looking, you might consider giving up on the health benefits. Her looks won't last forever, but, neither will the benefits.

 

 

Fri, 11/05/2010 - 08:13 | 702161 MarketTruth
MarketTruth's picture

Girlfriend right now makes sense, yet marriage is a trap imho. What does a contract with the State (and penalties accordingly) have anything to do with two adult deciding to be joined together for a (hopeful) lifetime of happiness?

Fri, 11/05/2010 - 09:39 | 702381 Rhodin
Rhodin's picture

A one size fits all marriage contract written by the state, subject to amendment by them after the fact is absurd.

imho the state should have no part in marriage

Religious people could choose to let their church write and arbitrate their marriage contracts, or not.  Those without beliefs could write their own contracts, and agree on the consequenses of dissolution and the arbitrators of disputes in advance. 

Convincing the state to give up people control won't be easy.  Convincing youngsters they should look before they leap might be harder, but they might like having a choice.

Fri, 11/05/2010 - 09:00 | 702247 Azannoth
Azannoth's picture

Marriage is just another way for the Government (and the girl) to put you in their pocket, it gives the girl legal standing to your wealth and the government legal standing to go after it

 

Marriage is nothing more than you and the girl singing over your freedom of choice to government/church/society, it wasnt invented till government/religion came along they figured if they can control who you can sleep with they can control you(and they where right)

Fri, 11/05/2010 - 09:47 | 702395 A Nanny Moose
A Nanny Moose's picture

and the only winners are the lawyers.

Fri, 11/05/2010 - 08:17 | 702167 eigenvalue
eigenvalue's picture

Guess you are Chinese since most Chinese men nowadays say marriage is a trap.

Fri, 11/05/2010 - 09:45 | 702390 A Nanny Moose
A Nanny Moose's picture

I'm not, and I agree with MT.

Fri, 11/05/2010 - 09:19 | 702313 BigJim
BigJim's picture

Unfortunately, when it comes to divorce (the flip side of marriage) the decks are definitely stacked in favour of women, at least in western countries.

Be VERY sure you know who you're marrying before tieing the knot... or get a pre-nup.

Fri, 11/05/2010 - 08:10 | 702157 Widowmaker
Widowmaker's picture

Easy, silver at around $8, gold at $300.

The itch is fabricated to scratch -- and it works!

Fri, 11/05/2010 - 07:59 | 702144 Capitalist
Capitalist's picture

Bit of a conspiracy to say JPM manipulates the markets...

Fri, 11/05/2010 - 11:07 | 702626 downrodeo
downrodeo's picture

and conspiracies don't exist, just ask cass sunstein...

Fri, 11/05/2010 - 08:34 | 702204 Kina
Kina's picture

LoL Way past consipiracy, well and truly in the realm of reality. Please pay attention.

Fri, 11/05/2010 - 08:20 | 702172 apberusdisvet
apberusdisvet's picture

It must be really difficult to go through life totally unaware of reality.

 

Fri, 11/05/2010 - 11:42 | 702738 RockyRacoon
RockyRacoon's picture

It must be really difficult to go through life totally unaware of reality.

Methinks you have it backwards:  Going thru life with one's head up one's ass is the easy way.  Being aware that the world is screwy, and that one knows nothing is not the smooth road.

Fri, 11/05/2010 - 09:21 | 702317 snowball777
snowball777's picture

I'm sorry, did you say something? I was thinking about soup.

Fri, 11/05/2010 - 10:44 | 702548 Rahm
Rahm's picture

No Soup For You!  2 Years!

Fri, 11/05/2010 - 10:04 | 702437 LowProfile
LowProfile's picture

lmao!

Fri, 11/05/2010 - 08:54 | 702250 Azannoth
Azannoth's picture

I bet 90% of all people ever alive would strongly dissagree with your statement :)

Fri, 11/05/2010 - 08:10 | 702156 MarketTruth
MarketTruth's picture

Thanks for the sarcasm as it made me LOL. It is common knowledge that JPM has been manipulating the silver market and yes there is proof plus a few lawsuits now in play including one being a RICO. You may want to listen to the CFTC hearing a few months back to realize JPM and others are very active at market manipulation in the precious metals complex.

Fri, 11/05/2010 - 08:14 | 702163 eigenvalue
eigenvalue's picture

The easiest way to annihilate JPM and HSBC is to take physical delivery. 

Fri, 11/05/2010 - 09:10 | 702286 rocker
rocker's picture

That's what I have been doing.  You can buy the four great ones. Gold, Silver, Platinum and Palladium in the form of state issued coins for slightly above the market price of the metal. Canada issues Palladium coins, rarely seen in the U.S. Apmex sells a great variety of stuff. A new mineral I have been adding is Rhodium. Problem is it is in powder form. Sold by Kitco. So I have now found someone making coins out of Rhodium.  That is the Cohen Mint. Full disclosure. I have no affiliation with them in any way. I will be buying my first from them real soon to see how it works out. I consider Rhodium to be pretty rare and possibly very undervalued. For a perspective of price history go to Kitco. Love the site. 

That's my special pick I have mentioned that I would disclose.  Good Luck to all ZH fans.

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