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German Gold Manipulation Blowback Escalates: Deutsche Bank Exits Gold Price Fixing

Tyler Durden's picture




 

Germany's blowback against gold manipulation is accelerating. Following yesterday's report that Bafin took a hard line against precious metals manipulation, after its president Eike Koenig said possible manipulation of precious metals "is worse than the Libor-rigging scandal", today the response has trickled down to Germany and Europe's largest bank, Deutsche Bank, which announced that it would withdraw from the appropriately named gold and silver price "fixing", as European regulators investigate suspected manipulation of precious metals prices by banks. As a reminder, Deutsche is one of five banks involved in the twice-daily gold fix for global price setting and said it was quitting the process after withdrawing from the bulk of its commodities business. The scramble away from gold fixing was certainly assisted by the recent first (of many) manipulation expose in the legacy media, when Bloomberg revealed "How Gold Price Is Manipulated During The "London Fix." And sure enough, with Germany already very sensitive to the topic of its gold repatriation, and specifically why it is taking so long, it was only a matter of time before any German involvement in gold manipulation escalated to the very top.

Reuters has more:

"Deutsche Bank is withdrawing its participation in the gold and silver benchmark setting process following the significant scaling back of our commodities business. We remain fully committed to our precious metals business," it said in a statement.

 

In mid-December, German banking regulator Bafin demanded documents from Deutsche Bank under an inquiry into suspected manipulation of benchmark gold and silver prices by banks, the Financial Times reported, citing sources.

 

Bafin declined to comment on Friday, but its President Elke Koenig said the previous day that it was understandable that the topic was attracting widespread concern.

 

"These allegations (about currencies and precious metals) are particularly serious, because such reference values are based - unlike LIBOR and Euribor - typically on real transactions in liquid markets and not on estimates of the banks," she said in a speech

Needless to say, manipulation of the gold market would not be exactly novel to a bank which has also been named in cases related to the sub-prime crisis, credit default swaps, mortgages, tax evasion and a decade-old lawsuit suit brought by the heirs of late media mogul Leo Kirch, who accuse the bank of undermining the business.

Reuters also reports that Deutsche is now actively marketing its gold and silver fixing seats to another LBMA member, however now that the cat is out of the bag on the gold fixing manipulation scheme (the first of many), it is likely that others will seek to follow in Deutsche's footsteps and seek to put as much distance between themselves and the wood-paneled room once located in the Rothschild office on St. Swithin's Lane in London.

We wonder which of these five gentlemen is from Deutsche?

So if everyone exits the London fixing market, what happens then?

"It wouldn't surprise me if the other banks were looking at pulling out as well. Why would they want the aggravation?" said the source, who declined to be named.

 

"The more worrying point is that, if you don't have the fixing, what do you have? There's a lot of contractual business done on the gold fix, and if you've got no basis for where the price is, someone is going to lose out."

Well considering that the fixing process over the years was manipulation pure and simple, those who will lose out are the... manipulators? it would seem rather logical. And speaking of manipulation, if indeed Germany is so keen on breaking the manipulators' back, perhaps it can demand that the pace of its gold returns from the NY Fed and Paris accelerates. It may be surprised at what it finds.

 

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Fri, 01/17/2014 - 15:33 | 4341843 warezdog
warezdog's picture

Google street view and count he cameras you find. Hint, more fingers thumbs and toes than the average joe has

Sat, 01/18/2014 - 00:16 | 4343270 grekko
grekko's picture

Don't worry about the cameras.  When gold goes to the moon, the cameras will all stop working, or be shot off the street corners.

 

Fri, 01/17/2014 - 16:22 | 4341986 jonjon831983
jonjon831983's picture

In position, ready to drop the hammer?

 

Or... realizing Germany isn't going to get their gold so they might as well blow the cover?

Fri, 01/17/2014 - 16:35 | 4342036 geewhiz
geewhiz's picture

The FED should just print the money, buy the gold with it and give it back to Germany. They better do it quick before the dollar collapses and gold goes thru the roof. It's only something like10 days printing they owe Germany.

Fri, 01/17/2014 - 21:30 | 4342935 bardot63
bardot63's picture

The Fed can print all the cash it wants, but there is no gold to buy--not in the tonnage to satisfy first, Germany, then everyone else who trusted the US to keep it's word.  The new word is "IF YOU LIKE YOUR GOLD, YOU SHOULD HAVE KEPT IT."   It's one thing for some coked-up hedgies to crash prices over short sales -- wait 'til you see pissed off Germans.  This item from Nov, 2011:  “The German gold reserve must be untouchable,” Roesler said in an interview on Germany’s ARD television network today, echoing Chancellor Angela Merkel’s chief spokesman, Steffen Seibert.
Loose translation:  Keepen sie grubby paws offen das Gelt, oder wir bestarten blitzen. 

Sat, 01/18/2014 - 00:14 | 4343264 grekko
grekko's picture

Now that Germany is talking about manipulation, the jig is almost up!

Sat, 01/18/2014 - 02:23 | 4343423 satoshi101
satoshi101's picture

Good point.

To date the ZH likes to call it control, but  I call it the world DUMPING the PONZI 'paper gold' that wall-street issued. ( Post 2011 collapse of "GLD" )

IF the USA tried to buy GOLD ( physical aka REAL ) in any real tonnage it would drive the price up astronomically.

The USA can print FIAT to the sky and buy bullets and drones and spy gadgets and get a hard-on fucking the world, but the USA will never get the worlds GOLD.

***

That's why the number #1 BIT-TARD NSA/CIA entrapment you hear on ZH is "I will trade you my BITCOIN for your GOLD", ... yes the NSA/CIA would love to trade their BITCOIN for your gold, cuz they can't buy it with USD's.

 

Sat, 01/18/2014 - 10:08 | 4343740 Escapedgoat
Escapedgoat's picture

“The German gold reserve must be untouchable,” Roesler said in an interview on Germany’s ARD television network today

 

 

 

What???  And what the Germans are going to do?    Invade the US of A via the American Bases BASED IN GERMANY?????

To collect "Their" Gold ??

Answers please in a detailed Blietzkrieg Attack in a short sort of way.

Thanks

Sat, 01/18/2014 - 13:04 | 4344012 bardot63
bardot63's picture

Ach du lieber, mein Freundt!  Germany can harm this nation a lot more than by just demanding its own gold back.  Consider the growing German/Russian/Chinese alliance, which could leave Uncle Sam holding top hat in hand.  I believe those U-S millitary bases were there to protect Germany from Russia, correct?  Consider that the U-S Fed is a huge player in Europe, but doesn't carry the oomph that Germany carries in the E-U (wasn't it a German who told TurboTax Timmy G. to stuff his schnitzel).  Consider that Angie Merkel is a tad pissed about Obama listening in to her private phone messages  (a lot more than Americans seem to be about O listening in to theirs).  But here's your kicker -- here's your blitz  -- Consider that German financial authorities have effectively cowered Deutsche Bank into shutting down its role in the gold fixing game and that German authorities are pursuing related economic crimes involving gold market manipulation across borders, (doing the job the criminals in our Congress, our SEC and our CFTC were paid to do and did not do). And the Germans are being very loud about it.  The Germans are now world leaders in offering embarrassment and opposition to the Fed's gold manipulation schemes.  What will the Germans get?    1) to replace the U-S Fed's gold suppression schemes with new schemes (their own, or those of the Chinese, Russians who are actually buying gold and who understand gold and who have a future reason to see gold at $100K per oz)  or 2) pressure the U-S on a number of other trade and economic issues (notice ZH today is telling us Europe doesn't give a damn about global warming).  Either way, the Germans get brownie points with the voting German populace, which is really pissed about the stolen gold, and either way, Germans hold one helluva heavy hand over the U-S dollar with the very real threat to blow up the Fed's gold shorting scams way ahead of the Fed's own schedule to rape this nation (kick the can).  Getting back their stolen gold will be a minor matter compared to the instant meltdown (payback) that's coming when the Fed loses control of gold manipulation and the U-S greenback goes to intrinsic worth (zero).  Would have been cheaper and smarter (and honest) to send the Germans their own gold back to Berlin.  But our guys are not that smart and certainly not at all honest.   (Jim Rickards hinted a year or two ago we might easily steal foreign gold housed on Liberty Street). Now, we all have to wonder which nation is next, and which is next after that,  to scream bloody murder over gold and dollar manipulation while taking very real steps to slow, embarrass and perhaps shut down the Fed's little gold game.  Nobody cared when Venezuela wanted their itty bitty 100 tonnes of gold back (and got it, apparently).  Germany complaining has already proven to be a different matter.  Germany has a history we do not share here in the U-S.....the Weimar inflation of the 1920's.   They take this stuff very fucking seriously.  And good for them.  I'd say they've already launched one hell of a nasty blitz. 

Sat, 01/18/2014 - 13:21 | 4344042 bardot63
bardot63's picture

Ach du lieber, mein Freundt!  Germany can harm this nation a lot more than by just demanding its own gold back.  Consider the growing German/Russian/Chinese alliance, which could leave Uncle Sam holding top hat in hand.  I believe those U-S millitary bases were there to protect Germany from Russia, correct?  Consider that the U-S Fed is a huge player in Europe, but doesn't carry the oomph that Germany carries in the E-U (wasn't it a German who told TurboTax Timmy G. to stuff his schnitzel).  Consider that Angie Merkel is a tad pissed about Obama listening in to her private phone messages  (a lot more than Americans seem to be about O listening in to theirs).  But here's your kicker -- here's your blitz  -- Consider that German financial authorities have effectively cowered Deutsche Bank into shutting down its role in the gold fixing game and that German authorities are pursuing related economic crimes involving gold market manipulation across borders, (doing the job the criminals in our Congress, our SEC and our CFTC were paid to do and did not do). And the Germans are being very loud about it.  The Germans are now world leaders in offering embarrassment and opposition to the Fed's gold manipulation schemes.  What will the Germans get?    1) to replace the U-S Fed's gold suppression schemes with new schemes (their own, or those of the Chinese, Russians who are actually buying gold and who understand gold and who have a future reason to see gold at $100K per oz)  or 2) pressure the U-S on a number of other trade and economic issues (notice ZH today is telling us Europe doesn't give a damn about global warming).  Either way, the Germans get brownie points with the voting German populace, which is really pissed about the stolen gold, and either way, Germans hold one helluva heavy hand over the U-S dollar with the very real threat to blow up the Fed's gold shorting scams way ahead of the Fed's own schedule to rape this nation (kick the can).  Getting back their stolen gold will be a minor matter compared to the instant meltdown (payback) that's coming when the Fed loses control of gold manipulation and the U-S greenback goes to intrinsic worth (zero).  Would have been cheaper and smarter (and honest) to send the Germans their own gold back to Berlin.  But our guys are not that smart and certainly not at all honest.   (Jim Rickards hinted a year or two ago we might easily steal foreign gold housed on Liberty Street). Now, we all have to wonder which nation is next, and which is next after that,  to scream bloody murder over gold and dollar manipulation while taking very real steps to slow, embarrass and perhaps shut down the Fed's little gold game.  Nobody cared when Venezuela wanted their itty bitty 100 tonnes of gold back (and got it, apparently).  Germany complaining has already proven to be a different matter.  Germany has a history we do not share here in the U-S.....the Weimar inflation of the 1920's.   They take this stuff very fucking seriously.  And good for them.  I'd say they've already launched one hell of a nasty blitz. 

Fri, 01/17/2014 - 17:10 | 4342138 Volaille de Bresse
Volaille de Bresse's picture

"Dear China,


Can we have our gold back, please?

Pretty please?

Please, please, please?

Sincerely,

Germany"

You got it wrong buddy! The honeymoon between Beijing and Berlin (aka the "B&B love story") is about to start and Koening has launched the party. And Merkel and whoever will come after her will permanently sever the ties with Washington and London. 

 

I mean Germany is rich and has a functioning working force while the Brits and the Yanks have been jerking off money markets since the 1980's, masquerading this act of financial onanism into "wealth" making. Why stay with these two corpses? 

 

It's funny in a way because for Germany this is at last the end of WWII : they're cutting the ties that've been holding them with Washington since 1945. 

Fri, 01/17/2014 - 18:33 | 4342369 Robert.Paulson
Robert.Paulson's picture

Tungsten.

Fri, 01/17/2014 - 20:54 | 4342861 jonjon831983
jonjon831983's picture

"Buy physical gold and avoid paper: CME Trader"

http://www.bnn.ca/News/2014/1/17/Buy-physical-gold-and-avoid-paper-CME-T...

On the Canadian business news channel.

Sat, 01/18/2014 - 01:26 | 4343373 q99x2
q99x2's picture

Rothschilds -- the enemies of the world.

Sat, 01/18/2014 - 02:18 | 4343420 satoshi101
satoshi101's picture

The NAZIS Stole ALL the German Gold a long time ago ... and Sadly has since sold it all :(

In 1937, Adolf Hitler bestowed upon IBM President Thomas Watson the Nazi Merit Cross of the German Eagle for his efforts in world peace (IBM’s Hollerith, pictured left from Black’s book); Dr. Hjalmar Schacht presented the honors. (“Thomas J. Watson is Decorated by Hitler.” NYT, July 1, 1937). Hitler would honor Henry Ford with the Nazi medal in 1938. (“Hitler Acclaimed by 200,000 in Fete.” NYT,  July 30, 1938).  

The wealth behind the Ford and Rockefeller foundations ( The Nazis ) would fund covert operations to round up post-war nations into the European Union.

The only hold-out is UKRAINE, so cleverly the NSA/CIA gave them a majority control of BITCOIN in exchange for joining the EU. Once the Nazi's have full control of Europe then they'll "Pull the Bitcoin Reset".


Sat, 01/18/2014 - 03:05 | 4343447 jballz
jballz's picture

 

you are a moron.

Sat, 01/18/2014 - 10:39 | 4343780 IridiumRebel
IridiumRebel's picture

He's part asshole part badass. He's a badasshole.

Sat, 01/18/2014 - 05:17 | 4343550 the0ther
the0ther's picture

You are interesting. Fuck that other reply.

Sat, 01/18/2014 - 06:13 | 4343578 Manipuflation
Manipuflation's picture

Agreed, Satoshi is a bit of badass.   How much so remains to be determined.

Sat, 01/18/2014 - 06:36 | 4343582 Manipuflation
Manipuflation's picture

.

Sat, 01/18/2014 - 06:35 | 4343589 Manipuflation
Manipuflation's picture

"The only hold-out is UKRAINE, so cleverly the NSA/CIA gave them a majority control of BITCOIN in exchange for joining the EU."

Please inform us how this is so.

Sat, 01/18/2014 - 13:44 | 4344092 ArrestBobRubin
ArrestBobRubin's picture

So... it's actually "the Nazis" who're the big problem in the world today?

You really need to do standup comedy, you're a natural.

Sat, 01/18/2014 - 03:20 | 4343450 jballz
jballz's picture

 

 

First of all nobody has ever mentioned this woman before. What is a woman doing running a financial regulator in Germany? That's beside the point aside from two things.

She hasn't confirmed anything. She said allegations have been made. So she is probably a goldman puppet anyway.

Second she flatly states this would be more serious because unlike libor the metals prices are set in liquid markets. This is even QUOTED a couple paragraphs into this post which is about DB bailing on their gold PRICE FIXING seats.

You people are so hard up for a scandal you can't even see this is a house of cards set up to fall and hurt nobody. It's all bullshit and you are getting sucked into it.

 

I am shorting gold now, they are only trying to fool specs into buying before they crush it again. If you pulled your head out of your ass and look at the facts here you would see how obvious it really is.

Sat, 01/18/2014 - 13:49 | 4344104 ArrestBobRubin
ArrestBobRubin's picture

In addition to trading paper gold, do you actually own any of the real stuff?

Sat, 01/18/2014 - 05:15 | 4343549 the0ther
the0ther's picture

I'm looking forward to reverse WWII. It'll be USA vs Germany but now we're the Nazi assholes!

Sat, 01/18/2014 - 08:41 | 4343670 shovelhead
shovelhead's picture

No problem....

Germany can rely on France.

 

snicker

Sat, 01/18/2014 - 08:33 | 4343665 buzzsaw99
buzzsaw99's picture

the gold price is fixed HIGHER than it otherwise would be, like everything else

Sat, 01/18/2014 - 09:57 | 4343731 fijisailor
fijisailor's picture

How much lower should it be relative to the cost of production?

Sat, 01/18/2014 - 09:21 | 4343702 lakecity55
lakecity55's picture

"We've drilled too deep men! She's gonna blow! Run! Run!"

Sat, 01/18/2014 - 09:43 | 4343717 Legolas
Legolas's picture

In Moria they delved too deep, and woke the nameless fear...

Sat, 01/18/2014 - 10:54 | 4343803 MathWins
MathWins's picture

And my family thought I was a conspiracy nut when I said a few years ago, "There is no gold in the vaults". I'm starting to look a little saner every day!

For all the good it does me............

Sat, 01/18/2014 - 13:12 | 4344029 Joebloinvestor
Joebloinvestor's picture

Everything is manipulated it appears.

http://www.bbc.co.uk/news/business-25787445

Sat, 01/18/2014 - 13:40 | 4344081 ArrestBobRubin
ArrestBobRubin's picture

The reality is the whole global financial "system" is nothing more than one big Ponzi and has been for quite some time. This is simply a case where widespread perception is finally catching up to the reality.

Sat, 01/18/2014 - 13:56 | 4344118 Joebloinvestor
Joebloinvestor's picture

They have proved manipulation can and does occur.

That precious metals can be (to a point) undermines a precious metals based currency plus the BS that is constantly spread about how it is "impractical".

It sure is impractical when it is not to the central bankers advantage as their power evaporates.

The tide will change when they start prosecuting central bankers.

Sat, 01/18/2014 - 13:52 | 4344071 ArrestBobRubin
ArrestBobRubin's picture

"Why would they want the aggravation?"

The victimizers portraying themselves as the victim in the "news media"-- now who does this remind us of?

Sat, 01/18/2014 - 21:54 | 4345061 ZH11
ZH11's picture

There's a real uneasy feeling I get that Germany has instigated this look into gold price fixing, this seems like something of a past era that may have as equally unmodern consequences.

The US has their gold and have been exposed illegally spying on them for which they will not even apologise for. It all seems that these things may have pissed off the Germans quite a bit and the above may provide an opportunity to expose a rather damaging truth against the US in a nicely cold and understated way; all very German!

Being in the 15th year of a new century again the timing is unlucky to say the least.

Maybe the battle between the old world and the new world is about to be opened again, 18th century style, though this time a United States of Europe versus the United States of America. The winner gets to take China and India as colonies to pay for the war itself and all issues of national economic troubles are solved the good old way, massive destruction followed by one of Soros' super cycles!

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