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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DaveyJones's picture

hello dear

how are the perennial food plantings?

MsCreant's picture

Need to get started, but my semester is started too so I have been a neglectful plant mom. I have one big job to get done, then probably this weekend I will get out there and put some back into it! Still need to do some winter clean up.

And yours? Cold frame?

DaveyJones's picture

greenhouse and four small cold frames + some stuff right out in the open that survived 14 degrees.   Lots of Kale, but some asian greens are pretty tough, green oinon now coming back. They usually do up here around the third week of January. Garlic too

MsCreant's picture

I should check where I planted those onions... oh dear!! Ha ha ha. I am serious! Raccoons (maybe Rocky?) got my garlic and dug it up.

Some dog stole our bird feeder! The kind with the cakes you put in a cage? Just ran off with it, stopping to try and eat it, and ran again.

I love greens. I can cook up some mean southern style greens. I have no shame, bacon, onion, garlic, aged organic balsamic vinaigrette, salt, pepper, man oh man. Don't cook them to death either! So good for you when you are not eating grain and gluten products. I am off dairy too right now. 

I should plant Kale. 

Had a lot of apples. Don't have a way to store them. Quite a few went bad. Need a freezer next. All kinds of things going on when I really think about it. 

So glad for you and the cold frame action. I bet I could benefit too, but the yard is still evolving. All our problems are not solved yet. The berms are not holding. Should have done swales. 

DaveyJones's picture

swales may be the key to life

RafterManFMJ's picture

I don't know, but I'm willing to donate a new 100 dollar bill to fund the experiment.

AllWorkedUp's picture

That's all??? 2,710 tons???

I thought fer sure China had accumulated close to 20K tons by now. No wonder the scumbags are able to keep the price down at around $1200. Alot of misinfo out there.

KWN ought to pull their heads out of their asses.

Tall Tom's picture

Not all of the Gold that was imported by China was purchased by the PRC Central Bank. Most of it has ended up in the hands of PRIVATE INDIVIDUAL OWNERS in China.


There are 179,000 Metric Tons of Gold as reported by the World Gold Council. Central Banks and Governments own about 40,000 Tons. The rest is PRIVATELY OWNED.


Perhaps you need look in the mirror?

SAT 800's picture

probably not; but it would be worth watching.

Kaiser Sousa's picture

this  is why the phony paper prices have to be ignored and if u r able u must continue to STACK with every disposable DEBT COUPON DOLLAR U HAVE!!!!!!!!

the matrix wasnt just a movie...

does it have you??????

"Gold is the money of kings...Silver is the money of Gentlemen....Barter is the money of peseants, and Debt is the money of Slaves...."

SilverIsKing's picture

"Gold is the money of kings...Silver is the money of Gentlemen....Barter is the money of peseants, and Debt is the money of Slaves...."

                    "...and Bitcoin is the money of Fonestar."

Hippocratic Oaf's picture
"Precious Metals Manipulation Worse Than Libor Scandal, German Regulator Says"

Mr. Dimon, paging Mr. phone, Mr. Dimon.

Mad Mohel's picture

That's one German that needs to watch his wiener schnitzel from here on out.

Fidel Sarcastro's picture

Elke Koenig may end up sleeping with the fishes if he isn't careful.

Wolferl's picture

Elke König is a woman, just sayin.

Mad Mohel's picture

Shit! So nobody was going to listen to her anyway. Well there goes another hope of a legitimate investigation.

TrumpXVI's picture

Correct, maybe something like this "Elke"??


Or....maybe not so much.

DavidPierre's picture



Chinese water torture.

It was reported yesterday out of Switzerland that the Swiss want to become an international hub of Chinese renminbi trading. The Swiss government is in talks to swap Swiss francs with China's renminbi in anticipation of the Chinese currency becoming a reserve currency. It was also reported that Russia is negotiating an $18 billion "goods for oil" deal with Iran and that The White House is "concerned". Ya think?

Did we even need any more evidence that the world is turning towards China and their currency...and away from the U.S. and our dollars? If you read the first story regarding Switzerland, they fear that "they are playing catch up" ...especially with our long time ally Britain. It was reported a few weeks ago that Britain has been in trade talks with China and levering their mutual business ties through Hong Kong. Of course they are playing catch up as China has been spanning the globe making trade, currency (theirs) and business deals for several years now.

Have you ever heard of the phrase "Chinese water torture"? This is merely the very slow dripping of water onto someone bound to a table. It is done slowly and methodically and never does the pace increase (unlike CIA water boarding). The process continues until the subject finally breaks. In a sense this is exactly what the Chinese are doing, they are slowly and methodically supplanting the U.S. from it's position of the "reserve currency". Yes we have seen fits and starts but for the most part the pace has remained quite steady but continually "building".

Think about this analogy for a moment, we (the U.S.) are "bound". Did someone "tie us up"? No, we have done this all to ourselves of our own "free will". Yes I know, we did have some "help". We were "helped" by the British and Europeans initially and then by Japan followed by the Chinese. They "helped us" by purchasing our debt. Back in the old days there had to be buyers for one's debt as it was unacceptable, no, LUNACY for the central bank of a country to purchase more than even 1% or less of an offering. Foreigners bought and continued to buy U.S. Treasuries until about 2 years ago...when they just stopped at which point the Fed was forced to step in. The Fed has purchased over 70% of Treasury issuance for over 2 years now, this IS lunacy...but now considered "normal"?

So why is it that the Swiss are moving towards a financial deal with the Chinese? Well, forgetting the fact that our regulators have pissed them off by bullying their bankers, they are simply "following the gold". Gold has been flowing into China at a rate of 100 tons per month (plus retaining their own production). I have seen "official" reports out of the World Gold Council and GFMS that say the Chinese have amassed nearly 3,000 tons and "may have" surpassed the French and Italians. May have? Let me say this, the "official" line of 3,000 tons is laughably BOGUS not to mention that Italy probably lost close to half of their gold back in 1998 with LTCM's blow up.

China has imported and produced AT LEAST 3,000 tons...just in the last 2 years alone! I would guesstimate that 5,000 tons would be the absolute minimum of their hoard and may be 8,000 or even approaching 10,000 tons. Business (and financial power) ALWAYS follows the gold. The flip side of this is that when gold "leaves" a does financial power. Put simply, we blew it! We had the manufacturing base of the world. We were cutting edge everywhere you looked and the financial center of the world. We have lost our "edge" and if the "Monkey Business" that we are playing with Germany's gold is any guide, we have also lost our gold.

I do want to mention that this scheme where the Fed buys Treasury bonds (QE) has prolonged the game, it is also an accelerant to our becoming irrelevant. Monetization is fraudulent and we are doing this openly, publicly and telling the rest of the world something that they know not to be true. They understand today as it has always been understood that gold is "financial truth" which is why business always follows the gold. Watching and living through this is painful from a patriotic standpoint. Foreigners on the other hand don't really care, they are slowly, steadily and methodically (like Chinese water torture) preparing themselves for the future. Trade deals, currency deals, political alliances, military alliances etc. are being negotiated and reported on every single day, yet here in the U.S. it's "business as usual"...until it isn't any longer.


gwar5's picture

Agree 100%. Rickards feels Chinese needed minimum 4000 tonnes to be a major player at the coming big dance. There is every indication they have exceeded that number by a good margin already and they show no signs of letting up. Won't end well.


Policy of the US seems to be to officially deny disaster is coming while quietly prepping to control the masses for when the coming disaster hits. There is no strategic or economic mitigation "Duck and Cover" type plans to help the man on the street for what's coming, only incremental plans for martial law to protect the status quo.  

At least the Chinese have been telling their own people to acquire gold to protect themselves at the same time they are developing their domestic market so they can give the insolvent West the middle finger.




LawsofPhysics's picture

Well, I for one look forward to selling my soybeans, pecans, and other produce to the Asians for gold.  Sounds great to me, bring it.

Lore's picture

GATA has been trying to raise awareness of this for ages. The price of monetary metal is a direct barometer of truth in the marketplace. I spoke a few years ago with an Indian banker who called the Anglo bunch "the most corrupt in the world." 

1.6 Billion Rounds Of Ammo For Homeland Security? It's Time For A National Conversation (Forbes, Feb 2013)

"The Denver Post, on February 15th, ran an Associated Press article entitled Homeland Security aims to buy 1.6b rounds of ammo, so far to little notice.  It confirmed that the Department of Homeland Security has issued an open purchase order for 1.6 billion rounds of ammunition.  As reported elsewhere, some of this purchase order is for hollow-point rounds, forbidden by international law for use in war, along with a frightening amount specialized for snipers..."


Bay of Pigs's picture

"These guys are the biggest crooks to ever walk the planet"

BoP's Dad on the Wall St Banksters, (who is still running strong at 92).

disabledvet's picture

again...if you get it from outer space "it's already refined." take a look at the number of launches of the Space Shuttle..."just put it in the cargo bay."

cynicalskeptic's picture

China has a LONG memory and plenty of reasons to 'get back' at the West.

Remember the Opium Wars?  Didn't think so... but the Chinese do.  They view the last few hundred years as an 'abberation' - a brief period where the barbarians from the West ran amok. China views itself as the long term bastion of 'civilization' having suffered at the hands of the West in recent centuries.

AllWorkedUp's picture

But someone just posted they annouced they had only 2710 tons of gold. A long way from 4K tons. WTF? I thought they were buying 100 tons a month?

Who can believe any fucking info out there? Rickards or anyone else?

Kirk2NCC1701's picture

"We blew it".  Who exactly do you mean by "We"?

It's not exactly like they blackmailed or threatened us. And yet... I still don't hear guillotines rolling or knives being sharpened, nor judicial inquiries or even decently organized protests or marches.

In the end... "A people deserve their leaders".  I plan and act accordingly: IOW, no "Patriotism" over here, i.e. no "flag-waving or supporting the lifestyle of losers or crooks".  Feel free to do so if you like.

A 100% Patriot is a 100% Useful Idiot for TPTB.

Kirk2NCC1701's picture

p.s. To be clear:  I do not deem it a Virtue to bleed or die for an utterly corrupt and bankrupt regime, or a veritable 'army' of losers, parasites and crooks (numbering in the many, many tens of millions).  

That does NOT mean that I am not prepared to be a "Patriot" when it comes to protecting "my own", i.e. my family, my friends, my Clan, my Tribe. 

Screw "Los Federales"!  Time to reign in allegiance (from a Republic that has grown and morphed/metastasized into the very evil Empire it fought in the past).  Screw the "national" agenda or so-called "national interests".  Time to buy, grow and act locally and regionally.

Bring on the Parallel Economy:  a mix of Real Assets, Barter, Cash, PM, and BTC.  And ONLY give unto Caesar what Caesar is "entitled to"** (in his own currency).

** Entitled can mean different things to different people.  To some it means a strict Constitutional interpretation, whereas for others it means BOHICA -- depending on their level of conviction + physical courage, in the face of Caesar's tax collectors and mercenary army.

Max Cynical's picture

As of December 2013, RMB now 2nd most used currency in trade finance, overtaking the Euro.

Recent SWIFT data shows that RMB usage in traditional trade finance - Letters of Credit and Collections - grew from an activity share of 1.89% in January 2012 to 8.66% in October 2013, propelling the RMB to the second most used currency in this market. It ranks behind the USD, which remains the leading currency with a share of 81.08%. The RMB overtook the Euro, which dropped from 7.87% in January 2012 to 6.64% in October 2013 and is now in third place.

Son of Captain Nemo's picture

Perhaps this might be the straw that broke the camels back moment -or perhaps at least one of several that we know about...

Sure hope John Kerry doesn't try to make peace with the Germans the same way he did recently bearing gifts of potatoes to Russia's Lavrov?

Don't think that went over too well.


The Germans ain't shutin up till they get their good delivery GLD back, just as Russia ain't leaving Syria anytime soon until that pipeline of their's gets built. 

astoriajoe's picture

Perhaps we mint a gold coin, maybe just slightly bigger than an American Eagle coin,  with the words "300 tons pure gold .9999" stamped on the back and call it a day.

Son of Captain Nemo's picture

And it shall have Paul "Krugface's" cameo on the obverse and his ass (breaking wind) on the reverse.  And they shall forever use it in his honor during the coin toss at the Superbowl...

astoriajoe's picture

and we start the game with the score of 7-7.

FreedomGuy's picture

I like the idea of the trillion dollar coin. Mint 17 of them and all debts are paid! This is so easy a child, Congressman or Fedster could do it!

dwayne elizando's picture

I doubt the Germans are going to get their Au back. It looks to me like it's already a partial default!

Son of Captain Nemo's picture

I doubt they will either. 

Strike that comment from the record. We know they will NEVER get it back and so do they.

tvdog's picture

The potatoes weren't entirely Kerry's fault. The law prohibits gifts of more than $100 to foreign officials. E.g., the king of Saudi Arabia gives the U.S. president a jewel-encrusted sword worth thousands, and gets a book in return.

gmrpeabody's picture

was it autographed...?

Au Shucks's picture

Sure, in front of the camera.  Of course, King Saudi-poo-poo is then sure to receive billions in "military aide" and "foreign assistance" which he will use to terrorise his populace, entrench his authority, and force their industry to use slave labor that enables them to export real goods back to the US for paper nothings. 

Pretty fair exchange, eh?

Terp's picture

And this right after Bafin publicly bitchslapped DB CEOs for "non-action" in dealing with the LIBOR scandal.

Mutti won`t like that one bit.

Wolferl's picture

You can bet your arse that Mutti is behind that.

eclectic syncretist's picture

The amount of registered gold at COMEX dropped by a very large 20% yesterday, and now there are only 370,000 ounces left, or just a little over 10 tonnes.  It's not far from here to zero, so the lies should start piling up faster and furiouser every day now.

astoriajoe's picture

20% every day and we never get to zero. ;-)

NoDebt's picture

Hey, listen, that's been the story for 9-10 months now, so I wouldn't get so excited.  You're one of a LONG line of people who have said "they'll be out of gold in week or two."  Yet month after month it clicks along, bouncing off the bottom again and again.  However they do that magic trick it's obvious they can perform it every damned day of the year.

BigJim's picture

I've just discovered this really authoritative website, called King World News! They have a lot of experts on there saying that it looks like gold and silver are going to rocket up in price any day now.

MeelionDollerBogus's picture

I can't wait for another jaw-dropping expose exclusive from famous whistle-blower andrew maguire... and now without further ado...

ForWhomTheTollBuilds's picture

I'm watching the same numbers you are, but don't get too excited just yet.


Has pretty high quality color comentary on why a Comex failure isn't likely anytime soon.  In an earlier entry he pointed out "delivery" is legally made when a long contract holder is given a paper warrant by a too big to fail bank.  The warrant never expires and can be used as collateral for a loan making is good as gold unless your one of those pedantic weirdos.


Still lots of machinery in place to keep the reigndeer games going on for a while yet.  I still say the game just ends one day when China says so.  All we know is that today we are one day closer.


Atlantis Consigliore's picture

You a Pizza Chit; you know what Im Talkin Bout, You Cockroaches.....