Cartel Capping, Then Crapping On Precious Metals This Week

Why mince words?  The last 48 hours of price movement are transparent for those with eyes to see (and in the case of the CFTC, maybe a brain to process data, and a spine to fulfill their mission would help).
Leading up to the Fed’s surprise “no taper” decision, and during the lead-up to what was initially going to be a near certain US attack on Syria, gold and silver prices were managed lower by cartel action during the first week of September.  Hedge funds and “hot money” followed the trend, justified by increasing worries of consensus-view tapering.  This brought gold and silver lower in advance of the “no taper” surprise.  Silver would have been in a position to possibly retake it’s 200 day moving average were it not savagely managed downward since early September in advance of the “no taper” news.

 

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Sure, we could dive into September’s trading overall and show you specific days where bombing of mining shares signaled to traders the metals themselves would be taken down during the following 48 hours.   We could also zero-in on suspicious periods during thinly traded access market hours where large numbers of contracts were sold to paint the tape.  We’ve certainly documented many such instances in the past. But as far as this week’s trading is concerned, price truly does speak for itself.

Simply look at the 72 hour trading chart for spot silver and ask yourself one question:  Why would yesterday see no follow-through from Wednesday’s move?  More importantly, why would the “capping” pattern of ago trading Thursday turn silver down early this Friday morning exactly when silver touched Thursday’s corresponding price level?  This isn’t rocket science.  The patterns seen in the chart below are the product of computer driven trading — a “cap” algo, issuing sell orders when the price of silver during early Friday morning’s trading matched the previous day’s level.  NOTE:  that capping algo this morning was operating long before the East Coast’s news cycle of the GOP’s hard line on budget talks hit the airwaves.

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Sometimes, a picture really is worth a thousand words — for those with eyes to see.  Are we to believe debt talk squabbles in Washington is the proximate cause for today’s precious metals decline?  If you said yes, I’ve got a really cool bridge I’ll sell ya for just an ounce of gold.

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Update;  4:49 PM EST:

It should be pointed out that the comments by Federal Reserve Bank of St. Louis President James Bullard came long after the algo capping pattern seen during Friday’s early trading.  Any talk that management of price having not set the stage for today’s trashing is just rubbish.  Certainly, once momentum takes over, the decline in gold and silver is not 100% cartel driven.  But as far as setting the table?  Please.  For those that have eyes to see…

Bloomberg reports:

Federal Reserve Bank of St. Louis President James Bullard, a voter on policy this year who has backed record stimulus, said the Fed may make a small trim to bond buying in October after its close decision this week not to taper purchases.

“That was a borderline decision” after “weaker data came in,” Bullard said today on Bloomberg Television’s “Bloomberg Surveillance” with Tom Keene and Sara Eisen. “The committee came down on the side of, ‘Let’s wait.’”

For the rest of the Bloomberg story, click here.

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About the Author

– Mr. Dubin is the Managing Editor of TheNewsDoctors.com. He welcomes feedback on his articles and will make an effort to respond to comments. He can also be contacted, followed and encourages “friend” requests on his Facebook page: https://www.facebook.com/EricDubin

Comments

  1. Certainly top five rant. I have em all, btw. New word: impunity. They control the silver price. They make money going up and going down. Absolute power is kinda neat. I suppose a savvy paper trader can rock some bank with these manipulations, however, everyone else is face melting. Impunity…

  2. Explain the low volume for the large price swings? 
    Hunch. The actual traders on the market with legit interest in silver (PM’s) are out of COMEX. Just some momentum traders left. Look at the volume chart. It barely registers in relation to April.

    • Yes.  Same story with open interest overall (volume can flip around in a single day/week, open interest tells the longer-term story).  If you look at a ten year chart, it’s astounding. 

  3. Scientific Wild Ass Questions Guesses and Propaganda  (SWAQGP)
    1.  Are metals price sensitive to the up and down swings in all the markets? (absolutely)
    2.  Do you think that manufacturers who utilize Gold and Silver help manipulate the paper market? (absolutely)
    3.  Is your thinking that Gold and Silver will skyrocket immediately if the bond and stock markets cash? (Nada, PM’s will tank)
    4.  Why do people think that Gold is truer real money than Silver? (any sane answer may apply)
    5.  Why do so many of the popular 25 Commodities Futures go down or up along with Gold and Silver? (Must be a huge Cartel)
    6.  Does Bernanke eat chicken Shit and chase rabbits? (The man has no history of chasing rabbits)
    Finally, based on your worldly knowledge and the absolutely Free education that you have obtained from all of the sorted information provided through “The Silver Doctors”…What day, time and Black Swan event will surface to bring down the financial house of cards? (Must be absolutely accurate, to win the Free trip to tour The U S Treasury and The New York Fed!!!!)

    • 4.  Why do people think that Gold is truer real money than Silver? (any sane answer may apply)”
       
      Those of us who know real money when we see and feel it do not think this.  Those who do probably consider gold to be more recognizable.  There is only ONE yellow metal and gold is it.  There are multiple “white” metals, however, so recognizing silver is not as easy for the uninitiated.  Just MHO, of course.
       
      5.  Why do so many of the popular 25 Commodities Futures go down or up along with Gold and Silver? (Must be a huge Cartel)”
       
      Umm, because they are ALL priced in USD and whither goes the USD, so go most commodities in opposition unless other data conflicts with the simple changes in just the USD?
       

  4. I meant to ad. Has anyone heard from THUNDERCHILD? Her Sarcasm is sorely missed!

    • How about Pat Fields? There was an exchange back there, first with an unknown who copy and pasted his bibliography of economic experts he purportedly understood. Then a known quantity threw a hissy fit, kind of like “no one understands my sarcasm”, where no one stood up with Pat on either course, then he leaves. Pat has read more books, published more articles (and I also was on the old bbs systems), and dropped more names of bonanza grade authors than anyone here. Stand and be recognized Pat!

    • Re ttchild, No staying power. dissapeared!  Best ignored anyhow. Uglynits however will be along to try and have a bite of a poster near you soon. 
      Still waiting for your reply dogbreath!

      incidently (the topic). Anyone will be able to have a free trip-tripping through the rubble of the fed a month after black swan event but we may be otherwise engaged. BTW Are we ready for taper-talk v2 yet?  Its coming!  That trick isnt played out yet, oh and what IS Bart going to say by the end of Sept?  Dont hold your breath now.
      BTW Thomas, roger that on @patfields quality poster, take a bow Mr Fields.

    • @Thomas – I’d like to read the exchanges you spoke of re. Pat Fields.  Were they posted not long ago and easy to find?  If you know where they are, please point them out.  Thanks.

  5. GREAT DAY FOR THE LUCIFERIANS, THEN ALL HELL WILL BREAK OUT

  6. CHINA ,LOAD UP THE TRUCK  ON THESE FOOLS

    • The common laborer in Indonesia, Asia, China all look to that shining city on the hill for wealth preservation. The buzz was they adored Greenspan mistrusted Bernanke, initially. They accumulated US Dollars as a store for their labors. Guess their governments are steering them to PM’s thus the explosion in demand. Hem and haw all you want on the reasons why…but a simple fact remains, the world accumulates and holds US currency to hedge against their own governments. They do not know what we know, simply because their information is state controlled. Their perceptions now must be  pro-Bernanke. Perceptions matter overseas thus the backlash from Obama and Kerry’s foreign policy gaffs on the world stage. Bernanke must be their hero and that sits well with me in spite of the contrarians in our shining city cheering for collapse of their only hope.

  7. Maybe China will buy all the EFT’s Silver certs  with the Ponzi fiat Dollar?  JP Morgan’s worst nightmare

  8. I called this smash 2 days ago :P

  9. Let’s see here.  I sold zero ounces…so I lost…….deet deet.
     
    On the other hand……I bought a couple of ounces 5 days before payday at a reduced price, using some savings.
     
    I’m good.
     
    Please please please please smash it down some more.  I have some extra fiat coming my way next week and I will be able to do better than buy a few ounces.  
     
    GuitarMan to Cartel…..Go Ahead…Make My day

  10. “Time—– is on my side————yes it is….”
     
    (The Rolling Stones)
     
     

    • “Goldman Sachs is the epitome of the word “evil.””
       
      Yes, they are right up near the top alright but I would venture that Monsanto would give them a good run for their money as to which would come out as THE most evil.
       

    • These two specific false flag speculations are actually worthy of some deep investigation and I was planning on doing digging Sunday or Monday. If anyone digs, private message me. Most stories of this type are easily tossed to the side. But the InfoWars team did reasonably solid leg-work on the nuke story, and of all people, Martin Armstrong casually tossed out a link to an odd German site talking about the grid drills (I think it was Sept. 13th on his blog posting, if memory serves – easily found…just go surf over to his site). He’s the kind of guy you need to take seriously even if he’s prone to flights of fancy now and then. But I think he put it out there as an acid test to see what would come back, rather than as a statement of even modest conviction. I’m not sure, either way.

      I should also say that I’m not endorsing Mr. Hodges. Frankly, after only reading a bit into his write-up I see one reasonably large logic flaw here: “The destruction of America’s domestic economy through the introduction of derivative debt which is 16 times greater than the world’s GDP. This goal has been accomplished as evidenced by the fact that America now has more workers on welfare (101 million) as opposed to actual full time workers (97 million).” While it’s technically correct to say that the derivatives debt could destroy the entire global economy, not just America, it’s NOT technically correct to state that the existing notional value has done anything more than just seriously injure America to-date. Even to go as far as I just did one has to take a few leaps to understand (and most do not) that the $27 trillion or however much total lease/swap/credit/Q.E. that have been extended as credit to paper over the deflation hydrogen bomb that blew in 2008 doubled welfare rolls, roughly. That’s serious pain – serious damage. But it’s hardly the destruction of America. What could destroy America in a week would be a derivatives chain reaction bust and we haven’t seen that yet, other than in isolated sub-sections of the derivatives market in 2008.

      Anyway, just making a casual observation. Mr. Hodges is right to point to the vampire squid as evil. GS has one heck of a nasty history. For now, since the world is about to end, I’m going to enjoy a night off :-)

      See you all over the weekend – maybe.

      Eric

  11. When TPTB come for my share of the bail-ins I will have a fit and cause a scene over my 10$ checking and 5$ savings accounts. And some day I will see things set right. Justice will be served up cold. Kahn sums up how I feel about the elites.


  12. I don’t feel that worked up, many were betting on taper for a lot of different reasons, people placed bets accordingly and when they found out they were wrong had to reverse those betw to even their position.  They buy their positions back and get back to the sidelines.  Happens a lot on the news after big reports.  
     
    I often see many times when news comes out that is bullish and futures trade lower, buy the rumor, sell the fact mentality.

    • Mikey, you’re missing the point.  Starting Sept. 2nd there’s been coordinated efforts to manage metals prices that are visible (such as the example above — the algo sell program, which I notice you didn’t refute but in fact side-stepped by talking about something that wasn’t the central thesis of my article).  

      First, with the anticipation that a military strike would happen and that metals had to be pushed lower in advance so as to not be seen as a save haven.  That pattern has been up and running since the Asian currency crisis in the late 1990s (no joke).  Second, management of prices started happening in earnest again last week in advance of no tapering, and the pattern of bombing metals in advance of Fed moves that are positive for metals is also something that has historically happened with such astoundingly high consistency as to make any notion it’s not manipulation a joke.

      Finally, if there are any here that doubt manipulation is open policy, just read what some of the very people that manage the monetary system say in public, such as the quote below.  This is not conspiracy theory.  This is open, economic policy.  While it’s not always clear when specific examples are indications of manipulation, I submit to you that it’s very clear manipulation was going on all this month, and the algo selling cap program discussed above is but one example that is clear as day.

      ++++++++++++++++++++
      from GATA:  http://www.gata.org/node/4279

      <snip>

      And now the Bank for International Settlements, the central bank of the central banks, has confessed to the gold price suppression scheme. The confession of the BIS came last June in a fairly candid speech by the head of the bank’s monetary and economic department, William R. White, to central bankers and academics gathered at the BIS’ fourth annual conference, held in Basel, Switzerland. The speech was provided to GATA this week.

      White’s speech was titled “Past and Future of Central Bank Cooperation” and he said in part:

      <snip>

      “And last, the provision of international credits and joint efforts to influence asset prices (especially gold and foreign exchange) in circumstances where this might be thought useful.”

      <snip>
      ++++++++++++++++++++

      Note:  Fed officials are on public record lying that the Fed has not conducted actions to influence the price of gold.  Period.  End of story.  The Fed has spoken about making gold swaps available and some have pointed to that as a refutation of the famous Greenspan quote about making gold available in increasing quantities should the price rise.  But the above quote from Mr. White is clear as day (and Greenspan’s context was also pretty darn clear, regardless of what some people like Jeffery Christian say)

  13. “Why mince words?  The last 48 hours of price movement are transparent for those with eyes to see (and in the case of the CFTC, maybe a brain to process data, and a spine to fulfill their mission would help).”
     
    I would argue that the CFTC IS fulfilling their mission… their TRUE mission, that is.  They are serfs who work for the big NY banks.  They have a very temporary government wrapper on at the moment but the big banks are their true employers.  They came from these same banks and to them they will return when their period of interference in the US economy is over.  That is their primary activity and the results that they have achieved to date proves it.  Never mind all of the lofty minded verbiage that they spew.  That is utter nonsense.  Forget what they SAY and watch what they DO.  
     
    This is not a bit different from the Fed itself.  Look at their lofty mission statement and then compare it with the actual results that they have achieved.  Not even close.  The Fed’s real mission is to safeguard the interests of the banks that OWN the Fed, first, last, and always.  Maintain the value of the currency?  Since when?  Since the Fed came to be in 1913, the US dollar has lost more than 97% of its buying power.  The buying power of the USD barely budged in the 100 years between 1813 and 1913.  Maximize employment? HAR HAR HAR!  Again, not even close, guys!
     

    • Ed_B: You’re painting with too broad of a brush re. CFTC.  Back when it was headed by Brooksley Born (1996-1999), it was a solid, real regulatory agency.  Born worked her butt off to fight against Greenspan, Robert Rubin and others to put in position limits and stood against excessive deregulation.  They shot her down and she left.  She did her job and lived-up to the mission of the CFTC.  There are still rank and file people at the agency that are good people.  But alas, the agency has since turned into a puppet.  It could be one of the few that could be turned around following the next crash, when angry people are going to demand real reforms (not unlike what happened in the 1930s).  Time will tell.

  14. Guys, don’t you think this is a great thing to happen? Yes, What kind of idiot will keep playing this game? You got the money and trade this “gold” and “silver”. Up and down all controlled by JPM. It takes a tremendous foolish people to keep playing this stupid game. Only when the last dumbass exit this foolish paper gold and silver game. People will really starting to realize the true value of the metal. This has to happend first. So I hope everyone that is in this game pull themselves out of it. JPM can drive this to zero for all I could care. And we will go from there to find the real “price” from there.
    This is a great thing that is happening, IMO.

    • It’s not just about how much more phyz you can buy.  It’s about a country falling apart because we have corrupted our “money,” and how that has hurt millions of people and even shortened lives due to declined living standards.  The idiocy that passes for economic policy in the United States has real-world consequences.  We have monkeys running everything. 
       

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