Today's $1.24 Billion Targeted Gold Slam Down Makes The Mainstream Press

Tyler Durden's picture




 

For the first time in what may be ages, a phenomenon that has become near and dear to anyone who trades gold, and which at best elicits a casual smirk from those who observe it several times daily, we find that the WSJ has finally picked up on the topic of the endless daily gold slam down, where the seller in complete disregard for market disruption (because in a normal world one wants to sell any given lot without notifying the market that one is selling so as to get a good price on the next lot... but not in the gold market where the seller slams the bid with reckless abandon) ignores market depth and in a demonstration of nothing but brute price manipulation force, slams every bid down just to demoralize further buying. Naturally, that this simply provides buyers with a more depressed price than is "fair" is lost on the seller, but not on the buyers who promptly bid up the metal as attempt to demoralize buying end in failure after failure. Yet it is peculiar that today, for the first time, the intraday gold slam down has finally made the MSM. To wit: "The CME Group Inc.’s Comex division recorded an unusually large transaction of 7,500 gold futures during one minute of trading at 8:31 a.m. EDT. The sale took out blocks of bids as large as 84 contracts in one fell swoop and cut prices down to $1,648.80 a troy ounce. The overall transaction was worth more than $1.24 billion... Gold traders buzzed with speculation that the transaction was an input error — a so-called “fat finger” trade. “Or a Gold Finger as it might be known in the bullion market,” traders at Citi joked in a note to clients." Well, no. It wasn't.

Because if it was, by that logic the gold market falls prey to a fat finger every single day, often times 2 or 3 times a day. But because gold market participants have learned that complaining to the CFTC about this kind of manipulation has no impact, and because at the end of the day it merely provides a cheap reentry price, most have grown to love and anticipate these kinds of moves. In fact, we can only hope that the CFTC and SEC ignores this WSJ update, and lets the market keep on keeping on without changing anything. Because otherwise who will provide the depressed price levels that permit conversion of worthless paper into Fed-detested, undilutable barbarous tradition?

From the WSJ:

One indicator that the transaction was a mistake was its size. At 750,000 troy ounces, such large trades are rarely conducted amid very thin trading volumes. Monday trading was expected to be quiet as market participants in China and Japan are out on holiday and many European traders are preparing for a holidays there

Attempts at manipulation are getting so glaringly obvious, not even the MSM pretends to believe them:

“No one who has the account size and the money to trade thousands of gold contracts would do it in one transaction, that’s just stupid,” said one trader. The collateral required to purchase 7,500 contracts is about $75.9 million in cash that the trader would have deposited with his broker.

 

Moreover, the likely mistake is symptomatic of the shift to electronic trading. Computer trading systems are vulnerable to input errors, as they do not question the order before executing the transaction. By contrast, when most order flow would pass through the Comex floor where human traders processed the deals, potential errors stood higher chances of being intercepted, traders said.

 

“You would definitely verify [a trade this big] before you executed it,” said one Comex floor broker.

Sorry Citi, but it was not a gold finger:

not everyone agreed Monday’s slip in gold was caused by a keystroke error. Chuck Retzky, director of futures sales for Mizuho Securities USA, said that silver prices suffered a similar leg down at the same time as gold, tumbling 35 cents to $30.805 a troy ounce, but other markets like Treasurys, currencies and stocks were unperturbed.

 

“To do it both in gold and silver tells me that it wasn’t a trade done in error,” Retzky said. He added that the sale could have been caused by a trader looking to cut back holdings on the last trading day of April, as fund managers often time purchases and sales for particular reporting periods.

Or, it was made by a trader at the BIS, whose job is to crush credibility in gold, and who describes himself as a market maker for central banks for all gold products, and who holds and manages proprietary positions on all currencies including gold (so wait... gold IS a currency according to the BIS? Gotcha).

Where have we seen this before? Oh yes.

As for gold...Dont cry for it Argentina... or try to nationalize it for that matter: that is an honor that is expressly reserved for the second teleprompted coming of FDR, and the second coming of Executive Order 6102.

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Mon, 04/30/2012 - 18:16 | 2386678 Robot Trader's ...
Robot Trader's brother's picture

Was Blythe pulling the levers behind the curtain......again....???

Mon, 04/30/2012 - 18:21 | 2386687 Pinto Currency
Pinto Currency's picture

 

 

End of Days for the Comex / LBMA scam.

Mon, 04/30/2012 - 18:26 | 2386700 Comay Mierda
Comay Mierda's picture

What's even more important than this story is how gold rebounded from this obvious manipulation and ended the day green.

FUCK YOU BERNANKE

Mon, 04/30/2012 - 18:28 | 2386718 GetZeeGold
GetZeeGold's picture

 

 

V for victory!

 

Mon, 04/30/2012 - 18:38 | 2386735 nope-1004
nope-1004's picture

Gold and Silver are the barometer of the fiat ponzi and, if not manipulated daily, would show with glaring reality the sad state of this ponzi economy.  PM's will be manipulated, until they can't.  It's just the way it is.  JPM and HSBC have no choice anymore - buy physical and when the rats start to leave ship, you'll be glad you have the only protection available.

 

Mon, 04/30/2012 - 18:49 | 2386763 Sudden Debt
Sudden Debt's picture

.
.

Maybe that's what Obama is hinting for with his new cheer
FAST FOREWARD
SKIP
SHUFFLE

Mon, 04/30/2012 - 18:53 | 2386771 NewThor
NewThor's picture

Speaking of V for Victory...

Is Anonymous blowing the doors off of Aliens and our TRUE level of technology BULLISH for gold?

http://www.youtube.com/watch?v=yFab-SMpnUY&feature=player_embedded

*Always remember that OccupyWallStreet, Anonymous, Wikileaks, and yes, even Zerohedge might be CIA/FBI/Illuminati triple psy-ops.

Mon, 04/30/2012 - 19:20 | 2386849 Muppet Pimp
Muppet Pimp's picture

CIA is absolutely present here at ZH

Mon, 04/30/2012 - 19:33 | 2386880 UP Forester
UP Forester's picture

Nah, NSA handles that mundane job.

CIA is busy smuggling drugs and children, and fomenting revolutions in oil-rich countries.

Mon, 04/30/2012 - 19:53 | 2386923 disabledvet
disabledvet's picture

"spying on your hot wife." i hear they have their own commentariat section as well...

Mon, 04/30/2012 - 20:07 | 2386958 NewThor
NewThor's picture

It's 2012. Always assume you're being tracked, watched, listened to and recorded.

 

Mon, 04/30/2012 - 20:36 | 2386998 strannick
strannick's picture

the wall street journal paragon of insight declared the billion dollar hit job a fat finger. i guess a billion plus now gets you an hour of price suppression. but when your naked shorts are covered by digitized dollars so what. good thing we got the cftc on the scene monitoring manipulation. time for that overnight gold fund

Mon, 04/30/2012 - 21:41 | 2387160 Manthong
Manthong's picture

"good thing we got the cftc on the scene monitoring manipulation."

..yeah, good 'ol Bart Chilton is sure to be all over it.

The cost of the hits at 10 am and AH should be tallied as well.

Mon, 04/30/2012 - 23:26 | 2387336 Alea Iactaest
Alea Iactaest's picture

Seriously? Has NO ONE fucking noticed that the a-hole above can't even spell BANK FOR INTERNATIONAL SETTLEMENTS correctly?

Mon, 04/30/2012 - 23:43 | 2387382 JW n FL
JW n FL's picture

 

 

http://www.gata.org/

http://www.youtube.com/watch?v=moY6bzQ2lY0 fast forward to the 5 minute mark to skip her mouth, or mute?

I Hate that TWIT!

But she gets the people we want to hear from!

now if she would only shut her dumb mouth!

and show more ass? I could get behind her position!

Tue, 05/01/2012 - 00:45 | 2387452 Ahmeexnal
Ahmeexnal's picture

China accelerates deep sea mining of gold, silver, zinc:

http://www.corriere.it/scienze_e_tecnologie/12_aprile_24/cina-minerali-s...

Tue, 05/01/2012 - 05:04 | 2387574 Zero Debt
Zero Debt's picture

The Chinese are also looking to London - Hong Kong Exchange and Clearing confirms it is bidding for acquiring the London Metals Exchange.

http://blogs.wsj.com/deals/2012/04/30/hkex-confirms-interest-for-london-...

http://www.ft.com/cms/s/0/4c036c76-92a3-11e1-9e0a-00144feab49a.html#axzz...

The global race for commodities is on...beginning with non-ferrous metals...

Tue, 05/01/2012 - 13:34 | 2388646 Badabing
Badabing's picture

Yesterdays slam down in gold/silver and recovery was very unique.

It bounced back with blinding speed and the MSM mentioned it as manipulation.

The very fact that the MSM mentioned it at all is out of the ordinary.

This was not the usual cartel but someone with a lot of paper fiat wanting to convert to gold.

The junkyard dogs came out on this one because the junkyard owners didn’t get tribute!    

Tue, 05/01/2012 - 00:37 | 2387441 DoChenRollingBearing
DoChenRollingBearing's picture

Wow, good catch Alea!

+ 1

Tue, 05/01/2012 - 01:29 | 2387477 Andrew G
Andrew G's picture

But then if you write something that really pisses TPTB off then the CIA jumps in to do the rendition and advanced interrogation

Mon, 04/30/2012 - 19:32 | 2386881 Bastiat
Bastiat's picture

Well yeah, how else would they know what's going on in the real world?

Mon, 04/30/2012 - 20:24 | 2386992 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ich bin Deutsch Nepalese citizenism citizen.

Ich bin geboren im Land der Krieger. Bemühe mich. Ein Held zu sein. Doch die Siege lassen auf sich warten. Vielleicht irrte sich der General.

Mon, 04/30/2012 - 19:53 | 2386918 Comay Mierda
Comay Mierda's picture

stupid anon

what a distraction

wtf is this alien bullshit? How about hacking the financial system and returning all the vaporized money to MF Global clients.

Just another controlled opposition movement. cant wait til they are used to conduct a false flag internet hack to justify the "TSA of the internet"

Idiots

Mon, 04/30/2012 - 20:02 | 2386943 NewThor
NewThor's picture

Don't you find it odd that we're still stuck on Oil?

Over a hundred years later and OIL is still the best we can do?

One of the tin foil hat theories I believe in is that our government does have some pretty fucking awesome and advanced technologies that would blow our minds.

We've had the replacement for oil for over 100 years.

Magnetics, bitchez.

Mon, 04/30/2012 - 20:44 | 2387031 TheFourthStooge-ing
TheFourthStooge-ing's picture

You might want to check the ground wire on your tin foil hat. It appears to have come loose.

 

Mon, 04/30/2012 - 20:54 | 2387051 NewThor
NewThor's picture

Zerohedge needs more actual fist fighting.

I've got a funny feeling many here aren't good at actual combat.

Mon, 04/30/2012 - 21:54 | 2387187 TheFourthStooge-ing
TheFourthStooge-ing's picture

Made me laugh.®

 

Mon, 04/30/2012 - 22:28 | 2387240 Tijuana Donkey Show
Tijuana Donkey Show's picture

I sparred today! Krav Maga bitchez, who's really training?

Mon, 04/30/2012 - 22:28 | 2387242 Tijuana Donkey Show
Tijuana Donkey Show's picture

Someone has to run security at the donkey show. Who will protect the (taxpayer) donkey?

Tue, 05/01/2012 - 00:12 | 2387421 Nage42
Nage42's picture

Kali Silat (stick/knife), but I call it "Staff management 101" for working with teams in Chennai...

 

Tue, 05/01/2012 - 01:58 | 2387492 jwoop66
jwoop66's picture

Krav Maga Handshake, bitches!

Right to the nutz!

Mon, 04/30/2012 - 18:56 | 2386787 malikai
malikai's picture

If we go into backwardation, it's time to get worried.

Mon, 04/30/2012 - 19:37 | 2386886 Doña K
Doña K's picture

What if the Prime Dealers with Carde Blanche from the FED to supress PM's and get reimbursed if they loose, conspire and signal the buy moment to an oversees entity, thus making bundles of money, untaxed and impersonal.

the ultimate buy low and sell high. 

Mon, 04/30/2012 - 19:52 | 2386919 disabledvet
disabledvet's picture

how DARE you propose such a WONDERFUL THING. (Will it work though...I have a preternatural fear of getting caught. "Guy's with hookers in Columbia" thing. What were the odds i ask? Secret Service no less!) Thank God no one reads these internet bloggy things...

Mon, 04/30/2012 - 20:03 | 2386947 Xibalba
Xibalba's picture

If Gold is the money of Kings, what/who is selling it and how?  Are they using debt perhaps????  Fucking slaves.

Mon, 04/30/2012 - 18:36 | 2386740 SRSrocco
SRSrocco's picture

Silver is being manipulated as well.  I discuss this in several charts as well as others on how falling ore grades and declining net oil exports will impact silver in my article linked below:

CRITICAL FACTORS THAT WILL IMPACT SILVER

http://www.financialsense.com/contributors/steve-angelo/critical-factors-that-will-impact-silver

or at TURDS BLOG BELOW:

http://www.tfmetalsreport.com/blog/3738/guest-post-critical-factors-will-impact-silver?page=1

Tue, 05/01/2012 - 01:57 | 2387490 takeaction
takeaction's picture

Hey....Hi   Used to read all of your comments over at Silveraxis.  Good to see your post. 

Tue, 05/01/2012 - 05:19 | 2387578 cranky-old-geezer
cranky-old-geezer's picture

 

 

Gold and silver will stay suppressed until the dollar collapses (suddenly).  Then you won't be able to buy it for any amount of worthless dollars.

Mon, 04/30/2012 - 18:44 | 2386758 seek
seek's picture

Bingo. The sawtooth pattern after these events tells me all I need to know -- there is plenty of demand, so much so that these spikes are giveaways. The manipulation is starting to backfire because it's now integrated into people's models of the market, and no one is falling for the faux sell-offs now, but instead see them as the buying opportunities they are. We're sitting on a pretty solid support at $1600+ and nothing is breaking it.

TPTB are getting bolder and bolder in their manipulation moves, and people are backing away from paper based on inventories. Simply put, TPTB are losing control of the market, and it's taking more and more of their "free" money to cause smaller and smaller moves that are now lasting hours or even minutes as opposed to weeks and days.

I suspect they'll probably try one massive stunt to kill the market off -- ala MF Global -- before they're forced to capitulate due to having no tools left, or people taking the market physical only. I really wonder what that stunt will be, but I'm certain it will backfire unless they can somehow get the Asians on board and not buy when it happens, which is doubtful. Only after this point will the executive order come, if ever.

Can't wait to see the big banks jump on the other side of the trade and kick in the afterburners on the price rise.

Mon, 04/30/2012 - 18:56 | 2386784 NewThor
NewThor's picture

A lot of people have lost a lot of money believing in the 'The TPTB have lost control of the markets.'

They've still got the markets right where they want 'em, bro.

Mon, 04/30/2012 - 19:06 | 2386811 seek
seek's picture

Losing control, not lost control. If they'd actually lost control we'd be seeing the insane prices talked about by blogs like FOFOA.

Given a ten-year rate of return in the mid-teens on gold, I really don't think they have the markets right where they want them, they just have the PM markets where they can tolerate them, for now.

Mon, 04/30/2012 - 19:20 | 2386847 XitSam
XitSam's picture

Can they keep it from exploding until the election?

Mon, 04/30/2012 - 19:34 | 2386884 NewThor
NewThor's picture

6 Banks failed on the same day right before the 2008 election tilting the balance to Obama when Bush had to go on TV and beg for a blank check to save the free markets.

So the REAL question is who do the High Priests of Mammon have slated as our next president?

Though, I must add, Nostradamus says to watch the 3 1/2 year mark of the President, end of June/beginning of July 2012. Consider the 'trouble' with Secret Service and what role that may play in the 'BIG PLAN' of the bad guys.

 

Mon, 04/30/2012 - 20:33 | 2387005 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Though, I must add, Nostradamus says to watch the 3 1/2 year mark of the President, end of June/beginning of July 2012. Consider the 'trouble' with Secret Service and what role that may play in the 'BIG PLAN' of the bad guys.

...and when the Rupture occurs, the Men from Planet X will fly over, dropping bales of genuine 100 dollar bills on us from their fleet of flying saucers.

 

Mon, 04/30/2012 - 22:44 | 2387277 NewThor
NewThor's picture

 

 

To the great one of Ceramon-agora,
The crusaders will all be attached by rank,
The long-lasting Opium and Mandrake,
The "Dragon" will be released on the third of October.
century: 9, quatrain: 62

<<<TARP (or the beginning of blank checks for banks) was passed on October 3rd, 2008>>>

The chief of London through the realm of America,
The Isle of Scotland will be tried by frost:
King and "Reb" will face an Antichrist so false,
That he will place them in the conflict all together.
century: 10, quatrain: 66

The copies of gold and silver inflated,
which after the theft were thrown into the lake,.
at the discovery that all is exhausted and dissipated by the debt.
All scrips and bonds will be wiped out.
century: 8, quatrain: 28

O vast Rome, thy ruin approaches,
Not of thy walls, of thy blood and substance:
The one harsh in letters will make a very horrible notch,
Pointed steel driven into all up to the hilt.
century: 10, quatrain: 65

The Greek lady of ugly beauty,
Made happy by countless suitors:
Transferred out to the Spanish realm,
Taken captive to die a miserable death.
century: 9, quatrain: 78

The great credit of gold and abundance of silver
will cause honour to be blinded by lust;
the offence of the adulterer will become known,
which will occur to his great dishonour.
century: 8, quatrain: 14

In life, fate and death a sordid, unworthy man of gold,
He will not be a new Elector of Saxony:
From Brunswick, Germany he will send for a sign of love,
The false seducer delivering it to the people.
century: 10, quatrain: 46

The images will be found in the lake:
The sculptor looking for new clay,
He and his followers will be steeped in gold.
century: 9, quatrain: 12

Sudden joy to sudden sadness,
It will occur at Rome for the graces embraced:
Grief, cries, tears, weeping, blood, excellent mirth,
Contrary bands surprised and trussed up.
century: 10, quatrain: 78

A great stench will come from Lausanne,
but they will not know its origin,
they will put out all people from distant places,
fire seen in the sky, a foreign nation defeated.
century: 8, quatrain: 10

The weak band will occupy the land,
those of high places will make dreadful cries.
The large herd of the outer corner troubled,
near Edinburgh it falls discovered by the writings.
century: 8, quatrain: 56

http://en.wikipedia.org/wiki/Occupy_Edinburgh

The antichrist very soon annihilates the three,
twenty-seven years his war will last.
The unbelievers are dead, captive, exiled;
with blood, human bodies, water and red hail covering the earth.
century: 8, quatrain: 77

When the lamp burning with inextinguishable fire
Will be found in the temple of the Vestals:
Child found in fire, water passing through the sieve:
To peish in water Nîmes, Toulouse the markets to fall.
century: 9, quatrain: 9

 A captain of Great Germany
Will come to deliver through false help
To the King of Kings the support of Pannonia,
So that his revolt will cause a great flow of blood.
century: 9, quatrain: 90

The newly made one will lead the army,
Almost cut off from the bank:
Help from the Milanais elite straining,
The Duke deprived of his eyes in Milan in an iron cage.
century: 9, quatrain: 95

The house of Lorraine will make way for Vendôme,
The high put low, and the low put high:
The son of Mammon will be elected in Rome,
And the two great ones will be put at a loss.
century: 10, quatrain: 18

All the friend who will have belonged to the party,
For the rude in letters put to death and plundered:
Property up for sale at fixed price the great one annihilated.
Never were the Roman people so wronged.
century: 10, quatrain: 20

Banners of the deepest part of Spain,
Coming out from the tip and ends of Europe:
Troubles passing near the bridge of "Laigne",
Its great army will be routed by a band.
century: 10, quatrain: 48

The great Senate will ordain the triumph
For one who afterwards will be vanquished, driven out:
At the sound of the trumpet of his adherents there will be
Put up for sale their possessions, enemies expelled.
century: 10, quatrain: 76

A treasure placed in a temple by "Hesperian" citizens,
Therein withdrawn to a secret place:
The hungry bonds to open the temple,
Retaken, ravished, a horrible prey in the midst.
century: 10, quatrain: 81

Mon, 04/30/2012 - 22:59 | 2387310 sof_hannibal
sof_hannibal's picture

"Listen to me and learn some peace of mind:
no skill in the world,
nothing human can penetrate the future."
~
"O god-all come true, all burst to light! O light-now let me look my last on you! I stand revealed at last"
~

Mon, 04/30/2012 - 23:52 | 2387402 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

To the great one of Ceramon-agora,
The crusaders will all be attached by rank,
The long-lasting Opium and Mandrake,
The "Dragon" will be released on the third of October.

Against the great blobbing-up of US citizenism,
The AnAnonymous crusader will attack with rants,
The bong-smoking Opium at Peoples Liberation wifi hotspot,
The Dragon Dry Cleaners he's worked at since October.

The chief of London through the realm of America,
The Isle of Scotland will be tried by frost:
King and "Reb" will face an Antichrist so false,
That he will place them in the conflict all together.

The Corzine robbed America through the realm of London,
The bankers of England were pissed about Iceland.
Jamie and Lloyd will face regulation so false,
That it will bail them out of the conflict all together.

The copies of gold and silver inflated,
which after the theft were thrown into the lake,.
at the discovery that all is exhausted and dissipated by the debt.
All scrips and bonds will be wiped out.

The stacks of gold and silver bought by ZH readers,
Which after boating accidents were lost in a lake,
At the discovery that all is odious and repudiated debt,
Turns out stacks had fallen into drywells and ice chests.

 

Tue, 05/01/2012 - 00:38 | 2387443 NewThor
NewThor's picture

To the great one of Ceramon-agora,
The crusaders will all be attached by rank,
The long-lasting Opium and Mandrake,
The "Dragon" will be released on the third of October.

 

 

 

 

To the false god of Sodom and Gamorra,  the Christians will all be tied like puppets on a string based on their Job/Career/Money, as the long lasting Hopium and Mandrake puts their minds and souls to sleep, then on the 3rd of October 2008, the Beast which is the global 'markets' becomes more powerful than any government, nation or religion.

Tue, 05/01/2012 - 00:45 | 2387451 DoChenRollingBearing
DoChenRollingBearing's picture

That was a great take, TheFourth, + 1

 

O/T, but if any of you liked the "The Three Stooges" when you wee kids, you'll probably like the movie.

Tue, 05/01/2012 - 01:18 | 2387472 NewThor
NewThor's picture

Yeah. I like his 'regulation so false' quatrain.

That really seemed to ring true.

 

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