LIBOR Manipulation Leads To Questions Regarding Gold Manipulation

Tyler Durden's picture

From GoldCore

LIBOR Manipulation Leads To Questions Regarding Gold Manipulation

Today's AM fix was USD 1576.50, EUR 1284 and GBP 1012.91 per ounce.
Yesterday’s AM fix was USD 1594.50, EUR 1293.29 and GBP 1026 per ounce.

Gold fell by $19.40 in New York yesterday and closed down 1.2% at $1,568.40/oz.  Silver fell 1.8% or 50 cents to $26.84/oz.

Gold gradually ticked higher in Asian trading and has kept those gains and seen slight further gains in European trading.

Cross Currency Table – (Bloomberg)

This latest price weakness is confusing many market participants and causing further jitters to some owners of gold.

Our conversations with people in the industry and our own experience makes us confident that this is another paper driven sell off drive primarily by speculative, leverage interests on the COMEX.

Bullion dealers and banks have not changed their long term outlook for gold and are ignoring the considerable “noise” of recent days suggesting that further falls are likely.

Further falls are indeed possible especially if those players with concentrated short positions continue to press their advantage and squeeze nervous hand longs.

However, the fundamentals remain very sound with broad based global demand coming from store of wealth buyers in European countries, in the Middle East and in Asia and particularly China.

There is also increasing demand from hedge funds (Soros, Einhorn etc) and institutions such as PIMCO and the Teacher Retirement System of Texas.

David Einhorn warned of inflation yesterday and was asked on CNBC  “what we would do since it is going to be bad, how do we play that?”

Einhorn told CNBC that he “owns a lot of gold”.

Central banks are just one facet of this central bank demand and their demand remains very small when juxtaposed with the increase in global money supply in recent years and when compared to their foreign exchange reserves.

The notion that central bank demand  is propping up the gold price is simplistic and misleading.

Similar theories were proposed in recent years – with some claiming when gold was at $1,000/oz that ETF demand or Indian demand was propping up the gold price.

Such analysis failed to appreciate the broad global based nature of demand for gold then and fails to appreciate the broad global based nature of demand today.

It also fails to appreciate that while gold demand has increased – it has increased from an extremely low base and remains tiny vis-à-vis the size of other capital (equities, bonds etc) and currency markets and remains infinitesimal vis-à-vis the multi trillion dollar derivative markets.

GoldCore like other bullion dealers internationally have seen a noted increase in demand for physical bullion coins and bars in recent days.

The ‘Liebor’ scandal is the latest scandal to befall Wall Street and City of London banks and official regulators and central banks. It is creating further mistrust of our already wounded financial and monetary system.

The Libor fixing scandal is amusing as everybody- all the talking heads and ‘experts’ are “shocked,  shocked”  to  discover that this benchmark interest rate underlying trillions of dollars worth of financial transactions worldwide was being manipulated
This is despite more astute analysts such as Gillian Tett and others warning that rigging was taking place and LIBOR was a fiction as far back as in 2007.

A lack of transparency, a lack of enforcement of law and a compliant media which failed to ask the hard questions and do basic investigative journalism led to the price fixing continuing and the manipulation continuing unchecked on such a wide scale for so long - until it was exposed recently.

Similarly, the gold market has the appearance of a market that is a victim of “financial repression”.

Given the degree of risk in the world – it is arguable that gold prices should have surged in recent months and should be at much higher levels today.

The gold market has all the hallmarks of Libor manipulation but as usual all evidence is ignored until official sources acknowlege the truth.

However, like LIBOR the gold manipulation 'conspiracy theory' is likely to soon become conspiracy fact.

It will then – belatedly - become accepted wisdom among 'experts.'  Experts who had never acknowledged it, failed to research and comment on it or had simply dismissed it as a “goldbug accusation.”

Financial repression means that most markets are manipulated today - especially bond and foreign exchange markets.

Many astute analysts are asking today (see Commentary) - why would the gold market be completely immune to such intervention and manipulation?

The last thing insolvent banks and governments want is a surging gold price.

Perverted and ‘unfree’ markets create profound risks financial systems and economies and for all investors and savers. They also present opportunities.

As ever, it is prudent to be on opposite side of official manipulation as ultimately the free market forces of supply and demand will always win out.

Smart money internationally remains short fiat currencies and long gold.


(Bloomberg) -- Turkey’s Gold Exports to Iran Not Oil, Gas Payments, Yildiz Says

The increase in Turkey’s gold exports to Iran is not due to payment for oil or natural gas, Turkish Energy Minister Taner Yildiz said.
Turkey pays Iran for its oil and gas purchases in liras, Yildiz said in an interview on the sidelines of a meeting in Ankara today.

Turkey has exported $3.09 billion worth of gold, precious metals and jewelry to Iran in the year through May, up from $13.3 million worth in the same period last year, according to data on the state statistics agency’s website.

(Bloomberg) -- Iranians in Turkey Collecting Gold for Central Bank, Zaman Says

Wealthy Iranians in Turkey are collecting gold on behalf of the Iranian central bank and exporting it to Iran, Turkey’s Zaman newspaper reported.

The expatriates are strengthening the resources of the Islamic republic’s central bank amid concern over tougher sanctions against Iran, the Istanbul-based newspaper reported, citing a Turkish economy administration official it didn’t name.

Iranians in Dubai and India are also collecting gold and sending it to the Iranian central bank, Zaman said, citing the official. Some gold is being imported into Turkey from Europe, refined or re-shaped and then exported to Iran, Zaman said.

Turkey exported $1.4 billion of gold and precious metals to Iran in May and has shipped $3.1 billion worth in the first five months of the year, up from $13.3 million a year earlier, according to data on the state statistics institute’s website.

(Bloomberg) -- China’s Gold Demand Seen Rising 13% as Council Pares Target

Gold demand in China, the second- largest user after India last year, may expand 13 percent to 870 metric tons in 2012, the World Gold Council said, dropping a forecast for consumption to reach as much as 1,000 tons.

Jewelry demand may expand 7.7 percent to 550 tons, slower than the 13 percent growth last year, Albert Cheng, Far East managing director at the producer-funded group, said in an interview. Demand for bars and coins may gain 24 percent to 320 tons, lower than the 38 percent climb last year, he said.

Cash gold slumped for a fourth month in May in the worst run in 13 years as Europe’s debt crisis drove investors to seek the dollar as a haven over the precious metal. Gold sales in China in the second quarter were slower-than-expected as local consumers usually refrain from buying when a rally stalls, Cheng said yesterday in Beijing. He made the 1,000 ton forecast in May.

“We expect China’s gold demand to be close to 900 tons this year,” Philip Klapwijk, global head of metal analytics at Thomson Reuters GFMS Ltd., said in an interview today. “We see quite a strong support in place for gold around $1,550,” Klapwijk said in Beijing, forecasting a fourth-quarter rally.

Spot gold gained 0.4 percent to $1,594.50 an ounce at 5:34 p.m. in Singapore. The metal, which reached a record $1,921.15 last September, has rallied for 11 straight years as investors sought protection from weaker currencies and inflation, and demand in emerging markets increased.

Jewelry Sales

“From our talk to the industry people, we gathered that the Europe’s debt crisis has led to a firmer U.S. dollar, which in turn suppressed the investors’ willingness to buy gold,” Cheng said in Beijing yesterday. “Gold jewelry is also discretionary consumption, so consumers feel they can wait.”
China remains the “most important player on the global gold market,” Commerzbank AG said in a report yesterday, citing increased demand from an expanding middle class and purchases by the country’s central bank. Demand in China totaled a record 255.2 tons in the first three months, compared with 232.5 tons a year earlier, the World Gold Council said in a report in May.

The second-quarter is usually a quiet season in terms of gold sales in China, Cheng said, adding that an estimate of demand will be released in August. Demand should be lower in the three-months to June 30 compared with “an exceptionally good” first quarter, he said.

“We are still optimistic on China’s gold-investment demand as investors here don’t have much choice in terms of investing their wealth,” Cheng said. “The stock market’s performance is poor and the property market’s rally has stalled.”

China’s benchmark stock index in Shanghai has lost 1.6 percent this year. Premier Wen Jiabao pledged on July 8 to continue property controls and prevent prices from rebounding, according to an official Xinhua News Agency report.

(Bloomberg) -- UBS Recommends Buying Gold and Selling Copper on 3-6 Month View

UBS AG said investors should buy gold and sell copper on a three to six month view. It recommends buying oil and selling copper on a three-year view, according to an e-mailed report from the bank dated yesterday.

(Bloomberg) -- JPMorgan Cuts Precious-Metals Price Forecasts for 2012, 2013

JPMorgan Chase & Co. cut its estimates for precious-metals prices for 2012 and 2013.

Gold-price forecast was lowered by 6.7 percent to $1,671 an ounce for 2012 and by 3.1 percent to $1,775 an ounce in 2013, analysts led by Colin Fenton wrote in a report dated yesterday.

JPMorgan cut its 2012 forecast for palladium by 7.9 percent to $641 an ounce and platinum estimate by 5.8 percent to $1,528 an ounce. This year’s silver forecast was reduced by 6.9 percent to $30.53 an ounce, according to the report.

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Burr's 2nd Shot's picture

I just manipulated my gold, but I don't think the value changed.

SheepRevolution's picture

The global banksters manipulation of gold and silver will go down as the greatest financial scandal in the history of the human civilization. Once this secret is brought out in daylight and gold/silver finally corrects to its true price, it will mark the end of Keynesianism.


Long live Liberty.

Quinvarius's picture

It will probably save keynesianism by finally backing our debt with an asset.  All the governments will be solvent and able to borrow again overnight.  And I am pretty sure that when it happens, it will be an overnight affair.

BigJim's picture

Something I don't see discussed is what happens if gold does get re-valued.

If it goes officially to something like $10k (or more) an ounce, a lot of gold would come out of the woodwork. This would necessarily be massively inflationary because by definition, for gold to be re-valued, the central banks would have to be buying it at the new, higher price, and to do that they'd need to print.

So it may be that they will declare gold ownership by individuals illegal, or tax gold sales at 80% (or whatever) to sterilize the purchases. The argument against this is that it would drive the gold offshore... but if enough central banks and governments agree to the same policies, then it could make exporting it to where it's valued at market rates highly problematic.

I'm long PMs so this is the last thing I want, but it does occasionally give me pause for thought.

Harlequin001's picture

The real question post crash will be "Who is responsible for transferring all our gold to China so cheaply?"

Because that is tantamount to treason...

MillionDollarBoner_'s picture

Could it be that the FED and PBOC have a dirty little deal - you keep PMs "cheap" (so we can accumulate) and we will keep buying your Treasury toilet paper?

Would suit both sides until PBOC decides enough is enough. And what choice does the FED really have?

After all, beggars can't always be choosers.

Badabing's picture

"Perverted and ‘unfree’ markets create profound risks financial systems and economies and for all investors and savers. They also present opportunities."

get Phyisical! 

GetZeeGold's picture



Wow, maipulating gold......they can do that?


DeadFred's picture

They've been aided in their manipulation by the charts, or more likely they manipulated the charts. All that ends in a month. Lower peak after lower peak all converging on a rock solid bottom. Within a month if they can't crack gold 1525-50 and silver 26 the prices have to break upward. Can they do it? Maybe with an end-of-world deflation scare but otherwise I doubt it. The manipulators are screwed. The only way to kill the precious metals is to crash the other markets. The Chinese buyers are high fiving each other now because they are the ones who have successfully defended the support levels.

Doubleguns's picture

Now were tallking.

exi1ed0ne's picture

I've spent a lot of time thinking about the gold and silver manipulations and I've come to the conclusion that any revelations will be a meh event. Fiat will destroy itself due to it's nature, not from outside influences. I'll give two real world examples among hundreds:

Sony and T.J. Maxx

Sony playstation credit card breach. Unmitigated incompetence in applying the most basic information security controls, leading to real world losses for the proletariat. They also released a ROOT KIT which compromised anyone who inserted one of their CDs into their windows computer.

T.J. Maxx - largest at the time breach of credit card information. Again real world losses for J6P.

Both are still in business, both still attracting investors, both still turning a profit if you believe financial statements anymore. (HAHAHAHAHAHA!)

Now think about just those two examples and how many transactions the average person does with these companies over the course of a year and contrast that to gold.

Now, don't get me wrong. I keep stacking, mostly due to all those boat accidents, and will keep stacking as my limited means allows. However, expecting the masses to go "Holy shit! Banks and government are colluding to manipulating the price of gold!" leading to stratospheric Au and Ag dollar prices is just madness. Most people have anti-knowledge on money. IOW you will end up dumber trying to educate them.

Broomer's picture

What you will gain trying to educate people is a rope around your neck when the shit hits the fan. You know, you deserve it for being an evil speculator that used your money as you saw fit to buy gold when nobody wanted to touch it.

exi1ed0ne's picture

Yup. Why be angry at yourself when you can transfer that rage to the one trying to help that you laughed at?

Reminds me of a few years ago when I though having a wind turbine to generate electricity was a great idea. That is up until I realized that it is a huge billboard telling zombie masses POWER AND LIGHT RIGHT HERE!!! GOOD CHANCE OF FOOD TOO!!!

We are well past the point where showing your cards will bring positive outcomes.

youngman's picture

Think about it..Central Banks cannot have gold as a a grade of how they are doing..or what they are can bet it is manipulated....

Widowmaker's picture

Fraud hates competition unless symbiotic.

The real pisser is that gold is very much overbought - today.

USisCorrupt's picture

Yea Paper Gold sure is overbought, very nice for those who believe in physical. The poor Sheeple.

USisCorrupt's picture

The CFTC and other US Regulators would never let that happen. They are there to protect the People from all Frauds. Just look at what they have done. Oh maybe we do have a problem, someone needs to call Houston.

cossack55's picture

Houston is out recharging their SNAP/EBT cards right now and can't come to the phone,  Call Alabama

midgetrannyporn's picture

“Gold jewelry is also discretionary consumption, so consumers feel they can wait.”


Until Hell freezes over if need be.

cossack55's picture

LIEbor manipulation begs the only question still relevant:

Why the fuck would anyone be in ANY sector of this thing they call a market? 

Tom Green Swedish's picture

The question isn't what is manipulated. The question is what isn't manipulated in Commie USA.

SheepRevolution's picture

"The question is what isn't manipulated in Commie USA."


Well, since everything is priced in USD, which itself is the banksters tool for manipulating, everything is manipulated and nothing is not manipulated.

Mercury's picture

At this point can we even compile a top-10 list of things whose prices aren't fixed?

Hey kids (and Occupiers) – want to be a rebel? You want to stick it to The Man?

 Conspicuously conduct, in broad daylight, a commercial transaction with loud and open price negotiation.

HurricaneSeason's picture

Marijuana is effected by gas and lawyer prices, but it's not directly fixed by subsidies, taxes, affirmative action, unions and the rest.

Mercury's picture

Well, it's subject to artifical scarcity (and thus higher prices) due to it's illegal and quasi-legal status which you may or may not consider a separate category.

The strongest argument for drug legalization is that it would suck almost all the money and associated criminal activity out of drug trafficking. Pot, heroin and coke would just be plain commodities like corn or soybeans.

BeetleBailey's picture

Paul DoucheKrugman is on CNBC, yammering on - under the caption "Avoiding Fiscal Crisis"

You can't make this shit up.


Widowmaker's picture

Gold:  See ya in the 700's.

Cue emotional suckers while the price of food triples.

JonNadler's picture

456 is more likely to be the bottom

DoChenRollingBearing's picture

Hey, JonNadler it's good to hear from you again, but, you are wrong.

It only costs $5.00 to dig it out of the ground.

So, let me once again straighten you out:

Au to $0.02 / oz

Ag to $0.01 / oz


Sudden Debt's picture

It's not manipulated!!!

Silver is either!!



Troy Ounce's picture



Thanks ZH for being a beacon!

PaperBear's picture

How about manipulation of everything as the Gold Anti-Trust Action Committee have been saying since, oh, 1999 ?

Perhaps this was the motive for taking the gold from the general population and holding it in vaults never to be seen by the public.

Quinvarius's picture

China is a bottomless pit for gold.  Whatever goes in there is gone forever, buried under some peasant hut.  I am so glad we have genius bankers like Legarde and Jamie Dimon facilitating the selling out of the West into multigenerational poverty by giving away our real money at 5% of its value.

Platinum_Investor's picture

This manipulation has to stop.  Gold is the only true currency you can't dilute away.  It's the countries who have out of control debt vs. the countries who are more prudent.  Out of control debt countries want gold down.  Prudent countries are buying the gold knowing what will eventually happen in the US.

Its_the_economy_stupid's picture

The rubber band will stretch and stretch until it snaps back to its resting position. When and where that happens is impossible to predict. Do't torture yourself. Make a decision, follow through, and move on.

Widowmaker's picture

It is far from impossible.  Using your example, you perceive stretch whereas the rubber band is simply conjured bigger (or smaller) by the manufacturers of said rubber, and the hours you get to view it.   You think the band doesn't change but that is precisely what changes (and what you don't see, and perceive as stretch).

It's manufactured chaos, where the only "fix" is your ass at the cleaners.

falak pema's picture

Manipulation... the word of the times. Zeitgeist of WS. 

24% of traders think cheating is normal and necessary in the financial sector of WS/City. 

Tricher est nécessaire selon 24 % des cadres de Wall Street et de la City


So much for the financial John Galts of this world.

Never One Roach's picture

<<24% of traders think cheating is normal and necessary....and the other 76% lied.>>


There.....fixed the report.

oddjob's picture

14% of all people know statistics are fabricated.

famousamos's picture

Any ideas of how this libor scandal will impact consumer interest rates, like mortgage rates? libor noob.

tigercpa's picture

According to Blooberg early this morning, it's not really a scandal.  The talking heads made it clear that most people don;t understand what Liebor is, and they also "misinterpret" what it represents.  Complete CYA spin.

Tom Green Swedish's picture

I read this from another Zerohedge poster.  Dumberg or CNBC is not your customer.  The adverstisers and bankers are their customers.  They generate no reveune for your paltry cable subscription bill.  Therefore all ideas expressed are pure bullshit.

LoneStarHog's picture

Sheesh!  GoldCore, you are totally f__king WORTHLESS!!!!! May I suggest you get a subscription to Le Metropole Cafe and also read the works of GATA? You "experts" might then start to contribute something USEFUL!

The ONLY useful information obtained from your missives is in the COMMENT Section, with contributions by people who REALLY KNOW what is and has been going on for FRIGGIN' YEARS!!!

LULZBank's picture

Gold manipulation can go on for longer, as it does not effect any industry (except mining) or economy as such.

MFL8240's picture

It is disgusting to see what these gangsters  RUNNING the US  and Global banking sewers have done to the world of money, the global economy and trust in any financial instruments?  This is why they have been thrown out of every country they have even been in; they are incapable of playing by fair rules. If they cannot steal from you, they cannot win and they will impoverish a nation for their own greed.  Get rid of these scumbags, enough is enough!  Can you guess what group I am referring too?


Floordawg's picture

It seems every single asset one can own to protect wealth (against $ devaluation) is manipulated. PM's, oil, food.

I've become quite accustomed to the term "strong hands" of late (especially the past year).

battlestargalactica's picture

And oldie but a goodie from the same criminals...

"Capital must protect itself in every way...Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of law the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law applied by the central power of leading financiers. People without homes will not quarrel with their leaders. This is well known among our principal men now engaged in forming an imperialism of capitalism to govern the world. By dividing the people we can get them to expend their energies in fighting over questions of no importance to us except as teachers of the common herd." --

Taken from the Civil Servants' Year Book, "The Organizer"

January 1934.

disabledvet's picture

at this point why don't we just call all of it stolen? those charged with protecting assets are no longer hiding their behavior anymore. if i can claim my interest rates are at or near zero through LIBOR then turn around and simply take the cash you claim you have with "me" relative to the "the gold you have with me" (through you paying me interest on your deposits) how can i possibly lose? and of course "if you need new debt in order to claim to pay for everything you have to come through me" as well even though you yourself monetizes said debt yourself. just don't look at me too close...or not at all even...then "everything is just fine." the Great Reset will simply not be a problem...for "us."