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"London Fix" Gold Rigging By Bullion Bank Exposed In Class Action Lawsuit: The Complete Charts

Tyler Durden's picture




 

Some interesting news crossed the tape late afternoon yesterday when it was reported that the silver bullion banks (Deutsche Bank, Bank of Nova Scotia and HSBC) were sued for manipulating the silver fix in a class-action lawsuit. However, a closer look reveals that the plaintff in the lawsuit, J. Scott Nicholson, has a recurring bone to pick with the banks as this is certainly not his first lawsuit alleging precious metals rigging, and as such we are convinced it will be tossed out shortly, along with every other lawsuit alleging a manipulated precious metals market since discovery could lead to some very unpleasant revelations about the primary source of gold and silver rigging: the central banks themselves, alongside the BIS.

Instead, we uncovered something that was missed several few weeks earlier: a far more informative and detailed class action lawsuit filed by Edward Derksen on July 9, 2014 against the London gold fix member banks: Bank of Nova Scotia, Barclays, Deutsche, HSBC and SocGen (profiled here in From Rothschild To Koch Industries: Meet The People Who "Fix" The Price Of Gold).

Recall from "How Gold Price Is Manipulated During The "London Fix"" that this was one of the first conspiracy theories about gold manipulation to end with a bank, and following the official revelation (as opposed to merely on the pages of fringe blogs) that over 100 years the price of gold was consistently manipulated during the London fix (and during every other period as well but that is a revelation for a different time) the very process of the Gold and Silver Fix itself was finally ended (only to be replaced with a comparable process run by the very same people who manipulated gold and silver from Rothschild's London office on St. Swithin’s Lane for decades.

The short and sweet summary of the lawsuit:

"Plaintiff alleges that from approximately January 1, 2004 to the present, Defendants manipulate the prices of gold and gold derivatives contracts on their own and combined, conspired, and agreed with one another and unnamed co-conspirators to manipulate the prices of gold and gold derivatives contracts. This agreement was intended to permit each Defendant individually and all Defendants collectively to reap profits from their foreknowledge of price movements in the gold market."

Nothing new there, but while the allegations in the lawsuit are well-known to frequent (and all other) readers of Zero Hedge, we recommend reading the full filing as it explains in clear English just what the fixing process worked.

Perhaps what is more interesting are the abnormalities in the price of gold as highlighted by Derksen, which clearly show the critical role the daily fix has in the manipulation of the price of gold, both in a downward and upward direction: whichever suits the London Fix member banks.

Here are some of the highlights:

The following chart of average intraday gold price shows the same strong relationship between the physical gold and the COMEX gold futures markets.

Anomalous price movements during the fixing window that are highly suggestive of manipulation - like those on June 28, 2012 - can be witnessed on numerous days, where prices near the 3 p.m. London Fix spike, either upward or downward, and then retreat in the opposite direction as the price is “fixed”. Five trading days are analyzed below as illustrative of the overall trend during the Class Period. On February 1, 2013, there was a dramatic drop in price from nearly $1678 to below $1665, contemporaneous with the beginning of the London Fix. The price began recovering during the London Fix and continued  afterwards. This movement around the fixing window is highly anomalous and suggestive of manipulation because it tends to show that the market ultimately discounted to some degree the pricing information that occurred during the London Fix.

On January 4, 2012, there was anomalous price movement before the beginning of the PM Fix call, this time in an upward direction. The gold price rose from below $1599 to more than $1614 within the half hour before the beginning of the call, only to surrender most of these gains within the half hour following the call. This movement around the fixing window (steep rise just before the call, with a clear reversal that begins at the very beginning of the call) is highly anomalous and suggestive of manipulation because it tends to show that the market ultimately discounted to some degree the pricing information that occurred during the London Fix.

On May 21, 2013, the gold price declined significantly in the 25 minutes prior to the call only to recovery briskly once the call ended. This movement around the fixing window is highly anomalous and suggestive of manipulation because it tends to show that the market ultimately discounted to some degree the pricing information that occurred during the Fix

The punchline:

If the five previous examples of anomalous volatility around the London Fix mere statistical outliers and not evidence of manipulation, then it would be expected that this volatility would disappear when looking at an average of all the trading days during the class period. To the contrary, the price manipulation actually becomes clearer when viewed over the past fifteen years. The chart below shows the change in physical gold prices if each trading day for the period from 1998 through 2013 were averaged together. The dramatic changes in price followed by swift reversals at the time of the AM and PM London Fix in this chart demonstrate that the phenomenon is not coincidental statistical noise occurring on only a few cherry-picked dates, but rather is a clear trend that cannot be explained by chance.

And the logical continuation:

The table below illustrates that price moves of statistically anomalous size during the London Fix occurred with great frequency. If these London Fix price moves were the result of natural market forces, it would be expected that those price moves would be either maintained or reversed with the same statistical regularity as any other price move observed during the trading day. If it were manipulation that caused the London Fix price moves, these moves would
be reversed with greater frequency than expected because the manipulators must reverse their trade in order to book a profit and because legitimate market factors would ultimately cause some degree of discounting of the pricing information from the London Fix. Sure enough, statistically anomalous price reversals after the London Fix, of the price changes during the London Fix, occurred with enough regularity to indicate manipulative activity.

 

The chart below demonstrates from 1998-2013 the rate of “forecast error” – a square of the difference between predicted market moves based on econometrics and the market’s actual moves. These forecast errors hit a massive peak during the brief period that is encompassed by the 3 p.m. London Fix. Appendix B contains charts of forecast errors broken down by year. This is contrary to what should occur in a market free of manipulation.

Ok, gold was manipulated. But it must have been manipulated up as well as down, so in effect the two would offset each other right?

Wrong!

Although the London Fix was associated with both manipulative and abnormal increases and decreases in gold prices, the London Fix appears, in the aggregate, to have had a net negative effect overall on the price of gold throughout the Class Period. This can be demonstrated by examining the price of gold during the part of the trading day closest to the London Fixes. Gold is traded 24 hours a day. The trading day for gold can be broken up into three equal eight-hour periods, the “Fixing Period” from 8:00-16:00 London Time in which both the AM and PM London Fixes occur, the “Pre-Fix Period” from 0:00-8:00 and the “Post Fix Period” from 16:00-24:00 London time. If the volatility surrounding the London Fix was purely random and not the result of manipulation, there would be no significant difference over time between the period containing the London Fixes (8:00-16:00) and the Pre-Fix and Post-Fix periods.

However, as the chart below demonstrates, gold prices during the Fixing Period (8:00-16:00) moved consistently lower over time when compared to price activity during Pre-Fix and Post-Fix portions of the trading day. This trading pattern is consistent with manipulation and cannot be explained by random variation.

Why do it?

As shown above, the manipulation detailed herein both artificially inflated and artificially suppressed the price of gold, injuring both long and short holders of gold futures and options contracts. To the extent the aggregate trend has been to suppress prices,this has resulted in (as of the last available “This Month in Gold Futures Market” Report from the CFTC44) an extraordinarily positive result for Commercial Traders in gold futures contracts (who held between 352,500 and 381,200 short futures contracts, as opposed to merely 140,900 to 145,100 long futures contracts in the same period. This heavy weight toward shorting gold futures contracts means a net drop in gold prices would be extremely lucrative for commercial traders. “Commercial” Traders are entities, such as Defendants, that use futures or options for hedging purposes, as opposed to “non-commercial” entities that do not own the underlying asset or its financial equivalent and hold only derivatives contracts.

Most importantly, it is no longer just some tinfoil goldbug making manipulation allegations: the very head of Germany's BaFIN regulator agrees:

Plaintiff did not discover, and could not have reasonably discovered through the exercise of reasonable diligence, the wrongdoing discussed in this complaint, until, at the very earliest, January 2014, when Defendant DB withdrew from the fixing after interviews with Bafin, Germany’s financial regulator.

 

Before the DB departure was announced and Bafin’s president revealed the seriousness of the allegations, Plaintiff could not have stated facts plausibly stating the conspiracy to manipulate the price of gold and gold derivatives.

 

The activity Defendants undertook was of a self-concealing nature. The London Fix teleconference is not publicly-accessible. The information Defendants received from their clients about the demand for purchases and sales of gold before and during the teleconference were not publicly-accessible. Without these pieces of information, Plaintiff would not be able to discern market dislocation or the existence of spoof trades.

In summary, the lawsuit's conclusions are as follows:

The price activity surrounding the London Fixes is indicative of manipulation and not natural market forces for the following reasons:

a. Around the period of the London Fix calls, gold prices experience anomalous volatility in price.

b. This volatility is present not on isolated trading days but manifests even more clearly when averaged across years of trade data.

c. The anomalous price changes during the call were not maintained afterwards, but in fact were in some part reversed with an unusual frequency and to an
anomalous degree.

d. The anomalous price moves occurred during peaks in trading volume, when the market should be at its most efficient.

e. The pricing anomalies strengthened in intensity over time, demonstrating that they are not an inevitable result of an innocent fixing process.

f. There were upward and downward manipulations over a period of years, price activity surrounding the London Fix periods had a net negative effect on gold
prices in comparison to other periods. This tends to indicate that artificial forces were acting on the market during those periods.

g. Trading activity during immediately after the beginning of the London Fix was highly predictive of activity during the rest of the call, and of the final London Fix price, suggesting that manipulative traders were moving the prices of gold based on information gleaned for the London Fix calls.

h. The price activity surrounding the London Fixes is not typical of the price activity one would expect to attend a regularly scheduled announcement of
news material to the gold market.

i. The anomalous price activity in the gold market is not mirrored by other precious metals or broader market indices, further eliminating innocent
explanations and supporting a conclusion that manipulation occurred.

There is much more in the full lawsuit which can be read in its entirety below. The complete chart data is showin in Appendix A and B.

 

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Sat, 07/26/2014 - 20:05 | 5008342 Seasmoke
Seasmoke's picture

This is the evil work of the motherfucking Tribe. 

Sat, 07/26/2014 - 20:15 | 5008360 negative rates
negative rates's picture

He was a bitch, wasn't he?

Sat, 07/26/2014 - 20:18 | 5008368 max2205
max2205's picture

He got Corizined.....HFT'd....and QE'd

Sat, 07/26/2014 - 20:24 | 5008382 knukles
knukles's picture

Talking about gold.... are things heating up in Gaza again?
More rocket launches...

Yeah yeah yeah, I know.  I'm just the messenger, here.

http://debka.com/newsupdatepopup/9164/

Sat, 07/26/2014 - 22:16 | 5008619 TheReplacement
TheReplacement's picture

Why do I care what happens in Gaza?  What interest of mine is there?

Sat, 07/26/2014 - 22:25 | 5008650 nmewn
nmewn's picture

Kinda of where I'm at.

I'm more interested in the SW and how many have died by the hand of "governments policy" there.

But oh look, moar squrriels!!! ;-)

Sun, 07/27/2014 - 02:25 | 5009032 Elvis the Pelvis
Elvis the Pelvis's picture

There's no hope for gold.  The name of the game is deflation.  Bitchez.

Sun, 07/27/2014 - 07:57 | 5009258 GetZeeGold
GetZeeGold's picture

 

 

This just in......Germany still doesn't have it's gold.....and Fort Knox has been declared a haz-mat zone.

Sun, 07/27/2014 - 21:14 | 5011160 JohnnyBriefcase
JohnnyBriefcase's picture

Didn't germany recently decide that they were totally cool with not getting their gold back?

Sun, 07/27/2014 - 23:19 | 5011438 7.62x54r
7.62x54r's picture

Merkel knows the gold has been sold out from under Germany.

She is just putting on a happy face so they can pretend the gold is still there. It's either that, or have the Bundeswehr train a nailgun brigade.

Sun, 07/27/2014 - 23:58 | 5011518 Pinto Currency
Pinto Currency's picture

 

 

The discussion about the Gold Fixing is a distraction.

The central issue is that they are not trading gold but 100:1 paper leverage vs gold - gold from nothing.

The markets are following the NY and London prices despite the fact that it is virtual gold.

Shanghai, Singapore, Moscow, Dubai are probably going to become the real phsycial gold price reference points of the future.

Sun, 07/27/2014 - 10:07 | 5009463 Bendromeda Strain
Bendromeda Strain's picture

There's no hope for spam. The name of the game is disdain. TROLLz

Sun, 07/27/2014 - 22:53 | 5011346 fervent in spirit
fervent in spirit's picture

.

Sat, 07/26/2014 - 22:36 | 5008677 hobopants
hobopants's picture

@thereplacement

Can you please tell our government to adopt that line of thinking? Thanks.

Sat, 07/26/2014 - 23:09 | 5008740 umdesch4
umdesch4's picture

Your tax dollars hard at work.

Sun, 07/27/2014 - 05:39 | 5009147 Xandrino
Xandrino's picture

your tax dollars at work

 

ah Umdesch4 beat me to it...Jinx!

Sun, 07/27/2014 - 06:08 | 5009182 ghostofgo
ghostofgo's picture

You don't mind paying for evil?

Sun, 07/27/2014 - 12:12 | 5009691 logicalman
logicalman's picture

I bet a lot of people hadn't even heard of Franz Joseph, but the results of his death were noticable to a very large number of people shortly afterwards.

Hard to know what to ignore, even if all you care about is yourself.

Mon, 07/28/2014 - 07:20 | 5011968 TheSecondLaw
TheSecondLaw's picture

Good point.   Very myopic to go "well I've got no interests there so it won't affect me".

Sun, 07/27/2014 - 14:40 | 5010063 PiratePiggy
PiratePiggy's picture

He got walrus gumboot ?  ...He got joo-joo eyeball?  and He got Ono sideboard?

 

Sat, 07/26/2014 - 20:44 | 5008409 philipat
philipat's picture

"The Fix" was very appropriately named but is just a small part of the process of Gold price manipulation, where the sale of naked paper shorts on Comex at thinly-trded times of night by "Not-for-profit" traders is the main culprit. I suspect that "Discovery" could become the most important aspect of this Action.

I do wonder:

  1. Why has a similar statistical analysis of Comex activity been undertaken? What possible alternative explanation could there be for dumping thousands of futures contracts at illiquid times of day/night which guarantee the lowest possible return?
  2. Why has nobody gone after CFTC's price-fixing "Investigation" materials under FOI? Remember, CFTC did NOT state that there was no mnaipulation, just that there was no evidence of illegal activity. If the CB's were the "Client" they would of course be above the law and so not behaving "Illegally". What we call manipulation is also known to the CB's as "Monetary Policy".
Sat, 07/26/2014 - 21:15 | 5008493 TahoeBilly2012
TahoeBilly2012's picture

Now add in the wash rigging...geesh who's say Bank A doesn't just do a fixed wash sale with Bank B and cut a check for the difference out the back door, plus fee of course. The wash sale issue is huge. How on earth can they ever be sure who is selling to or buying from who, could be all sorts of off shore trading accounts, many doing huge wash sales.

Sat, 07/26/2014 - 22:10 | 5008599 Downtoolong
Downtoolong's picture

+100

Same for oil, gas and every major commodity too.

Sun, 07/27/2014 - 06:43 | 5009193 Urban Redneck
Urban Redneck's picture

Every trade has two sides and every position has two trades (unless one is stacking for eternity).

Sun, 07/27/2014 - 23:20 | 5011446 7.62x54r
7.62x54r's picture

Look up "wash trade".

A trade only has two sides when it isn't a bullshit trade. Wash trading is how Amschel Rothshild broke England after Waterloo.

Sun, 07/27/2014 - 20:02 | 5010973 AllWorkedUp
AllWorkedUp's picture

Let's face it. There is no rule of law when it comes to gold or silver. Anything that is a threat to the fiat Ponzi scheme like honest money will be kept down without regard to law. Might as well pay regulators to protect the criminal banksters...OH WAIT, WE DO!!

If any of you guys are goldholders, goldbugs or pm investors, this is a great forum to hang out, share ideas, or just make friends. Nothing required, just your ideas and input.

http://goldtentoasis.westontechologies.net/wordpress/

Sat, 07/26/2014 - 20:20 | 5008372 RafterManFMJ
RafterManFMJ's picture

Dunno just read an article that said The Pilgrim Society was behind the manipulation of silver.

Here's the thing - if someone has you on the ground and is kicking your face in, are you really thinking about who employed him?

Fun to speculate on the Evil Manipulator's identities, but the time is better spent prepping and stacking.

Sat, 07/26/2014 - 20:28 | 5008387 knukles
knukles's picture

Listen up and listen good, but wasn't that John Wayne's finagellin' about, Rafterman?
I dunno, Joker.

 

Oh fuck, nevermind... I'm off to watch Glovkin beat the crap outta Geale

Sat, 07/26/2014 - 21:07 | 5008473 RafterManFMJ
RafterManFMJ's picture

LoL
+1

Sat, 07/26/2014 - 21:18 | 5008500 knukles
knukles's picture

Animal Mother: "Hey Jungle Bunny, thank God for the sickle cell."

Beautiful description of Joesph Campbell's take on the myths Kubrick embodied in the film. 
(BTW as you might remember, Animal later goes along to save Pvt Snowball's ass....)

http://brightlightsfilm.com/45/fullmetal.php

Sat, 07/26/2014 - 21:50 | 5008561 fuu
fuu's picture

There is an interesting analysis of Kubrick and gold in the Shining. Let me see if I can find it.

 

Aha: http://www.collativelearning.com/the%20shining%20-%20chap%2015.html

 

The video is better though.

Sat, 07/26/2014 - 21:16 | 5008495 Yen Cross
Yen Cross's picture

 I looked it up Knuks/  When is Originality coming back?  / I lik Quenton terrintino (sp)

Sat, 07/26/2014 - 21:23 | 5008511 knukles
Sat, 07/26/2014 - 21:46 | 5008552 Yen Cross
Yen Cross's picture

Looks familiar Knuks/

Sat, 07/26/2014 - 20:41 | 5008410 dvfco
dvfco's picture

Or, in the immortal words of Ms. Mona Lisa Vito:

"Imagine you're a deer. You're prancing along, you get thirsty, you spot a little brook, you put your little deer lips down to the cool clear water... BAM! A fuckin bullet rips off part of your head! Your brains are laying on the ground in little bloody pieces! Now I ask ya. Would you give a fuck what kind of pants the son of a bitch who shot you was wearing? "

Sat, 07/26/2014 - 21:44 | 5008546 mt paul
mt paul's picture

hunt naked....

Sat, 07/26/2014 - 22:21 | 5008642 TheReplacement
TheReplacement's picture

Don't aim for the head either.  It is a small and it can move even when the rest of the body is still.

Sat, 07/26/2014 - 22:25 | 5008653 TeethVillage88s
TeethVillage88s's picture

naked co-ed hunting...

Sat, 07/26/2014 - 20:19 | 5008373 Da Yooper
Da Yooper's picture

Watch this lawsuit fade from view when the bankers buy them out with a non dis-closer agreement & they still get to rigg & manipulate to their Satanist  hearts content

The low life's doing this are scum pure scum

Sun, 07/27/2014 - 02:23 | 5009019 Kirk2NCC1701
Kirk2NCC1701's picture

Actually, even more basic than that... If we've known this stuff for so long, then why the fuck are we still talking like horny teenagers whenever gold or silver goes up?

Hell, even Tyler gets a woody when he can report the temporary rise of PM. I, on the other hand (thumb and 4 fingers), have been calling 'Bullshit' and saying ad nauseum that we're in a Sideways Market, and will remain so until TPTB decide otherwise.

/ Shall I type slower, so the slow readers can keep up? /s

Sun, 07/27/2014 - 10:48 | 5009514 Bendromeda Strain
Bendromeda Strain's picture

The PTB will decide otherwise when the decision is made for them. Nixon, the Rothschilds leaving the Pool, bullion ETF creation, naked sales and QE are all responses to spinning plate revolutions decreasing and wobble increasing.

Sun, 07/27/2014 - 23:25 | 5011457 7.62x54r
7.62x54r's picture

Stacking is not about profit taking.

It's about being able to stand aside and say "Damned, I'll bet that hurt" once this slow train wreck concludes.

Sat, 07/26/2014 - 20:08 | 5008346 Peter Pan
Peter Pan's picture

Manipulating the price of gold up and down is of course not acceptable but if the price of gold is being continuously suppressed that is far worse and the central problem.

Then again, the total suppression of interest rates is an even greater crime against the free market and the resolution of the problems facing all economies.

Sat, 07/26/2014 - 21:46 | 5008551 mt paul
mt paul's picture

wait till ya get a taste

of them negative interest rates ...

Sat, 07/26/2014 - 20:10 | 5008351 illyia
illyia's picture

This is, again, why I read ZH.

Thanks, Tylers!

Sat, 07/26/2014 - 20:40 | 5008407 lunaticfringe
lunaticfringe's picture

Me too.

Sat, 07/26/2014 - 20:48 | 5008422 ThirteenthFloor
ThirteenthFloor's picture

Yes. Great Article, top to bottom.  Thanks.

Sat, 07/26/2014 - 20:11 | 5008353 agent default
agent default's picture

Ok so they will get fined something like  I don't know... Does $50 sound enough or is it too harsh?

Sat, 07/26/2014 - 20:23 | 5008380 bentaxle
bentaxle's picture

The amount of any fine is irrelevant as they will be able to print what they need, rather than have to mine what they need.

Sat, 07/26/2014 - 20:54 | 5008439 ThirteenthFloor
ThirteenthFloor's picture

I think BaFin (German Financial Supervisory Authority) removed Deutsche Bank's seat at the UK silver desk.  That does cost them some money, and helps get dirt out of the Fix.

Furthermore, BaFin is taking audit of the damage to all German institutions and private investors in prec. metal.  I think they are accessing damage.

http://news.goldseek.com/GoldenJackass/1405540920.php

Sat, 07/26/2014 - 21:49 | 5008557 Bossman1967
Bossman1967's picture

What ever the fine is if any well they will just manipulate it again and make the money back. These bunch of crooks wont stop until they are forced to commit suicide like the other jp morgan crooks. But hey I got to buy more because of it and its not for sale so fuckem and feed them fish heads so my Italian grandpa would have said

Sat, 07/26/2014 - 22:22 | 5008646 TheReplacement
TheReplacement's picture

$50 is fine as long as they can literally pull it out of their own irises.  If not, hang 'em.

Sun, 07/27/2014 - 12:17 | 5009708 logicalman
logicalman's picture

Fining a corporation or bank is just a bad joke.

Even if the fines were huge, they'd just be passed on to Joe Public one way or another.

Time behind bars (at least) for the decision makers is the only way change will happen - this means politicians too.

 

Sat, 07/26/2014 - 20:33 | 5008391 Yen Cross
Yen Cross's picture

  Short GBP/AUD and GBP/JPY. For the last 10 days, vs USDX? Questionable/

 I'm going to lighten the load, but GBP/AUD looks rather sumptuous.

Sat, 07/26/2014 - 20:36 | 5008399 wanderintheland
wanderintheland's picture

Betting on a big fat nothingburger out of this...

Anyone want to bet an oz?

Sat, 07/26/2014 - 20:46 | 5008412 Yen Cross
Yen Cross's picture

 I'll take that trade. BoNZ raised rates and got hit. I'll bet the best odds are 2:1.36.

 aud/nzd parity ?

    The new Australian Prime Minister has balls! Tony Abott, is taking care of business.

  The aud/usd closed @ .9393.6 Friday.

Sat, 07/26/2014 - 23:04 | 5008729 eXMachina
eXMachina's picture

The RBNZ have openly said they will intervene the nzdusd if it remains where it is. You're more likely to see NZDUSD closer to 0.80 in Q4 before anything else. AUDNZD will be closer to 1.20 by that stage. As for Abbott, if Obama is the teleprompter king than Abbott surely is the teleprompter's jester stuck on replay. Not sure if that means he has balls or 20/20 vision and a poor memory?

Sat, 07/26/2014 - 20:40 | 5008406 alexcojones
alexcojones's picture

King World News is gonna be,

ECSTATIC-!!

Sun, 07/27/2014 - 04:58 | 5009131 Wile-E-Coyote
Wile-E-Coyote's picture

Oh Yeah King World News, do you think they are permanently on LSD over there. I get giddy just reading the stuff they put out.

Sun, 07/27/2014 - 09:35 | 5009403 quasimodo
quasimodo's picture

Yup, he will be creaming his pants all over this. 

"Gold and silver will reach levels NEVER seen!"

"Check out these three magnifico charts!"

"XXX who has been trading metals for 90 years says that we will ________ and gold will go into the stratosphere"!

"Eric, I have never seen this kind of action Eric, and you know Eric, this can't go on forever Eric, and let me tell you something else Eric, Eric, this is going to be epic Eric!"

Sat, 07/26/2014 - 20:47 | 5008418 alexcojones
alexcojones's picture

Love fair play and justice, but haven't seen much of that since, well, Never.

But I still read KWN for my monthly hopefest.

BTFD and slowly grind the trolls beneath your silver or gold bootheels.

Sun, 07/27/2014 - 20:30 | 5011048 AllWorkedUp
AllWorkedUp's picture

Wouldn't it be nice if KWN atcually hit a home run for a change?

Wait, just roll out James Turk again, didn't he say silver would double in six weeks just four short weeks ago?

Frustrating stuff this pm ownesrhip is. Gold and silver now down overseas for 72 of the lst 78 days. No manipulation though, it's all good.

Sat, 07/26/2014 - 21:36 | 5008532 alexcojones
alexcojones's picture

Quote, "In summary, the lawsuits conclusions are,"

Ignored, as always.

BTFD, B (bitchez)

Sat, 07/26/2014 - 21:48 | 5008556 Yen Cross
Yen Cross's picture

 Rent a large piece of wood.  Swim on said piece of wood for a week<><>

Sat, 07/26/2014 - 21:50 | 5008558 grekko
grekko's picture

When it all comes crashing down, it's open season on these bankers.  (I got dibs on Blythe Masters.)

Sat, 07/26/2014 - 21:55 | 5008565 Downtoolong
Downtoolong's picture

We’re all supposed to be impressed by the fact that the people who commit this fraud of market manipulation are mostly millionaires.

I see them as failures, because, anyone with half a brain and that much power and control over key markets should easily become a billionaire.

Sat, 07/26/2014 - 22:00 | 5008577 jennynhvkbataiovruxp
jennynhvkbataiovruxp's picture

I'll be in the front row when this fucking manipulation explodes in these bankers face stuffing my face with popcorn and counting my gold and silver.

Sat, 07/26/2014 - 22:05 | 5008590 Joebloinvestor
Joebloinvestor's picture

Their last claim will be that the manipulation stabilized the market and "prevented" spikes.

Sat, 07/26/2014 - 22:13 | 5008604 fukidontknow
fukidontknow's picture

 

 

“The road to hell isn't paved with gold, it's paved with faith. Faith in a dollar that's backed by a belief that people have faith in other people's belief in it.” 
-Jarod Kintz

Sat, 07/26/2014 - 22:20 | 5008639 Joebloinvestor
Joebloinvestor's picture

China wasn't complaining as it was buying and buying and buying.......

Sat, 07/26/2014 - 22:45 | 5008687 Bay of Pigs
Bay of Pigs's picture

JPM has been front and center on the gold and silver manipulation the whole time too. Goldman Sachs, Morgan Stanley, etc....they are all in on it.

Sat, 07/26/2014 - 22:57 | 5008706 world_debt_slave
world_debt_slave's picture

the more fixing the imaginary low price so I can buy more before the lid blows off!

Sun, 07/27/2014 - 03:21 | 5009091 BlackVoid
BlackVoid's picture

They better pay more to the judge than the banks. Or they better have a stronger balackmail position.

 

Good luck with that.

Sun, 07/27/2014 - 04:05 | 5009108 MarcusAurelius
MarcusAurelius's picture

It certainly is a complelling case. Against all odds I hope that the plaintiff wins. However in relation to the over all story as Gordon Geckko (or more recently Jordan Belfort thanks to hollywood) would say, `tell me something that I don`t know`.

Tell me what markets are not manipulated right now.  

Sun, 07/27/2014 - 05:40 | 5009162 Xandrino
Xandrino's picture

Would love to hear who is going to appointed as judge in this case...

Sun, 07/27/2014 - 06:23 | 5009186 goldhedge
goldhedge's picture

No probs.  The NSA has it covered.

Sun, 07/27/2014 - 06:01 | 5009176 Watson
Watson's picture

A lot of the commentary mixes two quite different things:
1. Whether or not a small group of players manipulated the price of gold for the short period two times daily of the 'fix';
2. Whether or not the gold price should be (much) higher, and is only at current levels because of some sort of world-wide conspiracy.

1. Is at least feasible - the setting process is not transparent so the (potential) mechanism is present.

2. Just looks silly to me. Individual Western .gov's are not particularly efficient at manipulating their own citizens', so the idea of establishing, co-ordinating _and maintaining_ some sort of world-wide manipulation for long periods of time, with no leaks, is just nonsense.

FWIW, what I think is happening, is something that nobody has anticipated: the idea that there could be very strong _deflationary_ pressures despite a 'paper' currency system. I _think_ this is a product of technology and trivial marginal costs: If your next USD 30,000=00 car costs only (with robots etc) USD 7,500=00 to make, if push comes to shove you will accept _70%_ deflation to keep the factory running...

If we were going to get Weimar style inflation, we would have had it by now.

BTW this does not mean the USD is safe: If there were a series of US bank collapses tomorrow the USD is the currency of choice (because, perhaps surprisingly, I _don't_ there will be rescues - Obama and Yellen will appear on TV to assure Joe Sixpack that his FDIC-protected balances are OK - perhaps putting full faith behind FDIC - but the politics of another round of large scale rescues just doesn't work).
In the medium term the world is obviously moving to CNY - all those central bank CNY swap arrangements are not for nothing, and the USD/UST market will be hammered when China announces that holding and transferring CNY (and CNY gov bonds) is now unrestricted.

Watson

Sun, 07/27/2014 - 09:38 | 5009411 d edwards
d edwards's picture

imho, we would be in a deflationary depression IF the Fed hadn't been furiously pumping $$$ into the economy, not that it's a good thing. It'll just make the coming deflationary crash much worse, probably followed by hyperinflation.

 

BTW, wonder how this news will affect the Monday gold opening?

Sun, 07/27/2014 - 15:01 | 5009443 AE911Truth
AE911Truth's picture

Fractional reserve fiat currencies issued by central banks […] are to be replaced by gold coins, gold leaf, and aurum, denominated in each of the world’s currencies, according to Karen Hudes, Acting General Counsel of the International Bank for Reconstruction and Development.

 

This action is taken with the authority of the governments of the world that are not “owned and controlled” by the “network of global corporate control” described by Stefania Vitali, James B. Glattfelder, and Stefano Battiston of ETH Zurich.

 

You! Hold your representative accountable! Now!

 

Hookers and coke, blackmail, and murder cannot compete with (even 1% of) seven billion angry citizens holding their governments accountable.

 

Now is the time for all good men to come to the aid of their country.

Sun, 07/27/2014 - 21:41 | 5011214 Duffy Duck
Duffy Duck's picture

https://www.youtube.com/watch?v=mkKOf0XZOBI

http://www.theeventchronicle.com/intel/karen-hudes-exposed/

There's better stuff out there, of course, but I'm not going to hold your hand, for a couple of reasons.

Nutshell:  Not only is Hude a Zio/Rothschild disinfo agent, she is batshit crazy.

Sun, 07/27/2014 - 10:08 | 5009468 AE911Truth
Sun, 07/27/2014 - 11:42 | 5009623 AE911Truth
AE911Truth's picture

Rebuilding the Global Banking System by returning to the successful principles adopted by the Banks of Venice,
Amsterdam, and Hamburg.

Source:
https://s3.amazonaws.com/khudes/5.Rebuilding+Global+Banking+System.pdf

Mon, 07/28/2014 - 08:52 | 5012150 supermaxedout
supermaxedout's picture

Interesting link, thanks

Sun, 07/27/2014 - 11:54 | 5009649 AE911Truth
Sun, 07/27/2014 - 12:22 | 5009720 papaclop
papaclop's picture

Jim Rickards said it best: "If I was one of the manipulating entities I'd be embarrassed, the manipulation is so obvious. " The charts don't lie. It is obvious in spite of what the worthless CFTC says.

Sun, 07/27/2014 - 14:56 | 5010100 giggler321
giggler321's picture

I guess since Germany's yellow is traded - they want the most they can get for it rather than offering an asset for sale and participating in lowering its value.

Sun, 07/27/2014 - 20:51 | 5011101 MASTER OF UNIVERSE
MASTER OF UNIVERSE's picture

Legalized criminality through the proxy of 'profit' IMHO. How much will regulators turn the other way if they profit from being deaf, dumb, and blind? Wall Street/'The City' is just a front for the CIA/FBI/MI6/MI5 and the Vatican Bank. Greedy sociopathic fascist criminals are running the Zoo and the cost of doing business is once again is Too-Much-to Afford.

 

OCCUPY THE GREEDY CRIMINALS - OCCUPY EVERYTHING

Sun, 07/27/2014 - 20:53 | 5011108 Infinite QE
Infinite QE's picture

Can I ask a simple question? Which market isn't rigged? May be easier to start from there and work backwords.

Mon, 07/28/2014 - 08:20 | 5012062 Bossman1967
Bossman1967's picture

only one I know is my person account lol

Sun, 07/27/2014 - 21:06 | 5011140 Duffy Duck
Duffy Duck's picture

The Southern District of NY, the one that handled most of the 9/11 related civil suits? 

Looks like the judge has not yet been assigned.  Stay tuned, fellow babies.

So this is a civil antitrust case?

Seems like a very strong prima  facie case of criminal conspiracy and fraud, no?  Why hasn't anyone told the DOJ?  Surely if they knew, they'd prosecute such a slam dunk case, would they not?

Sun, 07/27/2014 - 21:13 | 5011158 AllWorkedUp
AllWorkedUp's picture

"2. Just looks silly to me. Individual Western .gov's are not particularly efficient at manipulating their own citizens', so the idea of establishing, co-ordinating _and maintaining_ some sort of world-wide manipulation for long periods of time, with no leaks, is just nonsense."

 That whole paragraph is just nonsense. Western Govt's are not efficent at manipulatig their citizens? Really? Do you get out much and talk to the avg. moron on the street? Ask them what they watch on TV or post on Facebook?

Then there's the old argument, well if nobodyy leaked it by now it must not be true. Unbelievable.

Sun, 07/27/2014 - 21:35 | 5011192 TeethVillage88s
TeethVillage88s's picture

New Idea?

If we take war to your mountain and drop ordinance...

I guess we can Mine for gold, silver, and other precious metals, Right?

Check Video about 30 minutes in they explode an open mine in the USA which produces 1 oz per 10 Tons of Ore. (Unless I heard it wrong)

https://www.youtube.com/watch?v=KBh6BnSF0MQ

The technology for gold mining is to look for Quartz Trenches or ancient hot springs or something else. but you can look for geographical trenches to focus on exploration and then move to confiscate, nationalize, or occupy, of course.

Sun, 07/27/2014 - 22:07 | 5011275 Handful of Dust
Handful of Dust's picture

When the "Rubber Band Effect" occurs, gold is going hyperbolic I bet. Similar as described in the excellent book, "When Money Dies" by Adam Fergusson [sp?]

Sun, 07/27/2014 - 23:25 | 5011459 MrBoompi
MrBoompi's picture

I don't follow gold as much as silver. If you look at silver, almost every day the price goes down $.20/oz in a short period of time, then rebounds. There must be way to profit if you knew when this was going to happen, even if "there are two parties to every trade". It's obvious supply and demand have nothing to do with gold and silver prices. And I agree with the poster who said this occurs in almost every commodity traded in the futures markets. Regardless of how obvious the manipulation is, there seems to be powerful forces behind it and there is nothing regulators can or will do about it.

Mon, 07/28/2014 - 05:52 | 5011897 nathan1234
nathan1234's picture

Really!

Has the Rothschild bottom been exposed?

And is the Fix in?

 

 

Mon, 07/28/2014 - 07:25 | 5011976 Bossman1967
Bossman1967's picture

look at the fix today it started at 5:00 central time yesterday and 2:00 am again it's like looking at a EKG. someone busy buying the dips. what gets me is every time it goes up someone sells. makes no sense considering the world is on fire and we seem to have our hands in it all. Putin did it!

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