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Indisputable Proof Paper Gold Markets are Massively Manipulated
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.
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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.
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if phys silv is 20 percent prem and gold is 5 percent for amer eags at 23.4 and 1425, build a case that the premiums will rise as price falls(manipulated). That is all we are discussing, that is if you are thinking about adding or buying a first alotment. if you own, down arrow time. otherwise it dont look good on the price front, at least for now. the manipulators are taking this down by paper and adding phs and cashing out on the premium. both ways. pisses me off too. read this...
http://www.paulcraigroberts.org/
the basterds!
@link
"Kranzler points out that not only does the Fed’s manipulation permit Asia to offload US dollars for gold at low prices, but the obvious lack of confidence in the dollar that the manipulation demonstrates has caused wealthy European families to demand delivery of their gold holdings at bullion banks (the bullion banks are essentially the “banks too big to fail”). Kranzler notes that since January 1, more than 400 tons of gold have been drained from COMEX and gold ETF holdings in order to satisfy world demand for physical possession of bullion.
Again we see that institutions of the US government are acting 100% against the interests of US citizens. Just who does the US government represent?" pcr
A seven sigma event in the price of gold that we had on April 15th can be expected by random chance once in every 7.76e+11 days. Or it can be expected once in every 3,105,395,365 years of trading.
That is all the proof you need to know that the gold market is manipulated.
Chances someone winning the lottery can be 1 in 300+ millions, yet people constantly win it.
What assumptions about distribution are made for this?
Given the charts you're looking at are fx type charts with paper pricing, not purchasing price of goods, and considering forex is always manipulated, is strongly tied to rigged bond markets and rigged LIBOR, to consider these charts, prices, histories, to be anything but manipulated would be naive.
Such a calculation relies on the market behaving according to some known statistical distribution.
If either of us could accurately predict the market, even in a statistical sense, we would both be rather richer than I suspect either of us actually are.
Personally, I've seen bubbles and busts rather more frequently than every 3mm years. The only thing against a gold bust is that I did not see retail in at the very top...but cb's apparently were (largest buyers in 2012), so maybe counts the same.
Certainly, the recent stories of 'premiums' for prompt delivery of _small lot_ items suggests heavy retail involvement now.
Further, the endless conspiracy theories about a possible Comex failure: If you think 'paper prices' are too low, buy one future and let it go through to delivery. Either you get your physical gold at what you presumably think is a good price, or you get real hard evidence of a problem, not another sad theory.
If the Comex did fail, my guess the underlying problem would not be some deep dark conspiracy, but a simple but massive cock-up.
standing for delivery at comex is a good way to have the casino thugs trail you and bust your kneecaps if you are not a big player who is on the list. Not a safe endevour. They are a casino not the gold store.
for 2 years you could have been using http://flic.kr/p/dQ9ops ">this or this. It's not working now... sorry. The big drop down pushed out of bounds, the physical buying also was somewhat unexpected but welcome news.
Probably doesn't help that I sent the predictive charts to the BernanQE on twitter with a dare to drop the prices to 1200.
Sorry guys, I wanted a discount... I got it.
true, but using sigma multiples to calculate probabilities is invalid when the distribution of returns is not random Gaussian or log-Gaussian.
If the Gaussain assumption leads to a 1 in trillion chance then it is a very highly unlikely event no matter what random probability distribution you use.
You are right again. I would just note that a manipulation is not a random event, which would put it outside of statistical prediction whatever the underlying distribution.
(in statistics of quality control, one major section is the difference between random and systematic errors)
Random can become systemic, and vise versa.
That is exactly the point - manipulation is not a random event. If it were a random event, it would be very, very unlikely to occur.
So since that event occurred, you can say it was manipulation with a very high degree of certainty
Do you have any guesses as to why The University of Texas felt it was worth the risk to sell 375 mil of physical and buy futures contracts? I agree with your advice not to sell physical. I just find it interesting that they went for it.
Since we all seem to agree that the gold market is manipulated, why should we ever expect it to rise again?
Gold bitcoin
A lot of us @ ZH have been theorizing what the real reason for the PM push down. Last week, I heard a new angle and please give your comments.
I walked into a coin shop and after some small talk I asked the dealer point blank why in his opinion gold prices went lower. The dealer’s surprising answer was that physical gold sales were dropping and they (I don’t know who he meant) wanted the price lower knowing that people will jump in and sales will go up.
Is “they” the mints, the governments of PM producing countries, the mining companies or central banks?
I do not dismiss anything and I am not sure what to make about this angle. Was he saying indirectly that this is a good opportunity? Was he saying that physical gold sales are important to someone?
Does this smell like a different conspiracy theory or fact other than we have heard so far?
my two cents: physical gold sales are important
In the Old World, particularly in Asia, there is a price sensitivity that differs completely from the modern trader's and speculator's approach
barbaric, like the opposite, i.e. buying gold because of a wedding or a child's birth
this does of course not dismiss any speculations about why, though I have to note that after 10y of bull run it's not uncommon for strong hands to test how weak most are... and profit from that
btw my sources say that even the survivors are still quite weak and praying margins don't go up
Dona K who is they and why would they want to spark you and me to use our money to buy gold instead of spending it in the economy? Also if they wanted people to go buy more, why would they follow the knockdown with a 24/7 media blitz, including even Jon Stewart, telling everyone that gold is dead?
Not sure. this was in Johannesburg last week.
The South African platinum miners reported expenses to be $950 per oz. due to higher labor rates and lower productivity.
BTW. new game's comment further down linked this which fits in a bit with the dealer's comment
http://www.paulcraigroberts.org/
TOOT, TOOT Is that your own horn you are blowing? How much do you pay to post your drivel on ZH?
how much did they charge you to read it?
You too...
go away
Fuck off
LOL! Go buy a newsletter. I hearr zero hedge readers get a discount.
If your predictions are so accurate, why do you need clients?
"The investment advisor with a perfect record will fail as soon as you act on his recommendations"
Harry Browne, 1985
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 I just jerked off before typing this, or
(3) that my mom says I have to come upstairs and eat breakfast now.
All GLD and SLV shares are counterfeit.
Except JP Morgan and friends "make" the SLV and GLD market, not fundamentals, central banks, or economic reality.
Since the spot price is based on a false paper price, it does not apply to physical metal.
Paper money is not money, it's currency. Like the current going away, paper loses it's value overnight. The people are then left with nothing and the currency printers are left holding all the wealth.
Investing in metal is one of the only ways of preserving your hard earned wealth. Since now is a good time to buy, buy.
One day Chin went to the Bank to exchange his Dollars for Yen. A week later he returned for the same, yet he recieved less. Confused, he asked the teller as to why that was. "Fluctuations", replied the teller. "Fluctuations?" asked Chin. Infuriated, Chin expodes "no fuck you asians, fuck you white people"
Why are you replying to yourself? Why don't you just edit your comment (which you can do until it receives a reply)? Looking for hits to your username? Jeez.
Sorry... I guess I'm just more irritable than usual. Nothing worse than an annoyed coon.
careful... rasicm policy