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UBS Is About To Blow The Cover On A Massive Gold-Rigging Scandal
With countless settlements documenting the rigging of every single asset class, it was only a matter of time before the regulators - some 10 years behind the curve as usual - finally cracked down on gold manipulation as well, even though as we have shown in the past, central banks in general and the Fed in particular are among the biggest gold manipulators.
That said, we are confident by now nobody will be surprised that there was manipulation going on in the gold casino. In fact, ever since Germany's Bafin launched a probe into Deutsche Bank for gold and silver manipulation, it has been very clear that the only question is how many banks will end up paying billions to settle the rigging of the gold market (with nobody going to prison as usual, of course).
Earlier today, we learned that the Swiss competition watchdog just became the latest to enjoin the ongoing gold manipulation probe when as Reuters reported, it launched an investigation into possible collusion in the precious metals market by several major banks, it said on Monday, the latest in a string of probes into gold, silver, platinum and palladium pricing.
Here are the details that should come as a surprise to nobody:
Global precious metals trading has been under regulatory scrutiny since December 2013, when German banking regulator Bafin demanded documents from Deutsche Bank under an inquiry into suspected manipulation of gold and silver benchmarks by banks. Even though the market has moved to reform the process of deciding on its price benchmarks, accusations of manipulation have refused to go away.
Switzerland's WEKO said its investigation, the result of a preliminary probe, was looking at whether UBS, Julius Baer, Deutsche Bank, HSBC, Barclays, Morgan Stanley and Mitsui conspired to set bid/ask spreads.
"It (WEKO) has indications that possible prohibited competitive agreements in the trading of precious metals were agreed among the banks mentioned," WEKO said in a statement.
Don't hold your breath though: "A WEKO spokesman said the investigation would likely conclude in either 2016 or 2017, adding that the banks were suspected of violating Swiss corporate rules." Those, and virtually all other market rules.
The good news is that unlike Bart Chilton's charade "inquiry" into silver manipulation when after years of "probing" the CFTC found "nothing", at least the Swiss will find proof of rigging for the simple reason that it is there.
he banks face financial penalties if WEKO finds them guilty of wrongdoing, the spokesman said, though he declined to comment on the size of any possible fine.
No please, anything but "financial penalties" for rigging the gold market.
Aside from regulatory probes, a number of lawsuits have also been filed in U.S. courts alleging a conspiracy to manipulate precious metals prices.
Commenting on the WEKO probe, a Julius Baer spokesman said the bank was cooperating with authorities.
In a statement, Deutsche Bank said it was cooperating with requests for information from "certain regulatory authorities" over precious metal benchmarks but declined to comment further.
Representatives for UBS, Barclays, Morgan Stanley and HSBC declined to comment. Mitsui was not immediately available for comment.
Some so-called experts promptly scrambled to talk down the upcoming proof that so-called "paranoid" gold bugs have been right all along:
The impact of the probes on wider precious metals trading was likely to be muted, according to Brian Lucey, professor of finance at the School of Business, Trinity College Dublin.
"The question is not if individuals, or groups of individuals are collaborating to rig the game for themselves, the question is if this has any material effect," he said. "I'm not convinced collusive behaviour will have a meaningful effect micro-economically to the structure of gold trading around the world."
Oh so the question is not if traders and banks made billions in illegal profits by rigging yet another market, but "if this has any material effect." Give this man another distinguished financial professorship title: with observations like that what can one say but... "Keynesian genius."
* * *
However, as we said above, none of the above, and certainly not the idiotic "finance professor" statements, will come as any surprise to anyone.
What will, however, is that unlike previous gold probe cases, this one will actually have consequences.
How do we know?
Because just like in LIBOR-gate, just like in FX-gate, it is the biggest rat of all, Swiss megabank UBS, that is about to turn on its former criminal peers.
As Bloomberg reported earlier "UBS was granted conditional leniency in Swiss antitrust probe of possible manipulation of precious metal prices, a person with knowledge of the matter said."
Bloomberg adds that the "bank may face lower fine than six other banks and financial firms suspected in probe or may avoid penalty altogether, person says."
Why would UBS do this? The same reason UBS did so on at least on two prior occasions: the regulators have definitive proof it is involved, and gave it the option to turn evidence and to rat out its cartel peers, or face even more massive financial penalties.
UBS promptly chose the former, and took the opportunity to minimize yet another key civil (and criminal) market manipulation charge against it, especially after it was already branded a "criminal recidivist" between Libor, FX and, of course, the tax evasion scandal: one more manipulation scandal and the bank could well lose its license to operate in NYC.
Which simply means that now the official countdown on the announcement of what will be revealed as the biggest gold-manipulation and rigging scandal in history, has begun.
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"Which simply means that now the official countdown on the announcement of what will be revealed as the biggest gold-manipulation and rigging scandal in history, has begun."
So gold was rigged and manipulated up to 1,900 an ounce?
And then back down again? Pretty funny when we are bombarded with stories of how China and India are hording thousands of tonnes....
Could someone exlplain EXACTLY HOW gold was "rigged" up to $1,900 an oz?
Why don't we find out? I'll bet GATA would be willing to give the investigators/auditors a hand.
"And then back down again? Pretty funny when we are bombarded with stories of how China and India are hording thousands of tonnes....
Could someone exlplain EXACTLY HOW gold was "rigged" up to $1,900 an oz?"
Explain how it was rigged down to 1,100, if it wasn't rigged up to 1,900? The price of anything goes both up and down.
So tell me/us HOW they did it?
If it was me, I would like to discount the strong Dollar, somehow.
There is big money to be made shaving nickles, and if you could retain a few percentage points of the trade or delivery, so much the better.
How and methodology is beyond me, no skin of mine is in that game, but moving a narrowly held market is not beyond the big boys, in fact they rely on it.
The trend is your friend, and if you making the trend, you are BFF.
Eventually though , it is a busted flush, lack of buyers or sellers, greater fools , or even moving on to other 'investment' strategies.
Mostly it is 'gee, something happened and we ran out of money'.
The claim is manipulation, not supression.
Racketeers cover all the bases
You need to do your homework. TPTB temporarily lost control when they ran out of Gold to "lend" <cough> to Barrick to dump into the marketplace. They only regained control once GAAP was abolished, and the Free Money Machine was switched on (for themselves - not for you, of course), enabling endless massive dumping of Futures contracts on the Comex. Of course, the new scheme will also fail eventually, but by then, TPTB will have scooped up all the major mines in the world for less than pennies on the dollar. It really is the perfect crime.
Modern banking is like John Dillinger being caught, fined for a portion of his take, and released to rob again. No way that could go wrong...
back in the day
Jeffrey Christian on LBMA "Physical" Gold Market
https://www.youtube.com/watch?v=0NAL0C6BO-4
Jeff Christian should be strung up by his balls. What a POS.
Something just occurred to me...Is it possible that all this gold smack-down is so that indebted governments can stock up on gold before letting the price go?
I imagine if gold were to rise the way people think it should and will, those governments might be able to pay down a significant amount of debt without crashing the system completely. Of course once they started selling in massive amounts, the price would come down again, maybe hard, so they'd have a narrow window.
But theoretically they could eliminate their over-indebtedness problem without defaulting and taking the whole system down. A way to use an asset they have on hand already to cancel out a huge amount of toxic debt the old-fashioned way, by paying it off. It could be seen as a way to deleverage without triggering a larger disruption through outright default or hyperinflation.
If they could get out of the corner they painted themselves into, they might see that as a way to get out of this intact. A way to preserve the status quo by eliminating a major problem, to allow them to continue in their positions and keep the value of all their assets. If everything tanks, most of those financial assets will be worthless.
I don't know, it's just a thought. If I were them, I'd have thought of it.
Kind of like using inflation to reduce debt. Interesting
"eliminate their over-indebtedness problem without defaulting and taking the whole system down"
somebody's got to take the loss. sovereign debt is transferred to "large hedgers"? lol yeah I'm sure the banks and hedge funds would go right along with that plan. nah that wouldn't take the system down...
you guys kill me.
Your mistake is in thinking that banks and hedge funds would have any leverage in that situation. I'm talking about governments, with militaries, facing a real threat to their very existence. In the end, it is the guy with the gun who prevails over the guy with the gold.
Those big investors will be thrown under the bus, and TPTB will allow them to take all the blame. Since so many already hate them, it will be ridiculously easy to change the dynamics currently in place.
Vlad: "Xi and I have cornered the PM markets and taken over the ME with our advanced weapons systems while the US military celebrates faggotry and sucks each other off."
"Enjoy your little boys, Bath House. One day soon, one will come in with a Vest."
Yes, that is the Plan.
We stock up on cheap paper price then raise the fizz price 1000%!
Either that or the bankrupt governments of the West are suppressing the price to allow China to buy cheaply, followed by the mother of all reveals when they admit they have 20,000 tons.
Could this just be another one of those coincidences ?
US corporations control all Networking-Data of UBS as of 1.10.2015
https://translate.google.com/translate?sl=de&tl=en&js=y&prev=_t&hl=de&ie...
From October 1st , UBS gives the control of their IT-Network to the telephone company AT&T.
This US communications group plays a central role in the affair of the US police state.
...
...
After reading this, first thing I thought was, "Breakout the nailguns!"
"turn evidence and to rat out its cartel peers", Yes, nailguns.
Nazi gold train excavation begins. Probably come up zilch.
http://news.yahoo.com/polish-army-inspects-alleged-nazi-gold-train-15261...
NAZI Gold discovered! Bullion flown to Tel Aviv for safekeeping!
UBS can blow me while they're at it
So, the markets are manipulated, what a surprise, actually, no surprise; the only surprise would be some of the manipulating members of the piggery being prosecuted, but if in the highly unlikely event of some of the pigs being prosecuted, would they be convicted by their fellow pig Judges ?.
Does anybody need any more proof that the international banking cartels are nothing but criminal organisations, that have 98 percent of the politicians in their pockets. Sure, once in a while there is a 'skandal' , like this one, but has ANY bank CEO gone on trial anywhere for money laundering, price rigging, and a host of other criminal activities?
They need to find out how much paper gold to create out of thin air to sell and pay the fines.
UBS is selling the others out; it is they who need to figure it out, but hey the digital printing presses work more efficiently than the paper ones.
By 2016-2017, it won't matter will it!? The Germans are going to be the Scapegoat; first VW ($18 billion fine vs GM's $18 billion bail out and 157 dead & counting with ignition issues) Deutsche Bank will be the financial scapegoat, being German and all.
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But as usual the people who are not hurt by this manipulation, the regulators, are the ones who collect the fines. The rest of us who may have purchased physical gold and silver over the past few decades will not receive a penny.
It is the one's who sold that were "Screwed"; not the ones who bought and held.
and dont forget the outcome will only bring more corruption. Once the fines/bribes are paid everything will go back to normal/criminal.
Not sure I buy it.
To presume that a mega-bank turned rat against its peers under pressure from a government office, one would have to suppose that the government office was more powerful than, rather than beholden to the largest banks.
The balance of evidence in the world is that most all governments are subordiante to the largest banks. And even in those countries where the government is not subordinate to the banks it is beholden to them.
In that light, I'd have to say that this is simply the rats fighting amongst themselves for scraps of society's corpse.
In this video, the blond european woman pictured tells the story of what happened when her train to Vienna was besieged by migrants in Budapest. These people didn’t realize that this European woman was fluent in Arabic, and she overheard and understood everything being said around her.
A band of overwhelmingly adult male migrants (they try to spin it in the media like these waves of refugees are mostly women and children, but it’s not true) stormed her train car and casually threatened to take the five people who bought tickets hostage thinking no one else could understand what they were really saying.
In my eyes it is nice to see rats turn on rats. May they all rot in their rat holes.
Maybe it's because I'm not up to par with you big money guys on ZH,or maybe it's because I am just stupid. Either way,I don't get why gold fell like a lead balloon today with this story out.
Because nobody that trades the markets in large volume actually read it, and if they did, they saw that it would take months before a bullshit conclusion was delivered. They probably assumed wisely that nothing came out of the CFTC investigation, why would this be different. Been here done that. I cooresponded with Bart Chilton about the silver price manipulation investigation. All he kept saying was "keep the faith" and "we're working on it". There was plenty of bulletproof evidence demonstrating manipulation and he agreed. Nothing happened. Nothing will likely happen this time either.
Form another committee to investigate the investigators.
One word:
Glencore
A 'can't hold any longer' moment.
I think the majority of people posting on here don't realize exactly WHAT the banks were doing.
They weren't manipulating the price in huge increments, such as up to $1,900 and then back down to $1,100, they were manipulating SPREADS. That's micro manipulation, not macro manipulation.
But now all the bugs and tinfoilers have someone to blame. Be happy in your delusions.
If you believe that, you've got your head so far up your ass you probably think you see sunshine. Go look it up on Nanex for fuck sake. The metals were slammed multiple times a week for years in thin, no nonexistent trading.
When you're done there, go read the fed minutes about how they discussed how they could and would manipulate the paper price of the metals to stabilize the dollar. Metals manipulation is about the worst kept secret out there.
Hey moron, the "paper" price IS the physical price. Mines produce and SELL 2,500 tonnes of new gold a year. That doesn't include trading of thousands of tonne of existing gold every year. And you call that a "thin" market? That's laughable. Of course small quantities are priced higher.
But you STILL haven't actually said HOW the price was manipulated up to $1,900 and then back down to $1,100. All you do is selectively point to some nebulous reference to manipulation.
Another tinfoiler and conspiracy theory nutcase. As I said, micro manipulation, for short periods of time. NOT large scale swings over years.
And contrary to your conspiracy theories, central banks don't really give a shit about the price of gold, compared to currency.
And contrary to your conspiracy theories, central banks don't really give a shit about the price of gold, compared to currency.
Right--JPMorgan is driving the price down through derivatives exposure just for the fuck of it. Rot up a cunt, toolbox.
Oh look. Another true believer in conspiracy theories. Of course JP Morgan also drove the price UP to $1,900 Right? Wow, those derivatives sure manipulate everything don't they. And you must believe that derivatives and the banks are also suppressing the price of gold and keeping it at $1,100 when it should be $2,000. Right? Or maybe the banks are supporting the price UP to $1,100?
Hahahahhaha. It's easy to spot the true believers. Whenever their beliefs are challenged they simply lash out and insult becasue they don't have a leg to stand on.
So far not a peep from Martin Armstrong.
Gold is down of late because it is a commodity and all commodities have been trending downward because we have deflation and the beginnings of a bear market, world wide.
I don't own much gold but have been picking it up lately in the form of SGOL, also today buying ERX and last week. Need a safety net and I'm sorry but equities I feel haven't seen nothing yet.
You still own no gold. Paper is what you're 'picking up'.
Wow. I mean, just wow!
You can say that again.
You can say that again... But then... I repeat yourself...
Wow. I mean, just wow!
Silver down 3%?!
Ah, must be NFP week!
Or any day ending in 'y'.
You mean that UBS that funds ISIS? Someone got caught. This is a plea bargain, and something much, much bigger is about to go down ..
http://armypsyop.wix.com/scottbennett
https://app.box.com/s/hfgvcqg7gqh7i27at6sv53ywu87lwarp
Let the records show that the English had nothing to do with this. /sarcasm.
Here is why gold prices are so low:
http://michaelekelley.com/2015/07/20/dear-fed-plz-raise-gold-price/
http://www.zerohedge.com/news/2015-07-09/are-big-banks-using-derivatives-suppress-bullion-prices/
UBS will reveal only enough to warrant a slap on the wrist, fines for the rest and promises of better (but not good) behaviour.
The outcome of this episode of kabuki theatre will be same as the LIBOR scandal. Here are some highlights from LIBOR;
"Screwing around with world interest rates that affect billions of people in exchange for day-old sushi – it's hard to imagine an image that better captures the moral insanity of the modern financial-services sector..."
"Two of America's top law-enforcement officials, Attorney General Eric Holder and former Justice Department Criminal Division chief Lanny Breuer, confessed that it's dangerous to prosecute offending banks because they are simply too big. Making arrests, they say, might lead to "collateral consequences" in the economy..."
"Right as the Libor case was being dismissed, the firm had hired none other than Lanny Breuer, the same Lanny Breuer who, just a few months before, was the assistant attorney general who had balked at criminally prosecuting UBS over Libor because, he said, "Our goal here is not to destroy a major financial institution..."
"It's now evident that there is a ubiquitous culture among the banks to collude and cheat their customers as many times as they can in as many forms as they can conceive," he said. "And that's not just surmising. This is just based upon what they've been caught at..."
http://www.rollingstone.com/politics/news/everything-is-rigged-the-bigge...
The banks have been ripping us off all this time? Well, I'm shocked, just shocked I tell you.
No! Really? Gold is rigged?
So I have only one comment, and it is addressed to the Rothchilds:
Where is the fucking gold?
Yeah... like anyone will answer that question!
Great point, nonetheless.
Why should anyone believe any "injustice department" of any fictition nation would do anything to disturb the free-for-all manipulation of EVERYTHING ?????
Just answer that sensibly... then we can discuss the rest.
So, riddle me this Batman... How can APMEX sell gold at spot, through ebay, and offer to pay for shipping, even if you use your credit card??? Where is the profit in that?
Proof... http://www.ebay.com/itm/GOLD-AT-SPOT-SPECIAL-PRICE-1-oz-Valcambi-Suisse-Gold-Bar-In-Assay-9999-Fine/121580551976?hash=item1c4ec3ff28#ht_1359wt_951
And no, I do not work for APMEX or ebay or anyone else connected with this...
When I looked at your link, 11,417 sold. Huge demand. I'd love to see one tested.
Agreed... But, how can a company make a profit if they have to pay the credit card companies and pay for shipping, which ain't cheap, by the way.?...
3 % (cc company's take) of 1135 (spot) is 34 bucks... Add 10-20 bucks for shipping and they are behind 44-54 bucks... Has the business model for making a profit changed while I was sleeping???
Well this isn't it exactly, but close:
http://www.alibaba.com/product-detail/24K-Gold-Plated-Tungsten-SMI-Gold_...
Expecting a significant drop in the paper price, and then reinvest in more marketable coins? Make it up in volume?
Investigations are just stalls; these investigators are paid by their governments; the governments are already broke; CFTC redux. Evidence disappears, citizens are screwed once again. The only way to win is not to play. Find your own way out of the game.
The only way to win is to not play the game. The only way I would ever go into a casino is if I owned it.
Another nice little earner. Why would the crooks shy away from it when they can get away with it?
sure they Are.
It's more probable they will kill off one of their own to save the herd.
With all these bank rigging of Libor, Forex etc... did anything actually change. As far as I know, absolutely nothing has changed.
By the time things are exposed ,
the cabals would have converted all the gold into paintings
If everything on this planet is fictituous and a lot of it is, a person has to wonder about all the stuff they taught us about anything. How true is it. 85%? 50? Who knows? If it is 85% correct, that means 15% of everything we are exposed to is wrong or not true. If a medical doctor or lawyer gets a degree by answering correctly 80% of the tests he or she is given, that means he or she is incompetent at least 20% of the time and if you happen to be the client when the doctor or lawyer is in his incompetent mode you are screwed.
Sad huh?
They call the person that graduates at the top of their Medical School Class a Valedictorian.
They call the person that graduates at the second to the top of their Medical School Class a Salutdictorian.
So just what do they call the person that graduates at the very bottom of their Medical School Class?
Answer...DOCTOR
Thats why you have to make the effort to do your own thinking as best you can. Part of that is trying to find specialists who also do their own thinking, have the best knowledge in their field, and give you straight talk about what they think. In the end though it always come down to what you think.
Just another criminal case involving the big banks. No really I am truely surprised! I have no idea why anyone would want to do business with these jokers on any level unless you were one of the elite receiving the benefits.
When the patient .... get's an impertinent boner .... Nurse Ratchet .... slaps it with her steel edged ruler ?
When people ever learnt, gold manipulation won't be ever uncovered. Something else will be blamed for that because the people in power won't let the truth whatever it takes.
Instead of buying luxury hotels .... to house Muslim "refugees" .... why doesn't Angela Merkel ..... replenish the German gold reserves .... at these suppresed prices .... while they're waiting for the Fed's 8 year repatriation hoax ?
the same Lanny Breuer who, just a few months before, was the assistant attorney general who had balked at criminally prosecuting UBS over Libor because, he said, "Our goal here is not to destroy a major financial institution..."
Translation: The goal of a minor criminal enterprise to to try to give the appearance of disciplining a major criminal enterprise in an effort to impart credibility to both criminal enterprises in the eyes of their hapless victims.
Rats everywhere are deeply offended.
Just another obvious point:
The mining companies and their shareholders were damaged by this price fixing. They can sue and can collect treble damages.
We need one miner to start a class action on behalf of all the mining companies.