Tuesday, February 20, 2018

Huffington Post Writer Calls Gold Market Ponzimonium

April 5, 2010 by  
Filed under Move, Smart Money Says

People involved in the markets have known/suspected for years that they have been manipulated by certain large entities, notably JP Morgan and Goldman Sachs.

At least according to Nathan Lewis, author of Gold: the Once and Future Money (2007). Lewis cites several analysts who support his claim that gold and silver markets have been manipulated for years.

Ted Butler, is the publisher of Butler Research, a subscription based newsletter that follows the gold and silver markets. Butler is an outspoken critic of the Commodity Futures Trading Commission (CFTC). In a commentary written on February 10, 2010, Butler wrote:

I chastised the Commission for opening their third silver investigation in five years based upon my allegations, instead of just answering my simple question. How can one or two US banks hold 25% of the world production of any commodity short (or long) and that not be manipulation? A year later, that question has not been addressed by the Commission or anyone else.

The Gold Anti-Trust Action Committe (GATA). According to GATA’s website:

The Gold Anti-Trust Action Committee was organized in January 1999 to advocate and undertake litigation against illegal collusion to control the price and supply of gold and related financial securities.

Eric Sprott, founder of Cormark Securities, one of Canada’s largest independently owned securities firms –In August of 2004, Sprott’s firm issued a 67-page report entitled Not Free Not Fair: The Long Term Manipulation of the Price of Gold

Lewis goes on to cite an interview with “London metals trader and CFTC whistleblower Andrew Maguire”, and GATA’s Adrian Douglas, by Eric King of King World News. Maguire claims he complained to the CFTC about silver market manipulation by JPMorgan Chase traders in London. The CFTC held a hearing about futures trading the metals markets, but Maguire was not called to testify.
Click here to hear Maguire describe how the metals markets are manipulated.

GATA’s William Murphy did testify at the recent CFTC hearing. Here is a transcript of his testimony as reported in mineweb.com

On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so.

In November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire 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 ad-hoc events.

On February 3 Maguire gave two days’ warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.

It would not be possible to predict such a market move unless the market was manipulated.

In an e-mail on February 5 Maguire wrote: “It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.”

Expiry of the COMEX April call options is tomorrow, March 26. There was large open interest in strikes from $1,100 to $1,150 in gold. As always happens month after month, HSBC and JPM sell short in large quantities to overwhelm all bids and make unsuspecting option holders lose their money. As predicted by GATA, the manipulation started on March 19, when gold was trading at $1,126. Last night it traded at $1,085.

This is how much the gold cartel fears the CFTC’s enforcement division. They thumb their noses at you because in more than a decade of complaints and 18 months of a silver market manipulation investigation nothing has been done to stop them. And this is why JPM’s cocky and arrogant traders in London are able to brag that they manipulate the market.

This is an outrage and we are making available to the press the e-mails from Maguire wherein he warns of a manipulative event.

Additionally Maguire informed us that he has tape recordings of his telephone communications with the CFTC, which we are taking the appropriate legal steps to acquire.”

Click here to see Murphy(on Youtube) testify how JP Morgan manipulates the metals market.

Read the whole Huffington Post article about how precious metals are manipulated.

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