Perhaps this is why Deutsche Bank could not find a single buyer for its seat on the London Fix: the bank, along with HSBC have been officially accused on manipulating the silver fix in a new suit filed in federal court in Manhattan over the weekend. [Read more...]
There have been some very interesting developments in the precious metals markets. BaFin, the German regulator came out & said that the main regulator said that precious metals are manipulated worse than LIBOR and that word “worse” is a very significant word in my mind.
Then when you think about some of the chronology for BaFin, they announced in the middle of November that they were going to investigate the possible fixing of gold prices or manipulating of gold prices on the London gold fix.
On the very next day, Deutsche Bank declined to continue being a member of the fixing of the London bullion market. When you think about what must have happened, my own feeling is that the regulator probably went back to Deutsche Bank having looked at their records and said, “Do you know what your boys in London have been doing here?” And of course the next day they quit the LBMA…
If you think about manipulation, there’s only one reason in my mind that bankers manipulate things. They don’t manipulate them for the bank to make money. They manipulate them for the employees to make bonuses.
The Financial Times reports this morning that global gold prices may have been manipulated on 50% of occasions between January 2010 and December 2013, according to analysis by Fideres, a consultancy.
The findings come amid a probe by German and UK regulators into alleged manipulation of the gold price. Prices are set twice a day by Deutsche Bank, HSBC, Barclays, Bank of Nova Scotia, and Societe Generale in a process known as the London gold fixing.
Fideres’ research found the gold price frequently climbs, or falls, once a twice-daily conference call between the five banks begins, peaks or troughs, almost exactly as the call ends, and then experiences a sharp reversal, a pattern it alleged may be evidence of “collusive behavior.”
Fideres concluded that this “is indicative of panel banks’ pushing the gold price upwards on the basis of a strategy that was likely predetermined before the start of the call in order to benefit their existing positions or pending orders.”
“The behavior of the gold price is very suspicious in 50% of cases. This is not something you would expect to see if you take into account normal market factors,” said Alberto Thomas, a partner at Fideres.
Banker Clean-Up: We Are At the Precipice of Something So Big, It Will Shake the Financial World to its Core!
I feel that this is one of the most important investigations I’ve ever done. If my findings are correct, each of us might soon experience a severe, if not crippling blow to our personal finances, the confiscation of any wealth some of us have been able to accumulate over our lifetimes, and the end of the financial world as we once knew it. The evidence to support my findings exists in the trail of dead bodies of financial executives across the globe and a missing Wall Street Journal Reporter who was working at the Dow Jones news room at the time of his disappearance. If the bodies were dots on a piece of paper, connecting them results in a sinister picture being drawn that involves global criminal activity in the financial world the likes of which is almost without precedent. It should serve as a warning that we are at the precipice of something so big, it will shake the financial world as we know it to its core.
Although the trail of mysterious and bizarre deaths detailed below begin in late January, 2014, there are others. Not only that, there will be more, according to sources within the financial world. Based on my findings, these are not mere random, tragic cases of suicide, but of the methodical silencing of individuals who had the ability to expose financial fraud at the highest levels, and the complicity of certain governmental agencies and individuals who are engaged in the greatest theft of wealth the world has ever seen.
We appear to be witnessing a clean-up where JPMorgan and Deutsche Bankers are at the epicenter of it all.
In its current form, the London gold price fixing takes place twice each business day, at 10:30 A.M. and 3:00 P.M. in the “fixing room”.
Five individuals, one each from five major gold-trading firms, are involved in the fixing.
Each representative at the fixing keeps an open phone line to his firm’s trading room. Each trading room in turn has buy and sell orders, at various prices, from customers located all over the world. In addition, there are customers with no existing buy or sell orders who keep an open line to a trading room in touch with the fixing and who may decide to buy or sell depending on what price is announced.
The representative announces a price at which trading will begin. Each of the five individuals then confers with his trading room, and the trading room tallies up supply and demand — in terms of 400-ounce bars — from orders originating around the world. In a few minutes, each firm has determined if it is a net buyer or seller of gold. If there is excess supply or demand a new price is announced, but no orders are filled until an equilibrium price is determined. The equilibrium price, at which supply equals demand, is referred to as the “fixing price.” [Read more...]
As demonstrated in our Open Letter to the World Gold Council, there was a large supply-demand imbalance in 2013. The evidence presented here suggests that the decline in the price of gold in mid-2013 and the subsequent raid of gold ETFs (but not silver ETFs) was engineered by Western Central Banks to help solve their physical gold supply problem. However, the resulting increase in Indian gold demand exacerbated the problem. The solution was to restrict Indians from importing gold by all means possible in order to help the Western Central Banks regain control of the gold market.
However, the rate of drain in gold ETFs cannot continue forever; at the current pace of 930 tonnes/year, there are less than two years of gold left in ETFs. Moreover, Indians have proved highly creative at finding ways around import restrictions. Smuggling is on the rise and will most likely increase as smugglers become more sophisticated. Overall, we believe that interest in physical gold from emerging markets will remain a driving force.
Accordingly, we believe that the manipulation of gold prices by central banks, as demonstrated by the below analysis, cannot continue in 2014. Therefore, we expect substantial increases in the price of precious metals as the true shortages become obvious. [Read more...]
Deutsche Bank, one of the 5 banks involved in setting the daily AM and PM London fix gold prices has announced today it will quit participating in precious metals price setting due to the ongoing investigation by German authorities into alleged precious metals manipulation.
It appears that the daily price fixes may be in Jeopardy particularly in silver, as the bank’s exit would leave only HSBC and the Bank of Nova Scotia as the remaining banks involved in the daily silver fix, and reports indicate others may follow Deutsche’s lead. [Read more...]
Our old pal, Ned Naylor-Leyland stopped by yesterday for a wide-ranging discussion which included:
- The new German “gold price manipulation investigation” which, as noted on Friday, has been widened to include Deutsche Bank (http://www.reuters.com/article/2013/12/13/metals-probe-deutschebank-idUSL6N0JS1DK20131213)
- Empirical data which illustrates these ongoing schemes
- The new, Asian physical gold exchanges [Read more...]
The Doc sat down with Jim Willie for the 2nd part of an explosive interview this week discussing the likelihood of a coming bank failure contagion, and multiple signs of an impending implosion in the gold market.
Willie made the shocking claim that upwards of 60,000 tons of gold have been pilfered from ALLOCATED gold accounts by the bullion banks, & stated that the bars have been recast to remove the evidence, and are now physically held by Eastern parties such as William Kay’s hedge fund.
Willie stated that the allocated gold account theft scandal will break soon, and could be the largest bank scandal in history.
Willie discussed the current gold shortages amidst unprecedented global demand and stated that the COMEX & LBMA futures price for gold is becoming a farce as their is not enough physical gold to clear demand!
The Golden Jackass also discussed the likelihood that the next Western bank to fail will trigger a massive contagion throughout the Western banking system, potentially bringing even Goldman Sachs and JP Morgan to their knees!
Jim Willie’s full MUST LISTEN 2-part interview with The Doc is below:
“Historians will certainly consider the 2008 crisis as a warning shot before that of 2013.” – LEAP 2020
Indeed, we are already seeing some of those Signals sound such a Warning.
A prime signal of impending Financial Collapse would be the collapse of one of the world’s too-big-to-fail Mega Banks, all of which are interrelated as counterparties on trillions of dollars of Derivatives and other Instruments. The prime candidate for collapse – Deutsche Bank.
The Fed and Bank of England can protect the American and English Mega Banks to a degree because they can print unlimited money. The Deutsche Bank has no such national currency printer/protection, and DB is under increasing pressure from the LIBOR and other fraud allegations and investigation.
There are also reports DB has sold 60 thousand tons of allocated Gold certificates to clients. But who actually has the Physical Gold and how much do they have?
An Austrian banking source has reportedly claimed that Deutsche Bank ‘fulfilled’ one gold repatriation in recent years with the help of Tungsten and further claims that the tungsten salted gold bars have turned up in Asia.
In 2009, Rob Kirby first uncovered detailed information regarding a massive plot to replace 400 oz good delivery gold bars with highly sophisticated tungsten filled fakes- and even provided evidence that the bars had been swapped with the gold held at Fort Knox.
Widely scoffed at by the financial media in 2009, Kirby appears to have released a Pulitzer worthy story nearly half a decade ahead of its time, as if the Austrian source’s claims are true and Deutsche Bank has in fact fulfilled a recent gold repatriation request with gold plated tungsten, the ramifications are that not only is every single claim made by GATA regarding gold and silver manipulation are 100% accurate, but that real, physical metal is now in desperately short supply and the jig is nearly up for the bullion bank cartel. [Read more...]