After decades of manipulation laced market making, is the LBMA about to be made obsolete!?!
This month the physical gold market will undergo radical change when the four London fixing banks hand over the twice-daily fix to the International Commodity Exchange’s trading platform on March 20th:
In this excellent interview with Jay Taylor, David Jensen takes a look at the LBMA, and the MASSIVELY leveraged paper tail that wags the physical dog.
With a daily trade volume of 207 Million oz (against annual global mine supply of 800 M oz)- Is Silver the LBMA’s Greatest Rig?
In the face of a global physical gold shortage, the London Bullion Market Association (LBMA) is quietly planning a new gold fix in a desperate attempt to maintain the status quo.
With gold & silver raided by the cartel coincidentally on the day the new Silver Fix was launched, The Doc & Eric Dubin break down the markets, discussing:
- Cartel raid on the metals: Is the worst over, or is another smash coming on the thinly traded Sunday night Globex session?
- On the brink: Ukraine/Russia escalation as the US continues to push Russia towards war while Putin works to DUMP THE DOLLAR
- Retail physical gold & silver explodes on price smash/end of London Fix: SDBullion sees heaviest sales volume in 2014 Friday
- Ferguson riots/ Martial Law- a sign of of most of American could look like in the wake of a financial collapse?
The SD Weekly Metals & Markets With The Doc & Eric Dubin is below:
The Battle Royale continues as the cartel has hammered gold back under $1300 once again with a last of $1293, and silver has been knocked under $19.50 to $19.45 on heavy volume the first day without an official London Silver Fix.
Physical silver bullion sales exploded at SDBullion Wednesday, hours before the London Fix price setting mechanism was set to end on August 14th.
The London fix, which has been in place for 117 years dating back to 1897, announced in April that the daily silver fix would end on August 14th, when Deutsche Bank, under investigation by Germany’s BaFin for market manipulation vacated its seat and was unable to find a buyer.
SDBullion trader Jennifer Linhart stated that physical silver sales were five times normal volume Wednesday, as investors scooped up bullion ahead of any market disruption the end of the fix might cause:
“The phones were ringing off the hook all day, and silver sales were about 5 times normal for the day. We didn’t see much of any change in gold, everyone was buying silver.”
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.
India’s central bank said on Wednesday it has sought quotes from banks to swap gold in its own vaults for international-standard gold, aiming to improve the management of its reserves.
The Reserve Bank of India said the operation would “standardise the gold available with RBI in India with respect to international standards” and the gold acquired would be delivered to its overseas custodian, the Bank of England.
By holding gold reserves in London, the RBI would gain flexibility to mobilize them if needed to defend the currency.
It appears the Indian government has finally realized they can’t stop their citizens penchant for gold, so they have decided to dump central bank gold onto the market in exchange for gold of the rehypothecated paper variety .
What is incredible to me is that they are justifying this with a so-called “swap” into phantom gold at the Bank of England.
The official Chinese gold demand figure for 2013 according to the World Gold Council was 1189 tons.
At an LBMA forum in Singapore this week however, Xu Luode, the Chairman of the Shanghai Gold Exchange informed the audience that “The Chinese consumption demand of gold hit 2000 tons in 2013“.
So much for the Western financial media’s denial of epic Chinese demand for gold.
The official confirmation of massive Chinese gold demand wasn’t the only take-away from the forum however, as Luode announced China’s goal of instituting a Chinese daily ‘fix’ for gold similar to the London fix.
Last week the UK’s Financial Conduct Authority fined Barclays for rigging the gold price at a gold fix for the disadvantage of a customer and the benefit of the bank’s book. This news could not come at a worse time for the London Bullion Market and the London Gold Market Fixing Limited, the company directly responsible for the twice-daily fix. It may well lead to the end of the gold fix, the silver fix already being axed in August.
It is hard to see how the twice-daily gold fix can survive.
Precious Metals Fund Manager Dave Kranzler joins the show this week to discuss:
- Cartel capping gold at $1300 and silver at $20
- London silver fix to end in August after 117 years- is the end of the silver manipulation at hand?
- Kranzler discusses the Smoking Gun on The Fed’s money laundering US Treasury purchases through Belgium
- We break down Ted Butler’s claims that JPM is buying all the Silver Eagles- is Jamie Dimon suddenly attempting to corner the ASE market, or is the American public finally waking up?
The SD Weekly Metals & Markets With The Doc, Eric Dubin, & PM Fund Manager Dave Kranzler is below:
Chinese net gold imports in March, (at least 111.1 tonnes), were not sourced from London, as they have been in the past year. UK total net gold export in March collapsed 85 % m/m from 107 tonnes in February to 16 tonnes in March, net export to Switzerland fell by 72 % from 119 in February to 34 tonnes in March.
The main gold vein that ran from the UK, through Switzerland, through Hong Kong finally reaching the mainland, is drying up.
Are the London Gold Vaults Running on Empty?
It’s history. The silver Fix will be ended in August, after 117 years.
The silver community is excited. Many believe that the Fix is part of the apparatus that is suppressing the silver price. Without suppression, the price will shoot up to $100 or $250 or whatever number. Dismantling this very visible operation of the silver suppression cartel is a step on the road towards $100.
The end of the silver Fix may or may not push up the price of silver. Either way, it will have unintended consequences.