precious metals manipulation–evidence

Andrew Maguire went public in April 2010 with assertions of market manipulation by JPMorgan Chase and HSBC of the gold and silver markets,[2] prompting a number of lawsuits,[3] including a class action lawsuit.[4] Maguire said “JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses (on their short positions) by the Fed and/or the U.S. taxpayer.”  “No one at JPMorgan is familiar with Andrew Maguire,” said Brian Marchiony, a JPMorgan spokesman.  HSBC declined to comment.[2]  Maguire was not a former Goldman Sachs trader as has often been reported although he did work briefly for J Aron & Co. which was acquired by Goldman Sachs in 1981.[2][3][5]

In an interview with CBC aired in April 2013 Andrew Maguire described how mysterious traders, allegedly working for bullion banks JPMorgan and to a lesser extent HSBC, waited for most of the major markets from Shanghai to London to be closed then concentrated their dealing on COMEX.  He explained how traders were trading virtual or electronic silver anonymously using algorithmic trading systems “moving in and out of the futures markets in the blink of an eye.  Four hundred contracts a second, each contract represents 5,000 troy ounces of silver.”  Maguire described a sudden and massive wave of selling of up to 45,000 contracts which drove the price of silver down.  “Investors big and small try to cut their losses and sell as the price drops.”  People who had invested heavily lost everything.  Then the mysterious seller just as suddenly started buying the electronic silver again.  The price of silver soared as did profits for the seller. 45,000 contracts with a profit of $80,000 per contract totaled $3,600,000,000 for the mystery seller….[6]

GATA chairman Bill Murphy gave a detailed account of Maguire’s allegations to the Commodity Futures Trading Commission (CFTC), stating how “JP Morgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shortingthe metals alongside JPMorgan. [He] explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as the ad hoc events.”[11]


chart2.jpgIn creditor law this would be known as “fraudulent conveyance.”

For perspective, by adding 50,704 naked shorts in just five days, the gold conspirators shorted 5,075,400 troy ounces of paper gold which is equal to:  158 metric tonnes of metal; the entire gold holdings of Thailand; or 75% of all the gold produced by U.S. mines in 2015!   …


the ratio of paper gold to physical gold reached a record level of 117 (to 1) at the end of 2014.

This means for every 117 ounces of gold traded with paper contracts only 1 ounce of gold is actually available in the real world.

Moreover, you can see how the ratio exploded and went vertical starting in the middle of 2013, right around the time Bernanke delivered his infamous “QE taper speech.”  That tells you how aggressive the gold conspirators have been in their effort to push the price of gold lower using crash injections.  Of course, by the end of 2015, the ratio had more than doubled again to 294 (to 1)….

When asked by the Gold Anti-Trust Action Committee, or GATA, where all the physical gold is — the Treasury Department couldn’t even come up with a good excuse.

The GATA says “The objective of this manipulation is to conceal the mismanagement of the U.S. dollar so that it might retain its function as the world’s reserve currency.”

I agree–but the U.S. Treasury denies the claim, insisting the stock is accounted for regularly and there is enough gold to back up the paper orders….

Of course, the overlap between these big banks and the U.S. Government calls into question whether the investigations will even go anywhere.  After all, at least fourteen high-ranking U.S. officials have also held positions at Goldman Sachs!

Meanwhile HSBC, Goldman Sachs, Barclays and Deutsche Bank have also been sued by investors and jewelers over claims they conspired to manipulate precious metals prices for years.


5-25-2011    During the course of this CFTC meeting, Jeffrey Christian formerly of Goldman Sachs currently the head of a metals trading group called CPM Group, let it slip out that for every so called 100 ounces of gold and for every 100 ounces of silver that is traded only one ounce of actual gold or silver actually exists to back up any given trade.


4-26-2010    GATA is the chief organization standing up for those who feel that the precious metals markets in the US are manipulated for private gain, and that there is a conspiracy at the highest levels of government to suppress gold and silver prices.

The first issue, short-term manipulation, has been demonstrated to be harmful to holders and speculators in precious metals. But those who participate in speculative markets should always keep their eyes wide open – such is the nature of free markets that it is doubtful that such manipulations are confined only to precious metals.

The more fundamental concern that GATA expresses on behalf of precious metals holders is that suppression of prices in these markets is widely practiced by governments.

And, really, should it be any other way?  As we have mentioned here before, it is the duty of Treasury and the Fed to defend the US currency, and to do so by more than just jawboning.  Their efforts to boost our fiat dollar’s value against both gold and other currencies, are likely to include covert participation in markets such as commodities, currencies, bonds, and equities.        “And, really, should it be any other way?  ”       –Is this guy joking?  -r


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