UBS Investigated For Gold Manipulation Suggesting Gold Inquiry Goes Beyond London Fix

Tyler Durden's picture

The last time the FT penned an article on the topic of gold manipulation, titled "Gold price rigging fears put investors on alert" it was promptly taken down without much (any) of an explanation. Luckily, we recorded the article for posterity here. Earlier today, another article on the topic appears to have slipped through the cracks of the distinguished editors of the financial journal that enjoys the ad spend of the status quo, when it reported that "Gold pricing scrutiny widens", hardly an update that will take the world by storm, however it is notable that "even" the FT, where for years goldbugs claiming gold manipulation had been ridiculed, is finally start to admit the glaringly obvious.

In this case, the FT looks at one of the most habitual and recidivist manipulators of practically every asset class that the market has ever known, Swiss bank UBS, better known as the rat that is allegedly perfectly happy to expose all other manipulators in exchange for immunity, and focuses on the Friday’s admission by UBS in its 2013 annual report: "that a review of its foreign exchange operations has been widened to include its precious metals business. In the report, the Swiss bank said: "Following an initial media report in June 2013 of widespread irregularities in the foreign exchange markets, UBS immediately commenced an internal review of its foreign exchange business, which includes our precious metals business.

And while it was recently revealed that there has been unprecedented collusion and rigging of gold at the time of the London fix, the latest revelations confirms that the inquiry is going beyond merely what the venerable five member banks of the London Gold Market Fixing Ltd, on the premises of N M Rothschild & Sons: after all UBS is not part of this particular criminal syndicate, which at last check included Barclays, Deustche (soon to be replaced by Standard Bank which is merely a front for China's ICBC), Bank of Nova Scotia, HSBC and SocGen.

More from the FT:

“A number of authorities also are reportedly investigating potential manipulation of precious metal prices. UBS has taken and will take appropriate action with respect to certain personnel as a result of its ongoing review.”


UBS has been in front of its peers in revealing important details about various regulatory probes – most notably the rigging of Libor and other interbank lending rates.


Until Friday the bank had not mentioned its precious metals business was included in its review of trading practices. There was, for example, no mention of the metals business alongside fourth-quarter results a month ago.

But before anyone gets too excited, let's recall that the last time the CFTC did an "in depth" investigation of manipulation in precious metals, it found... nothing (however, according to Bart Chilton that was only due to the zero or negative budget allotted to the impotent regulator, until recently headed by a Goldmanite). Perhaps this time will be different, and suddenly it may be in someone's interest to finally see gold trade up to its fair value, whatever that may be, although certainly higher than the current prevailing beaten down prices, which have seen China buy up unprecedented amounts of physical gold courtesy of manipulated paper supply and demand. Especially supply. 

Better yet: we look forward to learning all about it by the staunch defender of fair and efficient gold markets, the FT. Which is why, just in case, we have saved this article too. You never know when the FT will pull down this article or that, simply for breaching the taboo topic of gold price manipulation, something the Bank of England we are confident, will be very interested in as well.

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LawsofPhysics's picture

Meh, unless everyone with a paper claim demands delivery, nothing changes.

Murf_DaSurf's picture



I love the 'revelation' of manipulation...and the Dance of the Kabuki that follows..

outamyeffinway's picture

Oh another gold investigation. I guess that's why the price is getting smacked today. Or is the new found peace in the Ukraine?

Au_Ag_CuPbCu's picture

I think if like 2 in 100 stood for delivery we'd get some fireworks...just sayin.

strannick's picture

Sentances like this is why I come to ZH everyday for news, and not FT, Bloomberg, or God forbid, TV news. This scheme, like the London Gold Pool, lasts up til the day it doesnt.

Earlier today, another article on the topic appears to have slipped through the cracks of the distinguished editors of the financial journal that enjoys the ad spend of the status quo, when it reported that "Gold pricing scrutiny widens", hardly an update that will take the world by storm, however it is notable that "even" the FT, where for years goldbugs claiming gold manipulation had been ridiculed, is finally start to admit the glaringly obvious.


Skin666's picture

Tylers have been on fire the last few weeks!


This is cutting edge reporting/satire. These kleptos are being exposed quick. What's going on on twitter at the moment is mindblowing! Politicians and kleptos signed up to twitter to get down with the kids, and the kids are just laughing at them!


The AskJPM storm on twitter cost Blythe 'klepto' Masters her fucking new job at the SECC. These people are being exposed and mocked!

fredquimby's picture

I love the BofE gold tweet replies



Mar 14

If you enjoyed a look at the gold vaults download the app for a tour of the Bank of England

Mar 14

Whats with all the gold tweets ? You only have some 300 Tons left to back up all the confetti you printed !


HoofHearted's picture

I hope they keep up with the manipulation for a while longer. Beat the price back down a little. We've just come into some fiat and want to get the gold where it is fairly valued by the manipulators...then, and only then, should it rise to a free market price...

lordylord's picture

Down $30 from today's high.  It's laughable.  I would cry if I owned ETFs.

Soul Glow's picture

And if you had a paper claim and you found out that everyone else just found out that the gold in the vaults are unaccounted for wouldn't you want to claim you paper?

LawsofPhysics's picture

I would never hold paper PMs.  I do, however, wish the miners would catch a break (not just PM miners, but rare earth miners as well).  I mean, if everyone will be eatin i-pads shortly, you would think that lithium and lanthanum miners would be heading to the moon...

Soul Glow's picture

There is a huge difference between a paper claim on unallocated gold - unallocated as it is - and a claim on a stock certificate.  Stocks are always paper.

fredquimby's picture

someone on here kindly recommended BRD at $0.53 a month or two back. today $1.29

I am happy to spread the BRD love too, so feel free to punt




Herd Redirection Committee's picture

It was $.84 two months back.  Was at $.54 almost 5 months ago. But still a nice run, running up to its acquisition.

Soul Glow's picture

Keep moving that paper back and forth.  I hope you are having fun.

BaBaBouy's picture

CAN YOU SPELL..... F-E-D ????????????

Kirk2NCC1701's picture

Enquiring Minds demand "delivery" of the Cargo Manifest -- the real Manifest -- of flight MH370.

What has the authorities "weighed down" with not spilling the truth?

Anasteus's picture

"Meh, unless everyone with a paper claim demands delivery, nothing changes."

5% of all such claims would do the job.

As regards the article, another conspiracy theory turned out to be conspiracy fact. Soon we're out of conspiracy theories.

KingdomKum's picture

we few,  we happy few,  we band of silver holders  .  .  .

Cognitive Dissonance's picture

In the case of Gold manipulation.....where there is smoke there is no fire.

If 'they' admit to some form of manipulation it is a safe bet the actual manipulation was/is ten times worse. No matter what, it will never be traced directly back to the central banks.

Ham-bone's picture

paging Fabrice Tourre or the solitary gunman from the Dallas grassy knoll...a single fall man should be adequate to show that a bad apple was responsible...but all's well now.

knukles's picture

Some snot nosed white Anglo Saxon 64 y/o Protestant married with 4 children chick clerk in the IRS's Cincinnati office


Gives a whole new meaning to "Miss-ta-filing"

The Abstraction of Justice's picture

Well they will probably admit to a fwe billiion USD of manipulation and get fined a few hundred million, but the real scope of the fraud is over 1500 trillion USD, the derivative market that is propped up by fiat crap.

Ancona's picture

Uh huh.......this will go exactly nowhere.

NoDebt's picture

Like the end of "A Perfect Storm".  The boat is chugging through monster waves and high winds all night.  In the morning they see the dawn breaking through the clouds and think they've made it.  Then it all quickly closes in again, the boat is capsized and everyone dies.

One And Only's picture

Gold has been hacked.

ParkAveFlasher's picture

Really?  Because mine is still shiny.

Kreditanstalt's picture

All well and good...but the REAL manipulation consists of trading futures and options & naked shorting.

The fact that a paper-denominated Comex trading entity (which allows unlimited, unbacked positions) & under which physical delivery rarely if ever takes place and with almost no supply on hand anyway - can DETERMINE THE PRICE of the physical the true manipulation.

free_lunch's picture

Paper gold creates the illusion that there is more gold then there actually is. It also creates the illusion that fiat money has +45 times the purchasing power it actually has.. At least that's what goldseek claims in this article:

Analysing todays events related to goldpricing:

Paul Craig Roberts research on goldanipulation:

TAFTA:  as a free gift, an revealing interview with Karel De Gucht (EU commisioner on trade) on the lifechanging EU/USA TAFTA / TTIP deal that is continueing in all silence while the spotlight is focussed on less important events. Watch the video (english)


Those poor suckers who think they own Gold and Silver through GLD & SLV are going to be really POOR when they figure out all the actual physical they own is in their teeth.

Ham-bone's picture

the poor suckers are those that doubted TPTB willingness and/or capability to distort, manipulate, control damn near everything. 

Those that doubted the populaces willingness to go along in a fraud.  Doubted the perpetrators willingness to go all in; spurn every law, fuck every constitutional piece of paper...those who still doubt how this will end, you've been told what to do by TPTB...get on board with the fraud or hold your head high and go down like a man w/ morals still intact..but I'm doubting investing in a "contrarian" PM's play is going work out real well for the average guy/gal.

Most ZH'ers hold their PM insurance policy but those who think their holding the winning PM megabuckz ticket...good luck with that.

Kaiser Sousa's picture

sorry bro, they can change your perception but they cannot alter the reality....

theirs is a debt based currency paradigm in its dying days...

we who hold physical Gold and Silver hold REAL money.....

let their games continue to afford me the opportunity to aquire that which they hold...the reset is near

Ham-bone's picture

and you would have likely and seemingly correctly said the same in March '09, the same in '71 upon the death of gold backed dollar.  And you'd be better off holing PM's than most other "assets"...still, the dollar, not unlike ourselves, is terminal but like us, no one knows when the games up.

By all means, hold PM's but make no pretense we are near the end...we simply don't know and the risks are high...just think of the top .01% in Cyprus who all knew what was coming and avoided the bail-in...I do not think the average man will be allowed to simply book a profit...they have thought of every game scenario, do not believe them oblivious or stupid...assume quite the opposite as they are thorough and briliant in their Machiavellian maintenance of power and wealth.

Kaiser Sousa's picture

sorry to say that u confuse brillance with sociopathic...they r not to praised for being ruthlses enough to kill their own mother in order to maintain their debt based currency paradigm...the fact that so many consider them to be omnipotent and resign to being their debt slaves is why we r where we r...i happen to believe im just as smart as they r without the sociopath genes...i know what they know thats why they got all the Gold and ive been stacking the Silver they thought they demonitized many years ago - but they have failed and will fail at preserving this parasitical paradigm SOONER rather then later...

if u wish to "bow down" believeing all that u said above please proceed...

i have chosen a different path...

as Bruce called it - "the art of fighting without fighting..."

thats what real money allows u to do...

Ham-bone's picture

Kaiser, I don't praise them but acknowledge you are correct in their sociopathic lives.  I won't assimilate into the lies and corruption and fraud but I doubt that has a happy ending for me or you or other non-conformists.  I will hold my head held high regardless but less convinced I'll be "rewarded" for my convictions in this lifetime.

Kaiser Sousa's picture

bro im 52...

and am certain that if i allowed to live another 5-10 years all that i have been preparing for will unfold...and as reslut i will have won and prospered...

everything that they r doing is a testement to their desperation - and the realization that they have lost control...stay the course and hold fast..u, i and many more r more powerful than u think....and they do fear us...

tocointhephrase's picture

Gloves are off and have been for a long time. Their painkillers are about to wear off

Greenskeeper_Carl's picture

I disagree that a reset is near. I used to think so, but ive come to think that this whole shitshow is going to muddle along a lot longer than most on here think. I (obviously) could be completely wrong on this, but I just don't see it happening anytime soon. I buy gold and silver not becuase I think there is a massive reset just over the horizon, although there very well could be, but because I am 29 years old, and i know that both are manipulated lower to make fiat currencies look better than they are, and that they will be worth many times what they are worth now in another 30 or 40 years when I retire. I like being able to go right up the street from my house and buy a 10 ounce bar for 237 in cash at my LCS, and i hope i will continue to be able to do so for a while longer. This will of course mean my mining stocks will continue to go nowhere, but Im ok with that. PMs will get their day in the spotlight again, but its probably not going to happen for a while, and im ok with that. In the mean time, keep stacking

Kreditanstalt's picture

But "those poor suckers" don't CARE if they "own gold and silver" or not...GLD and SLV are their vehicles for making BETS on "the gold price" or "the silver price".

And in a no-growth world of next-to-no investment opportunities, betting is all there is...

Kaiser Sousa's picture

hey Al i know u really meant once they find out all that Silver is "in our safes..."

Confundido's picture

This is simply a way to link this outstanding issue to foreign policy...I wonder how much of the Russian assets in the West were moved via (not to) UBS, in the past weeks...

holmes's picture

There's got to be a special place in Hell for these bankster scumbags.

NOTaREALmerican's picture

Re:  There's got to be a special place in Hell for these bankster scumbags.

They probably run the place.

PlusTic's picture

aint exactly news...who doesn;t alreeady know (or suspect) this?

HoofHearted's picture

99% of the US, and about 1% of ZH denizens. Paging MDB and Harry Wanger, for instance...

agent default's picture

UBS is the main reason behind Switzerland's troubles.  And now we have this.

DelusionalGrandeur's picture

Yeah we can really count on these guys to tell the truth. WTF.....I agree, I hope there is a special place in hell for these fucking slime ball offense to the cunts out there.