Precious Metals Manipulation Worse Than Libor Scandal, German Regulator Says

Tyler Durden's picture

Remember when banks were exposed manipulating virtually everything except precious metals, because obviously nobody ever manipulates the price of gold and silver? After all, the biggest "conspiracy theory" of all is that crazy gold bugs blame every move against them on some vile manipulator. It may be time to shift yet another conspiracy "theory" into the "fact" bin, thanks to Elke Koenig, the president of Germany's top financial regulator, Bafin, which apparently is not as corrupt, complicit and clueless as its US equivalent, and who said that in addition to currency rates, manipulation of precious metals "is worse than the Libor-rigging scandal." Hear that Bart Chilton and friends from the CFTC?

More on what Eike said from Bloomberg:

The allegations about the currency and precious metals markets are “particularly serious, because such reference values are based -- unlike Libor and Euribor -- typically on transactions in liquid markets and not on estimates of the banks,” Elke Koenig, the president of Bafin, said in a speech in Frankfurt today.

Actually, what makes the most serious, is that precisely because they are on liquid markets means they implicitly have the blessing of the biggest New Normal market maker of call - the central banks, and their own "regulator" - the Bank of International Settlements (hello Mikael Charoze).

“That the issue is causing such a public reaction is understandable,” Koenig said, according to a copy of the speech. “The financial sector is dependent on the common trust that it is efficient and at the same time, honest. The central benchmark rates seemed to be beyond any doubt, and now there is the allegation they may have been manipulated.”


Bafin has also interviewed employees of Deutsche Bank AG as part of a probe of potential manipulation of gold and silver prices, a person with knowledge of the matter has said.

We wonder how long until this particular investigation is stopped based on an "executive order" from above, because Bafin is now stepping into some very treacherous  waters with its ongoing inquiry of gold manipulation: what it reveals will certainly not be to the liking of the financial "powers that be."

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Sofa King Confused's picture

Great you found out what everyone already knows. Now stop it.

Xibalba's picture

If the President, (or his working group on markets) does it, then it's not illegal. 


*waves peace sign*

Frozen IcQb's picture

Now they speak!

Where were they before their gold "to be returned" was backordered for eight years by the FED?

Yes We Can. But Lets Not.'s picture

Perhaps Angela Merkel, pissed about NSA abuse, gave Bafin the green light to come out with this info.

That the NSA is unchecked will produce some bad outcomes IMO.

nope-1004's picture

National policy for a reserve currency to maintain confidence MUST entail the manipulation of any alternative.

Seems rather logical.


Unfortunate that it takes so long for others to catch on and see through the veil.


BLOTTO's picture

Our Life has been manipulated more than  the precious metals and libor scandal combined - X1,000...

NotApplicable's picture

Somebody forgot to grease the Bafin!

redpill's picture

I'd advise this guy starts making his own tea from now on.

Odin's picture

The financial sector is dependent on the common trust that it is efficient and at the same time, honest."



Wait, there was a time when this shit was honest?




Manthong's picture

Maybe they are a little P.O.’d that they only got 37 of their of their “supposed” 3,400 tons held for safekeeping by the US back about a year after asking for only about 300 tons back.

..and they were not the serial numbered German marked bars..  it was new gold, recast and likely bought on the open market (at suppressed prices of course).

HoofHearted's picture

Don't stop the shit yet...I still have FRNs to exchange for precious metals. And if the government isn't insolvent by the time I file taxes, there is a refund coming to me. (Thanks, suckers, for giving me $1000 per child in my family. Still not sure why that is, but we convert it into four ounces of gold right away!!!) Don;t take the punchbowl away until late February or early March at the absolute fucking earliest!!!!

BaBaBouy's picture

Market Manipulation In Most Countries is Illegal.

Compensation IS DUE to Thousands Of Mining Companies That Have Been Harmed Or Destroyed By These Covert PM's METALS Operations. (+ South AFRICA ?)

Not To Mention A Million Or So Investors...

GetZeeGold's picture





I for one am shocked and appalled.


Who knew.....except about everyone?


GATA is going on vacation.....the sign out front says.....TOLD YOU SO BITCHEZ!

cynicalskeptic's picture

Well back in the late 80's - when nobody seemed to care about gold - the vaults on E Level at the NY Fed were full of gold, all nicely stacked in their respective government's cages.  The German bars - and much of the European gold - was still stamped with the eagle and swasticka put on then the Reichsbank had it in inventory.  While the smelter puts their ID, fineness and weight on bars, it was also the custom of various banks to stamp bars withtheir mark of ownership.

It's already come out that Germany was allowing their gold in US possession to be leased out (to be lent to various bullion banks and - OF COURSE, SOLD - while the banks paid minimal interst on theoir lease and invested the proceeds of the sale in higher paying bonds, a supposed 'win-win' as long as gthe price of gold holds steady or goes down).  

So.... now we have the scramble to buy it back - in competition with China and the rest of the world - and you can bet the US is going to be nice to China in exchange for continued support of the $US (e.g. - NOT dumping US Treasuries all at once - a move also in China's interest to preserve as much value as possible while they convert those $$$ into hard assets). 

I wonder if ANY gold is left in the basement of the Fed 

Would be all too convenient for some if the 'Die Hard With a Vengence' scenario actually came to pass in one form of another..... HORRORS!!! We were robbed!!!!!

Skateboarder's picture

And the security keep guarding empty boxes. Imagine if they knew. :)

Oracle of Kypseli's picture

I suspect a terrorist attack on the NYfed which will supposedly evaporate all the gold. I wonder if the building and its contents is insured by AIG. Happy trails mates

Tall Tom's picture

They had that chance when the Gold was stored in the Basement Vaults of the World Trade Center.


But for some reason they decided to move all of those metric tons of Gold, beginning in July, 2001 to, as Alan Greenspan said on Sept. 17, 2001, to an "undisclosed location". (the vaults of the NY Federal Reserve)


So none of that Gold was vaporized underneath the WTC on September 11, 2001.


It just had to have been, "Dumb luck" that the Gold was not in those underground vaults on September 11, 2001.


I can just imagine the US Government Official in Charge saying, "Hey..I am bored. Let's take a couple of MONTHS and MOVE ALL OF THE GOLD OUT FROM UNDERNEATH THE WTC. That will give us something to do...Let us just do this for the fuck of it."


No. They had no clue that those Twin Towers were going down...NONE WHATSOEVER.



Cacete de Ouro's picture

Elke König is a broad ....

geminiRX's picture

Bitcon comes to mind too...

TruthHammer's picture

as not being a legit alternative? agreed

MrPalladium's picture

No, but as an alternative that must be coopted and manipulated by the system. A wise warning.

Oracle of Kypseli's picture

TPTB can eliminate digital crypto-currencies in a NY minute. Don't be fools. They may even be the originators to deflect what the left hand is doing.

The religious-like followers of bitcoin are all over the blogosphere proselytizing just like penny stock pushers and Jehovah witnesses

Bugger off 


Frozen IcQb's picture


The reserve currency would not have to be manipulated if politicians were not commiting treason by spending above revenues.

Long-John-Silver's picture

Perhaps Angela Merkel, pissed about NSA abuse, gave Bafin the green light to come out with this info.


I think She's pissed Germany can't get it's Gold back. It's been rehypothecated so many times it no longer exists.

Fish Gone Bad's picture

The gold exists.  She still won't get it back though.  Its been turned into Indian gold jewelry.

Uncle Sugar's picture

It's at the bottom of some river or lake.

toothpicker's picture

It's in China or in a castle somewhere in Europe

ForWhomTheTollBuilds's picture

Alright now fellow gold bugs. Enjoy this day of validation. You've truly earned it.

But tomorrow or maybe early next week, this will hit the mainstream press where it will be mentioned in passing and from then on, your meticulous proofs of manipulation will be met with:

"Well, DUH!!!! Tell us something that whole world didn't ALWAYS know! You're a little slow on the uptake, aren't you?".

Today proves your views about gold's place in the world are as correct now as they have always been. Honestly after last year its pretty comforting. But this is only a small step...

GetZeeGold's picture




Tell us something that whole world didn't ALWAYS know!


I seriously doubt your run of the mill 711 patron had any clue.....let alone your standard soccer mom.


It's probably best if we just keep this between ourselves.

Volaille de Bresse's picture

"Perhaps Angela Merkel, pissed about NSA abuse, gave Bafin the green light to come out with this info"


Could be... or Merkel has a much bigger view and mentally teleports herself to 2030, when China is booming and the US is semi-dead.


WHO is Germany going to sell Mercedes cars to, then? Not some dude in Texas or Cali. Pissing the US, who cares as long as China's your #1 economic partner...


With a strong Berlin/Beijing partnership, Germany will even be able to leave Europe and let France drift/sink with the insolvent "tanned" Euro-zombies (Spain Greece Portugal Cyprus). 

Vorwäts Deutschland!!!!

Pladizow's picture

Someone wont be made partner at JPM or GS!

kaiserhoff's picture

True, but when the Germans get their gold back, they will be able to buy Japan with it.

Of course, so will anyone else with a couple of Krugarrands to rub together.

Rainman's picture

Germans get their gold back ? ....that's a good one !

GetZeeGold's picture



Yes we have your you can't see it.....yes, you can have it back......just not right now.


What? Are you still here?


Go home......we'll call you. Would you take some bitcoins for that?


DaveyJones's picture

assuming anyone will want to buy Japan

Beam Me Up Scotty's picture

Buy it and pass it down to your great, great, great, great,..........grand kids about 100,000 years in the future.

cynicalskeptic's picture

Think of it as a large 'glow in the dark' novelty item.

DaveyJones's picture

like a night light for the moon

Fish Gone Bad's picture

Making fun of Japan is pretty easy to do.  It must be all the Tritium and Cesium 137 in their drinking water.

TeamDepends's picture

Sleeping like babies, confident the kind, grandfather-like NY bankers were keeping a watchful eye on their stash.  Speaking of the cartel, is anyone else enjoying watching them repeatedly attempt to push silver under $20 only to receive a waving silver finger in their face and a taunting "Oh no you di-int!".

maskone909's picture

fo sho

lovin my new 10oz ntr bars

thinking a boat trip is way overdue

gmrpeabody's picture

Better plan on taking those bars with you..., nothing is safe at home anymore.

SilverIsKing's picture

Not only will he take them with him, I am certain that the bars will somehow fall overboard and be "lost forever."

Kaiser Sousa's picture

"attempt to push silver under $20 only to receive a waving silver finger in their face and a taunting "Oh no you di-int!".

yeah, its hilarious how after a huge phony paper price smash they get it to trade in a narrow range for days while the Fraud Markets r moving up and down, and all around...

so obviously bullshit...thanks assholes - for real money for me and more peices of green worthlessness for you cocksuker mother fucking MoneyChangers....

he who laughs last..........

zhandax's picture

Funny how the price of a Bach Stradivarius never seems to go down.  And it's only silver plated.....