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."

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Drifter's picture

PM manipulation will continue long as dollars can be delivered instead of PM.

satoshi101's picture

I still say the ONLY solution is to enjoy your life, to get far away from the USA and find love, freedom, and live.

"He that Gaineth Knowledge of the USA, Gaineth Misery, for in much knowledge of the US Government will bring great grief to the human mind, and much unhappiness"

- Meaning, if you really knew the truth of the US Government, you would go MAD.

Ignorance of the REAL US Government is the secret to a happy mind, in an unhappy country.

CJHames's picture

Satoshi, you forget, that we Americans have an uncanny ability to loathe and fear our government yet still fiercly love our country.

Tall Tom's picture

Love and hate are just two different expressions of the same emotion.


People that you do not care about really will not have much of an impact at all. But when someone who you love betrys you then that Love can turn to hatred on a dime.


We hate what our Government is doing because we fiercely love our country and our countrymen. It seems rather inconsistent but when you understand the expressional duality of the emotion then it makes sense.


Many outsiders will have no understanding about loyalty and betrayal as they were raised on expectations of betrayal and have not ever been loyal to anyone...not even themselves.

jonjon831983's picture

So it means somebody is in position to profit when the decide to drop the hammer?

Joe A's picture

Everything is rigged. The whole game is fixed.

bunnyswanson's picture

Head 'em off at the pass.  (Pull out of the Ponzi scheme before they do)

jballz's picture


Gosh one day the Canadian defense minister says aliens are real and you all lambast him as a lunatic fringe.


A couple days later a lunatic fringe German bean counter says gold is rigged and you treat his word like gospel.

Biased much?

Tall Tom's picture

FOR ME...there is a lack of Empirical Evidence for Aliens living among us.


From anecdotal experience I have not ever, knowingly, encountered one. If they exist I will be more than pleased to make acquaitance.


(Now I have had experiences with actual angels. I know this anecdotally because when all that is spoken, the entire conversation, was SCRIPTURE...and with the fact that there was this loud voice inside of my head, saying "That is Jesus talking to you. You had best listen." before any conversation took place....then you can understand the encounter. (I was not planning to pay here any attention whatsoeveruntil I heard that voice.  Believe me that it was something uncommon...rather unique.)


So...Perhaps some of you have encountered an alien.


Enough on aliens. I am not claiming that they do not exist. I just do not know. I have no Empirical Evidence to support or deny the claim. The Drake Equation suggests the possibility. So I will not discount it.


But there IS EMPIRICAL EVIDENCE that Gold Prices have been manipulated for many decades. I have that EVIDENCE.


You can deny that angelic encounter if you'd like.

You can also deny that Gold Prices are manipulated.

You can even label me a "lunatic". I really do not care.


But I know that I am more rational than 98% of the people as I understand the LOGIC and RATIONALITY of MATH.


Lunatics' rational thinking skills are generally deficient.


And as Robert Heinlien wrote that people whom do not understand Math are just SUBHUMAN. So I am pleased to be an outlier on the Bell Curve.


Why be Normal when you can be superior? I am happy that I am on the fringe.


Only the Inferior want to be that is a progression...for them.

goldenbuddha454's picture

I don't know if I coined it, but my wish has come true.  Golden-gate is here.

new goldenbuddha454

Vote up!

Vote down!


Can we just skip straight to Golden-gate, or the total manipulation of gold and silver prices by the likes of, well you name the bank.....

Volaille de Bresse's picture

"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"


You forgot the elephant in the room, China : the price of Gold will be free when China has bought enough stuff at a discount price and consider the silly game should be over.


Then they'll grab and twist Uncle Sam's arm... which will snap in no time. Sammy will surrender within a month and the price of AU will explode. And China will be RICH... and the USD will be dead.



EuropeanSectorInvestor's picture

"Germany's top financial regulator, Bafin, which apparently is not as corrupt, complicit and clueless as its US equivalent,"

--->>> that is wrong. The BaFin only most recently increased efforts and manpower to to what they are supposed to do...  that monstrous organisation was just another paper tiger, far less experienced than FSA and SEC.



resurger's picture

Salute to Mr. Bafin

GrinandBearit's picture

Good, I hope the manipulation continues all the way down to $700.

Stackers need to stop bitching and moaning.

Take full advantage of the dumps.   I love it when PMs are on sale. 

All major dips are fantastic buying opportunites.

BlackBoxFund's picture

Deutsche Bank is withdrawing from the price-setting process for gold and silver as part of its strategy to scale back its commodities business.

Germany's largest bank by assets is one of five lenders charged with determining the London benchmark price for gold and one of three banks that determine the silver benchmark.

GUILTY !  GUILTY as charged ! And now their fine will be much lighter since they probably have squeeled on the other criminals !

BlackBoxFund's picture

Gold i locks, if you do not have a London Fix the Bankster junkies can't roll their REHYPOTHICATIONS and the empty Gold and Silver vaults are then revealed !

Minburi's picture

I laugh when I watch the James Bond, "Goldfinger" movie.

The villian's goal was to contaminate the gold in Fort Knox with radioactivity and drive the world price up 10X so that his vast storehouse of gold would be worth $350 per ounce.