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Paul Mylchreest Presents Various Visual Case Studies Of Gold Price Manipulation

Tyler Durden's picture


When it comes to open questions and general issues surrounding the gold market, The Thunderroad Report's Paul Mylchreest is among the leading contrarian voices who always injects a dose of reality in an otherwise nebulous topic, and one which has been a great disappointment for central bankers over the past century, because as Chris Martenson explained yesterday, "Gold is an objective measure of the degree to which fiat money is being managed well or managed poorly" and never has fiat money been managed as badly as over the past 4 years. In his latest report, Mylchreest focuses on a topic that is near and dear to many precious metal fans: manipulation, and specifically capturing it in practice. In an extended overview of what he dubs various "repeating algorithmic trading programmes" Mylchreest is confident he has enough evidence to demonstrate a recurring pattern of blatant gold manipulation. And he very well may: at the end of the day price merely expresses the relative confidence of buyers versus sellers, still even so we once again go back to the one question we keep on repeating, and one which Martenson also picked up on: if gold is manipulated, so what? Not only so what, but thank you! Because what keeping the price artificially lower does is provides a cheap entry point to pick up physical. As a reminder, those who buy gold, at least so they claim, are not doing it to flip it higher in some fiat equivalent, unless they are merely speculators of course, and instead preparing for the period that follows the collapse of paper money, in which only sound currency, such as gold and silver, will be relevant. In this context, we can only say - bring on the manipulation, in fact send gold to zero if possible please. Frankly neither we, nor anyone else, should be that much concerned with day to day gyration of the value of gold. The long-term trajectory is well-known, however the only question is- does one buy gold to sell it (in dollars, euros, rial, or dong), or to have a true backstop to a failing currency when point T+1 finally comes?

From the report:

This report provides proof of massive manipulation (suppression) of the gold price since the US sovereign credit downgrade on 5 August 2011. There are scores of “smoking guns” in the pages below. Rigging the gold market violates Section 1 of the Sherman Act and Section 9(a) of the Commodity Exchange Act under US law.


It explains in detail and illustrates in chart form exactly HOW the manipulation is taking place. Few portfolio managers or sell-side analysts have  “deciphered” the modus operandi of the cartel banks (never mind financial journalists & the public). It’s a fractal-like pattern of interventions within interventions which are driven by repeating algorithmic trading programmes.


In-depth analysis of the gold price since 5 August 2011 shows that these algorithmic trading programmes operate across time zones (often on a 24/7 basis) and are particularly obvious during trading in London and (especially) New York. I’ve highlighted FIVE EXAMPLES of these algorithmic trading programmes which I term:


1. Set Up algorithm

2. Soft Capping algorithm

3. Hard Capping algorithm

4. Death Star algorithm

5. COMEX Covering algorithm


The intra-day and daily operation of these algorithms also fits into a weekly and monthly pattern of interventions, hence their fractal-like nature.

Working in tandem with these algorithms are specifically-timed “hits”. The gold price gets smashed, when it should surge, on key announcements, e.g. new monetary stimulus (rate cuts, LTROs, etc.). This is to prevent a link developing (in the minds of investors) between each new act of monetary desperation with the ultimate condemnation of a rising gold price. SIX EXAMPLES are explained in detail including the already infamous “Leap Day Smash” of 29 February 2012.


The need for such concerted and blatant manipulation of gold, the arch-nemesis of the current over-leveraged world monetary system, suggests that the integrity of the latter is not just fragile, but arguably fraudulent. Understating the situation, it’s high time to be more than a little “concerned”, if you aren’t already.

Much more in the full report:


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Thu, 03/29/2012 - 12:19 | 2300908 Debtless
Debtless's picture

When does it come out on audio book?

Thu, 03/29/2012 - 12:34 | 2300953 Colombian Gringo
Colombian Gringo's picture

Better yet, when will the Bernank, the wicked witch and the rest of the criminals at GS and JPM go to jail? In the crony capitalist system that dominates the US, never. 


Get over it. Gold will always be manipulated to suit the Criminals that Be.

Thu, 03/29/2012 - 12:35 | 2300956 DoChenRollingBearing
DoChenRollingBearing's picture

That's why you buy physical and never let it go.  Unless it's to your children...

Thu, 03/29/2012 - 14:52 | 2301421 malikai
malikai's picture

This was a great essay. I wonder how many people actually read it. Based on the comments, I suspect not many. At any rate, These manipulations and their frequency reverbrates my suspicions for the last year+ and certainly highlights considerable opportunity for maximising gold stacking, either by trading it or simply knowing when to buy.

Thu, 03/29/2012 - 12:39 | 2300966 vast-dom
vast-dom's picture

Agreed. Can't wait when gold crosses $2,500!

Thu, 03/29/2012 - 12:41 | 2300971 The Big Ching-aso
The Big Ching-aso's picture



Gold has a silver lining.

Thu, 03/29/2012 - 13:01 | 2301050 TradingTroll
TradingTroll's picture

Shouldn't say 'always'

As in "we will always light our homes with whale oil"

Thu, 03/29/2012 - 20:33 | 2302377 RussellChester8
RussellChester8's picture

my friend's sister makes $74/hr on the computer. She has been out of a job for seven months but last month her check was $17871 just working on the computer for a few hours. Read more on this site .... http://bit.ly/wYpMrv

Thu, 03/29/2012 - 12:51 | 2301003 tmosley
tmosley's picture

Port it into a Kindle and it should be able to read it to you.  Macs have a similar function, IIRC.

Thu, 03/29/2012 - 12:20 | 2300912 Au_Ag_CuPbCu
Au_Ag_CuPbCu's picture

Get em while they're cheap!

Thu, 03/29/2012 - 12:34 | 2300954 DoChenRollingBearing
DoChenRollingBearing's picture

+ $55,000

Thu, 03/29/2012 - 13:07 | 2301064 Saro
Saro's picture

+1 for clever user name.

Thu, 03/29/2012 - 12:21 | 2300915 Platinum_Investor
Platinum_Investor's picture

Why can't anyone do something about this.  I have investments in Gold and Miners that are losing money because of this manipulation.

Thu, 03/29/2012 - 12:23 | 2300921 trembo slice
trembo slice's picture

because the manipulators are the regulators. 

Thu, 03/29/2012 - 12:38 | 2300963 DoChenRollingBearing
DoChenRollingBearing's picture

@ Platinum

Miners have several risks that keep investors away (they can be taxed or appropriated, whether here or in S. America).  Strikes.  High costs of mining.

Just buy the platinum and the gold, you'll be serene...  Let the miners do the real work and take the real risks.

Thu, 03/29/2012 - 12:49 | 2300996 knukles
knukles's picture

If one wants gold, one buys gold, not the miners.
It's analogous that if one wants a Taurus, one buys the car, not Ford stock.
So, where's the confusion, eh?

I mentioned this to a lady friend who unhappily owns gold miners and she then started to ramble on about whether she should buy a hybrid, an electric, 4 wheel drive, domestic versus foreign, etc., etc., etc.
Yes, she is blonde.

Thu, 03/29/2012 - 13:00 | 2301044 DoChenRollingBearing
DoChenRollingBearing's picture

Bummer about her being blonde.  I am half blond, the other half is gone!  Buying gold helps me feel better about the whole yellow/blond thing...

Thu, 03/29/2012 - 13:46 | 2301189 TheGardener
TheGardener's picture

Sorry, but what is Taurus or the want of it ?

Thu, 03/29/2012 - 15:08 | 2301472 ParkAveFlasher
ParkAveFlasher's picture

If you want an intelligent companion, who talks sense, you need to get yourself a 70-year-old Turkish housewife.

Thu, 03/29/2012 - 12:26 | 2300925 SHEEPFUKKER

Funny how the Chinese and Indians encourage their citizens to buy gold and silver and the U.S. government discourges their citzens from buying.  Can you say wealth transfer from west to east?

Thu, 03/29/2012 - 12:29 | 2300933 Quinvarius
Quinvarius's picture

"Wealth transfer from West to East"

Thu, 03/29/2012 - 12:48 | 2300994 JustObserving
JustObserving's picture

"Wealth transfer from West to East" sponsored by the Fed.  Give credit where credit is due.

Thu, 03/29/2012 - 12:45 | 2300987 Diogenes
Diogenes's picture

"Funny how the Chinese and Indians encourage their citizens to buy gold and silver and the U.S. government discourges their citzens from buying.  Can you say wealth transfer from west to east"

And yet the Chinese and Indian peasants are poor while the US citizens are rich.

Investing in gold is a confession that the economic system is failing or has failed. In a reasonably honest, efficient economy no one would think of investing in gold. There would be too many better, safer investments.

This used to be true of the US if not of China or India. But we are all third world now.

Thu, 03/29/2012 - 12:51 | 2301002 knukles
knukles's picture

The US discourages?
Where for come thoust Eagles and Buffaloes?

Thu, 03/29/2012 - 12:59 | 2301036 Willzyx
Willzyx's picture

If the US did encourage PM ownership, Eagles and Buffaloes would be legal tender for far more than their face value.  One OZ of gold stamped for $50

Thu, 03/29/2012 - 13:05 | 2301061 DoChenRollingBearing
DoChenRollingBearing's picture

Yes.  They should just change the legal tender value to $10,000.  That would shake things up!  Freegold would soon arrive.  Paying down the national debt would be a snap!

Don't have gold?  You would lose big.  Play it smart and go buy gold while it's cheap!

Thu, 03/29/2012 - 13:35 | 2301160 piceridu
piceridu's picture

DoChen...that re-valuation is coming but not until they try and get it all...remember Executive Order 6102?

Thu, 03/29/2012 - 13:52 | 2301221 fourchan
fourchan's picture

monster boxes from kitco


Shipping only outside US

Due to high demand, this product is only available outside of the US. If you are looking to buy this product, sign-up for the Kitco Bullion Alert Service to be notified the moment this product becomes available inside the US

Thu, 03/29/2012 - 14:04 | 2301268 DoChenRollingBearing
DoChenRollingBearing's picture

@ piceridu

Molon Labe.  Hard to get it all if it is in six different places, well hidden.  Black markets?  Please, they cannot even control the local drug trade...

You can always turn in PART of your stash, you know, showing that you are a good little sheep...  Baa-aah!

Thu, 03/29/2012 - 14:11 | 2301289 MachoMan
MachoMan's picture

Right, but of the productive class of U.S. citizenry, who in their right mind would vote to transfer the gold to our creditor nations?  In other words, the presumption is that once the slate is clean, we would be free to begin accumulating again and through hard work, ingenuity, and determination, we would once again amass the world's largest store (unaudited).  BUT WHO IN THE FUCK IS ACTUALLY READY TO GET THEIR HANDS DIRTY AND BE PRODUCTIVE?  Who are these idiots kidding?

I think a better option would be to send a 3 trillion dollar coin (the size and composition of a 2012 penny) to china and then treat them like a bank branch treats anyone trying to withdraw more than a hundred bucks...  "um, we're sorry, but we don't have that kind of cash around here."  [I think this is going to happen anyway, or the equivalent].

Thu, 03/29/2012 - 12:59 | 2301034 JOYFUL
JOYFUL's picture

US Government discourages gold buying?

A dubious proposition at best! When confiscation time rolls around, think of how easy all those bagholders will have made the heist!

Actually, they are delighted you are collecting on their behalf...and making the price of doing so amazing cheap as a thank you!

Thu, 03/29/2012 - 12:26 | 2300926 scatterbrains
scatterbrains's picture

Also how small is the paper pm market relative to the size of the U.S. Treasury and Equity paper markets which so far the fed seems to have no trouble manipulating/controlling.  If the fed can seemingly control these two markets with apparent ease how hard is it for them to control the much smaller paper gold market ?

Thu, 03/29/2012 - 12:28 | 2300931 Quinvarius
Quinvarius's picture

I like the algo they have been using this week.  Cap it for 24 hours and then look for stops just under your cap.  The shit is has been a hillarious fail.  Eventually they go for one big sucker punch and pretend that purposely missing the Chinese fills is a capitulation.

Thu, 03/29/2012 - 12:30 | 2300934 DormRoom
DormRoom's picture

Meanwhile in Spain,


A national sex strike! Spain's 'high-class hookers refuse to sleep with bankers until they open up credit lines to cash-strapped families'





Thu, 03/29/2012 - 12:39 | 2300967 Colombian Gringo
Colombian Gringo's picture

The whores are on strike because they resent the competition from the banksters, and do not wish to be associated with such a low class of human beings.

Thu, 03/29/2012 - 14:15 | 2301304 TheGardener
TheGardener's picture

Easy to be on strike when they made everyone in the country
to be whores on a penny. Happened in the East before and still running, no paid sex if it is free for all as in what the socialists keep promising.

Free love! No love, bad but ongoing sex life well beyond your prime...

Thu, 03/29/2012 - 12:38 | 2300964 twh99
twh99's picture

No one has yet explained to my satisfaction what "they" gain by manipulating gold.

Thu, 03/29/2012 - 12:42 | 2300975 Debtless
Debtless's picture

Keeping the faith in fiat.

Thu, 03/29/2012 - 13:15 | 2301080 trembo slice
trembo slice's picture

Especially keeping faith in the USD.  All internationally exchanged oil is dollar-denominated.  This petrodollar system maintains a strong demand for the USD, since oil, obviously, is one of the most important commodities in the world.


The essay is from awhile ago, but I still think it paints the best picture of our demonization of Iraq, Iran, and anyone else that wants to challenge the petrodollar standard that has been in place since the breakdown of Bretton Woods.

Thu, 03/29/2012 - 12:51 | 2301007 Diogenes
Diogenes's picture

"No one has yet explained to my satisfaction what "they" gain by manipulating gold."

They hate gold. For thousands of years it showed them up and stopped them from passing counterfeit money without being caught.

Without gold, they can print all the money and fake investments they want and pawn them off on the suckers. But if the public gets wise to the scam and refuses to take their phony "investments" they are screwed. This is why they have to stop the world going back to gold, or at least put speed bumps in their way as long as possible.

Thu, 03/29/2012 - 13:01 | 2301041 scatterbrains
scatterbrains's picture

Actually I would think gold is the one thing they love most of all and try as much as they can to discourage outsiders from owning it. After all who better than the banksters knows how worthless all these paper markets are? I see your point though.

Thu, 03/29/2012 - 13:17 | 2301095 JOYFUL
JOYFUL's picture

C'mon now. NOBODY hates gold, least of all central bankers or their investment bankster buddies!  They just hate the thought of it being in the wrong hands...as in, not theirs.

When the Spanish broke the monopoly of the Venetian banks over gold and silver in the C15th, through their acquisition of New World mines, the banking caste had to flee, first to Holland, then to England...

It's taken then hundreds of years to crawl back from that abyss, and now that they are almost there, with a virtual monopoly almost in sight, it looks like they are going over the edge of the cliff once again...as Iran and India and China begin the Long March to gold for oil. 

Deja vu all over agin! Those wily e banksters and their Acme Surplus exploding price discovery bombs....



Thu, 03/29/2012 - 12:58 | 2301031 dryam
dryam's picture

The US went off the gold standard in 1971, meaning paper money was then only backed by "faith in the system" & nothing else.  Gold is a guage of money printing.  If gold were to rise rapidly, a critical mass would lose faith in the USD and realize how corrupt the system is.  The Fed tries to suppress the price of gold so it can print money into oblivion screwing the rest of the world in the short run, and the U.S. in the long run.

Thu, 03/29/2012 - 16:36 | 2301787 akak
akak's picture

Actually, in a meaningful sense the USA went off the gold standard with the creation of the Federal Reserve in 1913 --- everything subsequent to that was little more than increasingly fraudulent window-dressing.

Thu, 03/29/2012 - 16:58 | 2301853 Bansters-in-my-...
Bansters-in-my- feces's picture

@ twh99.

You are even more stupid than you look.

Got no gold huh,sucks to be you.

Thu, 03/29/2012 - 12:45 | 2300982 dumpster
dumpster's picture


the manipulation of gold is to give the impression that the economy is improving

it confuses people like yourself that are clueless and continue to be

the manipulation is the politicians and central banks way of keeping the fiat and printing and the fed in control of peoples emotions .


Thu, 03/29/2012 - 13:18 | 2301099 DoChenRollingBearing
DoChenRollingBearing's picture

ALWAYS like seeing you around dumpster.

Thu, 03/29/2012 - 12:47 | 2300993 tony bonn
tony bonn's picture

"...if gold is manipulated, so what?.."

i hope that this is a glib, flippant, punkass, facetious remark not intended to reflect serious thinking.....there are all sorts of reasons to object to price distortions which i will leave as a homework assignment for more adult minds.

Thu, 03/29/2012 - 12:56 | 2301024 Tyler Durden
Tyler Durden's picture

Here is a non glib, flippant, punkass, facetious remark: everything is manipulated. One can rage against it, or one can prepare for when the unwind of global central planning finally happens.

And here is the glib, flippant, punkass, facetious math: you can buy much more gold at $1665 than at $1,665,000,000,000.

Get it?

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