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"Stop Logic" Gold Slam Was So Furious It Shut Down CME Trading Again

Tyler Durden's picture




 

It was precisely a month ago when, in "Vicious Gold Slamdown Breaks Gold Market For 20 Seconds" we wrote:

There was a time when, if selling a sizable amount of a security, one tried to get the best execution price and not alert the buyers comprising the bid stack that there is (substantial) volume for sale. Of course, there was and always has been a time when one tried to manipulate prices by slamming the bid until it was fully taken out, usually just before close of trading, an illegal practice known as "banging the close." It appears that when it comes to gold, the former is long gone history, and the latter is perfectly legal. As the two charts below from Nanex demonstrate, overnight just before 3 am Eastern, a block of just 2000 GC gold futures contracts slammed the price of gold, on no news as usual, sending it lower by $10/oz. However, that is not new: such slamdowns happen every day in the gold market, and the CFTC constantly turns a blind eye. What was different about last night's slam however, is that this time whoever was doing the forced, manipulation selling, just happened to also break the market. Indeed: following the hit, the entire gold market was NASDARKed for 20 seconds after a circuit breaker halted trading!

Moments ago it just happened again. As part of the already noted massive gold slamdown just before 9 am Eastern, when "someone" sold an epic 2 million ounces of gold in one trade, the CME just went dark for 10 seconds, blaming it on an appropriately named "stop logic" event.

What is Stop Logic? Basically, it is a the mother of all stop hunts, which takes out the entire bid stack and continues until such time as there is absolutely no liquidity left in the entire market! From the CME:

Stop Logic detects potential market movements caused by the triggering and trading of Stop orders where the resulting price move would extend beyond an exchange specified threshold.

 

The triggering of Stop orders can potentially exaggerate price movements in temporarily illiquid markets. When triggered Stop orders attempt to move the market to an executing price beyond a pre-established value, a Stop Logic event occurs. Stop Logic detects these situations and responds by placing the identified market in a Reserved state for a predetermined period of time, usually 5 to 10 seconds, depending on the instrument. During the Reserve period, new orders are accepted and an Indicative Opening Price (IOP) is published, but trades do not occur until the Reserve period expires, thereby providing an opportunity for participants to respond to the demand for liquidity. At the end of the Reserve period, the instrument will re-open and matching will resume.

 

When a futures contract designated as a lead month contract experiences a STOP Logic event, associated options markets are paused and Mass Quotes canceled.

 

Stop Logic will not prevent markets from ultimately moving in the direction of the order flow, but allows time for liquidity to enter the market so that new orders can be matched against the triggered stop order(s).

Of course, the liquidity we re-enter at a time when the prevailing price has been reset substantially lower on what is basically a "banging the open" type of event, or in this case market open, when one or more traders attempt to generate the well-known "momentum ignition" event so known to HFT algo manipulators everywhere.

The chart below from Nanex show precisely when and how the trading was stopped for 10 seconds in the aftermath of the furious sell trade.

So what is an investor who believes this was manipulative trading to do? Well, nothing. Recall that the ever helpful Bart Chilton already made it clear that commodity (read precious metal) traders are on their own because, as a result of the furlough, the regulator simply incapable of doing anything.

From: Chilton, Bart <BChilton@cftc.gov>
Date: Tue, Oct 1, 2013 at 9:32 AM
Subject: Re: Today's Smackdown
To: XXX@XXX

 

No regulators looking at markets due to government shut down.

 

B

 

NOTE: Ponzimonium: How Scam Artists are Ripping Off America, is now available in a FREE EBOOK edition. Go to the link for your copy and a Government Book Talk interview: http://govbooktalk.gpo.gov/2013/09/03/post-ponzimonium-an-interview-from-the-front-lines/

* * * 

 

From: XXX@XXX
Sent: Tuesday, October 01, 2013 09:16 AM Eastern Standard Time
To: Chilton, Bart
Subject: Today's Smackdown
 
Commissioner Chilton,

 

Any comment on this morning's shenanagins in the gold and silver pits?  Time to reopen an investigation?
Is credibility important to the CFTC?

 

Regards,

 

XXX

Expect market halting gold trading dumps to continue indefinitely, and certainly for the duration of the CFTC's "shutdown", which of course is helpful to those, like China, who continue to convert increasingly more diluted fiat into hard stores of value.

 

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Fri, 10/11/2013 - 09:54 | 4044782 Cognitive Dissonance
Cognitive Dissonance's picture

I always sell my precious assets all at once when there are few buyers around. Preserving capital is so over rated.

Fri, 10/11/2013 - 09:56 | 4044799 SWRichmond
SWRichmond's picture

If you don't hold it you don't own it.

Sinclair warned about "trading" long long ago.

Fri, 10/11/2013 - 09:58 | 4044821 achmachat
achmachat's picture

I send a heartfelt warm fuck-you to Gary Gensler and Bart Chilton!
there is no definitive proof of manipulation my ass! 

Fri, 10/11/2013 - 09:59 | 4044829 Arius
Arius's picture

i do not get the point really ... it only subsidies the buyers at low prices at the expense of Joe Sixpac ....

 

otherwise all that nonse of gold being a barometer , canary etc. is just nonsense;

anybody who is anybody doenst need a thermometer to see the patient is dying, all you got to do is to look at how much printing is going on and you dont need gold or bonds to tell you that

Fri, 10/11/2013 - 10:00 | 4044836 Max Hunter
Max Hunter's picture

I smell smoke.. still..

Fri, 10/11/2013 - 10:02 | 4044855 nope-1004
nope-1004's picture

Currency war, plain and simple.  ANY USD alternative will be slammed until a change in trade settlement, Petro dollar reserve, or bankruptcy occurs.  Seems rather logical.

 

Fri, 10/11/2013 - 10:05 | 4044870 Sweet Chicken
Fri, 10/11/2013 - 10:18 | 4044935 BaBaBouy
BaBaBouy's picture

PHYSICAL BITCHES !!!

Fri, 10/11/2013 - 10:21 | 4044968 eclectic syncretist
eclectic syncretist's picture

Why can't the NSA find and stop these terrorists?

Fri, 10/11/2013 - 10:24 | 4044979 SilverIsKing
SilverIsKing's picture

First 'stop logic' event was in 1913 and the second was in 1971.

Fri, 10/11/2013 - 10:30 | 4045016 BaBaBouy
BaBaBouy's picture

"" Why can't the NSA find and stop these terrorists? ""

 ... A Job For BATMAN ...

Fri, 10/11/2013 - 10:42 | 4045042 eclectic syncretist
eclectic syncretist's picture

Anyway, it took a sale of 70 tonnes to bring the price down what, 1-2%?  Soon they'll need to sell 1,000 tonnes worth of paper gold at a time to keep this charade up

Fri, 10/11/2013 - 10:44 | 4045047 synergize
synergize's picture

Exactly!  Gold prices dropping yet COMEX inventories (http://seekingalpha.com/article/1730402-weekly-comex-gold-inventories-go...) not growing andminers cutting back - someone desperate to get others to sell gold...?

 

--------------------

If you are fed up with whats happening with the government - it all stems from one major thing: the government's control of our money.  We have placed in our government the ability to control the money supply and dish out new money to whomever they please (usually their cronies and the banks) and to spend and create that money in infinite amounts to SUPPRESS we, the People.

To break this system we have to bring back real money and thus limit government control over money and our lives.  We can break the system by overwhelming the physical markets and give a no-vote to their control over money - they key is the small silver market.

Join the Silver Pledge - an effort to change the system by having investors join up and buy physical silver - together we can break this market and take back our government.

You can read more here:

http://www.communitysynergy.com/subscribe/silver_pledge_site.html

If you dont like it dont sign up - but for people who are sick of sitting and doing nothing at least lets work together to BREAK this silver market

Fri, 10/11/2013 - 10:54 | 4045069 mick_richfield
mick_richfield's picture

Hear, hear!

If they can force fiat money upon us, they have all power and your votes have no effect.

It's as inevitable as gravity and thermodynamics that people who can create fiat currency at will must control the society completely.  Next time you get pissed off about a politician, try to remember that you have been hypnotized.  Watch the people who create the money -- they are the only powers.

State-money is the root of our enslavement. 

Strike the root.

 

 

Fri, 10/11/2013 - 11:02 | 4045103 Stuart
Stuart's picture

Shareholders of gold companies need to revolt against their management and demand that they will no longer abide by the paper prices for delivery of their gold and set their own price.  It's a tough, tough business.  That would require management of gold companies to get their heads out of their asses, grow a pair, basically wake the fuck up and open their closed eyes to the abusive attacks being waged against them.    Basically stand up for their companies and shareholders and say FU to the exchanges that enable and/or are complicit in the paper price manipulation/attacks and they will no longer deliver to the COMEX or any bullion bank.  Anyone who wants real physical gold needs to buy directly from the gold company.   They need to price independent of the paper gold markets.   BUST the COMEX!   

Fri, 10/11/2013 - 11:42 | 4045262 Pinto Currency
Pinto Currency's picture

 

the lbma and comex gold and silver markets have become visible frauds for all to see so they are going to be ignored

 

right now we have distribution of gold to purchasers - and daily silly price action is being ignored

 

thr fake london and new york gold markets are going to be replaced by moscow, shanghai, singapore where actual gold trading will occur

 

Fri, 10/11/2013 - 14:14 | 4045963 Rubbish
Rubbish's picture

Why fight it? I want cheap PM's to buy moar.

 

I could care less the price for 3 1/2 yrs.

Fri, 10/11/2013 - 11:06 | 4045126 synergize
synergize's picture

@Mick - EXACTLY!  Gold/Silver aren't just investments they are a way to take back the system.  You give them control of your money and you give them control of everything.  I'm buying more to break this system!

Fri, 10/11/2013 - 11:34 | 4045226 FreeNewEnergy
FreeNewEnergy's picture

That "silver pledge" websie is probably a government front. One million people buying five ounces a month is nothing. I'd wager there is triple that volume bought and sold on ebay in the same time frame, maybe more, possibly much more. It's a huge, active physical market and premiums have been anywhere from 20-40% for months now, since the big whack-down in March or May, I think it was.

Singing up for anything these days that is in opposition to the federal government's main aim to destroy the US and global economy is just plain stupid. When the SHTF, they'll have your name, address, email info, etc. and will be coming for your multiples of five ounces.

Fuck this shit. I have enough silver for now and generally, it's not a good investment, so long as the ponzi and manipulation are allowed to continue. I think a serious crash is coming and all the silver in the world - which will be worth much less than it is today, BTW - isn't going to help anybody. Food. Food. Food. 

Mon, 10/14/2013 - 14:55 | 4053380 MeelionDollerBogus
MeelionDollerBogus's picture

yup. I can use some silver for medicine, some for electronics but if I'm overburndened by weight I won't be able to run with it & sell it all inneed. With food there's barter & consumption in a more available manner than silver, though for weight I'd have to balance it vs silver for later trade purposes - a difficult guesstimate but necessary to try.

That's why primarily for stored purchasing power in metals I'm with gold. I don't care that silver is fiat exponential relative to gold: what I care about is I can run with a lot of it in purchasing power not nearly as burdened as a box of silver maples.

Fri, 10/11/2013 - 11:44 | 4045254 Gazooks
Gazooks's picture

not exactly. 

 

one shouldn't think so much 'invest' in metals as the exchange of a politically contrived instrument of debt-enslavement for a liberating universal instrument of actual physical value

holding metals should be considered an act of defiance to systemic corruption by pervasive political evil

we don't need to 'take back' what isn't ours, rather reestablish what actually is ours

 

honest exchange by purity and weight of value for value

Fri, 10/11/2013 - 11:22 | 4045200 blindman
blindman's picture

we do not have "state" money. we have private federal reserve
notes and "state" treasury bonds as base money in a fractional
reserve system which is privately operated and state
sponsored, the worst of both worlds! the devil is in all
the devilish details and condemning the "state" as the culprit
releases and relieves the guilty private parties from their
actual responsibility. granted, even the individuals are
abstractions and mere legal "persons".
and the forms of enslavement are many and removing one
so identified does not guarantee or even suggest liberation
if you have not correctly identified the problem at the
source.
just saying there is more to it than mere condemnation
in such a sweeping manner if you actually think about it.
watch for the straw man incrimination while the guilty
disappear with all the money! it is control fraud and
become institutional at nearly all levels public and private.

Fri, 10/11/2013 - 11:37 | 4045240 mick_richfield
mick_richfield's picture

Ah, that's a good point.

I usually think of the Fed -- and their masters -- as the State, since they are the only real power in the Subjugated West.

I think of the State as a two-stage thing: the real powers, and the puppet-show for kiddies.  Instead of bread and circuses to keep the masses docile, EBT cards and political campaigns.

I guess step 1 of the liberation is to make as many people as possible see that the political game is a deliberately constructed false polarity:  90% of all people get drawn to one side or the other -- but that's the wrong polarity.  Then the Matrix has you.

They have us pointing at each other, when we should be turning our gaze upon our real enemies.

 

Fri, 10/11/2013 - 12:50 | 4045620 blindman
blindman's picture

right!
the problem has become extremely complex
yet visible to the naked eye.
(here ignore the heart stopping, mind boggling
horrible and beautiful
idea of digital money)
money must resonate with at least the two
parties involved in transaction. two
entirely? different individuals must share
something concerning the perception of the
value of the instrument in the transaction.
so what is perception? gold? value? language?
time? the state? it is a complex, complex.
.
today,
the state appears as the enforcer of the fraud perpetrated
by the private slave master is the way i think
about it. has been hijacked by the money interest
and financialised in desperation all aspects of life.
the results are dystopic for the vast majority of
living things , not that there are no qualities
derived but one might ask what is the price,
what has been lost or ruined?
the state is supported and created to
protect the rights (in some cases and states) of the individuals
from tyrannic trampling, it is not constructed to
become an instrument of enforcement for greater
tyrants! when it becomes compromised the founding
documents call for revolution, amendment, dissolution
or succession. then a particular state is done with
and invariably a new emerges from the ashes but, what
was it that destroyed the old state of things?
.
the people which, in a republic, are the state!
the state is plural in that it only exists in the
mind/s of a collection of individuals. shared mentality,
language/s, laws, sentiments ..etc. and money, legal tender.
.
if there is to be fiat and fractional reserve money i
think it must be state money or treasury notes and
could exist side by side with private hard asset money
or p.m.. but, private markets would/have leveraged
that to create credit money too/ the derivative market
was a private domain creation on the back of the state
sponsored bond market. now, no one knows what anything is
worth in any market. we know the cost of everything but
the value of nothing (someone said it).
.
so, there are babies and bathwater and we seek
a standard to tell us which is which.
someone said that the standard is, for better or worse,
always gold due to physics, parochial principles and the
marriage of the two. oh, the marriage is gold
itself.
anyway poems *t

Fri, 10/11/2013 - 13:23 | 4045758 blindman
blindman's picture

#
beyond that you can't see it, hold it,
touch it or eat it, never mind i don'
think you can even smoke it;
the problem with digital money is that it
demands surrender of the human mind,
the individual,
to the machine,
virtually and literally.
the hardware and software offering thru the mind
of god to the highest bidder and then it is gone.
.
a can of philosophical worms
and infinite opportunities,
the power over world altering
creation, recreation and representation
from god to the highest bidder
and then gone.

debt slavery and beyond the
chicken coop/soup, into the fire!

Fri, 10/11/2013 - 19:05 | 4046709 Againstthelie
Againstthelie's picture

Correct, the financial regime is ruling, not politics.

Good to read a sane voice among all this libertarian BS against the "evil" state behind all this, although the money masters have taken over the state a long time ago. It's a Plutocracy.

Only a strong state can establish the primacy of politics and therefore remove the money masters from power, not a even weaker state with even weaker politicians. How weak should politicians become? Isn't it enough, that they are weaker than the mass media conglomerates? Isn't it enough, that mass media determine what is allowed as free speech? Libertarians want an even weaker state! What sane person can see it as progress, if the money powers and their mass media would have even less to fear?!

Fri, 10/11/2013 - 14:13 | 4045959 TheRedScourge
TheRedScourge's picture

If you take away the state, you take away the big escalator with the sign in front of it which says "Free Evil!" which sociopaths use to get to the top. If you want to kill a tree, you must strike the root not the branches. We can't stop sociopathy without revolutionizing parenting, but we can stop incentivizing it and cut down institutions which incubate it and seed hatred, depression, and anger, like the public schools and the welfare state. Within a few generations if we starve it out, the parasite dies.

Fri, 10/11/2013 - 18:38 | 4046687 Againstthelie
Againstthelie's picture

We do not have state money, this is private bank money!

Private banks create the money by people making loans.

And state money is also not slavery, but INTEREST SLAVERY is slavery.

There can be interest free state money, too.

And without a state you couldn't even go out of the street. An open window in a summernight? Forget it. A judicial system? Not there! Police! Not there!

And last but not least: this is a regime of the money masters, it's a PLUTOCRACY.

The only way to stop this, is a STRONG state and politicians that fight the plutocrats instead of political actors playing roles.

 

Fri, 10/11/2013 - 12:21 | 4045470 TheReplacement
TheReplacement's picture

To break the system we have other options than just buying silver.  We can stop paying taxes.  We can stop buying things from corps.  We can stop using big banks.  We could just march on and burn DC and NYC and hang all of the criminals, after a fair trial of course.

Go ahead, keep buying silver. 

Fri, 10/11/2013 - 11:51 | 4045300 rogeliokh
rogeliokh's picture

NO, dude your calculation is wrong 1000000 oz * 0.311 (troy oz in kilo) = 311000 Kilo= 311 T

So 2 Mil OZ = 622T roughly 10x your guess :) So Yearly Gold supply is 2690, Somebody

Just dump 1/4 of total yearly GOLD supply and Price went down $20 :))) Keep dumping, Crooks.

Fri, 10/11/2013 - 12:51 | 4045627 mick_richfield
mick_richfield's picture

It's 32.1 toz per kilogram, so 2000000 / 32.1 ~= 62,000 kg == 62 mt.

Fri, 10/11/2013 - 10:47 | 4045050 scatterbrains
scatterbrains's picture

Why  don't they slam oil at 3:00 am in thin volume.... maybe give us niggas in the streets a break on our gas bill? 

 

Fri, 10/11/2013 - 13:31 | 4045794 quasimodo
quasimodo's picture

Yeah, so those dumbfucks can drive the gas gulping SUV's even more. Actually not a bad idea, might bring this bitch down a little sooner?

At least we know things get cheaper as gas goes down right?

 

Well?

Fri, 10/11/2013 - 14:18 | 4045965 TheRedScourge
TheRedScourge's picture

Burning fossil fuels is better than burning trees at least. If we lived like that, the earth could only support about 1/10th the current population.

Fri, 10/11/2013 - 10:41 | 4045045 HardAssets
HardAssets's picture

Dont forget Nov 22, 1963.

Fri, 10/11/2013 - 10:27 | 4044972 BaBaBouy
BaBaBouy's picture

.

Fri, 10/11/2013 - 10:14 | 4044928 Arius
Arius's picture

may be you are correct, it stares you on plain view ....

actually i have been watching the change in price and it corresponds to certain level of the euro exchange to the dollar ... i always thought was not about gold but about the exchange dollar and euro and perhaps other currencies.

that would explain, the hedge funds on foregin exchange being carried out in stretchers ...

Fri, 10/11/2013 - 10:27 | 4044991 SilverIsKing
SilverIsKing's picture

EURUSD went from about 1.3565 to 1.3560 when gold was slammed down at 8:40am this morning.

Is that what you are basing your assertion on?

Fri, 10/11/2013 - 10:48 | 4045059 Arius
Arius's picture

no, on observation over months.  fex. the line for gold seemed to have been around $1330 and 1000 Euros.  even if gold went higher in dollars (1360, 1370) the exchange rate would change so always gold was under 1000 in Euros.  The 1000 euros seemed to have been a more important level

Fri, 10/11/2013 - 11:49 | 4045283 FreeNewEnergy
FreeNewEnergy's picture

My most basic indicators are the price of corn, corn in relation to silver, and the combined new highs-new lows on the NYSE and NASDAQ. Lately, despite yesterday's completely contrived equity rally, they'll all been bearish, and deflationary.

This is the Fed's conundrum and why they must continue to print and not taper. They cannot stop deflation. Tried for five years and can't do it. Forget about the price of gas and food. Look at housing, basic, low-end housing. Still down in many areas of the country. Sure, it's up according to the "official" statistics, but it is going to go lower, because stuffing the 1% with all the money doesn't stop deflation for the 99%.

Since price discovery is all but destroyed in just about every commodity and sector, you have to improvise. I've seen significant sales on canned goods, poultry and, of all things, coffee, recently. Food continues to be super cheap, also somewhat dependent on what you buy and where you live, but the deflationary spiral cannot be stopped and it all ties together with the government shutdown and debt ceiling fiasco. They're fucked and they know it. They just don't know how to get out of it. After five years of trying in vain, that, at least, should be obvious.

Corn, for what it's worth, was what Adam Smith used as a basic guideline for everything, real price, nominal price, money price, discounted presnt value, etc..

Fri, 10/11/2013 - 13:01 | 4045660 akak
akak's picture

Clearly you do not pay any utility bills or do your own grocery shopping, or you would realize that your so-called "deflationary spiral" is just a figment of your fevered imagination.

No fiat currency system in history has ever died in deflation --- they ALL died via currency collapse and/or hyperinflation.  The notion that the printable-at-will fiat currency of a bankrupt nation will suddenly begin to radically APPRECIATE in value is both historically ignorant and utterly laughable.

Fri, 10/11/2013 - 14:26 | 4045984 TheRedScourge
TheRedScourge's picture

That might be true if not for the fact that these fiat currencies are debt based now. Every time someone takes a loan, 90% of that is used as assets for a bank to make another loan to someone else, and so on and so forth. If all the debts start to default, or people start paying them off, the monetary base suddenly shrinks. They're trying to expand the monetary base incase that sort of thing happens, probably because they expect it to, or perhaps because they think they can turn the sentiment by driving the markets up with these new dollars. Unfortunately, every further dollar they create is having less and less of the sort of manipulatory effect they desire. If they print too rapidly they destroy the currency; if they print too slowly the credit markets seize up and it all turns to shit. They're trapped between a rock and a hard place.

Fri, 10/11/2013 - 15:29 | 4046180 akak
akak's picture

When have fiat currencies ever NOT been debt-based, whether explicitly or implicitly?  And PLEASE don't give me any of that Bill Still swill about the supposed beauty of Lincoln's greenbacks --- ALL fiat currency fundamentally represents an inherent theft from the population at large.

Fri, 10/11/2013 - 10:15 | 4044943 PP
PP's picture

if you can't stop those manipulators in the "market", you can stop them in real world, e.g. shot them dead, burn their building, rally, revolution, etc...

Fri, 10/11/2013 - 10:45 | 4045052 Max Hunter
Max Hunter's picture

If an entity held 1 or 2 trillion of US debt, and the sUS is printed and extra 1 or 2 trillion a year, and getting no growth, at what point do said entity take losses?

Fri, 10/11/2013 - 10:06 | 4044861 Manthong
Manthong's picture

Bart has been impotent (in more ways than one) from the get-go.

..stand and deliver (in more ways than one).

Fri, 10/11/2013 - 10:26 | 4044995 SilverIsKing
SilverIsKing's picture

Bart should write a book.

It would go something like this:

Fri, 10/11/2013 - 10:17 | 4044947 astoriajoe
astoriajoe's picture

smoked muppets I suspect.

Fri, 10/11/2013 - 10:15 | 4044946 sumo
sumo's picture

" do not get the point really ... it only subsidies the buyers at low prices at the expense of Joe Sixpac"

 

That is the whole point, precisely. The deal is that China keeps holding T-bills, but in return the Fed makes gold cheap for PBoC and SAFE to buy, in preparation for the next monetary system which involves gold to some extent.

The Fed "wins" by making Gold look less desirable than the dollar, and keeping the petrodollar game going, until all the Central Bankers agree on the next system. SDRs, maybe?

Remember when Warren "Wells Notice" Buffett was moving to corner the Silver market, and how quickly TPTB put a stop to that? There is no way that the present-day drain of gold, flowing to Asia, runs counter the the Fed's plan. All this is orchestrated and approved by the Fed, to bribe China.

Fri, 10/11/2013 - 10:18 | 4044948 sumo
sumo's picture

dup

Fri, 10/11/2013 - 10:35 | 4045006 HardAssets
HardAssets's picture

Perhaps Joe Sixpac is the whole point.

The Chinese and Indians aren't fooled - - - not at the national leadership level and not at the level of the people on the street. They buy gold. And they dwarf the American market in participation.

Perhaps the whole point is to keep Joe Sixpac dumb and in the dark - while the 24/7 spy and police state apparatus is constructed around them. If gold were blasting off to $ 2000, $3000, or even more an ounce . . . even Joe Sixpac might get his lazy butt off the couch and take notice. Though mind crippled by t.v. and public 'schooling', even he might ask "WTF is going on ?"

Understand gold and you understand money and you understand the nature of fiat fake paper 'money'.

They cannot let that happen.

Fri, 10/11/2013 - 10:00 | 4044850 Rubicon
Rubicon's picture

Goldman it was then!

Fri, 10/11/2013 - 10:14 | 4044938 Jannn
Jannn's picture

China imported +1000 tons of gold in the first 8 months of 2013. 

http://koosjansen.blogspot.nl/2013/10/economic-power-shift-to-china.html

Fri, 10/11/2013 - 10:18 | 4044961 HardAssets
HardAssets's picture

But I thought I read Bart 'is one of the good guys' ?

Yeah . . . . right.  He's been on the govt tit for 30 years.

Fri, 10/11/2013 - 10:37 | 4045033 sumo
sumo's picture

Bart has always been a stage act. I'm astonished at how many suckers still buy into it. Jesus Fucking Christ.

Bart is the distraction for the muppets. Gensler - ex-Goldman, CFTC chair and therefore a member of the PPT - is the Oligarchs' safe pair of hands.

But hey, lets pretend that Brooksley Born's gutting didn't happen and the CFTC serves the muppets. I need more delusion and insanity in my life, honest.

Fri, 10/11/2013 - 10:41 | 4045039 sumo
sumo's picture

I'm not aiming that at you, HA. Just ranting.

Fri, 10/11/2013 - 10:54 | 4045060 HardAssets
HardAssets's picture

I know what you mean. I used to subscribe to a PM newletter by a very knowledgeable and well meaning guy, but he'd go on about how Bart would 'come to the rescue'. This was several years ago and I dumped my subsription because of this. I knew the writer was engaged in hopeful, wishful thinking. Any of them that high up on the ladder have been throughly checked out with a fine tooth comb. Like the fake demo vs repub game, its a diversion and an illusion. Theyre basically vampires that suck off the rest of the people.

Fri, 10/11/2013 - 10:58 | 4045098 sumo
sumo's picture

Heh, that wouldn't be Ted "Charlie Brown" Butler, would it? Lucy/Chilton keeps taking away the football, but Charlie keeps coming back to the same scam. We love you Charlie Brown - Ted - we love your innocence, but you're such a fucking chump.

It's cute when you're six years old. But it's pathetic when you're an adult.

Fri, 10/11/2013 - 11:22 | 4045133 HardAssets
HardAssets's picture

Ted's a good guy. And, IMO his focus on the opportunities in the relatively small silver market is a very beneficial thing. But, (at least a few years ago), his trust in those in these institutions - including Chilton - was unwise. I don't know if he's changed his thinking over the last few years.

But perhaps many of us who have thought there would be a time when the PMs and mining company stocks would take off, are guilty of the same kind of thinking. We thought 'the market' would finally sort things out. Maybe things are so bad economically and so corrupt that they will never let real market pricing take place. Instead, the whole thing will come crashing down first.

Mon, 10/14/2013 - 10:21 | 4052534 MeelionDollerBogus
MeelionDollerBogus's picture

but I strongly support Bart Chilton - to revive the Seagulls!

Fri, 10/11/2013 - 10:26 | 4044986 Nothing but the...
Nothing but the truth.'s picture

 We need a whistleblower like Ed Snowden to spill the beans on all this PM manipulation. When is this bullshit ever going to stop ?

Fri, 10/11/2013 - 10:51 | 4045068 sumo
sumo's picture

You nailed it. Just think: the secrets behind this are held more tightly than NSA's and CIA's law-breaking. That's a sign that this shit is more important than anything that happens at Langley or Fort Meade.

Fri, 10/11/2013 - 11:16 | 4045089 HardAssets
HardAssets's picture

There have been whistleblowers including Andrew Maguire who told them what they do and how, and predicted how they would move the markets before it did what he said it would do. He testified before the CFTC . . . and nothing came of it.

The Fix is In.

Fri, 10/11/2013 - 11:31 | 4045214 AL_SWEARENGEN
AL_SWEARENGEN's picture

Whistle blowers with evidence would be ideal.  But even getting popular websites like Drudge Report to post headlines on these smack downs would be huge.  Anyone remember the last time Drudge ran news of a major Gold smack down on it's main banner?  Yep that lasted a few hours until news of the Boston bombing broke.  ANOTHER coincidence.  Major PM take-downs usually coincide with major terror related events.  OBL death announcement, etc.  Someone should put together a timeline of these from the past 6 years.

Fri, 10/11/2013 - 10:29 | 4045008 outamyeffinway
outamyeffinway's picture

"no definitive proof of manipulation my ass!"

 

If a tree falls in the forest...........

Fri, 10/11/2013 - 12:29 | 4045507 indygo55
indygo55's picture

I think most people know it's likely the Exchange Stabilization Fund controlled by the Treasury and the President doing this. The CME isn't allowed to reveal that. They would be fired or worse if they did. 

Fri, 10/11/2013 - 09:59 | 4044823 Arius
Arius's picture

only 20 bucks?  in the old days they could get 200 for that volume ... few more zeros ...

Fri, 10/11/2013 - 10:02 | 4044826 GetZeeGold
GetZeeGold's picture

 

 

China is on line 21214......somebody get that.......the phone rollover doesn't go that high.

Fri, 10/11/2013 - 10:05 | 4044864 Groundhog Day
Groundhog Day's picture

i wish they would just bring it down to 400-500 an ounce all at once to scare the piss out of everyone.  this way i can convert all my fiat at one time and be done with it.  i would have a lot more free time to enjoy with my kids without having to watch this nonsense and waiting for days like today to do some converting.

Fri, 10/11/2013 - 09:55 | 4044812 Sudden Debt
Sudden Debt's picture

thank god gold is the most common metal in the world!

Fri, 10/11/2013 - 10:12 | 4044918 CPL
CPL's picture

Well, we have to conserve all that precious tungsten.

Fri, 10/11/2013 - 11:05 | 4045125 LeisureSmith
LeisureSmith's picture

General Jack Ripper would agree.

Fri, 10/11/2013 - 13:05 | 4045678 akak
akak's picture

Just think of how many accidents are going to happen when they start building boats out of dirt-cheap gold.

Fri, 10/11/2013 - 09:57 | 4044813 slaughterer
slaughterer's picture

Lagarde's Hermes scarf got caught in the sell button at the IMF.  Pay no attention. 

Fri, 10/11/2013 - 11:29 | 4045209 bozzy
bozzy's picture

pro'lly an old souvenir present from little Nicky Sarko - she's eavesdropping on the G20 whilst the G20 is eavesdropping on the IMF. In other words, the Fed is holding court in two palaces.

Fri, 10/11/2013 - 10:00 | 4044831 HoofHearted
HoofHearted's picture

I'm looking for a FUBM event here, as people like CD and me will decide to BTFD rather than BTFATH.

Fri, 10/11/2013 - 10:09 | 4044910 Pooper Popper
Pooper Popper's picture

Buy lead,"they" control gold.With all the fake fiat printing,"they "can do what they want to gold.Lead ,will be worth just as much and is easier to get.

The Lie will Die,,,,,and when it does we all know gold will go stellar,"they" know it to....

BUy Lead!

 

Fri, 10/11/2013 - 10:17 | 4044949 howenlink
howenlink's picture

Peter Schiff is covering this on his radio show now.  He plugged ZH twice.

Fri, 10/11/2013 - 11:00 | 4045110 ParkAveFlasher
ParkAveFlasher's picture

With all the bullshitters and rank amateurs crowing an d calling about gold, Schiff.  Was.  Right.

Fri, 10/11/2013 - 10:16 | 4044951 auntiesocial
auntiesocial's picture

gotta give the big players a fair warning. must be nice controlling a rigged table.

Fri, 10/11/2013 - 10:58 | 4045085 UH-60 Driver
UH-60 Driver's picture

This afternoon (I am in Germany right now) I started to place an order for some silver bars...then I thought to myself, "Wait, there will be a price slam in a few hours and then I can get an extra few ounces". 

This is as easy as "buying the dip". 

What/Who are these clown-shoes and how do they manage to do this every week without being investigated by some Federal agency?

(SARC)

Fri, 10/11/2013 - 09:54 | 4044783 Fukushima Sam
Fukushima Sam's picture

Gold bitchez!

WTF!?!

Fri, 10/11/2013 - 09:55 | 4044809 Grande Tetons
Grande Tetons's picture

I am not buying Gold today. Instead, I am going to buy Rosetta Stone Chinese for all of my family. I figure it will be a good idea to learn our new language. 

Fri, 10/11/2013 - 10:08 | 4044881 ATM
ATM's picture

Go East young man!

I've been trying to sell my kids on looking at Asia as a landing spot once they get out of school.

Fri, 10/11/2013 - 11:11 | 4045156 Cookie
Cookie's picture

I came here nearly 30 years ago, no regrets

Fri, 10/11/2013 - 10:12 | 4044926 wisehiney
wisehiney's picture

Better to go to the shooting range and learn BOOMese. 

Fri, 10/11/2013 - 10:17 | 4044952 CPL
CPL's picture

What if a specific language didn't matter?

 

And I would put short term sights on Spanish.  It's very pretty, and like French, it's got some awesome swear words.

Fri, 10/11/2013 - 11:38 | 4045245 geox
geox's picture

Me cago en su puta madre... for a start

Fri, 10/11/2013 - 12:46 | 4045613 CPL
CPL's picture

It reads and sounds like a poem until it's translated.

Fri, 10/11/2013 - 10:08 | 4044885 Lord Blankcheck
Lord Blankcheck's picture

They are shutting down the LMBA gold leasing.No more earnings from holding gold,so sell,sell.

http://armstrongeconomics.com/2013/09/29/gold-lending-could-stop-in-london/

Fri, 10/11/2013 - 10:52 | 4045063 Quinvarius
Quinvarius's picture

 If you read that article, Armstrong is muddling several topics into one and leaving out others to confuse rubes.  You have to understand the terminology to not get fooled.  He does that alot.

They didn't say they were stopping forwards.

If the stop forwards, futures still exist on other exchanges.

GOFO is no more an indication of lending activity than LIBOR is an indication of lending activity.  It is a published rate and they just want to hide it.  Stopping an offical GOFO does not mean stopping forwards or lending.  They already stopped publishing SIFO.  Silver still trades.

GOFO is a lending rate and the religious people he discusses would not have used it to lend gold for interest based on his own terms.  He purposely confuses selling forward with a lending to dealers process.

Armstrong is a great con man.

Fri, 10/11/2013 - 11:12 | 4045159 ParkAveFlasher
ParkAveFlasher's picture

What, you mean that Armstrong, the uncredited inventor of Artificial Intelligence and Margaret Thatcher's secret boytoy, may be...A PHONY???

All those pen-drawn rhythmic wave charts tying together Stonehenge, Easter Island, the Battle of Hastings, Nixon, marines in Grenada, and the gold price might be gobbledygook?

That he can't seem to progress past Singer-typewriter-style fonts in 2013?

 

Fri, 10/11/2013 - 11:46 | 4045273 Yardfarmer
Yardfarmer's picture

Armsrtong must have got his mind bent pretty severely at Fort Dix. On the other hand he's been predicting $500 gold for years and still is.

Fri, 10/11/2013 - 11:41 | 4045248 Lord Blankcheck
Lord Blankcheck's picture

The point is "if gold can no longer be used in this manner,there will be liquidation of gold holdings by those who still use it to park money and earn unofficial interset for religious reasons"

 

Whom is Armstrong trying to con?

 

 

Fri, 10/11/2013 - 12:02 | 4045360 greatbeard
greatbeard's picture

>> Armstrong is a great con man.

Hey, it's keeping him out of prison.

Fri, 10/11/2013 - 09:51 | 4044787 Sudden Debt
Sudden Debt's picture

buyer at 1200, 1100 and 1000

BRING IT ON BITCHEZ!!!

Fri, 10/11/2013 - 09:58 | 4044825 edifice
edifice's picture

Come on, baby, all the way to $900-$1000.  Daddy wants a new pair of Buffalo.

Fri, 10/11/2013 - 10:15 | 4044934 unwashedmass
unwashedmass's picture

me too.

Fri, 10/11/2013 - 09:53 | 4044795 RacerX
RacerX's picture

Paper Gold. They should write a song about it.

Fri, 10/11/2013 - 10:32 | 4044987 Ignatius
Ignatius's picture

'Paper Gold' sung to tune of Purple Haze

 

Paper gold

All in my brain

Lately things

Just don't seem the same

Market's funny, but I don't know why

'Scuse me while I 'kiss this guy'

 

Paper gold

All around

Don't know

If it's goin' up or down

Makin' money, or fantasy?

Whatever it is, there's definately a smell on thee

 

Help me

Help me

(Oh, no!)

 

Paper gold

All in my eyes

Don't know

If it's day or night

You've got me buyin', buyin' the dip

BTFD will end this shit

 

 

Fri, 10/11/2013 - 10:33 | 4045025 Peachfuzz
Peachfuzz's picture

Edgar Winter Group did that already; it's called Free Ride

banksta style

Fri, 10/11/2013 - 09:53 | 4044796 Smiley
Smiley's picture

Just wait until the Carbon Credit exahanges start using HFT to maintain 'liquidity.'

 

The world as a whole is pretty screwed.

Fri, 10/11/2013 - 09:54 | 4044801 beegle
beegle's picture

they are so predictable ... Maddoff should have a statue in central park 

Fri, 10/11/2013 - 10:00 | 4044840 edifice
edifice's picture

Every time I see/hear 'Maddoff', I think, "My, is he appropriately named!"

Fri, 10/11/2013 - 10:01 | 4044842 rehypothecator
rehypothecator's picture

They will never give Madoff a statue, because government hates the competition.  What do you think all those government agents did to earn their respective statues all across the globe?  

Fri, 10/11/2013 - 09:56 | 4044810 Debtonation
Debtonation's picture

So people are buying Treasuries as safehavens against themselves and selling gold? Logic in that?

Fri, 10/11/2013 - 09:55 | 4044815 Kina
Kina's picture

Yeh I bought those 2 million oz, and Im taking delivery.

Fri, 10/11/2013 - 10:19 | 4044966 RacerX
RacerX's picture

Which they will gladly deliver.. next Tuesday.

Fri, 10/11/2013 - 10:38 | 4044974 Frozen IcQb
Frozen IcQb's picture

2000 contracts times 100oz per contract = 200,000 oz

NOT 2 million

Fri, 10/11/2013 - 10:42 | 4045043 NidStyles
NidStyles's picture

Read the article hero.

Fri, 10/11/2013 - 11:05 | 4045058 Frozen IcQb
Frozen IcQb's picture

I read ya but the numbers are not clear.

If 800,000 ounces of notional gold into the London Fix was sold that's 8000 contracts on the dump.

 

Moreover, 2 million ounces =20,000 contracts but look at the volume chart?

Fri, 10/11/2013 - 10:29 | 4045001 DLux
DLux's picture

Sir Evelyn Rothschild...is that you?

Fri, 10/11/2013 - 09:56 | 4044817 pauhana
pauhana's picture

When the cat's away, the mice wil play.

Fri, 10/11/2013 - 09:56 | 4044819 hangemhigh77
hangemhigh77's picture

This is why we need to get the government open again!!!  Bart Chilton isn't on the job!!!!!!!!

Fri, 10/11/2013 - 09:57 | 4044827 tmosley
tmosley's picture

Vigilantism will be making a comeback soon.  When the government abandons Justice, she will find others to take up the sword and scale.

Fri, 10/11/2013 - 10:08 | 4044882 22winmag
22winmag's picture

"She" won't have to look very far.

Fri, 10/11/2013 - 09:57 | 4044830 hangemhigh77
hangemhigh77's picture

This would have NEVER happened under Bart's watch!!!!  I hope he's getting a haircut that little Euro faggot.

Fri, 10/11/2013 - 10:12 | 4044859 GetZeeGold
GetZeeGold's picture

 

 

I'm sure when he gets back they'll investigate it for 20 years....and then go do something else I would imagine.

Fri, 10/11/2013 - 10:12 | 4044925 hangemhigh77
hangemhigh77's picture

Yes Bart will earn his pay. He is a workhorse, tirelessly sacrificing for the little guy. Thank you Bart, and we love your new doo.

Fri, 10/11/2013 - 09:59 | 4044832 Kina
Kina's picture

And so gold mines around the world go into mothballs..... supply of new metal stops...except from Chinese mines to the Chinese govt.

 

Likewise ..even more so silver.

 

So how tight are they winding this spring.....how many billions of oz they going to have to sell to keep the price down....

Fri, 10/11/2013 - 10:02 | 4044858 hangemhigh77
hangemhigh77's picture

It depends on how fast they can cut trees down and make paper to print the gold on. Who needs gold mines? That's old fashined. Gold is printed on paper, everyone knows that.

Fri, 10/11/2013 - 10:14 | 4044941 Long-John-Silver
Long-John-Silver's picture

Paper is so obsolete. It's all just numbers in an Excel Spreadsheet now.

Fri, 10/11/2013 - 12:09 | 4045390 DosZap
DosZap's picture

So how tight are they winding this spring.....how many billions of oz they going to have to sell to keep the price down....

 

LOL, they are not selling 1oz. of Phyzz,it's all paper BS.

Fri, 10/11/2013 - 10:01 | 4044843 Rainman
Rainman's picture

To : XXX @ XXX

From: Bart Chilton

     F-U ......CFTC doesn't have any credibility to LOSE !

Fri, 10/11/2013 - 10:00 | 4044844 Sudden Debt
Sudden Debt's picture

LET'S JUST GIVE IT ALL TO THE CHINESE FOR FREE!!!

people just don't realize that our governments ARE SELLING EVERY HOPE FOR A NEW FUTURE!!!

Fri, 10/11/2013 - 10:09 | 4044892 Tabarnaque
Tabarnaque's picture

Who says that only the Chinese are buying physical? 

Fri, 10/11/2013 - 10:35 | 4045030 cro_maat
cro_maat's picture

No the US gov owes $1.2 Trillion to China. They are now delivering gold against that debt. In return China has agreed to hold off crashing our financial system by dumping large amounts of UST on the open market.

BTW - there is evidence (read Yamashita's Gold) that the Fed in conjunction with the CIA bought many more tons of gold from China years ago in exchange for Federal Reserve issued paper that China is now asking payment for. The dragon has awoken and is fighting for its seat at the table. As they would say in medeival times "Above the Salt".

Fri, 10/11/2013 - 10:00 | 4044847 hangemhigh77
hangemhigh77's picture

Save us Bart!!!  We're all counting on you to police the markets. We know you're on our side.  Where are you Bart?  Everyone send bart some Prell shampoo. QUICK!!

Fri, 10/11/2013 - 10:45 | 4045051 sumo
sumo's picture

Save us Obe-Bart Kenobe. You're our only hope. <face-palm> <swig of 100-proof liquor>

Fri, 10/11/2013 - 10:02 | 4044848 butchee
butchee's picture

It doesn't matter whether the CTFC is open or shut....this shit is the new normal.

Fri, 10/11/2013 - 10:02 | 4044852 Kina
Kina's picture

The strangest asset in the world...the more in demand and more scarce it is the cheaper it gets...

 

 

Fri, 10/11/2013 - 10:03 | 4044856 SnatchnGrab
SnatchnGrab's picture

Was this a paper or actual PM sale? And why? Simple profit or is there an underlying motive?

Fri, 10/11/2013 - 10:06 | 4044877 hangemhigh77
hangemhigh77's picture

ummmmmmmmmmm, where have YOU been the past 6 years?  It;'s called SAVING THE DOLLAR.  Profit???  The govt. doesn't care about "profit" it's P O W E R that they care about. And killing as many people as possible.  If they could produce real gold out of paper they would use it to beat people over the head with and kill them.

Fri, 10/11/2013 - 16:34 | 4046375 MeelionDollerBogus
MeelionDollerBogus's picture

wait, wait!

The government's ... NOT here to help us?

whocouldaknowed!!

Fri, 10/11/2013 - 10:05 | 4044871 Tabarnaque
Tabarnaque's picture

The Rigg-ulators are on the job again. 

Fri, 10/11/2013 - 10:21 | 4044872 HardAssets
HardAssets's picture

Why don't they stop fooling around and just 'price' gold and silver at Zero and get it over with ?

We will likely never see a true price quoted for PMs in the USA under the current system of rule.

Who gives a f**k what they quote ?

 

New Austrian School economist Antal Fekete writes that we'll never see the true price of gold quoted, that is we'll never see the high four figure + numbers others have mentioned. The gold futures market will crash before then and no one will give up real PMs for worthless fiat toilet paper at that time. So, you definitely want to have some.

Maybe Fekete is right.

Fri, 10/11/2013 - 10:04 | 4044873 Kina
Kina's picture

So are these corrupt banks just buying and selling backward and forwards between each other....whence they can take the price to zero if they wanted at no risk.

Fri, 10/11/2013 - 10:06 | 4044880 hangemhigh77
hangemhigh77's picture

Is POMO kicking in now?  Nice little ramp in the DOW. Who wudda thunk it??

Fri, 10/11/2013 - 10:09 | 4044890 Hannibal
Hannibal's picture

Cheap phyisical PM. Thx jpm/fed.

ps: please highlite you're talking about fiat paper gold slamdown,..eh!

Fri, 10/11/2013 - 10:09 | 4044891 vegas
vegas's picture

It's the Criminals Marketplace Exchange [CME], where instead of brokers and their bagmen at the ready [from back in the day of open outcry], we now have  electronic "glitches", where fools and their stops get filled at the bottom without ever seeing the tick on their screens. Same story, different dynamic; move along sheeple no story here.

 

http://vegasxau.blogspot.com

Fri, 10/11/2013 - 10:09 | 4044896 Pretorian
Pretorian's picture

If China and other countries continue to buy gold the crisis will spike even more as more and more fiat currency is destroed in the process.

 

Fri, 10/11/2013 - 10:25 | 4044982 scatterbrains
scatterbrains's picture

I have to assume that all the rest of the sovereign nations around the globe are witnessing this and are or should be panicking to get there hands on as much gold as possible before the dollar collapses.  These manipulations are glaring signals that the fed is thrashing in the water and only moments away from drowning.

 

 

Fri, 10/11/2013 - 10:09 | 4044905 hangemhigh77
hangemhigh77's picture

Hopefully gold will be cheap enough soon that I can pave my driveway with it.  Maybe by next week.

Fri, 10/11/2013 - 10:09 | 4044907 geewhiz
geewhiz's picture

Who are the stupids that buy all this ponzi gold?

Fri, 10/11/2013 - 10:09 | 4044911 Kina
Kina's picture

So all that lease gold has to be 'given' back....buy buy buy

Fri, 10/11/2013 - 10:12 | 4044919 Hannibal
Hannibal's picture

Com'on Tyler tell us we're talking about fiat PAPER gold,...eh!

Fri, 10/11/2013 - 10:21 | 4044969 tradebot
tradebot's picture

He seems to be calling it "notional gold" at this juncture.  I call it naked paper...

Fri, 10/11/2013 - 10:47 | 4045056 IridiumRebel
IridiumRebel's picture

I call it Toilet Paper That Burns or TPTB.

Fri, 10/11/2013 - 10:13 | 4044933 Al Huxley
Al Huxley's picture

I have only one request of our new Asian overlords when they eventually take over - find, prosecute and publicly punish, in your uniquely vicious and publicly humilitating ways, the vile, traitorous perpatrators of these crimes, and all those with full knowledge of what's being done who stood by silently  and let it happen.

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