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Paul Mylchreest Presents Various Visual Case Studies Of Gold Price Manipulation
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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When does it come out on audio book?
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.
That's why you buy physical and never let it go. Unless it's to your children...
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.
Agreed. Can't wait when gold crosses $2,500!
Gold has a silver lining.
Shouldn't say 'always'
As in "we will always light our homes with whale oil"
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
Port it into a Kindle and it should be able to read it to you. Macs have a similar function, IIRC.
Get em while they're cheap!
+ $55,000
+1 for clever user name.
Why can't anyone do something about this. I have investments in Gold and Miners that are losing money because of this manipulation.
because the manipulators are the regulators.
@ 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.
Si.
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.
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...
Sorry, but what is Taurus or the want of it ?
see below
http://gifsforum.com/listofimages/gallery/do-not-want
If you want an intelligent companion, who talks sense, you need to get yourself a 70-year-old Turkish housewife.
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?
"Wealth transfer from West to East"
"Wealth transfer from West to East" sponsored by the Fed. Give credit where credit is due.
"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.
The US discourages?
Where for come thoust Eagles and Buffaloes?
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
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!
DoChen...that re-valuation is coming but not until they try and get it all...remember Executive Order 6102?
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
@ 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!
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].
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!
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 ?
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.
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'
http://www.dailymail.co.uk/news/article-2120984/Spains-high-class-hookers-ban-sex-bankers-provide-credit-cash-strapped-economy.html#ixzz1qWYJt8RUThe 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.
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...
No one has yet explained to my satisfaction what "they" gain by manipulating gold.
Keeping the faith in fiat.
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.
http://www.energybulletin.net/node/12125
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.
"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.
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.
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....
BEEP BEEP says the GOLDRUNNER!
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.
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.
@ twh99.
You are even more stupid than you look.
Got no gold huh,sucks to be you.
twh
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 .
ALWAYS like seeing you around dumpster.
"...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.
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?
The truly glib, flippant, punkass, facetious soul can do both at the same time. :p
@ Tyler
Truth there. Truth is powerful.
$1665 is a gift. Give yourself the best present in town!
Sorry Tyler, I hold you and your site in high esteem.
But i DON`T GET IT ! Why buy even more gold ? We have barely
any money left for groceries and ammo ?
Did you say"we have barley and money left for groceries and ammo"
Mmmm,beer,not just a breakfast drink.
@tyler
Dear Tyler,
You are amazing.
How do you do it?
How do I get my anger to come out as profound as yours?
An admirer om
Just short at 2:55am.
This will be a day long remembered. Exchanged significant amounts of Uncle Benny's Digital Republic Credits for stackable piles of PM's for the first time cherry pop. And this is only the beginning. This weekend I will be taking some of Uncle Benny's Funny Looking Green Ink Stamped Cotton Fiber Units and exchanging them for lead projecting devices and large amounts of lead projectiles. Good to be in the club.
We shall enumerate with metal tender discs.
@ rebelscum1967
Welcome!
You are about to discover a psychological anomaly that PM owners seem to have. I saw FOFOA mention the first time I ran into this: that the marginial utility of the NEXT ounce of gold is essentially the slowest decliner of almost ANYTHING else. That basically means you will always want MORE gold.
Yes, the Double Top Secret Members of the club also like lead delivery devices as well. Remember that Pb is a precious metal when moving at a high enough velocity...
So us still being consumers, the ultimate consumption being PM and lesser metals, got you and you are probably dammed right....
And here are two sites you might like:
pmbug.com
fofoa.blogspot.com
Re FOFOA, I would start reading in late 2009 or so. Be prepared for LONG reads, but he is my favorite gold analyst.
Disclosure: I contribute to both of 'em.
Many thanks!
I love these guys. I can buy a one ounce gold coin for less than 1700 thanks to these guys. They have saved me a small fortune.
PLEASE STOP SHOWING EVIDENCE OF GOLD (and Silver) MANIPULATION!
This has been going on for years and anyone with half a brain could see the obvious patterns. I have been working these patterns for years now and profiting from them. WHY ARE YOU ATTEMPTING TO DESTROY MY EASY MONEY CREATION? Just go with the Algo's buying the dips and selling before the manipulation hits. You know when it's going to happen. The only thing you don't know is how hard they are going to hit it. How hard they hit it really makes no difference except the profit you can take from it. The harder the hit the more money you're going to make. Also always assume that at some point they will lose control and you will lose your bet. As long as you know you can lose a bet sometime in the future simply figure it in as an investment cost that you knew would happen at some time you were playing this game. All paper Gold (and Silver) will evaporate at some point and remember that paper Gold (and Silver) is what you are playing with. You must buy physical Gold (and Silver) too. This helps you play the game as it removes physical Gold (and Silver) from the market causing even more volatility which equals higher profits and saves you from destruction when the game ends.
wealth transfer from paper to hard assets. Gold is the thermometer of how bad the system/central banks/fiat currency are doing....FEVER AT 104* BITCHEZ, KEEP BUYING PM'S THE FUN IS ALMOST HERE...
Since gold's price everyone knows is a smoking gun, just cork the barrel.
The reality as we all know is that manipulation of gold and silver prices is a wondeful disinformation tool to be used whenever there might be concern the public is becoming worried about inflation.
It looks like today there are a lot more clever people commenting than yesterday.
I don’t understand why PM investors want higher prices !
They must be retired (with all their money invested in PM’s) or retarded.
Have you noticed that when prices spike like hell nobody cries manipulation !
I love the manipulation that gives me cheaper PM’s .
More and more manipulation of the Precious Metals sector has become prevalent reaching epidemic proportions. This is of great concern but what is of greater concern is that no one is doing anything about it. Yes, there are many who are bringing this manipulation to light but who is really taking any action to stop it? When there’s a bully amongst us we all know the bully is a bully and will continue to be a bully until someone takes him down. Within the Precious Metals community there are a lot of intelligent people with a lot of knowledge and resources. Isn’t it time that a committee of sorts be formed to confront this bully face to face and take him down? Isn’t it time that the media start to pay more attention to this manipulation problem? Isn’t it time that the CEO’s of the Precious Metals companies start taking action on behalf of their investors who are losing their shirt to this bully? The other option of course is to let the bully continue to reign and cause havoc within the Precious Metals industry until such time as there no longer are any investors because they got tired of constantly being beat up simply because nobody cared.
RJMAL asks, Isn’t it time that the CEO’s of the Precious Metals companies start taking action on behalf of their investors who are losing their shirt to this bully?
Well assuming that PM CEOs aren't taking bribes or are otherwise involved in the scam what you suggest would make sense. Unfortunately, I wouldn't make the assumption that they aren't involved in the scam. After all, they would be an important player to "get on your side" if you were the manipulators.
Anyway, just my 2 cents.
I'm assuming that such a group is already operating (in Asia!)
Welcome to the new norm: The manipulation isn't personal. It's how the 99% prevent the massive transfer of wealth that everybody talkes about. Duh... a bunch of "no nothing" goldbugs outsmarting PHDs and MBAs... be serious...
AND, while the manipulators at the banks (JPM, MS, et al) pat themselves on the back for a job well done in driving the cost of PMs down... I can see all Central Banks and investors the world around sending many thanks for their scooping up metal at such discount prices. Talk about unintended consequenses!!!!
In an attempt to keep their fiat money relevent they are PUSHING metal wealth (ie REAL wealth) on the rest of the world.
So stupid it almost sounds like a government project...
Absolutely awesome report.
I made pretty much the same observations - there must be some kind of rule behind these actions on the charts. However - what rules ?
The report boils it down to the exact point.
Now - as we will see more of that magic why not make some money with it instead of complaining ?
If you know the market is heavily manipulated and with no means to stop this - why not surf that wave ?
I recently downloaded the LBMA morning/afternoon fixes of the last 3 years.
Converted to excel and made a simple research on how many times in all business days there was an actual drop fro morning to afternoon fix. I guess you know the result...
Would be nice to get hold of the fix data for COMEX and New York to have a look at these stats.
Ideas anyone wher to get these data ?
did anyone else watch Die Hard 3 last night on AMC and wish that would actually happen? i did.
the u.s. economic system has turned into a banana republic. i hold the regulators to blame.
Since Sept/2011 the smackdowns have more and more severe, The last one Feb 29th they really took the gloves off, and did not even bother trying to hide it.
The messege from Uncle Ben was clear, don't go there or I will hurt you. A messege he promptly took on his road show.
If there is a 1% or 2% takedown target the best advice is the buy more on each 1% or 2% down move.
I think stops are useless, as someone pointed out they are good at hunting them out, and knocking you out of the market.
OK - a not so glib or facetious remark - now that there is evidence of a rigged market - so what! Should we get our guns, pitchforks, tar and feathers and run the bankers out? Becuase there is one thing that I do know, is that tyrants (read bankers) will HOLD ON TO THE VERY LAST. And they will use everything at their disposal to make sure that they stay in charge. Nothing makes a man (psychopath - banker - same thing) more dangerous, is when their options have been thinned out, and they go into 80% survival mode - anything is possible.
"Now witness the firepower of this fully ARMED and OPERATIONAL battle BANK(s)! ... You don't know the power of the Dark Side."
What if someone with totally malign intent sent the PM's markets to ZERO. If the markets are rigged, and it don't matter what you say or do, then what would prevent the: Algos, Bots, Bankers, The Emporer himself to send the price of gold to NIL, effectively taking the one weapon out of the peeps hands. Sorry guys, I am in Red Cell operation right now.