This page has been archived and commenting is disabled.

Indisputable Proof Paper Gold Markets are Massively Manipulated

smartknowledgeu's picture




 

What would you think if someone told you the following?

“Three times this week, I am going to tell you the low price of gold with near perfect accuracy, and one of those three times, I am going to tell you events that will precede the low and the exact time that gold prices will crash.”


You would likely conclude that either:

(1) I am somehow directly involved in setting the price of gold in paper derivative markets, or

(2) that since nearly perfectly predicting gold price movements three times in one week in a free market is impossible, that such an accomplishment would serve as indisputable proof that gold markets are rigged and manipulated by bankers, as none of my predicted price targets depended upon technical chart analysis of any kind.

 

So let’s summarize my calls regarding gold price movements on three separate occasions last week, and why I feel that the accuracy of these calls serve as indisputable proof that Central Bankers and their agent bullion banks manipulate the price of gold and silver.

 

(1) On Friday May 3, I told my clients that gold was going to waterfall by $40 to $1435 an ounce starting precisely at 8:30 AM in a “coordinated” attack planned by the Feds when gold was still trading at $1,475 an ounce in Asia, using a “false” unemployment data release to get the decline started. At 8:30 AM, gold started to waterfall decline all the way to a hair above $1,440 an ounce.

(2) On Sunday, May 5, with gold closing at $1,469.90 an ounce the previous Sunday and before Asian gold markets opened, I stated that gold would at least fall again to $1,430 an ounce or lower. On Tuesday, May 7, even when gold trended higher to $1,471 an ounce in Asia, I reiterated to my clients that gold would FALL to $1,430 an ounce in New York later that day. When gold declined close to $1,440 we closed out our initial GLD puts.

(3) On May 8, with gold trading at $1,455.70, I predicted that the bankers would knock gold down close to $1,400 an ounce. On Friday May 10, I amended this prediction, based on further data, to a raid that would result with gold falling to a range of $1,400 to $1,430. Gold fell to a low of $1,418.50 in NY trading that day, exactly in the range I predicted. We closed out the rest of our GLD and SLV puts that day.

 

For more details of the above calls, I have provided below a few sentences of the series of alerts I sent to our Crisis Investment Opportunities newsletter and Platinum Member clients last week:

 

On Thursday, May 2, 2013, I released this alert to clients during NY market hours:

“Were you to take a hedge against the monthly US non-farm payroll Friday gold and silver price slam that may occur tomorrow…we are looking at the May 24, 2103 puts on the GLD ETF that are trading at $2.85 a contract now at a strike of 142.00.”

I further updated our position on May 3, 2013 to our clients after reviewing more data earlier that day, many hours before the COMEX open in NY. Note that the price of gold was still $1,475 an ounce at the time of this updated release:


“With the release of fraudulent US non-farm payroll and employment statistics today at 8:30 AM NY time, this may present the best opportunity of the month for a COORDINATED banker attack and raid on gold and silver in the paper markets again, so beware of a potential raid again today…Though gold is up over $1475 an ounce in Asia [right now] and silver well over $24 an ounce at $24.12 again, the price movements in Asia do not matter if the bankers want to raid the price in paper markets in New York and London…I would not be surprised in the least if they go for a big raid in the range of a $40 to $50 drop in gold today.

So what happened several hours later that day? Precisely at 8:30 AM as I predicted, gold started a waterfall decline that bottomed a tad above $1,440, $35 lower than its price in Asia of $1,475 when I sent out the notice of a coming banker gold and silver raid. The banker raid in gold came within $5 of our target of $1325 to $1335 for the day.

 

On Sunday, May 5th, I released this statement to my clients:

It is “my belief that the bankers are looking to take gold down below $1450 to at least $1430.” Gold had closed at $1469.90 that previous Friday. Thus, for my prediction to come true, gold needed to fall a very significant $40 an ounce from its price at the time of my alert.

 

On Tuesday, May 7, I updated this with the following release to my clients:

“With gold closing at $1471 yesterday, another $30 to $40 raid would serve the bankers well as they could release more propaganda about the "risky" nature of gold and silver in the media with another mini-raid. I am thinking…that this push may come tomorrow [Wednesday].”

Regarding our open GLD put options, I stated, “We would take at least some profits from our GLD May 24, 2013 puts with a strike of 142 off the table right now...as these puts are now trading at about $4.05 a contract. Then ensure that you have an exit strategy to protect profits on the rest of your puts.” Having opened these puts at $2.85 a contract, this yielded a quick 42% profit.

 

On Wednesday, May 8, I sent this notice out to my Platinum clients:

“They [the banking cartel] think they can push the paper price down closer to the $1400 level…Furthermore, even though gold is presently trading at $1455.70 as I write this, and that means another $55 drop, this is exactly what the banking cartel is aiming for.”
 

 

On May 10, after acquiring more data, I amended my price target for an upcoming banker raid in PMs and informed my clients several hours before COMEX open that bankers plan to "take the price of paper gold down to somewhere between the $1,400 to $1,430 level".   

 

Thus, on two occasions last week, I predicted nearly the exact declines in gold price and predicted the exact days when the price declines would happen, and on a third day, came within $10 of the zone in which gold declined, all based on actions that I saw the Central Banks and their puppet bullion banks taking on previous days. Obviously in a free market, making such predictions with such accuracy would literally be impossible. This can only serve as extremely strong proof that gold and silver markets are NOT FREE by any definition of the word “free.”

 

Even so, through all this volatility, I never once advocated that my clients dump their physical gold and physical silver and try to buy back their stacks at lower prices. Why? Because during most of this time, the premiums to buy physical silver, especially 1 oz. silver coins, were at a minimum, 15% to 20% higher than the fake paper prices bankers were setting in their paper derivative markets. Because gold and silver inventories shrink rapidly with every subsequent banker raid on PM prices and demand continues to be elevated, as proven by JP Morgan’s collapse of COMEX gold warehouse deposits over the last several months, we can never be sure of when the day will arrive when one opts to sell out of their physical stack of PMs and then tragically, is unable to re-buy it. I believe this risk is not worth taking, and that people should only have used this banker raid to stack more at lower prices if possible.

 

Regarding the subject of mining stocks, yes, they have taken a brutal beating, and this sector of the gold/silver investment arena has yet to recover. In time, it will. Please do not focus on the short-term losses in this sector due to the brutality of the recent raid on PM stocks but rather focus on the increasingly bullish fundamentals of the physical PM markets. We firmly believe that the proper approach is a long-term horizon, for when this Central Banking charade crumbles, and it will, the gains in ALL gold/silver assets are likely to be just as fast and furious to the upside as these banking raids were brutal to the downside. Patience is usually the Achilles heel of gold and silver asset accumulators, especially given the incessant meddling of Central Banks into gold and silver markets that causes enormous volatility.

 

During the times gold and silver accumulators stay fully vested in mining stocks, these are admittedly the most difficult periods to emotionally handle. We acknowledge this. However, we strongly feel as though this enormous volatility causes undue emotional distress in many gold and silver accumulators that fail to focus on the fundamentals of the physical markets, which always drive long-term price behavior and instead obsess about the excessive banker rigging of paper gold and silver markets that always drives the short-term waterfall declines.

 

Understanding manipulation, however, is the key to remaining patient enough to reap the enormous rewards in PM markets that inevitably follow periods of excessive banker price manipulation such as the one we are currently experiencing. I firmly believe that when these banker raids in the paper price of gold and silver fail in the future (see “Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire" here to learn why) that the confidence in global currencies such as the yen, the USD, the euro, and the pound sterling will plummet, and ultimately this rapid loss in confidence in fiat currencies is what will drive gold and silver rapidly to higher prices.

 

In conclusion, as someone that predicted huge declines in the gold spot price last week on three separate occasions, please understand that the same understanding of these banker gold and silver price manipulation games that led to the accuracy of my calls last week is also what leads me to conclude that the banking cartel price manipulation games in PM markets are unsustainable, on their way to imploding, and will eventually result in much higher prices in all gold/silver assets in the future. Yes, all gold and silver assets have suffered thus far this year in performance, but always remember that a focus on truth versus propaganda will always drive proper decisions when it comes to accumulating gold and silver assets and help one identify buying opportunities when they exist and further prevent one from being a "weak hand" that sells into banker manipulation ploys when Central Banks execute such fraud.

 

Follow us on:

 

 

About the author: JS Kim is the founder of SmartKnowledgeU, a fiercely independent research and consulting firm that has been focusing on the best ways to buy gold and the best ways to buy silver since 2007 with a mission of helping to re-instate sound money to replace our fractional reserve banking fiat money that is the root of all global economic problems and instability today.

Our Crisis Investment Opportunities newsletter’s yields, every year, since our launch in 2007 (even in light of the underperforming miners) are as follows: +23.78%, +3.21%, +63.32%, +32.59%, -14.99%, +14.67% for a cumulative 2007-2012 yield of +169.68% versus the cumulative -6.98% yield of the S&P500, the -12.40% yield of the FTSE100, the -19.45% yield of the ASX200, and the +19.50% yield of the Philadelphia XAU gold and silver mining index during this same time period. Note that the only two positive yields during 2007 to the end of 2012 were both in gold and silver concentrated indexes and portfolios. At SmartKnowledgeU, we strongly believe that a focus on periodic poor short-term performance of gold and silver assets during times of heavy banking manipulation will always distract investors from the true inner-workings and realities of global financial markets.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 05/14/2013 - 19:28 | 3562671 Element
Element's picture

 

 

"... using a “false” unemployment data release to get the decline started. ..."

I don't see a connective rationale to sell in there. 

And do people even think UE numbers reflect reality? ... foodstamps would be more convincing ... if anyone cared ... but I still don't see a reason to sell.

Tue, 05/14/2013 - 15:07 | 3561759 MeelionDollerBogus
MeelionDollerBogus's picture

My serious contention with the claims here is that -$30/oz in gold is significant. If you want to load up on puts and throw some margin in, sure, but that's a fairly dangerous risk. Manipulation can go both ways & is intended to shake you out no matter the position.

I feel much more comfortable having slv calls to 2015 and gld calls to 2014 and end of 2013 and just sit and wait.

Paper may vaporize but metals are in hand already.

Tue, 05/14/2013 - 13:51 | 3561386 ebworthen
ebworthen's picture

Thank you for the cogent article.

I see buying physical as part of the war against fiat and central bank legerdemain.

Tue, 05/14/2013 - 15:09 | 3560992 MeelionDollerBogus
MeelionDollerBogus's picture

.

Tue, 05/14/2013 - 11:56 | 3560776 jomama
jomama's picture

still awaiting the physical i ordered a month ago, right after the smack down.  here's the message i got after inquiring 'where's my phyzzz?'

 


Thank you for contacting
XXXXXXXXXXXXXXXXXX

Our distribution facility only has so much product on hand. Whenever the market went down the number of orders that we had depleted our stock within it. As of right now we are waiting on a shipment from our long term storage to our distribution facility. Due to the size of this shipment it can not be tracked. They do this for security reasons so that less people know whenever it is in transit. Because of this, I do not have a date that your order will be shipped out. I am sorry for the inconvenience, but we are doing everything that we can to get your order out.

Please feel free to contact us if you have any additional questions.

Sincerely,

 

XXXXXXXXXXXXXXXXX

Tue, 05/14/2013 - 13:32 | 3561255 Agstacker
Agstacker's picture

Where did you order from so we know where not to go?

Tue, 05/14/2013 - 15:14 | 3561784 jomama
jomama's picture

bulliondirect.com.

Tue, 05/14/2013 - 13:20 | 3561199 Conax
Conax's picture

"As of right now we are waiting on a shipment from our long term storage to our distribution facility."

Long term storage facility = a tunnel somewhere in Peru, they are gathering your phyzz even now.

Tue, 05/14/2013 - 12:41 | 3560998 goBackToSleep
goBackToSleep's picture

 

I bought right at the smackdown around 22.50 in the middle of the night on 4/23. I don't think they liked that too much. They're not in the business to lose money when the spot comes up at open.

Dear X - Thanks for your interest in X Metals. We appreciate the opportunity to serve you. We typically ship orders within 3-5 business days after confirmed payment, although most orders are currently taking a bit longer due to the huge increase in order volume we are experiencing. You should see shipment confirmation on this order next week. We apologize for this delay, and are working to ship orders as quickly as possible. Thanks again for choosing X! We appreciate your patience and patronage! Best wishes,

 

no bars yet.

Tue, 05/14/2013 - 13:54 | 3561405 Bay of Pigs
Bay of Pigs's picture

How about providing some names of these outfits so we can refute the trolls and general bullshitting around here of "there are no shortages" anywhere?

Tue, 05/14/2013 - 10:13 | 3560269 IamtheREALmario
IamtheREALmario's picture

Tell me one market that is not massively manipulated. Those who have the power to create and distribute money get to choose what has a high price and what has a low price. There are no free markets ... at least no official ones.

Tue, 05/14/2013 - 09:38 | 3560088 CDNX fan
CDNX fan's picture

I have traded gold since the 70's - it was rigged then and it is rigged now so what's the big whoop?

Tue, 05/14/2013 - 09:16 | 3559967 gmak
gmak's picture

I don't see indisputable proof. I see anecdotal evidence - which gets filed with all other such dubious informtion.

Tue, 05/14/2013 - 11:27 | 3560636 Bay of Pigs
Bay of Pigs's picture

Yeah, like the 400-500 tons of paper gold sold in one day recently.

Dubious information? Are you serious, a troll, or just completely fucking delusional?

Tue, 05/14/2013 - 09:16 | 3559962 russwinter
russwinter's picture

More clues about what happened in the April gold swoon.

http://winteractionables.com/?p=2230

Tue, 05/14/2013 - 09:06 | 3559917 pies_lancuchowy
pies_lancuchowy's picture

'I predicted, with perfect accuracy' 

yeah, and this is why you write blogs instead of hanging in a hammock on Hawaii

Tue, 05/14/2013 - 12:29 | 3560935 Toolshed
Toolshed's picture

What a stupid comment! Is Jamie Dimon Hanging in a hammock in Hawaii? Idiot.

Tue, 05/14/2013 - 12:55 | 3561071 Rory_Breaker
Rory_Breaker's picture

he should be hanging from a lamp post

Tue, 05/14/2013 - 13:07 | 3561131 Vooter
Vooter's picture

In fact, a lamp post in Hawaii would be perfect!

Tue, 05/14/2013 - 09:02 | 3559888 Rustysilver
Rustysilver's picture

If gold is dead, when was the funeral? I missed it.

Tue, 05/14/2013 - 08:11 | 3559688 Vooter
Vooter's picture

Hmmm...sure seems like the CB's are MIGHTY concerned about PM prices! Let's help them out...KEEP STACKING.

Tue, 05/14/2013 - 08:03 | 3559674 smartknowledgeu
smartknowledgeu's picture

Some seem to be taking this post as a self-serving post though it was not meant to be that at all. I sincerely meant to make the point that in a free market, it would be impossible to state three times in one week that gold was going to fall $30 or more an ounce in real time from a much higher trading price in Asia, and then have these events happen in the New York COMEX if Central Bankers were not massively intervening in the gold and silver markets on a daily basis. That was it. Sorry if I failed to make this point as clearly as I desired. Please note the literally hundreds upon hundreds of articles I have posted on my gold and silver blog to educate people about gold and silver price manipulation for almost 8 years now, and note how many of these articles promote my company's predictions that came true. Perhaps out of the several hundred articles posted, there are less than a dozen.

For those that want another view of reasons behind this take down, there truly is no need to spread negativity.  Simply avoid the above posting and please look to this posting from more than 3 weeks ago here! This will provide what you desire.

http://www.smartknowledgeu.com/blog/2013/04/why-the-western-banking-cartels-gold-and-silver-price-slam-will-backfire/

Tue, 05/14/2013 - 12:30 | 3560940 Toolshed
Toolshed's picture

Ignore the morons. They only harm themselves and their peers.

Tue, 05/14/2013 - 10:19 | 3560303 Vooter
Vooter's picture

I didn't take it to be self-serving at all, but then again, this place can be a loony-bin... :-)

Tue, 05/14/2013 - 10:24 | 3560325 Wakanda
Wakanda's picture

Not that there is anything wrong with loons.

Tue, 05/14/2013 - 11:58 | 3560790 The Thunder Child
The Thunder Child's picture

Remembering games and daisy chains and laughs Got to keep the loonies on the path

Tue, 05/14/2013 - 09:03 | 3559897 Tinky
Tinky's picture

No need to apologize, JS. Those of us who have been reading your posts in recent weeks/months/years are well aware of both its quality and intent. Those who were quick to lash out in knee-jerk fashion should be ignored.

Keep up the fine work.

 

Tue, 05/14/2013 - 11:40 | 3560698 The Thunder Child
The Thunder Child's picture

2nd that, your intentions are honorable

Tue, 05/14/2013 - 08:00 | 3559666 BlackSwan7
BlackSwan7's picture

Reddit's just thrown up this link!

http://www.censorbugbear.org/africa/south-africa/why-does-south-africa-need-to-import-gold

Why indeed?

Any guesses?

 

 

 

Tue, 05/14/2013 - 10:20 | 3560305 DeadFred
DeadFred's picture

There is believable speculation that most of the gold the Fed has (if not tungsten) is melt down coins from Roosevelt's years. They may feel a need to purify that gold to, let's say, send to Germany or for upcoming delivery. With declining gold production South Africa may have excess refining capacity. Disguise it as a sale and later repurchase and there is plausible deniability about the quality of the Fed's gold holdings. If correct you should see a surge in gold sales in coming weeks/months. Maybe even enough to cover Comex deliveries. If one were paranoid one might expect those South African exports to line up with JPM's coffers being replenished. But this is all paranoid speculation on my part.

Tue, 05/14/2013 - 07:38 | 3559622 FullFaithAndCretin
FullFaithAndCretin's picture

Website is hanging lol

Tue, 05/14/2013 - 07:24 | 3559609 Downtoolong
Downtoolong's picture

You don't buy gold and silver because it's manipulated. Obviously that's part of the penalty for owning it. You buy PM in spite of manipulation for the day that the manipulators fail and can't manipulate anymore. It’s  like insurance against a financial market catastrophe of biblical proportions. I'd rather own a little physical gold and silver if and when that day comes than keep paying for S&P put option teenies along the way, which would only be settled in worthless cash anyway.

Tue, 05/14/2013 - 12:45 | 3561019 MeelionDollerBogus
MeelionDollerBogus's picture

penalty? When I want to buy it the price goes down and I know it can't stay down.

Eventually when I want to exchange this tangible for other tangibles the purchasing power will be restored because the manipulation is self-defeating. I can't complain

Tue, 05/14/2013 - 10:27 | 3560336 Vooter
Vooter's picture

Exactly...you should be buying physical out of SPITE. And if you're having any trouble understanding that concept, just watch this clip once a day:

http://youtu.be/PZGS6N3zG4o

Tue, 05/14/2013 - 07:33 | 3559617 new game
new game's picture

dude, every chart was screaming sell at 32, then even louder at 30-so i sold against my will.

shipped it to nucleo exchange and cashed out jit, took profits like a good investors do and now wait for re entry.

still pisses me off i didn't unload at 32-oh well...

my gold sits at the bottom of the lake, where it stays until the will is opened for my wife or sons to enjoy...

unless, of course, the wheels come off the wagon.

Tue, 05/14/2013 - 11:19 | 3560599 Bay of Pigs
Bay of Pigs's picture

Charts? LOL...yeah, that's the ticket. Moar charts. 

Tue, 05/14/2013 - 07:05 | 3559587 apberusdisvet
apberusdisvet's picture

Patience is the key.  We are already past both peak gold and silver as the drastically declining ore grades over the last decade attest.  While FED shills like Christian proclaim greater future production, it is far more likely that global production will continue falling unless the price at least doubles.  It's all about supply and demand, and given the heightened demand (by the tonne, no less <CBs, Dubai, India, China>), you have to wonder where the supply will come from.

Tue, 05/14/2013 - 07:01 | 3559579 Papasmurf
Papasmurf's picture

Is that you,  Reggie Middleton? 

Tue, 05/14/2013 - 07:15 | 3559601 Fuh Querada
Fuh Querada's picture

"Is it you, John Wayne, is it me?"
(movie quote)

Tue, 05/14/2013 - 06:52 | 3559564 new game
new game's picture

lets agree, the price is manipulated. so why would i buy any shit when it is manipulated? to see it further manipulated? to get frustrated? i'll sit this one out along with stawks and any thing else...

but, i am waiting for the bottom, and trust me we got some more downside to come, because the manipulators got unlimited reserves - billions in naked shorts in the tool box. why would i fight that? to average down-no thanks, but good luck til we meet at the mine shaft bottom...

Tue, 05/14/2013 - 12:53 | 3561057 MeelionDollerBogus
MeelionDollerBogus's picture

gas, corn, oil, land prices, even what's IN the DNA of your food plants & animals is now manipulated. By all means if you can find a way to buy/use only what is not manipulated... all the power to you. Good luck

Tue, 05/14/2013 - 08:14 | 3559700 Vooter
Vooter's picture

"but, i am waiting for the bottom"

Oh, yeah? Waiting for what? To pick up some physical? LOLOLOLOL! Good luck--you're gonna need it...

Tue, 05/14/2013 - 09:45 | 3560133 Imminent Crucible
Imminent Crucible's picture

"I am waiting for the bottom"

...which you will not recognize until it is FAR back in the rear-view mirror.

I have never yet met anyone who was consistently able to mark tops and bottoms, except in retrospect, and I've been watching this game since the 1970s. I doubt you're gonna be the Miracle Kid. I'm not attempting to trade this market. The only sane strategy is:

1. Accumulate

2. See #1

3. Ignore the paper prices: watch the premiums to spot.

 

Tue, 05/14/2013 - 12:57 | 3561077 MeelionDollerBogus
MeelionDollerBogus's picture

FOR 2 years I did it, only this recent drop and one smash up blipped out of the bands. flickr, goldpricemodel

Tue, 05/14/2013 - 07:51 | 3559633 Doña K
Doña K's picture

They have unlimited reserves, but the physical oz's in existence are finite. Therefore, it is a dangerous game because a small whiff that physical is not available will send the price to the moon no matter how much money they spend to short. 

Tue, 05/14/2013 - 07:55 | 3559657 fonzannoon
fonzannoon's picture

we have long passed the small whiff phase. It is now a giant smelly fart that everyone in the room is trying to ignore.

Tue, 05/14/2013 - 20:03 | 3562728 Element
Element's picture

fonz,

Like the author said, gold is a long-term store and hold. Anyone who's psychology is tossed about by short-term moves in gold really should sell, because such disturbance means one thing, they can not afford to loose, even short-term. They leveraged too late and too high. Otherwise, who in their right mind is going to sell at this point? Not the person who has enough money to absorb short-term losses that's for sure. The way I look at it, if you buy gold, then psychologically tell yourself that you'll probably lose most of that, and forget about it, but you'll still have something when you need it, you just don't know what it'll be. It only matters what the price is years from now.

Do you have a reason/need to sell soon? Hopefully not. If no, then forget about the gold price, it shouldn't matter to you.

Tue, 05/14/2013 - 11:35 | 3560671 quasimodo
quasimodo's picture

And a damn fine job of igorning it indeed. It's more like the stench of a rotting corpse, and yet still it lingers in the room. 

I must say there are times I wonder what the heck it actually take for the price of metals to get an instant boner, one so noticeable that you can't ignore it. You know, the nerdy kid in gym class who got a hard on when an upper classmen girl was helping out that day? THAT is the kind of boner I refer to, yet here it sits in limpville.

 

Tue, 05/14/2013 - 08:52 | 3559839 SmallerGovNow2
SmallerGovNow2's picture

LMAO fonz...

Tue, 05/14/2013 - 06:55 | 3559571 fonzannoon
fonzannoon's picture

"lets agree, the price is manipulated. so why would i buy any shit when it is manipulated? to see it further manipulated? to get frustrated?"

BINGO.

As for this big move between paper and phyz.....I can go out today and buy phyz pretty much anywhere. So are we all deluding ourselves just a bit?

Do NOT follow this link or you will be banned from the site!