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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FreedomGuy's picture

The government will save us! It's not like they manipulate the economy, massage the numbers or believe in central planning, right? They care about us more than we care about ourselves. They will fix this and set it right, I am certain.

Canadian Dirtlump's picture

they found out what a few thousand of us probationary tinfoil hat wearing  cavetrolls know. The vast majority of the gum chewing mongoloids who exist to pop anti depressants and watch my strange addiction, honey boo boo and pawn stars would either laugh at you, or give you a serene autistic blank stare if you said that to them.

Kirk2NCC1701's picture

Not so fast, 'hoser'.  I don't accept that so many of us here at ZH "knew" of this or that even it old/new owners/Tylers and contributors knew.  The proof is simple:

1. In a world where ANYTHING of economic is manipulated, we should expect even PMs to be manipulated.  But we didn't, in a pre-2013 world.  As recently as Oct. 2012 ZHers and other gold fans/bugs were "FRONT-RUNNING" The Fed on its QE policies and driving up the PM prices.  That's a fact, Jack!

2. When ZH finally spotted and reported the PM price reversal, due to price manipulation (e.g. Banging the Open or the Close, on thin volumes), it seemed to come as a surprise and a shock.  We've seen the PM prices (futures) get monkey-hammered for about 15 months now, and each "uptick" is falsely celebrated as some kind of a "recovery", when in fact it's nothing but an ongoing part of a Sideways market.  Even TD does it... trying to talk up PM prices.  And I call them out on it every time.

I submit that it's not just TPTB (Fed & Friends) who are "manipulating" PM prices, but so are gold bulls.  The latter do it with their feeble attempts at pump up the prices or bullion purchases, when this is not working.  Not in the US anyway. 

There is therefore a fair bit of Revisionist History going on here on ZH.  There has only been a realization of PM Manipulation after the fact, not before it.

As I've said many times:  PM prices will be (a) Channel-Bound and (b) won't break out until TPTB let their prices break out.  No matter what ZH says or gold bulls & shills proclaim.

Nage42's picture

Is it just me?

I see a difference between:

talking up an asset class on a public forum touting its merits

Vs.

Microsecond sell-and-withdraw of tens of thousands of 100-ounce contacts per second using special order commands that are quietly agreed with exchanges.

But maybe I'm just a nit-picker?

FreedomGuy's picture

The entire world is now a political economy and manipulated by governments. As we lose track of the real value of anything from money to a pound of sugar we will suffer accordingly.

Tall Tom's picture

Give me a break, KirkNGC1701...

 

Anyone who has been involved in the Gold Market since the 1970s knows that the damned price has been manipulated. What is a Gold Standard? It is the Ultimate Price Control? (Of course it serves to limit profligate Government spending and, thus, is an anti-Government tool.)

 

But when the Government decoupled the currency from Gold back in the 1970s the market was still manipulated.

 

In the 1960s the Gold Market was manipulated by London UNDER BRETTON WOODS. Does the London Gold Pool ring a bell??? 

 

In the 1980s the Gold Market was manipulated.

 

In the 1990s the price was subject to supression. Brown's Bottom was the final attempt to crush demand for Gold. It did not work.

 

The Gold Anti Trust Action Group, GATA, www.gata.org, stood up and filed an action against the Federal Reserve Bank. They were watching the South African Miners being starved by these policies. This incensed their Good Conscience.  

 

So their filed an Anti-Trust Lawsuit did not go anywhere because...

 

THE RECORDS, THE EVIDENCE, FOR THAT ANTI-TRUST CASE, ALONG WITH THE EVIDENCE FOR THE ENRON ENERGY MARKETS MANIPULATION CASE (fuck Kenneth Lay as he burns in Hell), BURNED UP IN THE COLLAPSE OF WORLD TRADE CENTER BUILDING #7 ON SEPTEMBER 11. 2001.

 

How fucking convenient.

 

Three Criminal Cases evaporated on September 11.

 

GATA's antitrust case...

Enron Energy Market Manipulation case...

And the Embezzled $2 Trillion from the Department of Defense case stored conveniently where the damage was impacted upon the Pentagon.

 

Just a fucking coincidence, right?

 

And those are just the ones I know about. I wonder how many more were quashed by that event...

 

And you ARROGANTLY think and propose that we are UNAWARE??? GET REAL!!!

 

So who is writing "Revisionist History"?

 

TAKE A GOOD LOOK IN THE MIRROR.

Colonel Klink's picture

May need to revise those numerals to whichever king it was that lost his head to the guillotine.

SilverIsKing's picture

Is that a gold bar in his pocket or is he happy to see me?

Strider52's picture

I've heard that their next move is to  digitize numbers.

MsCreant's picture

Is this a scented or unscented douche?

Colonel Klink's picture

Scented, he smells like Obama's cocksucker.

s-logic's picture

Obama's cocksucker???? It's vice versa!

FreedomGuy's picture

He looks happy.

"It's good to be the king!"

-Mel Brooks.

fooshorter's picture

Your not getting your gold back any sooner by appealing to the peasents. 7 years? Now its 8! And don't make me raise it!

 

~gubermint mafia

JohnnyBriefcase's picture

"I am altering the deal. Pray I don't alter it any further."
-Lord Vader

Nothing but the truth.'s picture

What gets my fucking Goat are some of the PM contributors on Seeking Alpha, who flatly deny the existence of manipulation in the PM markets and would rather use stupid little charts to explain the price falls. These idiots  are hopelessly misinformed and blind to reality.

piceridu's picture

Manipulation...here's the smoking gun:

If we want to have a chance to remain the masters of gold an international agreement on the rules of the game as outlined above seems to be a matter of urgency. We would fool ourselves in thinking that we have time enough to wait and see how the S.D.R.'s will develop. In fact, the challenge really seems to be to achieve by international agreement within a very short period of time what otherwise could only have been the outcome of a gradual development of many years.

U.S. objectives for world monetary system—a durable, stable system, with the SDR as a strong reserve asset at its center — are incompatible with a continued important role for gold as a reserve asset.... It is the U.S. concern that any substantial increase now in the price at which official gold transactions are made would strengthen the position of gold in the system, and cripple the SDR

 

Confidential 1974 Memo To Paul Volcker

http://history.state.gov/historicaldocuments/frus1969-76v31/d61

cynicalskeptic's picture

SDR's - the ultimate fiat backed by NOBODY created out of thin air to suit whatever the needs of TPTB are.....  oh yeah... I'd trust those completely

tip e. canoe's picture

SDR's ain't called paper gold for nuttin'.

(talk about an oxymoron)

Herd Redirection Committee's picture

Some people just can't resist the urge to support the MSM and become a useful idiot themselves.  It gives them direction, purpose, and an identity.

Frank N. Beans's picture

they're a little too nice and polite on that site, that's the problem

 

AngelEyes00's picture

It's obviously being manipulated because developed economies are exercising QE, printing money, which would bomb their currency valuation/s if gold prices were allowed to rise.  It's a no brainer because as we can see gold is being hoarded.  How can something that is being hoarded remain down in price? 

I just hope this investigation is not squelched in the interest of BAU. 

MsCreant's picture

I like when the mint runs out of the stuff because the price is so low and demand is so high.

In what equation does high demand = low prices? 

Anyone?

Anyone?

Herd Redirection Committee's picture

High demand?  I am pretty sure that means if you are holding, you should sell no matter what the offer, at market, above market, hell, even below market!

Transformer's picture

High demand = low price is always true when gov puts in price controls.  In Venezuela recently, the government set the prices for everything, from big screen TV's to toilet paper.  The purpose beinig to hide, or not acknowledge inflation.  All prices were set low, so there was a very high demand, which immediately cleaned out all the stores.  Business owners were not interested in losing money, so they did not replace stock.

Sound familiar?

cynicalskeptic's picture

Good reminder...... stock up on TP (and garbage bags) along with the food and ammo.......

SAT 800's picture

It's a communication problem. He doesn't mean by manipulation what you mean by manipulation. He's talking about waterfalls on Friday that have no effect on the monthly average price. the only thing that's possible, by the way. Manipulating PM's prices in the sense that the internet cognescenti believe in is impossible; which is why it doesn't happen; because impossible things don't happen.

TheReplacement's picture

$5 on a brown murdering this dude in some tragic and completely random act of terrorism.

buzzsaw99's picture

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

chdwlch1's picture

Got that right!  It's dependant on being the one and only issuer of credit!

slotmouth's picture

If you trust that the market is efficient and honest, you must be out of your damn mind.

Clowns on Acid's picture

Well it actually was....before Greenspan, and then Bernanke, and now Yellen...oh yeh who is Vice Chair again....?

What do all these guys ahve in common besides being negative real interest rate specialists ?

NoDebt's picture

Two words: exploding Mercedes.

TeamDepends's picture

It is strange that M-B didn't come right out and say:  "Ja, our cars do not simply blow up for no reason".  They were probably assured then reassured the story would drop down the memory hole.

NoDebt's picture

Mercedes, as a matter of general principle, leaves those sorts of "fiery death trap" denials up to Tesla.

Simplifiedfrisbee's picture

Two years ago at midnight, a stranger(he had pulled over on the side of the road), my cousin, and myself came across a vehicle that had smashed into a light post. The electrical line snapped and caused a fire in the vehicle. It was an M3 convertible. While my cousin and stranger telephoned for help, I went over to the vehicle and immediately put out the man burning in flames with my shirt. Burning human skin is unforgettable.

We immediately moved him across the street in fear of the car exploding. The car was engulfed in flames in just a few minutes.

Police and fire department showed and the Chopper took him away.

Point is, I informed the fire chief we were afraid the car would explode. He said, "Cars explode only in movies. It rarely happens in reality."

Tim_'s picture

San Diego 6 News - Video


"They [fire and police] were told not to comment on this story."

"There were zero skid marks."

"Mercedes says their cars just don't blow up."

"Cars can be remotely controlled."

Herd Redirection Committee's picture

Call me a cynic, but he may have (had help) faked his death.  Not a lot of places to go in your career as 'investigative journalist' if you lose credibility (which is what would have happened if he didn't continue outing gov't corruption and scandal).

TaperProof's picture

My favorite was when my friend spent $120k on a new MB and the electrical system failed on his ride home leaving him on the side of a busy highway...     stuff like this should be great news for Tesla

JustObserving's picture

what it reveals will certainly not be to the liking of the financial "powers that be."

But they have been listening to all of Merkel's calls since 2002.  That has to be worth something.

Merkel will call off the German regulators.


Obchelli's picture

Bullish for Equities!

Bearish for Precious Metals!

ForWhomTheTollBuilds's picture

It's interesting to see the comex not react in the slightest to this news isnt it?

 

Gold should either be going where KWN always promised or to where FOFOA always promised.  Instead a yawn from the markets.  Maybe HFT algos arent coded to parse "manipulation worse than libor".

ForWhomTheTollBuilds's picture

Jesus Christ, China just announced their official reserves are up by 76% to 2710 tons and that they are now the third biggest gold holder in the world.

 

No reaction in price...  Would Bernanke blowing his head off on live TV while screaming, "It was always about gold!" move the price at this point?

MsCreant's picture

I bet we could take up a collection for that one. Gold even.