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How Gold Price Is Manipulated During The "London Fix"

Tyler Durden's picture




 

There was a time when the merest mention of gold manipulation in "reputable" media was enough to have one branded a perpetual conspiracy theorist with a tinfoil farm out back. That was roughly coincident with a time when Libor, FX, mortgage, and bond market manipulation was also considered unthinkable, when High Frequency Traders were believed to "provide liquidity", or when the stock market was said to not be manipulated by the Fed, and when the ever-confused media, always eager to take "complicated" financial concepts at the face value set by a self-serving establishment, never dared to question anything. Luckily, all that changed in the past several years, and it has gotten to the point where even the bastions of "serious", if 3-5 years delayed, investigation are finally not only asking how is the gold market being manipulated, but are actually providing answers.

Such as Bloomberg.

The topic of gold market manipulation during the London AM fix is not new to Zero Hedge: in fact we have discussed both the historical basis and the raison d'etre of the London gold fix, as well as the curious arbitrage available to those who merely traded the AM-PM spread, for years. Which is why we are delighted that none other than Bloomberg has decided to break it down for everyone, as well as summarize all the ways in which just this one facet of gold trading is being manipulated.

Bloomberg begins:

Every business day in London, five banks meet to set the price of gold in a ritual that dates back to 1919. Now, dealers and economists say knowledge gleaned on those calls could give some traders an unfair advantage when buying and selling the precious metal. The London fix, the benchmark rate used by mining companies, jewelers and central banks to buy, sell and value the metal, is published twice daily after a telephone call involving Barclays Plc, Deutsche Bank AG, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA.

 

The fix dates back to September 1919, less than a year after the end of World War I, when representatives from five dealers met at Rothschild’s office on St. Swithin’s Lane in London’s financial district. It was suspended for 15 years, starting in 1939. While Rothschild pulled out in 2004 and the discussions now take place by telephone instead of in a wood-paneled room at the bank, the process remains much the same.

That much is known. What is certainly known is that any process that involves five banks sitting down (until recently literally) and exchanging information using arcane methods (such as a telephone), on a set schedule that involves a private information blackout phase, even if temporary, and that does not involve instant market feedback, can and will be gamed. "Traders involved in this price-determining process have knowledge which, even for a short time, is superior to other people’s knowledge,” said Thorsten Polleit, chief economist at Frankfurt-based precious-metals broker Degussa Goldhandel GmbH and a former economist at Barclays. “That is the great flaw of the London gold-fixing."

There are other flaws.

Participants on the London call can tell whether the price of gold is rising or falling within a minute or so, based on whether there are a large number of net buyers or sellers after the first round, according to gold traders, academics and investors interviewed by Bloomberg News. It’s this feature that could allow dealers and others in receipt of the information to bet on the direction of the market with a high degree of certainty minutes before the fix is made public, they said.

Yes, the broader momentum creation and ignition perspective is also known to most. At least most who never believed the boilerplate that unlike all other asset classes, gold is somehow immune from manipulation.

“Information trickles down from the five banks, through to their clients and finally to the broader market,” Andrew Caminschi, a lecturer at the University of Western Australia in Perth and co-author of a Sept. 2 paper on trading spikes around the London gold fix published online in the Journal of Futures Markets, said by phone. “In a world where trading advantage is measured in milliseconds, that has some value.”

Ah, hypothetical - smart. One mustn't ruffle feathers before, like in the case of Libor, it becomes fact that everyone was in on it.

There’s no evidence that gold dealers sought to manipulate the London fix or worked together to rig prices, as traders did with Libor. Even so, economists and academics say the way the benchmark is set is outdated, vulnerable to abuse and lacking any direct regulatory oversight. “This is one of the most concerning fixings I have seen,” said Rosa Abrantes-Metz, a professor at New York University’s Stern School of Business whose 2008 paper, “Libor Manipulation?” helped spark a global probe. “It’s controlled by a handful of firms with a direct financial interest in where it’s set, and there is virtually no oversight -- and it’s based on information exchanged among them during undisclosed calls.”

Unless we are wrong, there was no evidence of Libor manipulative collusion before there was evidence either. And since the cabal of the London gold fix is far smaller than the member banks of Libor, it is exponentially easier to confine intent within an even smaller group of people. But all that is also known to most.

As is the fact that when asked for comments, 'spokesmen for Barclays, Deutsche Bank, HSBC and Societe Generale declined to comment about the London fix or the regulatory probes, as did Chris Hamilton, a spokesman for the FCA, and Steve Adamske at the CFTC. Joe Konecny, a spokesman for Bank of Nova Scotia, wrote in an e-mail that the Toronto-based company has “a deeply rooted compliance culture and a drive to continually look toward ways to improve our existing processes and practices."

Next, Bloomberg conveniently goes into the specifics of just how the gold price is manipulated first by the fixing banks, then by their "friends and neighbors" as news of the fixing process unfolds.

At the start of the call, the designated chairman -- the job rotates annually among the five banks -- gives a figure close to the current spot price in dollars for an ounce of gold. The firms then declare how many bars of the metal they wish to buy or sell at that price, based on orders from clients as well as their own account.

 

If there are more buyers than sellers, the starting price is raised and the process begins again. The talks continue until the buy and sell amounts are within 50 bars, or about 620 kilograms, of each other. The procedure is carried out twice a day, at 10:30 a.m. and 3 p.m. in London. Prices are set in dollars, pounds and euros. Similar gauges exist for silver, platinum and palladium.

 

The traders relay shifts in supply and demand to clients during the calls and take fresh orders to buy or sell as the price changes, according to the website of London Gold Market Fixing, which publishes the results of the fix.

.. only this time the manipulation is no longer confined to a purely theoretical plane and instead empirical evidence of the fixing leak is presented based on academic research:

Caminschi and Richard Heaney, a professor of accounting and finance at the University of Western Australia, analyzed two of the most widely traded gold derivatives: gold futures on Comex and State Street Corp.’s SPDR Gold Trust, the largest bullion-backed exchange-traded product, from 2007 through 2012.

 

At 3:01 p.m., after the start of the call, trading surged to 47.8 percent above the average for the 20-minute period preceding the start of the fix and remained 20 percent higher for the next six minutes, Caminschi and Heaney found. By comparison, trading was 8.7 percent higher than the average a minute after publication of the price. The results showed a similar pattern for the SPDR Gold Trust.

 

“Intuitively, we expect volumes to spike following the introduction of information to the market” when the final result is published, Caminschi and Heaney wrote in “Fixing a Leaky Fixing: Short-Term Market Reactions to the London P.M. Gold Price Fixing.” “What we observe in our analysis is a clustering of trades immediately following the fixing start.”

 

The researchers also assessed how accurate movements in gold derivatives were in predicting the final fix. Between 2:59 p.m. and 3 p.m., the direction of futures contracts matched the direction of the fix about half the time.

 

From 3:01 p.m., the success rate jumped to 69.9 percent, and within five minutes it had climbed to 80 percent, Caminschi and Heaney wrote. On days when the gold price per ounce moved by more than $3, gold futures successfully predicted the outcome in more than nine out of 10 occasions. “Not only are the trades quite accurate in predicting the fixing direction, the more money that is made by way of a larger price change, the more accurate the trade becomes,” Caminschi and Heaney wrote. “This is highly suggestive of information leaking from the fixing to these public markets.”

Oh please, 9 out of 10 times is hardly indicative of any wrongdoing. After all, JPM lost money on, well, zero trading days in all of 2013, and nobody cares. So if a coin landing heads about 200 times in a row is considered normal by regulators, then surely the CTFC will find nothing wrong with a little gold manipulation here and there. Manipulation, which it itself previously said did not exist. But everyone already knew that too.

Cynicism aside, to claim that this clearly gamed process is not in fact gamed, not to say criminally manipulated (because it is never manipulation unless one is caught in the act by enforcers who are actually not in on the scheme) is the height of idiocy. Which is why we are certain that regulators will go precisely this route. That too is also largely known. Also known are the benefits for traders who abuse the London fix:

For derivatives traders, the benefits are clear: A dealer who bought 500 gold futures contracts at 3 p.m. and knew the fix was going higher could make $200,000 for his firm if the price moved by $4, the average move in the sample. While the value of 500 contracts totals about $60 million, traders may buy on margin, a process that involves borrowing and requires placing less capital for the bet. On a typical day, about 4,500 futures contracts are traded between 3 p.m. and 3:15 p.m., according to Caminschi and Heaney.

Finally what is certainly known is that the "London fixing" fix would be very simple in our day and age of ultramodern technology, and require a few minutes of actual implementation.

Abrantes-Metz, who helped Iosco formulate its guidelines, said the gold fix’s shortcomings may stretch beyond giving firms and clients access to privileged information. “There is a huge incentive for these banks to try and influence where the benchmark is set depending on their trading positions, and there is almost no scrutiny,” she said.

 

Abrantes-Metz said the gold fix should be replaced with a benchmark calculated by taking a snapshot of trading in a market where $19.6 trillion of the precious metal circulated last year, according to CPM Group, a New York-based research company. “There’s no reason why data cannot be collected from actual prices of spot gold based on floor or electronic trading,” she said. “There’s more than enough data.”

Which is precisely why nothing will change. Sadly, that is also widely known.

So did Bloomberg put together an exhaustive article in which virtually everything was known a priori? it turns out the answer is no: we learned one thing.

London Gold Market Fixing Ltd., a company controlled by the five banks that administers the benchmark, has no permanent employees. A call from Bloomberg News was referred to Douglas Beadle, 68, a former Rothschild banker, who acts as a consultant to the company from his home in Caterham, a small commuter town 45 minutes south of London by train. Beadle declined to comment on the benchmark-setting process.

You learn something new every day (incidentally, the same Douglas Beadle who acted as a consultant to the LBMA until March 2010 and was involved from the outset in the project to find a suitable scale for the electronic weighing of gold as documented in "Electronic Weighing of Gold - A Success Story").

 

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Mon, 11/25/2013 - 23:09 | 4189574 Cognitive Dissonance
Cognitive Dissonance's picture

The question isn't whether Gold is manipulated. The real question is.....knowing that Gold is the premier fiat fire alarm why would they not manipulate Gold?

Mon, 11/25/2013 - 23:16 | 4189636 DavidPierre
DavidPierre's picture

Big week ahead...pieces of the puzzle ... the Art of War.

The holiday shortened Thanksgiving week looks like it could be an important one. The Dec COMEX month is upon us and there are only 3 days left before first notice with 126,000 contracts still outstanding. This translates to 12.6 million ounces which will surely shrink over the next 3 days but the question is "by how much"?

This is an important question because there are only 589,000 ounces held by dealers in the registered category.

We had a similar situation last December and the COMEX brought in a million ounces to make delivery. From that point forward the inventories have bled a gusher, COMEX total Gold has gone from 11.5 million ounces to about 7 million while the dealer side has dropped from 3.5 million to under 600,000 ounces, the latter is a roughly 80% bleed. GLD which is another "source" for metal has dropped from 1,300 tons to about 850 over the last 12 months. We are also aware of a 1,300 ton "shortfall" in the inventory held by the BOE. These large decreases in inventories are now well documented and this metal has moved "East" to China, India, Russia and others. This is just one piece to the puzzle.

It will be quite interesting to see just how many contracts actually stand for delivery. The obvious "potential" is that "too many" stand and ask for Gold that is simply not available to deliver. This would be an obvious catastrophe. The "timing" is also quite interesting because we learned this week that 23 nations have now set up "non Dollar" swaps to be used to settle trade. The big question now is whether or not the Saudis will accept anything other than Dollars. The current negotiations with Iran could very well be the blasting cap that sets this whole thing in motion, Saudi Arabia (and Israel) will be hopping mad if a deal gets done that turns out to be a "bad deal".

The "timing" was interesting, it is, VERY! ... because late yesterday Jim Sinclair wrote publicly that he has been in meetings regarding the origins of "cash" metals markets. He had spoken previously of 6 different metals exchanges that would afford no leverage whatsoever and declared yesterday that he has made the decision to back the Singapore Physical Precious Metals Exchange with his knowledge, reputation and financially. Jim's message to the us can be found here http://www.jsmineset.com/2013/11/22/my-mission-on-our-behalf/ .

He has accepted the position of executive chairman of the exchange so without a doubt his heart and soul is in this for the end game.

For those of you have studied or wondered about "Free Gold", this is how it begins. True "cash and carry" exchanges will destroy the West's ability to price Gold using leverage and unbacked contracts. Currently there is virtually "no cost" for JP Morgan, Goldman, Barclays, Morgan Stanley or any other investment house to "sell" Gold. All they need to do is "push a button" and literally millions of so called ounces hit the markets and thus push the price down. "Cash exchanges" will offer the opportunity to arbitrage metal from the paper exchanges.

We will arrive at a "two tier" market in Gold and Silver.

In some respects we have already. India is currently paying 20% above paper Gold market prices to obtain metals. There are also premiums (though not nearly as high) for the Chinese to buy Gold. Here in the U.S., Silver Eagle and Maple pricing is some 15-20% above COMEX pricing. (Interesting to note that though prices dropped this week on the COMEX, premiums expanded by the same amount leaving cash prices nearly unchanged). So yes, we already have a glimpse at a "two tier market" but if I had to guess, these cash exchanges will "arbitrage" the remaining metals held in the West. They will buy and ask for delivery knowing full well that they can sell to cash buyers in the East at far higher prices...thus making an arbitrage profit AND draining the remaining scraps at the bottom of our barrel.

THIS is truly big news!

It inevitably had to happen sooner or later because Mother Nature has been demanding it for years. This "cash and carry" concept will ultimately reprice Gold and Silver to much higher levels and probably multiples of their current prices. The West has been fighting the tide since 1971 and now looks to have lost the war with this current battle arrangement. The East on the other hand has acted in harmony with nature. They were patient and methodical for years upon end and now look to end the "financial war" without ever firing a single bullet. Let me remind you that history has shown that the winners of war end up with the losers Gold, it has always been this way. However, this "war" was different. The East used our own "bullets" (Dollars) against us by producing product, selling that product to the West and earning more "bullets"...which have been used to "buy" our Gold.

 

We have no one to blame other than ourselves because we sat back and allowed this to happen. Don't get me wrong, this was "planned", it was planned by the Chinese years and years ago. In the words of Sun Tzu in his book of military strategy 'The Art of War' .... "The supreme art of war is to subdue the enemy without fighting". This is essentially what has been, is and will happen.

Gold is gone, it will soon be "priced" by those who "have it".

http://www.lemetropolecafe.com

Mon, 11/25/2013 - 23:42 | 4189695 TruthInSunshine
TruthInSunshine's picture

"...a call from Bloomberg News was referred to Douglas Beadle, 68, a former ROTHSCHILD banker, who acts as a consultant to the company from his home in Caterham..."

SURPRISE, SURPRISE, SURPRISE!*

*Just another "conspiracy" rant since it must be yet another mere coincidence in a storied, historical list of thousands of such coincidences, you know.

Tue, 11/26/2013 - 00:16 | 4189763 Bay of Pigs
Bay of Pigs's picture

We better get James Cole in here to offer his brilliant insight into this matter.

After all, we Zhers are just a bunch of blockheads who need someone to point us in the right direction on this.

 

Tue, 11/26/2013 - 00:26 | 4189774 Troll Magnet
Troll Magnet's picture

HEY! Did you guys hear about George Zimmerman's 911 call? Why aren't you outraged about THAT??? Come on, people! Wake up! There's racism in this cuntry!

[Brought to you by the Huffington Post]

WHAT? What did Miley Cyrus do?!?!

Tue, 11/26/2013 - 04:39 | 4190054 foodisgood
foodisgood's picture

Go to Ebay

Type Sliver Ounce

The number of sellers was about half that 6ix months ago and the arbitrage was also half as much.

Who knows how it will go but for now it looks like money is not representing Value and Price according to Cost and if you ask me the Cost will be a much heavier Price  to pay as Values come back to physical sense and away from virtual, moral and politically correct sense.

Tue, 11/26/2013 - 07:11 | 4190121 Rubbish
Rubbish's picture

My manipulation:

 

Steal fiat from the rich = Buy Gold/silver

 

They never knew what hit em

Tue, 11/26/2013 - 10:08 | 4190322 BaBaBouy
BaBaBouy's picture

THEY Will Lose Control!
GOLD Will Set It's Own Price In Paper Fiats, No Matter What Charrades They Pull.
Maybe GOLD $30K Or $50K Or More?

 

Only GOLD Knows.

Tue, 11/26/2013 - 12:00 | 4190568 Herd Redirectio...
Herd Redirection Committee's picture

Litecoin, Namecoin, and Novacoin... Thats where the real money is...  They have all tripled in the last 2 weeks.  Get in now!

/sarcasm

Tue, 11/26/2013 - 14:25 | 4191115 SamAdams
SamAdams's picture

i found the problem -> GOLD PRICE IS FIXED TWICE DAILY <- i found the problem..... 

Doesn't take a lot of brain power to understand if the price is fixed, then it is not market driven.  If it is not market driven, then there will always be opportunity for arbitrage.

this is as easy to understand as -> if you made your own money, would you charge yourself interest? 

So simple yet so difficult because Americans are taught not to think, but to memorize what talking heads say.

Sat, 12/07/2013 - 11:36 | 4224294 Enslavethechild...
EnslavethechildrenforBen's picture

Anyone can print a Gold "certificate" representing a quanity of the actual metal.

It's kind of like exchanging an "I.O.U. Gold" for pieces of colored paper.

Logic dictates that, the more that they print those promises, the less they will be valued in terms of said colored paper.

Eventually those promises will be worth nothing.

The problem lies in that people BELIEVE there is some correlation between the electronic value proposed and the actual relative value of the metal.

This is putting pressure on miners to reveal their actual cost of production in order that we may determine the actual value of an ounce of metal.

That would "guarantee" that it is safe to re enter the physical market at this price.

Tue, 11/26/2013 - 07:49 | 4190128 GetZeeGold
GetZeeGold's picture

 

 

The lure of easy money has a very strong appeal. If they can use your money to crash the price so they can buy it cheap.....they'll probably do that all day long. It's not like it's costing them anything. Do you really think Ben Shalom sweats QE? Yeah...neither do I.

 

They're not saints....but they are master traders.....and your money is free to them. Gordon Brown stole the British peoples gold when he was the Finance Minister and nothing really happened. Then they made him Prime Minister....and that's how you do that.

Tue, 11/26/2013 - 08:00 | 4190154 Keyser
Keyser's picture

It hardly takes a master trader to manipulate a market when 5 bankers set the price for the commodity twice a day. 

 

Tue, 11/26/2013 - 08:08 | 4190164 GetZeeGold
GetZeeGold's picture

 

 

What makes it masterful is that public doesn't realize anything is happening......that takes skill.

 

No one has been arrested to my knowledge.....let alone convicted.

Tue, 11/26/2013 - 08:40 | 4190204 Keyser
Keyser's picture

Much like no one has served one day of jail time for the 2008 collapse. It's good to be a member of the club. Immunity from investigation and prosecution. That is until the general public ferret out the information and publishes it on the web. The internet is turning the tide on information control, which historically has been scrubbed and managed by TPTB. 

Tue, 11/26/2013 - 08:47 | 4190211 GetZeeGold
GetZeeGold's picture

 

 

Yep....you got it.

Tue, 11/26/2013 - 11:31 | 4190508 Groundhog Day
Groundhog Day's picture

When I had my head in the sand, i was in awe of the the numbers i would read about regarding traders making millions and millions a quarter for thier firms and thinking they deserved those enormour bonuses since they made so much money for their firms.  Now I'm just bitter knowing everything is fixed and it's really only about who you know.  I love ZH for showing me the light and hate ZH for showing me the light.  I think i was happier with the blue pill, i just hope spending 1000's of hours on this site and reading all this material doesn't go to waste having accumulated PM's at all prices and being about flat when i could have let it ride on the SPX in bliss

Tue, 11/26/2013 - 09:31 | 4190267 yrbmegr
yrbmegr's picture

Price rarely has anything to do with cost.

Tue, 11/26/2013 - 12:52 | 4190741 YC2
YC2's picture

Rarely?  

Tue, 11/26/2013 - 00:29 | 4189776 Tinky
Tinky's picture

How about Martin "2017.75" Armstrong? It amazes me that people pay attention to him. From his answer to a question about gold manipulation today on his site:

"Talking directly with real sources, it has been liquidation. If it were a manipulation, they would be covering the shorts. They have not done that. This has been simply liquidation that is going with the trend. There is no depth to the market anymore. Liquidity is down by 50% on everything. This is the same kind of liquidation that took place in the last year of the Nikkei. It is just capitulation. The orders are not even that large. There is simply a lack of buyers even during the liquid hours. People would flock to buy gold if there was a real solid bull market bid."

Got that? "The orders are not even that large."

WTF is he looking at?


Tue, 11/26/2013 - 02:32 | 4189919 geminiRX
geminiRX's picture

Don't diss Armstrong too much, he's nailed the price points with gold quite well the last two years, and I think he will also be right about a potential drop to 900-1000 point (boy, I am waiting to jump at that opportunity!!!). However, I do stand with you on the odd point of "simple liquidation".....doesn't add up. It would be appreciated if the Tylers could offer their point for rebuttal 

Tue, 11/26/2013 - 07:11 | 4190112 Quinvarius
Quinvarius's picture

Armstrong's own blog rebutts him.  The guy went to jail for losing money as a FOREX trader and hiding the losses, despite the claims he makes about why he was there.  He is a confidence man that "corozoned" his clients.  His gold short trade finally worked after blowing up twice.  There is no magic computer program that tells you what is going to happen.  His commentary in his blogs often twists facts into absurdity.  He has my BS detectors running in overdrive.  At a minimum, his brain is trapped in the 70's and he is clueless about modern market mechanics. 

As far as gold fixing, I don't think a bunch of banks deciding at what price they will transact with each other is a bad thing.  But I also do not believe that is what is happening.  I believe we don't have the real dirty details.  But the reality is more like they are deciding at what price they will dump someone else's gold so that all of them will profit off of it.  I strongly suspect it has more to do with looting that any kind of trading.  All you have to do is imagine what the biggest ahole on the planet would do with other people's property if he had unaudited access to it, and a way to make side bets on thw effects of what he was doing.  I am certain the deal is much dirtier than it is described.

Tue, 11/26/2013 - 08:52 | 4190131 GetZeeGold
GetZeeGold's picture

 

 

The guy went to jail

 

Yeah, about that......there's still quite a lot of missing physical gold from that caper....pretty sure Armstrong knows where that is.

 

You can ask Martin for a comment about that.....but I don't think you're going to get one.

 

RIP Edmond Safra

http://money.cnn.com/1999/12/03/worldbiz/safra/

Tue, 11/26/2013 - 12:04 | 4190574 Herd Redirectio...
Herd Redirection Committee's picture

Armstrong may have had a tinge of legitimacy AT ONE POINT.  Certainly not now.

He is a scammer, and a sell-out.

Tue, 11/26/2013 - 09:00 | 4190228 Fuh Querada
Fuh Querada's picture

Good points. Jim Sinclair published Armstrong's newsletters while the latter was in jail, but since MAs exit from there JS has ignored MA.

I gave up reading MAs blog posts including the 50 page ones on Roman coins, after getting an overriding impression of arrogance. A few insights excepted, like a NY judge would never, ever rule against a big bank.

He claims that a computer program with an output that looks like a1980s Commodore 64 or Atari will predict all major financial events and runs big-ticket conferences. Well, I claim that is bullshit. Why doesn't he just borrow. $10 Mio and place the bets in private?

Tue, 11/26/2013 - 08:47 | 4190212 RSDallas
RSDallas's picture

It is 2015.75.

Tue, 11/26/2013 - 09:25 | 4190259 ParkAveFlasher
ParkAveFlasher's picture

Armstrong's followers neglect to mention that he missed the entire run up to $1900.  And, that he is the inventor of artificial intelligence ... in fact he stores it on a floppy disk.

Tue, 11/26/2013 - 00:23 | 4189773 ZH Snob
ZH Snob's picture

the london gold fix, ergo: the fix is in.  aptly named.

 

I can't wait for the mighty, physical Singapore strongholds to bury these British paper thieves and give us all a true and honest price discovery.

Tue, 11/26/2013 - 05:40 | 4190069 Doña K
Doña K's picture

<<<the london gold fix, ergo: the fix is in. aptly named.>>>

Does the Pope have a balcony?

Tue, 11/26/2013 - 08:44 | 4190209 Cacete de Ouro
Tue, 11/26/2013 - 08:46 | 4190210 Cacete de Ouro
Cacete de Ouro's picture

..

Tue, 11/26/2013 - 02:28 | 4189935 putaipan
putaipan's picture

hey monsieur lemetropole, and all the rest of the china wins/"gold-leaf hat" wearin' posters on this thread, jibe that view with the previous story de jour courtessy of the ever vidgilant tylers - http://www.zerohedge.com/news/2013-11-25/chart-day-how-chinas-stunning-1... .

i think i'm starting to wrap my head around it (and yes, my version has the bankers to the pope getting all that gold back in their hands via china) but does anyone here have some keen old school zhobservations that reconcile these two stories.

(and as a reward- i never really "grocked" what all that stuff about "blobbing up" was about... but i'm pretty sure this is a reverse worst lipsink reading/mistranslation animation of it- https://www.youtube.com/watch?v=L0DNBIipaKs  i know know .... no christmas before thanksgiving,but i'm lovin' this... kinky tom kinky tom ....!

 

Tue, 11/26/2013 - 03:33 | 4190015 thisandthat
thisandthat's picture

So China is trading their fake money for real gold, whereas the west is doing the opposite.

+1 for the vid

Tue, 11/26/2013 - 07:26 | 4190129 resurger
resurger's picture

That's really  a smart move

Tue, 11/26/2013 - 09:24 | 4190256 gookempucky
gookempucky's picture

They are also raiding from behind door deals paid for by the US taxpayer sanctioned by the SKANKS IN CHARGE.

Fiskers bankruptcy--taxpayer loozzzeezz..

 

http://www.latimes.com/business/autos/la-fi-hy-fisker-sale-bankruptcy-20131122,0,4870491.story#axzz2lkyCJMdS

Tue, 11/26/2013 - 05:00 | 4190063 Squid-puppets a...
Squid-puppets a-go-go's picture

i can have a stab at connecting the two stories - not necessary a connection between the causal effects, but more about the ramifications/implications:

if china is going to (as many are starting to beleive) force the hand of the world back to a gold or goldish standard - either alone or partnered with russia /et al, then the implications of its massive extension of credit lead to the following desire on its behalf

if a resetting of gold price overnight is sought as the way to resolve utterly unpayable debts (as opposed to the less palatable solution - from bankers perspectives - of debt forgiveness/jubilee) then china will strongly seek - given its significantly increased physical gold holdings - a resetting of gold to a higher figure than perhaps even very bullish gold advocates suggest ($55k for some, $134k by 'two short planks' who reckons they will use gold to offset shadow banking liabilities as well

Tue, 11/26/2013 - 05:14 | 4190065 Squid-puppets a...
Squid-puppets a-go-go's picture

btw im not holding out for anything remotely close to those figues,

i just figure the more people online giving seemingly credible accounts of why it should be $55k + improves and quickens the chances of it going to $5k +, which i'd be plenty happy with

Tue, 11/26/2013 - 03:18 | 4189999 thisandthat
thisandthat's picture

You need to find a better dealer: https://comparegoldprices.com/ http://www.goldprice.com/gold-american-eagles - even in Europe premium/spread is nowhere near that: http://www.coininvestdirect.com/

Tue, 11/26/2013 - 02:01 | 4189896 Cacete de Ouro
Cacete de Ouro's picture

The elephant in the Fixing is the Bank of England. Michael Cross's team. They are the masters at smoothing operations and more, into the fix...
Give it a bit of juice when needed, but reverse thrusts... add supply to dampen demand...totally illegal but who's going to walk in and have a word with Carney, 'allo 'allo

Certainly not the FCA bitches, bitchez

Tue, 11/26/2013 - 07:39 | 4190136 spankfish
spankfish's picture

Mr. CD, is that fiat fire alarm or fiat firearm?

 

sarc/off

Tue, 11/26/2013 - 08:02 | 4190158 Cognitive Dissonance
Cognitive Dissonance's picture

Noice!

Tue, 11/26/2013 - 08:54 | 4190220 XAU XAG
XAU XAG's picture

 

 

                 DILLIGAF!

 

                    BTFD

Tue, 12/03/2013 - 16:28 | 4211323 GoldRealist
GoldRealist's picture

This article doesn't describe how gold is manipulated during the fixing process. It describes how some of the member banks MIGHT be using information during the calls for their financial gain. Hardly surprising that. Truth is .. the fixings that happen in London are a good thing, and the member banks are doing the market a service by coming up with good price fixings. Many assets and instruments are valued on the London fixings, and there is no incentive for the banks to mess this process up.

If you're looking for gold manipulation, look no further than the insanity that has been happening with price take-downs that (probably) The Fed through the Wall Street banks put through huge sell orders, knocking the price down. April 2012 comes to mind, and recently when the world was once again on the precipice over the Tea Party shutdown/debt ceiling fiasco, and the price of gold goes DOWN during those few days? That is craziness, and so obviously price manipulation on a grand scale. That is something to get your tinfoil hat out for, not the London fixings.

Mon, 11/25/2013 - 22:49 | 4189583 dvfco
dvfco's picture

I'm stunned. I would've figured these guys were so honest.  They have such nice suits, and houses, and cars.  They must benefit society, no?

Mon, 11/25/2013 - 23:05 | 4189614 chunga
chunga's picture

Eventually they'll benefit society...when they compost back into the soil.

Mon, 11/25/2013 - 23:54 | 4189720 willwork4food
willwork4food's picture

and the same blessings for the DC scum that allows them to do it.

Tue, 11/26/2013 - 02:24 | 4189932 ThirdWorldDude
ThirdWorldDude's picture

As well as each and every corporate-sponsored gubbermint in the rest of the "free" western world.

 

BIS - Board of Directors

Tue, 11/26/2013 - 08:57 | 4190224 Offthebeach
Offthebeach's picture

They are all doing God's work, and God being just and merciful, rewards his servents.

Tue, 11/26/2013 - 00:51 | 4189812 The Shootist
The Shootist's picture

But, there's got to be some reason bankers like Jamie Dimon are "richer" than us. Maybe it will come to me.

Tue, 11/26/2013 - 07:23 | 4190126 resurger
resurger's picture

Amen

Mon, 11/25/2013 - 23:35 | 4189677 666
666's picture

They're just doing God's work...

Tue, 11/26/2013 - 01:33 | 4189868 Ness.
Ness.'s picture

I know of the short squeeze, but the L-O-N-G squeeze in something like PM's takes balls.  I buy what the genuises are currently selling to muppets.  Hope I'm right. I know "they" don't get rich buying the high.  Stolperomics 101.

Tue, 11/26/2013 - 02:09 | 4189904 Cacete de Ouro
Cacete de Ouro's picture

Just doing the Bank of England's work, smoothing the price out, nothing to see, just a regular operation, a moderating influence don't you know

Mon, 11/25/2013 - 22:53 | 4189586 One And Only
One And Only's picture

I have gold. I love gold. Will never not own it.

Don't really care about "price fixes" because those are fiat based machinations.

Gold is gold. It's easy to short the price of gold when you have unlimited fiat in which it is priced in. But one day....the tables will be turned. I'm really not concerned that people will be fighting me for receipts of debt one day. I love low prices, I'm buying from sellers right now.

Mon, 11/25/2013 - 22:52 | 4189588 Bay of Pigs
Bay of Pigs's picture

And the rotten onion gets peeled away one layer at a time.

Mon, 11/25/2013 - 23:18 | 4189647 Skateboarder
Skateboarder's picture

There are elephantine maggots at the center.

Tue, 11/26/2013 - 09:32 | 4190271 yrbmegr
yrbmegr's picture

Perhaps someone could have a look under the rug at the oil market, now?

Mon, 11/25/2013 - 22:54 | 4189593 Odin
Odin's picture

Rothschild.... who are they again?......

Mon, 11/25/2013 - 23:01 | 4189607 dick cheneys ghost
dick cheneys ghost's picture

cheesepopes!!

~~~~~~~~

Tue, 11/26/2013 - 02:18 | 4189920 ThirdWorldDude
ThirdWorldDude's picture

Free francis_sawyer!

Tue, 11/26/2013 - 08:24 | 4190180 new game
new game's picture

kinda reminds me of of german door to door snuffing - where did frans go? lurking?

then they came for you...

begins with loss of freedom of speech and progresses to loss of___________.

Tue, 11/26/2013 - 12:16 | 4190596 Herd Redirectio...
Herd Redirection Committee's picture

The R's hide behind religion, that is for sure.  Sociopaths, that will attempt to use every possible way to avoid responsibility (esp. legal) for their actions.  Front companies, secret societies, people posing as billionaires (Khodorkovsky), religious fanatics... Anything that will potentially get the finger pointed at SOMEONE ELSE.  ANYONE ELSE.

Tue, 11/26/2013 - 02:23 | 4189931 IdeasRbulletproof
IdeasRbulletproof's picture

Chief central bankers

Mon, 11/25/2013 - 23:18 | 4189642 alfred b.
alfred b.'s picture

...they are SOTE.....Scum Of The Earth

 

 

Mon, 11/25/2013 - 22:58 | 4189599 TheUnwisestWizard
TheUnwisestWizard's picture

look he who owns the gold makes the rules - they own at least 51% of it at any given time and sometimes i would argue over 80% - right now, there is a sucking in so to speak, a stockpiling so of course they want the price lower so they can 'buy low' - they will 'sell high' later - i suspect gold to go down to at least 600ish, touch even in the 400's before catapulting back up past 1900 and then reaching new highs and then bouncing back down like a yo-yo... all you can do is stack and stack regularly - the momentum is upside... time and belief are the machinations of gold price - it will always have a value... an ounce always buys a nice suit - sometimes more though it's a pretty solid peg.

Mon, 11/25/2013 - 23:18 | 4189645 quasimodo
quasimodo's picture

Somehow I doubt "they" give a shit less what they are paying for it, depending on who one thinks "they" are. Why not just outright steal it? Nobody will do a damn thing about it anyway. Rather, driving the price down so weak hands capitulate just allows them to buy more, cheaper price simply being a by product.

I am pretty sure there will be a lot of folks throwing in the towel should it reach the low levels you refer to. 

Tue, 11/26/2013 - 01:19 | 4189854 kliguy38
kliguy38's picture

I am pretty sure you don't have a clue

Tue, 11/26/2013 - 02:03 | 4189899 Zero Point
Zero Point's picture

I'll actually be more amused by people throwing in the towel at $1,700.00.

 

Mon, 11/25/2013 - 22:59 | 4189600 Osmium
Osmium's picture

I guess I don't understand why we need banks to set the price of gold?  Can't the price be set by the market participants? 

So it must just be another way for the banks to bend us over and as they would say in London, "bugger" the hell out of us on a daily basis.

 

Mon, 11/25/2013 - 23:02 | 4189606 WTFUD
WTFUD's picture

Aah! What about the children? Sorry wrong thread.

Tue, 11/26/2013 - 00:00 | 4189727 willwork4food
willwork4food's picture

What about the children?

They put that meme in, when they decide its a good time to do a confiscate 2.0.

Mon, 11/25/2013 - 23:07 | 4189619 WTFUD
WTFUD's picture

Am not usually a kiss and tell guy but i balled Jan Yellers last night! She moaned and groaned as i boned. Her legs were up in the air around my waist. They couldn't reach my back!
Buy gold&silver she said when i'd done.

Mon, 11/25/2013 - 23:21 | 4189652 mayhem_korner
mayhem_korner's picture

 

 

Please clarify whether you or Jan was wearing the condom.  Thx.

Mon, 11/25/2013 - 23:29 | 4189670 Osmium
Osmium's picture

Please, I just ate, trying to keep it down now.

Tue, 11/26/2013 - 08:07 | 4190163 espirit
espirit's picture

Jan Yellen?  Jamie Dimon's sister?

That's just plain sick...

Mon, 11/25/2013 - 23:13 | 4189630 fonzannoon
fonzannoon's picture

I hate to go OT but since we all know gold is rigged. I've just read the same Snowden article on Drudge/ NYPost/Reuters where government officials say in basically the same paragraph that they have no idea what info he has, he has a "doomsday cache" and the worst is yet to come.

How can someone who does not know what stuff he has know the worst is yet to come. More importantly what the hell is Snowden waiting for? 

Mon, 11/25/2013 - 23:20 | 4189649 Seasmoke
Seasmoke's picture

Because they know, that he knows, that they have done some very bad bad things. 

Tue, 11/26/2013 - 09:34 | 4190275 ParkAveFlasher
ParkAveFlasher's picture

Yes, but they don't know that we know that he knows that we know that he knows what they know that he knows.

Tue, 11/26/2013 - 12:24 | 4190620 Herd Redirectio...
Herd Redirection Committee's picture

Snowden....  Are we still holding out hope for him to save us?  WTF people.  He luncheoned with every former CIA agent that is currently in Russia.  What clearer indication of his role do you need?

Mon, 11/25/2013 - 23:28 | 4189666 JustObserving
JustObserving's picture

Snowden has between 50,000 to 200,000 documents.  He has released only 500 so far:

US and British intelligence officials say they are concerned about a “doomsday” collection of highly classified, heavily encrypted materials they believe former National Security Agency contractor Edward Snowden may have stored away.

The cache supposedly contains documents with names of US and allied intelligence personnel, seven current and former US officials and other sources told Reuters. 

The collection is shielded by elaborate encryption that requires multiple passwords to open, said two of the sources, who all spoke to Reuters anonymously.

At least three people - unknown to the sources - possess the passwords, which are only valid for a short period each day, they said.

Officials believe the cache would likely be stored and encrypted apart from the rest of the material Snowden gave to news outlets.

The NSA and the Office of the Director of National Intelligence declined to comment on the collection.

One source saw the cache of documents as an “insurance policy” for Snowden should he feel threatened by arrest or other harm.

US officials and other sources say only a small portion of classified material they believe Snowden accessed as a contract systems administrator for the NSA has been published since the first documents were reported by the Guardian and The Washington Post in early June.

NSA chief Keith Alexander said this month it is believed Snowden downloaded between 50,000 and 200,000 classified documents from the NSA and GCHQ - the NSA’s British counterpart. At times, Snowden used unwitting employees’ passwords and access keys to reach documents and information he did not have permission to see.

Cryptome, a website that published leaked secret documents years before Wikileaks or Snowden arrived on the scene, estimates that about 500 documents from Snowden have been made public. 

http://rt.com/usa/snowden-doomsday-classified-documents-294/

Tue, 11/26/2013 - 00:42 | 4189793 Constitutional ...
Constitutional Republic's picture

I bet it's the stuff at GCHQ that is the most incriminating for the powers that hide behind the public facade.

Britain has stringent controls on government-sensitive information, with draconian laws like the D-notice, 30-year, 100-year bans on publication of some material from courts and public inquiries; libel law is enough to shut down public discussion in more mundane matters.

Interesting that the Queen's household got a law passed recently which further bans  communications between her family and associates from being made public in any way.

Do remember that the Nazi House of Saxe Coburg Goethe re-branded itself as Windsor after its relatives excited hostility worldwide and the current 'royal' family needed a way to distance themselves from their involvement. They are still Nazis, though.

Tue, 11/26/2013 - 01:04 | 4189835 dick cheneys ghost
dick cheneys ghost's picture

lots of secrets in the imperial closet..........

~~~~~~~

Tue, 11/26/2013 - 09:28 | 4190265 Wen_Dat
Wen_Dat's picture

Who is the sith lord?

Tue, 11/26/2013 - 16:06 | 4191574 Tall Tom
Tall Tom's picture

Well it is called "Insurance". If Snowden spills everything which he knows then he is a Walking Dead Man. (He already is a Walking Dead Man.) If he holds back and slowly leaks the information then his life span is increased.

 

The Government knows that a Time Bomb is wired to his heartbeat. If that heartbeat "suddenly" stops then there will be a Tsunami of information released.

 

By the way, as I know that you already understand, Fonzannoon, but, for those that do not, you can believe that the Government already knows what stuff Snowden has as they made that apparent by claiming that the worst is yet to come.

 

I like that Snowden is slowly leaking the Espionage against Foreign Corporations and Foreign Heads of State. This is just the iciing??? I can hardly wait for the core of that cake, er, cache. That is going to be thrillingly yummy. My mouth is watering as I can taste it. Bring it on. I love it when the Truth is exposed to the Light. There is an inherent beauty in all of that ugliness.

 

The lies by the media are not even crafted very well anymore. They understand that most lack the Critical Reasoning Skills. Thus they are brazen and look upon the Public with contempt.

 

Unfortunately most of the Public are worthy of contempt. (They elected Obama? Romney was no better, but...they are so stupid to fall into that Faux Left-Right Paradigm bullshit? That is contemptable.) So actually it is reasonable that the Media do that as they are not ever held to account.

 

Maybe the American Public will be to ignorant to understand the information. But we have only 320 Million out of a World populated by 7,126 Million people. (That is 7.126 Billion) The Americans are roughly 5% of World Population.

 

The other 95% of the World have not been intentionally dumbed down and can actually reason. Furthermore their Governments will feed them the appropriate anti-USA Propaganda if they are not able to critically think. Therefore, either way, they will be mighty angry at the USA. And they only outnumber the USA by a factor of 19. (That is a neat Prime Number, a Prime Factor, wouldn't you agree?) Some of those also have Militaries and Nuclear Weapons.

 

I have read that Saudi Arabia is the newest member of the Nuclear Club due to Pakistan. Bring it on. It is the End of the World as we know it....and I feel fine.

Mon, 11/25/2013 - 23:15 | 4189633 humblemechanic
humblemechanic's picture

This is big, coming from main stream media...hope this will change PM into a free market and save all the miners and put them in the right place...these prices are unsustainable to the industry

Mon, 11/25/2013 - 23:43 | 4189696 Skateboarder
Skateboarder's picture

Please hold steady for a couple months. I'm tryna get in and get a couple of maples before it goes exponential (soon).

Mon, 11/25/2013 - 23:21 | 4189641 piceridu
piceridu's picture

First you tell me that the FED's Volker was in on the manipulation and supression of gold prices in a 1974 memo and now 5 banks and the Rothchilds are manipulating the London Fix...

...does anyone really give a shit of the ass fucking we get daily from these ass fuckers? Nothing is done under the cover of darkness or in the shadows any more. The multi-national dildo is simply paraded down Main Street without taking a day off and is openly and with much fanfare shoved right up our arses. Nobody says a fucking word...they just wipe up the blood and ass tissue and wait for the next day's fucking.

 

Mon, 11/25/2013 - 23:51 | 4189715 jomama
jomama's picture

my only real hope is that each time they use lube.  at least on mondays.  and not that jalapeno flavored shit.

Tue, 11/26/2013 - 11:10 | 4190423 StandardDeviant
StandardDeviant's picture

The article does say that Rothschild dropped out of the London fixing in 2004.

But don't let that interrupt your all too revealing stream of vivid metaphors.

Tue, 11/26/2013 - 12:26 | 4190627 Herd Redirectio...
Herd Redirection Committee's picture

Yes, because if fixing was being done in my offices, I would try to distance myself from it.  But that doesn't mean I wouldn't have a representative at the meeting, or keep trying to profit from 'the fix'!

Mon, 11/25/2013 - 23:41 | 4189692 Seize Mars
Seize Mars's picture

Rothschild. There's a name you just don't see.

Mon, 11/25/2013 - 23:58 | 4189726 Fred Hayek
Fred Hayek's picture

Pretty neat how a family can be known to be unfathomably wealthy 150 years ago and never suffer any significant financial setbacks that anyone knows of and yet we're supposed to believe that they're not even on the charts of the Forbes richest.

So, let's see, you had a huge head start, a monstrous lead in wealth, got obscene nation raping central banks that you control established in almost every nation, didn't suffer any reversals or setbacks but no, some guy who sold his stock in his computer widget company is one of the richest and they're not. Sure. That makes sense.

Tue, 11/26/2013 - 00:57 | 4189823 Seize Mars
Seize Mars's picture

It's a laugh, isn't it.

There is one - and only one - front upon which they are losing.

Information.

Tue, 11/26/2013 - 08:14 | 4190170 Keyser
Keyser's picture

If the masses knew the power the Rothschild's hold over them, there would be angry mobs with pitchforks storming the castle gates. 

 

Tue, 11/26/2013 - 18:48 | 4192113 MeelionDollerBogus
MeelionDollerBogus's picture

Which castle? Even that is now obscured.

Tue, 11/26/2013 - 02:57 | 4189976 Zero Point
Zero Point's picture

Another interesting thing to note, is that family business dynasties generally only last a few generations.

These "people" have been at this for centuries, going from strength to strength.

Almost super"human" one might say.

Tue, 11/26/2013 - 12:28 | 4190628 Herd Redirectio...
Herd Redirection Committee's picture

Interdimensional assistance, in exchange for??? Bloodshed???  Human suffering?  Who knows for sure.

Tue, 11/26/2013 - 07:36 | 4190134 negative rates
negative rates's picture

Wealth and comfort are not measured in dollars.

Tue, 11/26/2013 - 18:28 | 4192067 Ckierst1
Ckierst1's picture

Another metric is bottles of Chateau Rothschild.

Tue, 11/26/2013 - 18:44 | 4192107 MeelionDollerBogus
MeelionDollerBogus's picture

today they are. All of those things have dollar prices. That's the point of HAVING dollars.
Plebes are forced to use them, elites are able to make them on a whim & a wish, then everything of comfort or value can  be taken using dollars, the law/currency of the land.
All that remains is the sustained dual effort of using violence to keep people in dollars & using propaganda & short-term memory to ensure many sheeple never remember there was another time when dollars were not money, so they have no inkling that time is returning.

Tue, 11/26/2013 - 01:48 | 4189880 Cacete de Ouro
Cacete de Ouro's picture

The Rothschild name has gone into hiding somewhat since 1980, when gold peaked...hmmm

See ngram book reference chart to Rothschild name...

https://books.google.com/ngrams/graph?content=Rothschild%2C+Rothschilds&...

Mon, 11/25/2013 - 23:41 | 4189693 Rock On Roger
Rock On Roger's picture

I bought two 1 toz bars today. And two 1/2 toz coins for my kids, stocking stuffers for St. Nicks' Day.

And the dollar price of gold didn't drop after I bought as it usually does.

 

Stack On

Tue, 11/26/2013 - 01:21 | 4189856 willwork4food
willwork4food's picture

Well God bless you dude! That's my mortgage payment. Kid's ain't getting a 1/2 toz of gold before daddy does, I can assure you.

Tue, 11/26/2013 - 02:15 | 4189913 Rock On Roger
Rock On Roger's picture

I've been saving to BTFD. Seems like a good week, first day notice for December delivery along with a four day weekend for USA.

Kids need to learn the value of their labour and how to profit from their labour. 1/2 toz is their bonus for making their parents proud of them.

 

I sure god would be unhappy with my stacking. After all he is losing his stack to the eastern gods. Amen. ra

 

Stack On

Mon, 11/25/2013 - 23:42 | 4189694 Downtoolong
Downtoolong's picture

Beadle declined to comment on the benchmark-setting process.

But, according to NSA records he subsequently made a phone call to Antony Jenkins which included the statement “fuck man, they’re onto us, I didn’t sign up for this kind of shit, if I go down I’m taking you with me.”

Mon, 11/25/2013 - 23:54 | 4189721 Fred Hayek
Fred Hayek's picture

Which, if he ever said that, would be the last ever heard of Beadle.

Tue, 11/26/2013 - 02:12 | 4189908 RafterManFMJ
RafterManFMJ's picture

...and his family, and his pets, and his maid, and his grand kids...

Tue, 11/26/2013 - 12:37 | 4190671 Herd Redirectio...
Herd Redirection Committee's picture

If you ever find yourself applying for a job, and they ask you for your kids' school schedule...  Welcome to the Sinaloa Cartel & Associates!

Mon, 11/25/2013 - 23:52 | 4189717 Fred Hayek
Fred Hayek's picture

This article is great but it misses the most significant damning evidence about this ridiculous process. I've seen these charts elsewhere, months back, but this was the first place I could find them right away.

https://marketforceanalysis.com/articles/latest_article_081310.html

What the charts show is that -somehow-, even as the price of gold was exploding upward from 2001-2011, there was a significant net *drop* in price in all that time in the course of the time from the AM fix in London to the PM fix in London. So, -somehow- we can only guess, while the price of gold was rising from something like $250 per ounce to something like $1900 per ounce, it had a huge net DECREASE in price across all those London trading hours.

But Bloomberg actually believes we can only speculate, only hypothesize that an utterly risible process might result in market manipulation.

Tue, 11/26/2013 - 00:53 | 4189814 Bay of Pigs
Bay of Pigs's picture

Fred,

Yes, Adrian Douglas did some great analysis on that very point. Sadly, he passed away in January of this year. Forward to the 6 minute mark if you just want the part on the London Fix. (from his speech at the GATA Gold Conference in London 2011).

http://www.youtube.com/watch?v=GmpVurAewpo

Tue, 11/26/2013 - 12:39 | 4190680 Herd Redirectio...
Herd Redirection Committee's picture

Look, its obvious as day what was happening, and still is.

The trend was, sell gold in the morning (ET) and then buy back in the afternoon (or continue to build a short position).  They made it obvious, and were hoping to get people on-board (esp momo traders), to let the lemmings in effect do the manipulation for them (or at least give it a veneer of legitimate trading activity).

Tue, 11/26/2013 - 02:13 | 4189909 rosiescenario
rosiescenario's picture

Well, it slike the Fight Club....if you are in it, you do not talk about it...if you are in the tribe you don't write about what other members are doing.

Mon, 11/25/2013 - 23:59 | 4189729 Never One Roach
Never One Roach's picture

If the silly metal is so insignifcant, why do they spend so much time, effort and money bashing it?

Everyone should ponder that.

Tue, 11/26/2013 - 01:31 | 4189865 dryam
dryam's picture

.......and make it part of the most important political agreement in long time with the Iran deal this past weekend.

Tue, 11/26/2013 - 17:12 | 4191785 MeelionDollerBogus
MeelionDollerBogus's picture

And there it is:

"Gold Trading

Some curbs on gold trading also will be removed. While Iran will be allowed to buy and sell precious metals, including gold, it will be barred from accepting them as payment for oil or any other sanctioned transaction, according to the officials. Iran sits on the world’s fourth-largest proven oil reserves. "

This was never, ever about nuclear weapons or even nuclear power at all.

You can sell your oil for DOLLARS but NOT FOR GOLD.

Well, Russia, China, India, who KNOWS who else, may have something else to say, then Iran will go along regardless because of a unified anti-dollar front, globally.

Tue, 11/26/2013 - 00:18 | 4189766 novictim
novictim's picture

Oh, this story doesn't matter.  So what if you paid WAY TOO MUCH for that slip of paper that says you own gold?

Hey!  It's GOLD...lovely shiny GOLD! 

Am I right?  Come on!  Am I right!?  GOLD LOVELY GOLD BUY GOLD BUY GOLD

Tue, 11/26/2013 - 16:58 | 4191763 MeelionDollerBogus
MeelionDollerBogus's picture

O EM GEEE
Mine even came with chocolate inside!
* BONUS *

Tue, 11/26/2013 - 00:32 | 4189779 Constitutional ...
Constitutional Republic's picture

The Rothschilds are masters of deception and manipulation as the history of their banking dynasty shows. Fact.

The London gold and silver fix is part of their global markets  network. Fact.

The Rothschilds are hofjuden, managing money for monarchs and the Vatican. Fact.

That trio are total control freaks; inbred sociopaths. (No disrespect to Pope Francis, the Jesuit General who is trying to undo some of the damage).

Tue, 11/26/2013 - 00:32 | 4189780 TWFTG
TWFTG's picture

I think the real price are determinatd by the trillion derivatives markets , London and Comex are just the little players' proxy game  !!

 

Tue, 11/26/2013 - 05:30 | 4190068 Urban Redneck
Urban Redneck's picture

The price is the price.

The large players play in all these markets and more. So until someone can find the legal statute that is violated by a market participant entering trades in multiple markets simultaneously I will just assume Caminschi and Heaney's paper was ghost written by Captain Obvious.

At 3:01 p.m., after the start of the call, trading surged to 47.8 percent above the average for the 20-minute period preceding the start of the fix and remained 20 percent higher for the next six minutes, Caminschi and Heaney found. By comparison, trading was 8.7 percent higher than the average a minute after publication of the price. The results showed a similar pattern for the SPDR Gold Trust.

Conspiracy! in the gold market is Inconveivable! Unfortunately, the part of Vizzini is being played by an ensemble cast of childish Gold Bugs.

Ask yourself this, Why do certain people in positions of authority tell scary stories to small children at night? Are there actually scary things in the world? What resemblance is there between the scary things that might probably (or possibly) do a child harm and the scary things described in the ghost story?

Tue, 11/26/2013 - 15:42 | 4191455 MeelionDollerBogus
MeelionDollerBogus's picture

the scary things in the world are getting ready to use nerve gas & bio-weapons, much scarier than the silly stories told to children.

Tue, 11/26/2013 - 00:41 | 4189792 unwashedmass
unwashedmass's picture

that they play all these paper games is no surprise to anyone ....except those who've been paid to be ignorant .......

thing is now, the game is ending....china has won...

and for those of us here? we at the point where if you don't have any in your hands now, or some coming to you in the next day or so, you ain't never gonna be able to get any real. 

in other words, we're there. those that gots got, those that don't never will.

Tue, 11/26/2013 - 00:44 | 4189794 Godisanhftbot
Godisanhftbot's picture

 praise the good lord, this explains why your 1900 gold is not 5000, but 1200.

 

 

Tue, 11/26/2013 - 01:37 | 4189874 willwork4food
willwork4food's picture

It also explains why official inflation is 2.9% when you have to lease out your 13 yr old daughter to help pay rent.

OK. maybe that was a bit extreme...

Tue, 11/26/2013 - 08:20 | 4190173 Keyser
Keyser's picture

Is "lease out" the new official politically correct libertard term for "pimping". Just curious if this term was injected into the lexicon by the current administration because we know big momma goes out and works the corner when times get tight. 

 

Tue, 11/26/2013 - 00:45 | 4189799 Cacete de Ouro
Cacete de Ouro's picture

Douglas Roy Beadle - DRB Consultancy Ltd

DRB CONSULTANCY LIMITED
1-7 PARK ROAD, CATERHAM, SURREY, UNITED KINGDOM, CR3 5TB

Formerly AURUM Consultancy Ltd

Also Douglas administers the London Gold Market Fixing Ltd, the London Silver Market Fixing Ltd, and the London Precious Metals Clearing Ltd.
www.goldfixing.com
www.silverfixing.com
www.lpmcl.com

Tue, 11/26/2013 - 00:48 | 4189804 The Wisp
The Wisp's picture

Gold Makes Great Christmas Gifts.. and if You Marry Her.. it stays in the family  :)

 

Tue, 11/26/2013 - 02:21 | 4189927 Dan The Man
Dan The Man's picture

ya but Gold vs Wife is hardly revenue neutral

Tue, 11/26/2013 - 08:24 | 4190179 Keyser
Keyser's picture

After experiencing wife 1.0 and then again with wife 2.0, I ran a cost-benefit analysis on the institution of marriage in the US. I didn't get far as the numbers are stacked against the man. If you want unrequited love and devotion, buy a dog. 

 

Tue, 11/26/2013 - 08:58 | 4190225 flacorps
flacorps's picture

I don't think that world means what you think it means.

Tue, 11/26/2013 - 11:22 | 4190477 Captain Benny
Captain Benny's picture

A dog certainly would not substitute the services my wife provides... and hookers are way too expensive.

The dogs are my best friends.  The wife is my pet.

Tue, 11/26/2013 - 15:32 | 4191395 MeelionDollerBogus
MeelionDollerBogus's picture

LOL! Depends on the woman. A couple on here actually sound like they are great wives.
for quite a lot for those services, however, it turns out they're cheaper than the wife once you factor in the divorce & support payments mandated by courts, children or not.

Thu, 11/28/2013 - 22:40 | 4198159 Angus McHugepenis
Angus McHugepenis's picture

I actually did a personal study on a friends behaviour as he was dating. This wasn't a formal scientific study. I observed his woman-chasing habits for about 3 years. He was 65 years old at the time with 2 heart attacks under his belt and his cock needed no Viagara.

Background: He had only one divorce. Caught the wife fucking his banker. Beat the banker almost to death. He's a former specop soldier from the 70's in the Brit army in Northern Ireland. They got divorced and she wanted a shitload of his earnings. She got some because they had 2 kids together, but not much. Kept hounding him for more over the years. You don't fuck around with warriors. He said NO (the most powerful word in the English language).

Now this lunatic is running around fucking everything he can find at his age, and with his medical condition not even a consideration. Despite his past romantic failures he is a sucker for pussy. He never married again but he might as well have been when the puss gets hold of him. He dates women half his age that cost him gazillions. I finally told him to just rent a hooker for an hour once a week and save a ton of money.

That's enough for now. I'll write a book about the rest.

 

Tue, 11/26/2013 - 00:47 | 4189805 Angus McHugepenis
Angus McHugepenis's picture

Don't care anymore what the criminals do. I'm not playing their game. I'll watch from the sidelines as they self-destruct.

Tue, 11/26/2013 - 08:28 | 4190189 Keyser
Keyser's picture

Being idle will not preserve your assets. With the noise of negative interest rates, capital controls and bail-ins by banks, best to assure that what assets you do have are protected. There are many "safe" banking havens in countries that are not hell-bent on financial destruction.

 

Tue, 11/26/2013 - 15:08 | 4191280 MeelionDollerBogus
MeelionDollerBogus's picture

"not playing their game" doesn't sound like "being idle" to me. It takes a lot of planning & activities, just off their radar.

Thu, 11/28/2013 - 21:24 | 4198118 Angus McHugepenis
Angus McHugepenis's picture

Yep, you get it.

Tue, 11/26/2013 - 01:00 | 4189828 Son of Captain Nemo
Son of Captain Nemo's picture

JHC Bloomberg!

Thanks. What the fuck took you so long to be honest?

Tue, 11/26/2013 - 01:26 | 4189859 q99x2
q99x2's picture

Great article ZH.

Tue, 11/26/2013 - 01:26 | 4189860 Judge Crater
Judge Crater's picture

The NSA and British GCHQ spy agencies exist to listen in to stuff like these gold price fixing conference calls. 

Tue, 11/26/2013 - 01:34 | 4189871 rainingFrogs
rainingFrogs's picture

An interesting read off the original Bloomberg link about a deal Goldman Sachs is cutting with Venezuela. 

What is Goldman Sachs doing with Venezuela's gold

Per the article:

  • Venezuela is borrowing about $1.6 billion from Goldman for seven years.
  • Venezuela is collateralizing that borrowing with 1.45 million ounces of gold, valued at US$1.8 billion at today’s prices (90% of the value of the gold)
  • The physical gold is to be delivered and held at the Bank of England.
  • The collateral will be subject to margin calls as the price of gold increases or decreases.
  • Venezuela is paying about 8 percent a year for this loan.

Methinks GS has a cunning plan to get its hands on Chavez's legacy.

Tue, 11/26/2013 - 08:21 | 4190175 geewhiz
geewhiz's picture

Maduro is either very stupid or has received a nice popoff.

Tue, 11/26/2013 - 10:29 | 4190358 ParkAveFlasher
ParkAveFlasher's picture

Maduro has to be just two steps smarter than his "electorate" and one step smarter than everyone who works for him.  It's not the most popular anti-meme but I will repeat that Chavez' gold grab sets the table for this unholy arrangement prefigured upon the Venezuelan populace by the Banksters.

Tue, 11/26/2013 - 17:50 | 4191960 Ckierst1
Ckierst1's picture

Venezuelans I talked to said he's just a stupid, big mouth, union demagogue.

Tue, 11/26/2013 - 08:41 | 4190205 overmedicatedun...
overmedicatedundersexed's picture

raining frogs, good info..as to value of PM's if a big "smart" bank thinks gold is an asset it will loan money against, does that support gold as a store of wealth, obviously..nobody is loaning on bit coins, as of yet.

Tue, 11/26/2013 - 14:29 | 4191132 MeelionDollerBogus
MeelionDollerBogus's picture

WTF. That's a large, large amount of collateral vs loan size.

Tue, 11/26/2013 - 17:42 | 4191928 Ckierst1
Ckierst1's picture

Just recently talked to some Venezuelans while in S.A..  They said that they are having to queue up for rationed groceries nowadays and weren't real happy about it.  Sounds like the price fixing game is taking its toll.

 

 

 

Tue, 11/26/2013 - 01:39 | 4189875 delacroix
delacroix's picture

8% on a loan collateralized with gold?

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