China
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On this week’s Metals & Markets, The Doc & Eric Dubin break down the week’s trading, discussing:

  • Chinese New Year Holiday Concludes- gold & silver rally on cue!
  • Greek Game Theory- Why Eurozone crisis could escalate to a contagion- beginning with Spain! 
  • Justice Dept Investigation on PM manipulation- regulators are attempting to distract the market from the REAL center of PM manipulation! 
  • Indian gold demand set to ROAR with imminent easing of import duties
  • Algos unsuccessful in attempts to cap gold & silver Friday- sign the beatdown has ended?

The SD Weekly Metals & Markets With The Doc & Eric Dubin is below: 

Jamie Dimon

The Wall Street Journal reports this evening that “prosecutors in the Justice Department’s antitrust division are scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodities Futures Trading Commission has opened civil litigation”  (Wall Street Journal).
Ten of the biggest banks in the world are allegedly under “scrutiny:”  HSBC, Bank of Nova Scotia , Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Société Générale, Standard Bank and UBS.
Will the Justice Department finally clean up the CFTC’s mess as Eric Holder attempts to play tough cop on his way out the door?

China dragon

I would like to point out that the Chinese traders have been absent from gold/silver trading as this is their New Year.  They will be back Wednesday.
No doubt that due to their absence our bankers are having an easy time of knocking our metals down….which I expect will end on Wednesday.

down fall plunge

In last Friday’s Market Update I commented that it is easy for bullion banks with deep pockets to move markets and change sentiment.
This week’s trading in precious metals was a text-book example, with all precious metals falling sharply during New York trading on Tuesday, setting up gold for a test of the $1200 level the following day:

Source: Nanex

The Comex is a complete fraud.  It’s one of the biggest Ponzi schemes in history.
With China and Viet Nam (the latter being a major gold importing country) now closed until next Wednesday in observance of their Lunar New Year, the bullion banks have engaged in a major attempt to drive the price of gold lower.
Yesterday (Tuesday) 99,000 gold contracts  – 9.9 million ounces or 287 tonnes – were sold into the market between 9 a.m and 11 a.m. EST, which had the effect of driving the price of gold down over $26.
To put this into context, a total of 179,833 contracts traded between 6 p.m. Monday and 5 p.m. Tues.   The entire daily trading period is 23 hours.
But 55% of yesterday’s total trading volume – the volume used to slam gold – was traded in a two-hour window of NY trading.
Think about it this way:  in that two-hour window, 35 days worth of daily global gold mine production traded in the form of paper gold
.  

freefall

How are all them facts and figures about gold/silver accumulation by China, Russia, India, et al, shortages at the COMEX, LMBA for delivery of the [non-existent]physical metal, drainage of GLD, unprecedented public demand for coins, accompanied by pretty graphs and charts, working out?
Question – where are the results of all, and we mean all of the above considerations, and more?
Have these factors [and they are legitimate], driven the price of gold and silver to unprecedented levels?
If not unprecedented levels, have they driven the price of gold 
and silver to $1,400 and $25?  If not, why not? 
Welcome to the real world, the one run by the elite banking cabal.

Whenever the price of gold in the futures market starts to rise, massive uncovered shorts are suddenly dumped on the market. As the shorts dramatically increase the supply of future contracts all at once, the supply overwhelms demand, and the price of gold is driven down despite the fact that the demand for gold in the physical market is strong. (Remember, the price of gold is determined in the futures market in which contracts are largely settled in cash and seldom in gold. The physical market is where gold bullion is purchased, not paper claims on gold for speculation.)
Last Friday the attack on gold was coordinated with the announcement of the suspicious jobs report. The price of gold was hit hard with an avalanche of uncovered gold futures contracts dumped at the same time that the U.S. Government’s Bureau of Labor Statistics (BLS) released what can only be described as an incorrect employment report.
Anyone looking at these prospects is tempted by gold, but a rising gold price could bring down the fiat currencies and, thus, MUST be prevented.
In other words, those who have rigged the system know that it is a house of cards…

Blythe Masters Jamie Dimon

The latest CFTC Bank Participation Report brings the usual horrors and it confirms our “inherently unfair” thesis. However, there’s also a bigger picture that gold investors everywhere need to consider.
I’d simply like to focus on how the 24 banks have changed their positions over the past month and the past year. It’s pretty remarkable stuff.
With price of gold nearly unchanged YoY and with total open interest up by about 51,000 contracts, the 24 largest gold-trading banks have massaged their NET position by 146,606 contracts.   A NET change of 14,660,600 troy ounces or 456 metric tonnes….
All. To. Keep. Price. Unchanged.

While gold & silver prices are much higher than they were 10 years ago, they’re also a snapshot of a crime in progress.
Gold and silver price charts are photos of high financial deceit, and as we all know, photos can be doctored.
The Golden Truth:  That’s why when folks ask me, How do you know that the bull market in gold and silver didn’t end in 2011?”, I always take their focus off the charts (which is the enemy’s matrix), and point them in a very different place:

Jamie Dimon
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With Friday’s big PM raid TFMetals’ Craig Hemke (Turd Ferguson) joins the show this week discussing:

  • Ferguson breaks down the mechanics of cartel actions leading up to, and triggering big PM raid-
  • Banksters issued 10 million oz of paper gold in January preparing for epic FOMC & NFP raid
  • Banksters were naked short nearly 700 million oz of silver!
  • CME hikes margins twice in past week forcing long specs to liquidate 
  • Goal was to smash gold through the 200 DMA
  • Will crucial support in gold hold at $1200 or are we headed below $1,000? 

The SD Weekly Metals & Markets With Guest Host Turd Ferguson is below: