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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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Tue, 05/01/2012 - 02:51 | 2387528 The Navigator
The Navigator's picture

Except for the 30 minutes to get to the coin shop and buy some more gold and silver coins, I'm all in.

Last week I received from APMEX (buy where ever you want, I buy from them occasionally and am not a shill for them)

1 x 20 Franc coin (.1867 ounce of gold) $340

4 x 1 ounce Fiji Taku (turtle) .999 silver coins ($40 each)

1 x 10 ounce APMEX silver bar ($320)

Plus shipping and CC charges.

Not a great amount but little by little, the pile grows and the ammo boxes in the rifles safe are getting crowded out.

Mon, 04/30/2012 - 18:35 | 2386736 BaronG
BaronG's picture

So say with a second coming of exec order 6102...wouldn't that mean anyone who buys gold at current prices is going to lose alot when the price is set to $100 or whatever price?

Mon, 04/30/2012 - 19:13 | 2386830 DosZap
DosZap's picture

So say with a second coming of exec order 6102...wouldn't that mean anyone who buys gold at current prices is going to lose alot when the price is set to $100 or whatever price?

And, this will happen when what part of hell freezes over?,set it at $'s set now under $42.xx,has that changed anything in the REAL world.If they set it at 100.00, you will never get a shot at one OUNCE.

BLACK MARKETS will abound, people with half a brain will NEVER sell at anything close to that price..................there are other World markets that will not go along with this for a second,and getting your precious to them will not be super difficult.And at THEIR prices, you think they will take it up the kiester???,hell no, and its obvios with the alliances being made /been made that WE will not be the reserve much longer, we will be an also ran.

Air is not the only way out of this area,for you, or your stash.

Mon, 04/30/2012 - 20:11 | 2386968 mendigo
mendigo's picture

For that reason some are choosing to buy in venues that cannot be traced and storing it in the back yard. I am curious to hear more about that. What if the gold is in a work of art I wonder.

Tue, 05/01/2012 - 03:04 | 2387536 The Navigator
The Navigator's picture

If you can melt and mold - cleats for boats, coat hangers for back of doors, any common metal hardware widely used in a house.... all painted with brass or bronze paint... or best, painted as rustic bronze. Let your imagination take you further. Lotsa ways to hide in plain view.

Imagine an old battery, heavy as hell, laying in your garage or backyard, sprayed with WD40 and sprinkled with dirt but not containing lead or acid, just a top layer of water that affects neither gold or silver. Of course the metal detector goes off, it's full of lead.

Lotsa ways.

Mon, 04/30/2012 - 20:35 | 2387015 Withdrawn Sanction
Withdrawn Sanction's picture

What was the compliance rate w/EO6102?  Hint:  it was less than 100% (in a society that then was arguably more law-abiding than today's).

Mon, 04/30/2012 - 21:34 | 2387152 rabbitusvomitus
rabbitusvomitus's picture

Uhm, no..

The Fed and Squid combo has a shit ton of influence BUT no way, no how the rest of the world is gonna let them set a price as low as that. Any attempt by Uncle Fed to set the value at a low number and it'll be game on! At a 100 bucks an OZ the chicoms will be backing up the truck to Ft Knox; trading up their Treasurys for AU..

Tue, 05/01/2012 - 09:59 | 2387948 TheFourthStooge-ing
TheFourthStooge-ing's picture


So say with a second coming of exec order 6102...wouldn't that mean anyone who buys gold at current prices is going to lose alot

Only if they're so meek and obedient that they obey non-law bullshit executive orders.


Mon, 04/30/2012 - 18:34 | 2386737 WhiteNight123129
WhiteNight123129's picture

Well some us are part of the buy side and sure enough some went right after this travesty of trade as PMI looked ugly, BIS shove that trade up your ass.



Mon, 04/30/2012 - 18:37 | 2386743 Blagio
Blagio's picture

WSJ Welcome to the F&*king Party! About time you showed up.

Mon, 04/30/2012 - 18:40 | 2386745 gwar5
gwar5's picture

Been pointed out that QE has been ongoing 24/7 to cover the massive US budget deficits. Fitzwilson likes to call additional QE programs Quantitative Spewing.

Mon, 04/30/2012 - 18:43 | 2386753 Martin T
Mon, 04/30/2012 - 18:44 | 2386756 Milton Waddams
Milton Waddams's picture

Gold is currently forming what is known as an inverse head and shoulder reversal pattern; one, which should it confirm, that ought to see gold prices break out to new highs in the intermediate future.  With that said -- T/A is just a means of timing entry and exit points, nothing more -- there has been a very motivated seller in the Gold market since about August 2011.  A breakout to new highs would require that this seller does not have an infinite amount of gold (or capital, as it were) to continue to apply selling pressure in the market... if you catch my drift.

Mon, 04/30/2012 - 18:46 | 2386761 skepticCarl
skepticCarl's picture

That first 140 word sentence is probably close to Tyler's record.

Mon, 04/30/2012 - 19:02 | 2386802 Dr. Engali
Dr. Engali's picture

Not many people can do that without it just looking silly.

Mon, 04/30/2012 - 19:43 | 2386902 Vendetta
Vendetta's picture

Are you rainman

Mon, 04/30/2012 - 18:46 | 2386762 Verum
Verum's picture

Ted Butler's logic would imply that commericals crashed the price only to catch the market offguard and aquire gold from the lower prices throughout the day.   Seeing that the whole move was undone I would be interested to see the net positioning of commericals in the next COT report to see if it did indeed increase.

Mon, 04/30/2012 - 18:54 | 2386779 fiddler_on_the_roof
fiddler_on_the_roof's picture

BIS want to crush paper markets and go physical only. They want to beat the US/UK system.

They will make paper markets default and they have EURO waiting in wings.


BIS/EURO are all set for the change.

Mon, 04/30/2012 - 19:08 | 2386809 newengland
newengland's picture


Before or after Europe burns to the ground, eg WWI and WWII? 

How many people must die and starve, just so that the corporatists get their money, their theft from the common person?

For the record, I own more physical gold and silver than most individuals. It is for the safekeeping of my family et al after the corporatists blow up the they did to the financial system in 2008, and plot to do literally, soon.

Mon, 04/30/2012 - 19:28 | 2386868 disabledvet
disabledvet's picture

so "crush the euro and all will be well" then.

Mon, 04/30/2012 - 20:15 | 2386978 Ted Baker
Ted Baker's picture


Mon, 04/30/2012 - 18:57 | 2386788 _underscore
_underscore's picture

All of this is incredibly bullish though.  Drawing on my reservoir of Wildean wit, "..the only thing worse than being talked about is not being talked about.."

The commercial irrationality & lack of fiduciary duty shown in these trades where price acheived is (apparently) immaterial & secondary, shows that the gold (and to a slightly lesser extent, silver) price is the inverse factor in the fiat reserve equation.

Mon, 04/30/2012 - 19:21 | 2386801 newengland
newengland's picture wants to manipulate all.

Ta for this ace piece ZH. I saw it happen on charts at the time,  and showed it to my daughter later, explaining to her that this type of vertical fall (or rise) does not happen in an open, fair and legal market.

This is not capitalism. This is corporatism, the Big Brother that Orwell forsaw; the gansta bankstas and their paid political pets in action. Cowards all,  they are.

Mon, 04/30/2012 - 19:04 | 2386805 frieswiththat
frieswiththat's picture

Smack the bid, stay long your physical, buy back later...rinse repeat! Sounds like a warning to potential buyers that maybe the largest holder of physical in the world doesnt want prices to rise.

Mon, 04/30/2012 - 19:11 | 2386819 newengland
newengland's picture


True, except perhaps the biggest holders want to control the rise while they exit their fiat nightmare.

Mon, 04/30/2012 - 19:18 | 2386842 frieswiththat
frieswiththat's picture

When you are looking to create buyers in "safe haven" dont want competition...right?

Mon, 04/30/2012 - 19:27 | 2386867 newengland
newengland's picture


True, and also it is important to manage the rise of gold and silver so that you can enter when funds are available. 

It's a big bad world out there in gangsta banksta land. Omerta is best served by their pet mainstream media, and the pretty  dancing girls of politics to divert attention from the heist.

Mon, 04/30/2012 - 19:25 | 2386857 DosZap
DosZap's picture

Smack the bid, stay long your physical, buy back later...rinse repeat! Sounds like a warning to potential buyers that maybe the largest holder of physical in the world doesnt want prices to rise.


That's a foregone conclusion, trouble is everytime they stop the rise, the beat down takes a LOT more Phyzzzzzzzzz of the market.Seems like a self defeating action, except for appearance sake, and buying time.

Mon, 04/30/2012 - 19:08 | 2386814 Venerability
Mon, 04/30/2012 - 19:32 | 2386883 disabledvet
disabledvet's picture

the.."venerbable" LME (hardy, har, har.) Good point actually...and the Hong Kong market was up BIG last night. "You may thank the Scots" for that of course.

Mon, 04/30/2012 - 19:42 | 2386901 newengland
newengland's picture


Excellent point, however, the Chinese Politburo commands HK.

I wouldn't risk it, although it might suit the LME to sell itself to the highest bidder, just like any whore sold to a slave master, and the globalist central bank cartel freaks.

Mon, 04/30/2012 - 20:04 | 2386952 disabledvet
disabledvet's picture

HAHAHAHA! That's a good one!
one dissident? how could one guy become the difference between a nation and no nation? (you wanna be that guy though, don't you...

Mon, 04/30/2012 - 20:42 | 2387028 newengland
newengland's picture


The Chinese Politburo is more than one guy, and the blind man is more than one guy.

Game on, pet.

Mon, 04/30/2012 - 19:09 | 2386817 Dusty
Dusty's picture

What is most amazing is we still have so many so called "studied" newsletter writers covering the gold sector that to this day roll their eyes regarding any market manipulation. Those like Zeal "Intelligent"? are simply blind. Watching the gold and silver market tick for tick for the last decade I've probably seen this a 1000 times. The difference today is it is more out and out blatant and in your face without any market news or forces to justify the manufactured moves. They know there will be no hand slapping. Actually, they probably get "high 5's" from the CFTC

Mon, 04/30/2012 - 19:18 | 2386829 newengland
newengland's picture


They don't bother to hide their manipulations any more. Why should they? The politicians are in the bag. The populace are defenceless.

There is no penalty for the globalist central bank cartel, and it's failures, and its acolytes.

MF Global and politically connected ex New Jersey governor and Goldman Sachs wise guy Jon Corzine - the 'go to guy for economics' said Obama and Biden - proved beyond doubt that the corporatists are in charge. JP Morgue is laughing along with all this; their pretty boys Goldman Sachs got 'made'; killed for the money in true gangsta style.

The Mafia and New York banksters have always colluded in money and politics.

Mon, 04/30/2012 - 19:15 | 2386836 mick_richfield
mick_richfield's picture

What was the enormous spike in silver last night ( Sunday, 29 April ) on Kitco?  Plus and minus 4% in 10 or 15 minutes -- simultaneous with a similarly brief but less intense spike in gold (+- two-thirds of a percent).

As of about 10:00 this morning, (DST) it went away.  Airbrushed out of history.


Mon, 04/30/2012 - 19:55 | 2386928 Non Passaran
Non Passaran's picture

Fucking bullshit, it's really gone!
The spike happened about 8pm EST (Sunday).
It's not on the Kitco graph any more, though.

Mon, 04/30/2012 - 20:45 | 2387036 newengland
newengland's picture

Non Passaran,

True. Sunday EST, the blatant smack down when the Asian market opened up.

Mon, 04/30/2012 - 23:23 | 2387358 I Got Worms
I Got Worms's picture

I saw it on Kitco as well. Then, poof!

Mon, 04/30/2012 - 19:26 | 2386861 DavidPierre
DavidPierre's picture


Save Yourselves!

The proposal from the IMF that has no money of it's own and relies on contributions from members. Two or three weeks back the IMF was talking about creating a fund to ring fence or firewall various European sovereigns to prevent a full blown forest fire from getting started.  What started out at as a laughably small figure seeing how big the problems are... as a projected pool of $600 Billion, ended up some 25% lower at $430 Billion.  Please keep in mind that this pool has not been dug yet and the cement has not even been ordered, this $430 Billion are at this point merely promises.

Have you ever seen one drunk try to hold another drunk up from falling down?

75% of the promised funds will come from Europe, Japan and Britain. All 3 of these zones are over indebted and already technically insolvent as are their banking systems if they were to even mark assets halfway to reality. Look at the ECB itself, they have blown their balance sheet to over $3 Trillion and the so called assets are steaming cow pies worth only cents on the Euro.  All 3 of these are moving into double dip recessions as output and consumption are declining while unemployment is rising.

To put it bluntly, the grand experiment has failed as no policy measures remain to turn things around. Austerity will tip any and all teetering economies over the edge and into the declining spiral of deflation.  On the other hand, the growth option carries with it the further bankrupting (borrowing to spend) of already bankrupt sovereigns.   Ah the irony!

This is the ultimate in stupidity.

All you have to do is look at the situation with a little bit of common sense.  Better than 70% of Europe is flat broke by looking at their balance sheets and future obligations.  The same for Japan, the UK and yes, the United States. But THESE are the entities that are being called on to FUND the IMF and World Bank.  If 20 people are in the middle of the ocean and drowning, can anyone save anyone else?  Even the best swimmer will eventually fail but he will fail and drown that much faster with others hanging onto his neck and dragging him down (think Germany).

NONE of these entities can provide funding without borrowing more.

The purpose of the ring fencing (bailouts)?

Basically to make sure that no one's bond market seizes up and cuts them off from funding which would break the daisy chain holding this Ponzi together.  So... these bankrupt entities have promised to borrow money to give to the IMF that will be used to lend back to these same entities should the bond markets decide to shut off the credit spigots.  Which brings up a couple of questions.  When (not if) too much sand in the gears of credit shuts someone down (think Spain), how does the IMF, World Bank or anyone else know that the markets will provide more credit to any European sovereign, Japan, the UK or ... The U.S., who has not promised any funds?  Has anyone even thought about how laughably small $430 Billion is?

This much may not even be enough to save Spain alone, what happens when Portugal and Ireland come back for more or Italy comes begging.  And France, what about them? Within a week they will vote into office a "drunken sailor" with opposing views to Ms. Merkel.  Do you really believe the Germans will bail out the French?   History already shows us that the Germans would rather invade than save the French.  It is one thing to stand shoulder to shoulder being perceived as conservative foundations of the union, it is totally another when one of these does a 180 degree about face in it's fiscal policy.  Heck, 2 weeks from could even be France that needs ring fencing because they get shut out of the credit markets.

Can you imagine a group of 20 over leveraged people, some beyond broke, some flat broke, some mostly broke and the best merely treading water that decide to get together to fix their financial problems?  This group decides to pool some money to help the weakest links.  Of course, NONE of them actually have the money so they start digging through their desk drawers looking for any credit cards that are left with any remaining balances.  3 or 4 of them come up with enough credit for the group as a whole to make interest payments for a couple months more...problem solved!  Really?

Not! Nothing is solved so its on to plan B. Which of course is cranking up the printing presses because the amounts of credit necessary to keep everyone afloat, without even counting bailout monies, is more than the natural markets can, nor are willing, to provide!

No problem, just print the money and pretend that it still has value.

YOU know differently don't you! Save YOUR SELF?  Just as with the Titanic, it is best to get as far away as possible when she goes down. When a behemoth goes down, she creates quite a vortex!

Mon, 04/30/2012 - 19:54 | 2386926 lotsoffun
lotsoffun's picture

the truth hurts.  that's really very funny

Mon, 04/30/2012 - 19:56 | 2386931 jimmyjames
jimmyjames's picture

Look at the ECB itself, they have blown their balance sheet to over $3 Trillion


The ECB balance sheet is much more than 3 trillion-

Mon, 04/30/2012 - 19:59 | 2386939 newengland
newengland's picture

The problem with drunks is that they think they are sober, and party on.

The problem with the Titanic is that it was funded by JP Morgan, the man who stood on the dock, refusing to board the 'unsinkable ship' his company built.

He had made massive promises to others.

Those who boarded the Titanic included the world's wealthiest opponents to his corporatist plot.

They died, he lived, and sunk the adversaries to his freak Federal Reserve Board, the ruin of the USA...all for the profit of JP Morgue, Goldman Sachs and their pretty pets in politics...and the other malign corporatists, like his pals in the Bank of England.

Mon, 04/30/2012 - 20:11 | 2386965 disabledvet
disabledvet's picture

Morgan wanted the Fed? Hahahaha. That's another good one!
THAT's who created the Fed...not Morgan.

Mon, 04/30/2012 - 20:56 | 2387023 newengland
newengland's picture


Ever heard of the word collaborator? That's JP Morgue.

Mon, 04/30/2012 - 20:44 | 2387033 Withdrawn Sanction
Withdrawn Sanction's picture

You need to go a little farther back in history than Pujo.  Try the National Monetary Commission and the Panic of 1907 for starters.  Then, who started then stemmed the tide of the 1907 Panic?  Why would he want to do that again?  (Answer, he wouldn't...and didn't have to.  The "Creature" could do it for him.)

Mon, 04/30/2012 - 20:40 | 2387022 DavidPierre
DavidPierre's picture
Titanic:The Ship That Never Sank

The largest insurance fraud before 9/11.

Mon, 04/30/2012 - 21:10 | 2387080 newengland
newengland's picture

Yes, David.

Correct, as per usual. Follow the money, and JP Morgue. Gold, silver, land and lead - that is all that will protect family and community in this corrupt age of corporatists, and their entertainment; bread and circuses for the masses.

Conspiracy theorists get wrapped up in the smoke and mirrors, the diversionary tactics.

Mon, 04/30/2012 - 23:40 | 2387329 DavidPierre
DavidPierre's picture



Monday Morning Smash

It wouldn't be a Monday without the usual morning smash in the PM sector.

This is the predictable pattern playing out yet again. Start the week off with a waterfall sell off in gold and silver.  

The trend is even more obvious as the calendar rolls over to a new month, and we wouldn't want to encourage any of those holding metals options to stand for delivery - so 'bomb the hell out of the sector' is just another page in the playbook that we see time after time at the start of a new month.

What really irks is how any commentary on the gold outlook always revolves around the question of further quantitative easing. 

When gold started this historic bull market, there was no discussion of QE in the story.  It was inflationary expectations that were driving the story.  The highly massaged and manipulated CPI data was used to keep that issue in check. Gold blew through its former all-time high and sailed right past $1000 in the early phase of this bull market.  Then we got the 'risk asset' buyers on board as the financial crisis got into gear around 2008.  During the liquidity crash that followed gold was driven lower as speculators liquidated everything in sight, and somehow the story was crafted that gold was a risky asset to be dumped in times of crisis.


In the wave of money printing that have been underway ever since, gold has been able to rise on the valid assumptions of increased inflationary pressure, and the ongoing financial crisis that has never been dealt with.  The idea that it is the outlook for more QE that is driving the story is pure nonsense.   QE is a just the latest immensely bullish factor that should carry gold much higher, but the rampant money printing that has helped fuel the rise in gold has been part of the story for a decade.  It never went away no matter what the headline news reports. 

When the Swiss Franc was devalued amidst a blitz of money creation the Cartel engineered a huge raid on the metals, timed to the minute. It was the most obvious Jedi mind trick of all time and it worked.  The media focused on the collapse of the metals and ignored the billions of newly printed bank notes that were dumped into the system.

We have seen one new plan after another to paper over the problems of the financial crisis and each time the metals are hit in a some form of raid, timed perfectly to keep specs out of the picture and prevent any lasting upside move for the PM sector.  And this market action has been interpreted by the media shills as an indication on whether or not more money printing is on the way?  Somebody please advise on who the hell is buying the bond issues at historic low interest rates if it is not newly printed money that has been (and will continue to be) funding all of that debt. Whatever they call it, QE is alive and well and I doubt anyone anywhere is selling even one ounce of gold EVER on the fear that we may not see further easing.

Market interference is now a full-time occupation and the pressure on gold will be cranked up at all of the usual intervals as long as people are dumb enough to believe the media spin on what is driving the story.  Last week saw some constructive action in the PM sector.  Anyone that wants to re-establish positions will hopefully understand exactly what is going on in the daily trading however and know that you can wait for a Monday morning, or a key financial news item to be reported, and have the chance to buy all you want cheaply during a carefully timed raid. This manipulation scam can only continue as long as people continue to drink the Koolaid and buy into the myth the media is telling them.  When the buyers figure it out, and wait for the Cartel to act, that will be the REAL story.

You can only fool people for so long.


Mon, 04/30/2012 - 20:41 | 2387026 Jim in MN
Jim in MN's picture

It would be cooler if it was a mosh pit.  But no safer.

Mon, 04/30/2012 - 19:31 | 2386875 DosZap
DosZap's picture


my guess would be there is a fear that literally TONS of gold is about to be transported directly from the failing/failed European banks to the American, Swiss and Scottish ones. Of course then there's a "now what?" moment...the recovery still stinks and i'm not paying for that...

And for what purpose?,who would that help???,the day the Swiss let go of their precious is the day I eat ground Gold.

Plus of those mentioned, they have very little tonnage in the scope of things.We are clueless if we even have 8100 Metric tons, or if the KEG is dry.

My $$$ is on the latter.

Mon, 04/30/2012 - 19:35 | 2386888 disabledvet
disabledvet's picture

fine. "pry those fillings" bitch. remind me to wear a watch around you when do it however...

Mon, 04/30/2012 - 19:38 | 2386890 newengland
newengland's picture


No worries, friend. Your analysis is as right as anyone's in this crazy manipulated market. Meanwhile, lead trumps gold and silver every time.

Keep well ;-) Best wishes to you and yours.

And the 'keg' is never dry in New England. Come here if all else fails.

Mon, 04/30/2012 - 19:38 | 2386893 bob_dabolina
bob_dabolina's picture

Fear & Greed

Mon, 04/30/2012 - 19:44 | 2386906 frieswiththat
frieswiththat's picture

Make no mistake...there is no fear involved, only greed! If the 80s taught us anything its that rubik cubes were a waste of time and greed is good!

Mon, 04/30/2012 - 21:06 | 2387078 WmMcK
WmMcK's picture

Rubik cubes are good for teaching some math (vectors/operators).
Greed will prove to be bad once again as it always is.
The 1980s taught us little.
The 1780s and 1790s should have taught us much.

Mon, 04/30/2012 - 19:47 | 2386910 newengland
newengland's picture


And what about Sunday EST when there was a vertical drop after a rise as soon as the Asian market opened?

Mon, 04/30/2012 - 19:54 | 2386924 devo
devo's picture

All I can say is "thanks"

(Oh, and please drive the price down again tomorrow. And further if possible.)

Mon, 04/30/2012 - 20:03 | 2386948 devo
devo's picture

When will JP Morgan realize they're the boy who cried wolf?

Mon, 04/30/2012 - 20:20 | 2386988 ebworthen
ebworthen's picture

Moral Hazard.

All that money leaving equities into something less "Corzinable"; drives them crazy it is going into precious metals.

Coordinated move between our BIS friend and Blythe; to push the price down to break confindence in buyers (oops, fail) and make their layered future buying cheaper (fail, again).

Eventually, central banks and banksters will lose this battle between themselves and the world's population.


Mon, 04/30/2012 - 20:26 | 2386997 buzzsaw99
buzzsaw99's picture

I'd like to see stocks make a quick (organic) bounce back like that without JPM artificially propping the market with free fedres clownbux every day.

Tue, 05/01/2012 - 00:56 | 2387006 devo
devo's picture

Mac & Cheese is now $3.50 per box. Perhaps JPM could short that.

Mon, 04/30/2012 - 20:34 | 2387008 savagegoose
savagegoose's picture

NICE work getting rid of $1 billion of paper, now  who ever it was just has to grab the gold,  before they get MFG's

Mon, 04/30/2012 - 20:38 | 2387018 devo
devo's picture

who ever it was

My Federal Reserve Notes are on The Bernake.

Mon, 04/30/2012 - 20:39 | 2387021 Jim in MN
Jim in MN's picture



May God the Father, the Lord Almighty, bless this one slim crack of light that is Zero Hedge.

And all of you fellow ZHers that will accept it. 

'Cuz I wouldn't want to tread on anyone or anything. 

Tue, 05/01/2012 - 00:26 | 2387433 maggiemayok
maggiemayok's picture

I'm cool with it...

Tue, 05/01/2012 - 02:12 | 2387503 ebworthen
ebworthen's picture


Mon, 04/30/2012 - 20:41 | 2387025 MFL8240
MFL8240's picture

The Chicago shithole back in the news. 

Mon, 04/30/2012 - 20:43 | 2387030 goldfreak
goldfreak's picture

this only happened a trillion times before, just in the last few years and today they notice?

Mon, 04/30/2012 - 20:43 | 2387032 Hype Alert
Hype Alert's picture

Money laundering from the Fed to their friends.

Mon, 04/30/2012 - 20:47 | 2387040 WilliamShatner
WilliamShatner's picture

Shields up!

Prepare to return fire, BTFD!

Mon, 04/30/2012 - 20:48 | 2387042 netpounder
netpounder's picture

Women will pay $1,648.80 for something that is worth $2,000 because it is on sale.  Men will pay $2000 for something worth $1,648.80 because ... it is worth $2000.

Mon, 04/30/2012 - 21:05 | 2387077 loveyajimbo
loveyajimbo's picture

More proof (not needed) that fuckin' Gensler at the CFTC is a total crook and hemmoroid... just like his ugly cousin Shapiro at the SEC and their ex-janitor Holder the AG (and A-H).  Whatever Obama claims to have accomplished in his administration, he is a total liar on his commitment to reign in Wall st corruption...

Mon, 04/30/2012 - 21:15 | 2387103 dbomb12
dbomb12's picture

Reminder, Executive Order 6102 only applies to gold and not silver

Tue, 05/01/2012 - 00:03 | 2387410 TheFourthStooge-ing
TheFourthStooge-ing's picture

Technically, yes, you are correct.

I'm sure you'd agree that realistically, though, Executive Order 6102 only applies to pansies.


Mon, 04/30/2012 - 21:19 | 2387113 bill1102inf
bill1102inf's picture

And its all fun and games until one of these days it falls and doesn't get back up.  NOT long at 1900.

Mon, 04/30/2012 - 21:29 | 2387144 TapperIsTicked
TapperIsTicked's picture

I would be appreciative if someone could point me in the direction of a synopsis of the mechanics/steps to make this happen. I have watched the action for years but don't really worry about it anymore. I would be more concerned if I lost my shovel. I once thought I had a decent understanding of futures protection for a farmer working to secure his real produce but I'm at a loss regarding this paper play of 100 to 1 on an imaginary store of shiney things and would like to understand the mechanics better.

Thanks in advance. As a side note, the shovel is well protected.

Mon, 04/30/2012 - 21:46 | 2387175 Stackers
Stackers's picture

Hope you have a few hundred hours to spare. GATA has documented it ad-nauseam.

Tue, 05/01/2012 - 00:43 | 2387450 TapperIsTicked
TapperIsTicked's picture

I'm familier with GATA's work, the fact that intervention is acknowledged and the documents that support the assertion. I've read Kirby's work and that of Mr. Butler. I'm having a hard time understanding the actual mechanics of how the trade is made in the futures market. A future is simply an agreed upon price at a future date. There has to be two sides to every trade. In order to knock the pecker off the mule as has been done so often over the course of the last 5 years it seems to me that those interested in controlling the price movement would have to take both sides of the trade. If it is conspiracy, then one side of the trade is going to be left with only a mule dick in his hand; or hers in the case of Blythe.

What I don't understand is how the two sides come together. I understand if the Central Bank were to flood the market with physical, they will get bids at some price and as the supply swells, the price drops. This would be a transaction on real product. Is this issue so simple that those interested in price controls are simply substituting paper promises for future delivery of a product they don't stock and when the point comes they can't deliver on the promises made they simply knock on doors in DC?

If the later is the case then they are getting commissions from selling lies. Brilliant and it would explain why the CongressCritters swear such fealty to their domain.

Did I answer my own guestion here. If not, point me in another direction.

Mon, 04/30/2012 - 21:37 | 2387157 Kasperfx
Kasperfx's picture

double post,, mod please deleet this one.. 

Mon, 04/30/2012 - 21:53 | 2387158 Kasperfx
Kasperfx's picture

this is not a fat fingure or a huge trade by some trader, its plain and simple but no one seems to look at it this way!!!! it’s simply a manipulations of the prices from the main data sources, by simply changing numbers in the data source feeds . get me data from the end sources and ill prove it but thats the 100000000000 dollar question, were are the main feeds originating from? cme? then its time to audit sources tecknolagy . think out of the box people, thay could have some tec who's main job is to make sure the price stay in line with thair desired prices and once it starts moving away from that price he simple changes the numbers in the feeders.



f the banks and the cme paper destorted data sources, why are we still using them to suply us with what the price is ,, lets put together a true "free market bullion source feeder", we could get all the retail bullion dealers and start from their.

Mon, 04/30/2012 - 21:37 | 2387163 Bear
Bear's picture

"we can only hope that the CFTC and SEC ignores this WSJ update" ... they will since there is no chance that they will act when they already know who did it and why ... Come December of this year the Ice Man Cometh and the Angel of Deth shall descend upon all paper

Mon, 04/30/2012 - 21:58 | 2387194 silverdragon
silverdragon's picture

Keep buying physical silver and physical gold and good things will happen.

Mon, 04/30/2012 - 22:04 | 2387204 MBOB
MBOB's picture

Back to gold price manipulation: slime, spin, deny. Repeat as needed. And just for good measure, throw in the occasional ham fisted beat down just to let the peons know what's what.

Buy on de dips. 

And for that next vacation, have a look at river dredging in California. It's cold and dangerous work but not impossible by any stretch o' the imagination. There are a bunch of good videos around that show how it's done. 



Mon, 04/30/2012 - 23:40 | 2387384 Axenolith
Axenolith's picture

Ah, not next vacation, there was a 5 year moratorium on small scale river dredges in CA, now extended to at least 2016.  A buddy has a paper submitted in on the court case against it.  Its rational (the moratoriums) stank to high heaven, The EIR sucks (after 1.3 million spent on it), and dredging is beneficial to the rivers and streams at the allowed scales, it creates spawning beds and removes gold rush legacy mercury.  A bunch of neo luddite candy assed marxism loving freedom hating lawyer/PIRG spawn are probably the main engine behind this shit.

CA (IMO) doesn't have the authority to moritorium the working of claimed placer deposits and prospecting under 1872 mining law without it being considered a "taking" as the claims themselves are real property.  As often as they've had their asses handed to them on other cash/fee/power grabs (vehicle registration fees on out of state cars was a big one a while back), I eagerly await a positive ruling on this to the states financial detriment.


Mon, 04/30/2012 - 22:38 | 2387261 boeing747
boeing747's picture

Any trader with one or more fat fingers shall be removed from trade platforms, per SEC rule 2012.

Mon, 04/30/2012 - 22:48 | 2387283 Jim in MN
Jim in MN's picture

When will they change the rule and remove the fingers from the trader?

Mon, 04/30/2012 - 22:41 | 2387272 silverdragon
silverdragon's picture

While everyone seems to be worried in the US about gold confiscation and the manipulators slammimng the gold and silver markets, the rest of the world keep buying. Chinese love Gold and Silver, so do the Asians, Arabs, Russians etc

It no longer matters that much what the US does as the world is quite fragmented and looking out for its own respective interests.

Everytime the manipulators slam gold and silver we all keep buying.


Mon, 04/30/2012 - 23:14 | 2387344 jomama
jomama's picture

i seriously doubt the manipulators have US sovereign interests in mind.  in fact, i don't even think the ruling class here does anymore, either.

Mon, 04/30/2012 - 22:51 | 2387288 Jim in MN
Jim in MN's picture


Note to financial blogosphere and industry vernacular-keepers:

Really need to update to Morbidly Obese Finger to keep up with the times.  Not to mention the actual scale of the corruption.


Mon, 04/30/2012 - 22:53 | 2387293 Platinum_Investor
Platinum_Investor's picture

It's nice to see the Mainstream media pointing this obvious manipulation out.

Tue, 05/01/2012 - 02:01 | 2387347 jomama
jomama's picture

99% of teh population is still blissfully oblivious.

Mon, 04/30/2012 - 22:53 | 2387295 Bansters-in-my-...
Bansters-in-my- feces's picture

Is that what little weasel timmy g uses his Exchange Stabilization Fund for...?

What can I say...but...Fuck yous bankers and fuck yous too corrupt goverments.

Sick fucks.

Mon, 04/30/2012 - 23:05 | 2387327 aztec two step
aztec two step's picture

I went to Catholic grade school and the nuns would have gone ballistic about your first sentence. That is a classic run on.

Mon, 04/30/2012 - 23:15 | 2387345 TerraHertz
TerraHertz's picture

I suppose it's naive for me to suggest, but why don't bullion buyers reverse the tables on the sell-side manipulators?

Simply boycot the COMEX. Go on strike. Don't buy *anything*.


Next time the price suppression agents offer a huge bundle of contracts designed to smack the price down, let it sit there. Hell, why not even dump some more contracts for sale on top of that? Crash the price to absurdly low levels.

Meanwhile, buy all available physical at the low price.


It occurs to me that for the COMEX price rigging system to work, the majority of both sellers and buyers have to be working together, possibly even the same entities.

Mon, 04/30/2012 - 23:29 | 2387368 TideFighter
TideFighter's picture

You only win if you don't play the metals game. My NOI returns are exploding. Owning my own business is far more rewarding than hoarding. Comparing gold and silver to holding IBM and Apple, not even close. Working for somebody else but hoarding metals and calling foul play is pathetic. Sell your metals and use the fiat to create, develope, produce, and secure future income. Start a microfund for entrepenures. Sure, 7 out of 10 fail, but the 3 that survive is more rewarding than a gold spike.    

Mon, 04/30/2012 - 23:48 | 2387398 jomama
jomama's picture

try starting a business in california.

there is a reason apple offshores their labor.

i'd do what you suggested for even a semi-level playing field, but the odds stacked against you are extremely unfavorable.  there are no reliable statistics on small business failure rates, but i am guessing it's higher than 70%.  

so you're asking me to save up time after time again to try to get something going against a rigged game?  uh. i'll keep stacking and bitching.  because things will change.  but it will be more like a global second-world wage type change, though.  better to save now for that inevitability, invest after, imho.

Tue, 05/01/2012 - 00:02 | 2387411 Poor Grogman
Poor Grogman's picture


Ok bright guy where do you store all that future income?

In fiat?

Why not just skip all the steps and all your work getting from point A to point  B and give all your capital straight to the government now?

They will get it all eventually anyhow, unless you have somewhere reliable to store it.

Sure stat that business, but put some of the proceeds into REAL money.

then you will really be getting somewhere.



Tue, 05/01/2012 - 01:28 | 2387476 silverdragon
silverdragon's picture


I agree with you ref building your own business being the best way to control your own destiny. Its much easier to increase profit by working longer hours and making all the incremental changes that positively impact your own business but the profits need to be stored in silver and maybe even gold. The goal is to make as much fiat as possible and convert it into silver or gold which is real. If the business can also help you navigate the reset then thats the best of both worlds.

Mon, 04/30/2012 - 23:30 | 2387371 Fix It Again Timmy
Fix It Again Timmy's picture

Anything being manipulated is worth having in the first place.  Is anybody manipulating pieces of shit?

Mon, 04/30/2012 - 23:45 | 2387390 DavidPierre
DavidPierre's picture

For 1oz of silver, got a ton of chicken shit compost today for the garden.

Start a Manure ETF and leverage it 100:1.

CME would love the idea.

Tue, 05/01/2012 - 03:34 | 2387552 The Navigator
The Navigator's picture

Why not - that's what the 'Financiers' have done with all the other types of shit in the market. It's all manipulated and it's all shit - except that which you can hold in your hand and is gold or silver.

Tue, 05/01/2012 - 04:03 | 2387561 honestann
honestann's picture

Quite a difference between real shit and fiat shit, isn't there?  Try to grow food with fiat someday.  Good luck with that.

Mon, 04/30/2012 - 23:47 | 2387393 HungrySeagull
HungrySeagull's picture


I see a Land stripped of trees and tankers of Ink rolling in paper for gold and silver.

I believe they can slash and burn the prices all they want. As long YOU take physical delivery and YOU possess, own and have it without any debt attached to it.

Get it done because one day the Paper people will grow numb and demand physical only to find that they need to get in line with multitudes of others to have a shot at ownership.

Most of the people who hear and see these things on the Media wont understand. But they will when they need a wheel barrow of paper dollars to purchase a meal.

This Nation is being steered on a path to a incredible near future that will divide the strong and perish the weak.

Mon, 04/30/2012 - 23:57 | 2387399 MeelionDollerBogus
MeelionDollerBogus's picture

Yup, fat finger error. On all the metals markets at once...

Tue, 05/01/2012 - 00:00 | 2387404 GS-DickinDaMuppets
GS-DickinDaMuppets's picture

The "Boyz" seem to be getting a little nervous about their ability to pound down the PM prices.  Ya think maybe the "Boyz" (Bennie and the Jets) are starting to look for Quiet, Far away. Hideouts Retirement locations....hhhmmmmm?

I think I would be a little nervous about screwing 200 million "folks" out of their hard earned retirement money, especially if I thought they might want to find me and trade me "LEAD" for my "Paper Gold".....Pitch Forks, no they don't sell them around here any more..../sarc


...doing GOD's work...GS-DickinDaMuppetts

Tue, 05/01/2012 - 00:08 | 2387417 i_fly_me
i_fly_me's picture

It seems to me that something like Executive Order 6102 (gold confiscation) wouldn't work these days.  FDR was able to pull it off since the dollar wasn't held as reserves in other coutries so much.  Nowadays, such an attempt would spark a rapid dumping of dollar reserves and they would come flooding back into the country.  The price of gold would climb so fast it would require vertical stabilizers.  I think they have screwed themselves into a corner on that one already.

Tue, 05/01/2012 - 02:11 | 2387501 jimmyjames
jimmyjames's picture

It seems to me that something like Executive Order 6102 (gold confiscation) wouldn't work these days.


I doubt there would be confiscation or illegality of gold-

i wouldn't doubt something such as a 90% capital gains tax-not that it would do anything more than drive gold further underground and it will work counter to CB's in the future-desperately bidding on the open market to buy gold when contagion hits all fiat currencies from some major blowing up-

Tue, 05/01/2012 - 02:29 | 2387517 silverdragon
silverdragon's picture


Agreed ref EO6102 not working.

There are so many guns in the US it wouldn't be fun collecting all that gold.

Add to that the rest of the world would go on a frenzy buying every drop of Silver and Gold it could get its hands on. The price would go parabolic.

Tue, 05/01/2012 - 02:36 | 2387519 jimmyjames
jimmyjames's picture


Agree..we can never forget that gold trades in world markets-locked to nothing-

Tue, 05/01/2012 - 02:35 | 2387520 jimmyjames
jimmyjames's picture


Agree..we can never forget that gold trades in world markets-locked to nothing-

Tue, 05/01/2012 - 03:38 | 2387555 The Navigator
The Navigator's picture

And that's why its a real international currency - you can take it ANYWHERE and it always has value in a local market - the true definition of money.

Tue, 05/01/2012 - 00:40 | 2387445 Dead Canary
Dead Canary's picture

Tatyana Shumsky (WSJ) is the most brainless gold analyst in the business. Anyone notice they have a dumpy looking feeb talking about gold, then a cutie "Kelly Evens" talking up stocks. Old marketing trick so you feel compelled to associate your self with stocks, "cool" and gold, "losers".

Tue, 05/01/2012 - 01:04 | 2387463 tony bonn
tony bonn's picture

"...not everyone agreed Monday’s slip in gold was caused by a keystroke error..."

the fucktards believing that the trade was an aberration are the same type of people who believe the laughably imbecilic warren commission report and 9/11 commission report.....

and then i told him gold prices are not manipulated because that would be a conspiracy.....bbbwwwahahhahhahahhahahahahhahhahaa!!

Tue, 05/01/2012 - 01:31 | 2387478 q99x2
q99x2's picture

May Day, May Day, Down with the NWO Bankster terrorists. Arrest the God Almighty Ben Bernank and co-conspiratist treasonous gold-supressing rat bastard varmints.

Tue, 05/01/2012 - 01:55 | 2387489 silverdragon
silverdragon's picture

The more physical silver and gold we buy the closer we get to reality.

Tue, 05/01/2012 - 02:04 | 2387498 Nassim
Nassim's picture

I sent a message to Mikael Charoze on linkedin to invite him to connect our profiles.

I answered the question "what did we have in common?" by saying that I bought some of the gold he sold. :)



Tue, 05/01/2012 - 02:51 | 2387527 silverdragon
silverdragon's picture

Gold and silver have been money for thousands of years that aint gunna change just because some crooks invent euros and dollars and then debase the shit out of them.

Asians, Chinese, Russians, Arabs and Indians which make up most of the worlds population understand that Gold and Silver is a great way to hold wealth.  Even a few of us dumb ass white guys are finally waking up.

Its just time before they are fairly valued when measured in fiat.

Tue, 05/01/2012 - 02:59 | 2387531 GlenD
GlenD's picture

Sorty mu mistale, wad tryinh sell nonds bur mu gat finhers leep hittinh thr qrong keus

Tue, 05/01/2012 - 03:10 | 2387542 Clashfan
Clashfan's picture

Interesting piece, but where does the first quote end? Hard to be credible with errors like this in almost every piece. To help clarify it, you might use one quote mark on each side of any quotes that are within the larger one.

Still, good read, thanks. :)

Tue, 05/01/2012 - 05:45 | 2387588 Lednbrass
Lednbrass's picture

Its quite clear where the quote is- "The...clients". What error?

If you must be pedantic about it at least have the courtesy to be correct.

Wed, 05/02/2012 - 03:58 | 2390435 Clashfan
Clashfan's picture

Hi, Led. I intend no discourteousness. The problem is that the quotes within the larger quote are not properly punctuated, and the quote is long. I might take issue with "quite clear." And I think you mean it's.

Here is the quote: "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."

If we had 'fat finger' and ',' we would have a much more clear read. And the site would have more credibility. As I've said before, I try to share this site w/as many educated people as I know. I think the pieces and threads are often valuable. I teach English, and I know many others who teach at universities and colleges. I try to get them to read ZH as often as I can, but they have been shy about it due to the many errors in the pieces. I see errors in the mm plenty, too, and notice them on infowars and other good sites. But too many grammatical and other errors can affect a site's credibility in an educated crowd, whether it's fair or not. I think I'm trying to be helpful here, not rude. But I do appreciate your feedback, sincerely.

Tue, 05/01/2012 - 03:29 | 2387549 Clashfan
Clashfan's picture

I wish they'd slam it down and keep slamming it down. Stupid, barbaric metal. Who cares anyway?

All I know is that the more they slam it, the longer I can afford to buy it. I teach for a living. I need them to slam it. Thanks!

They're slamming silver too? Really? Who cares if it's a conspiracy or not?

Cha ching, more for me. The people who aren't buying now are probably missing the party. I can't say that I know (who can, right Turd), but my bet is that this time next year, the prices will be very different.

So thank the moronic manipulators and buy that barbaric relic with both hands. What's the problem? Were you guys planning on selling tomorrow for some reason? Everyone says they need to bail out the 99 percent. Shit, they're doing it. Every penny they put into blasting PMS is a dime for buyers, in the long run.

I'm going to see my way cool coin guy tomorrow. Rock on!

"Must get up and learn those moves." I hope they keep pounding it down like Topper does to this drum kit. Talk about a great live rock band, wow.

Tue, 05/01/2012 - 04:07 | 2387562 honestann
honestann's picture

In gold we trust.

BIS - the WalMart of gold?

Tue, 05/01/2012 - 09:48 | 2387915 Fish Gone Bad
Fish Gone Bad's picture

Gold is found on the ground.  It is valuable for what it can buy.  Oil, that is found in the ground, is valuable for what it can do and what it can buy.  Oil is actually priced in gold, not dollars, euros or yen.  If you push down the price of gold, then you can buy "cheaper" oil.

The people who can buy and sell this quantity of gold have so much wealth that "the money" is now just a tool to help them get what they want.  They have lots more wealth, and access to perhaps an unlimited supply of money.  Perhaps no one sees this, but when someone can control the money supply, all things are possible.

Fish Gone Bad

Tue, 05/01/2012 - 13:37 | 2388655 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!    

Do NOT follow this link or you will be banned from the site!