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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Sufiy's picture

Very good timing!


Arthur Cutten: COMEX Gold Potential Claims Per Deliverable Ounce Rises to Historical High 112 to 1

  After issuing his Buy Signal on Gold, Arthur reports the new historical all-time-high leverage at COMEX with 112 potential owners for each one ounce of Gold! Arthur Cutten: JPM Holds the Whip Hand on the Comex - Gold Buy Signal GLD, MUX, TNR.v, GDX

 "Arthur Cutten has issued his Buy Signal on Gold. He has a very conservative approach and his article speaks for itself."

Kirk2NCC1701's picture

So many PROMISES made in the heat of the night, in the cover of darkness.

So few kept by the light of day.  So many precious orphans created.  Who will fed them all?

Oliver:  "Moar gold please, sir."

"Moar gold, you say?  What cheek!  Get to work, you orphan bastard!"

AllWorkedUp's picture

Downvoted you, just because you're a dick.

americanspirit's picture

Also known as Jesse's Cafe Americaine

ForWhomTheTollBuilds's picture

Sorry to dupe a post I just made, but I think this is important for people to understand:


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.

Volaille de Bresse's picture


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's on the forehead, to be precise... One drop at a time for hours or days. Uncle Sam's going to scream in agony. 




ConqueringFools's picture

And who really cares? Those of us paying attention already know this shit. The entire US and western economies are a scam filled with corruption and special interests etc. Frankly, what the hell is the average American gonna do about it? We are all so reliant on the system nobody wants to bite the hand that feeds them. If I take a stand and say $&@? You IRS you think my employer is gonna stop them from garnishing my wages? You think that judge is going to side with me? You think the police that come to arrest me give a flying crank about what I would be representing? Hell no everyone needs a paycheck.

America is a complete joke! The people are walking brain dead zombies without a clue as to how bad they are getting raped. Where are the militias? Where are the homegrown "terrorists"? Where are the ex Navy SEALS willing to go to bat and mess some stuff up for the Anerican people? Land of Decree home of the slave!

markar's picture

I was able to double up arrow you. Wish I could do more.

Tall Tom's picture

You can do more. What are you willing to sacrifice? That is the question. Are you comfortable in your chains?

Good...Now be a good servant as your Government depends on you.


Yeah...Wish I can do more. Really I do wish that. LOL.


(Just do not get caught...Then you can do more.)

AllWorkedUp's picture

I'm here, but I can't do it alone anymore than you can. Then the question is where do we start?

Tall Tom's picture

Watch the movie, "Fight Club", and learn the basics. You can do it. I know that you can.

MeelionDollerBogus's picture

since I started learning about gold & all the fraud around it, directly & indirectly/related in bonds, housing, etc., for price, generational cycles, etc., nothing has changed but the number of ounces I hold & the entry price. Nothing in the cycles, the correlations, the end-game... none of that has changed.
I'm unmoved emotionally by price moves up or down, just positioned for deals with little risk.
These stories are honestly getting boring because they do show no change in the end-game nor forecast changes in entry cost.

kchrisc's picture

But then all the manipulation, while criminal, can be also be regarded as "blue-light specials" by those not backed into a corner.

It has almost been comical to watch, as the banksters have knocked the price down, the Asians and many Westerners have just bought more. The Chinese government must actually have "laugh your ass off" parties at what the banksters are doing for them.


Wolferl's picture

Elke König is a woman.

GVB's picture

Thank god there are women! :-)

NoDebt's picture

I knew that.  (No, I didn't)

Conax's picture


Just barely.  Yeesh.   I'm glad I didn't search up 'Elke Konig yoga pants'.

gwar5's picture

Exactamundo PM manipulation is worse!!  PM's trading is bigger than oil. And the manipulation is tactically dynamic, fluid, strategically coordinated, and multilevel involving government(s). And all of the shit going down are criminal felonies so the whole mess needs to be roped off as an ongoing crime scene.

Thanks GATA!! .... You were correct all along and a decade ahead of everybody else.


Silverhog's picture

Gold will be at $10,000 before CNBC mentions the investigation. 

NoDebt's picture

Hey, it's up $3 right now on this devastating story of <gasp!> manipulation in the gold market.  Only eight thousand some odd dollars to go and we're there.

SilverDoctors's picture

CNBC may not cover it, but Glenn Beck just took 20 minutes on The Blaze discussing gold rehypothecation and ze German gold.   Story is slowly but surely getting out among the mainstream.

Toolshed's picture

WTF? Glenn Beck speaking logically, rationally, and un-emotionally? Why didn't I get the memo about hell freezing over?

fijisailor's picture

Yea that really surprised me.  FOX must have been paying him to be an idiot extremist when he was really a logical guy all along.

Clowns on Acid's picture

You are a tool and / or a lazy thinker of LSM if you think Beck was an"idiot extremist" at FOX. Beck called gold to 1500 when it was 700, Beck predicted the constitutional dosaster that is Obama 6 years ago...

Beck was correct on just about everything he reported / opinionated on.... so smaten the fuck up before you talk dumb fuck. 

Wen_Dat's picture

Now tell glen you're sorry Fiji.

Tall Tom's picture

Good to see that you are here.

In Fed We Trust's picture

Obama, don´t drink any cocktails prepared by VP Joe Biden. 



maskone909's picture

i hear the guy loves cocktails minus the tails

one-in-nine's picture

If the German's aren't careful, they may ask to repatriate their hundreds of tons of gold and instead get a few tons with a promise for the rest.
oh, never mind... lol

Kaiser Sousa's picture

"The simple fact that anyone can understand is that the demand for physical gold far outstrips the annual mine supply.  China’s appetite for gold changed everything.  Not only the official gold purchased by the government, but the burgeoning demand by the Chinese public.  There are hundreds of millions of new and potential new buyers and they are entering into a market already oversold. The “readily available” gold, to meet the demand, is shrinking rapidly.  Comex gold, GLD gold, gold held in London – all is being drained to the point that central bank participation in the sales is all that is balancing the scales.

Will the West run out of gold to sell to Asia?  No!  There are tens of thousands of tonnes laying around, but they are NOT FOR SALE.  The question becomes, at what price will the owners of that gold decide to sell some of it?  Not at these prices.

That’s why I believe that when gold makes it move up and frees itself from the paper manipulation (in the next few weeks or few months is my guess), the move up will be rather fast, not slow and drawn out.  It will be the move up by gold that will cause the drop in the dollar, and not the other way around.  Now that’s a novel thought, one I haven’t seen in print yet. Once gold shoots past its previous high, around $1900, dollar holders around the globe will take notice – and ask themselves why is this happening?  It will cause doubt in the dollar’s worth as a store of value.  Once the dollar starts to fall, below the high 70s, the move will be self-reinforceing, like a snowball rolling down a mountain.

So, when it comes to gold (and silver), I have but two words to say:  All’s good!"

Seeking Aphids's picture

Your thought about the loss of faith in the $US as a function of the rise in gold prices is why there has been such frantic and obvious efforts made to keep it down imho. You are fighting the powers that be with the idea that gold will run up quickly but you could still win that fight as they don't have an unlimited supply and as blatant manipulation could be problematic.......

Gene Parmesan's picture

They'll kick off WWIII before they allow any of this to happen.

Kirk2NCC1701's picture

No Problem:  "CASH FOR GOLD 2.0"

DrDinkus's picture

these anime ads with the busty lassies, while enjoyable, is making it harder to browse ZH at work..

Fuh Querada's picture

Is it worth deactivating Adblocker this time?

James's picture

"Is it worth deactivating Adblocker this time?"


HaHaHa, I tried that and I only got financial type ads

insanelysane's picture

Me thinks the good doctor is googling anime or porn and then going on ZH.  You must have been googling finance.  I on the other hand only see adds for 

unrulian's picture

i could kiss you...even with that moustache

MeelionDollerBogus's picture

no but installing adblocker at work is not always so easy

Fuh Querada's picture

"probe of potential manipulation "
That must be the red-hot wire being prepared for insertion into DB VPs asses, as post(erior)ulated by Jim Willie recently

1stepcloser's picture

I see the Germans want to make it 14 years....You mess with the bull you get the horns....

Inthemix96's picture

Manipulating the gold price, the Libor rate, the interest rate via CPI and RPI, the housing market, the commodities we fucking eat, the oil prices, the gas and electric markets, drug running, along with various weapons running, laundering said money, paying shitty % fines of such as a cost of doing business, and still, not one of them in jail.

All at zero percent interest rates, for them, with money given from a private cartel, for nothing to loan on their 'Normal' busniess models at anywhere from 29.9% APR, to 5,900% APR.

What the fuck is 'Not' to like about their business model?  Hell, is far to good a place for these cunts.


css1971's picture

Welcome to The Awakened.

Did you see David Cameron is going to bat for The City?


logicalman's picture

Going to bat.....

As in being a blood-sucking flying mammal?

MeelionDollerBogus's picture

Oy, you forgot manipulating the justice market which is why they're not in jail.
And yes, it's a market as rigged & for sale as anything else could be!
Q: where can you find the highest price cunt for sale?
A: judges' chambers