EXCLUSIVE: The Smoking Gun Proving Silver & Gold Manipulation

We have the data. And it tells a clear story.
Friday, October 16, 2015, 6:46 PM

Gold price suppression!

The amount of ink spilled on this topic could fill a supertanker.  Goldbugs the world over believe in the suppression story as an article of faith, and indeed, the evidence that “something is happening” appears incontrovertible.

Given how important the subject is to Peak Prosperity and the bullion-owning community, and the volume of energy we expend talking (and talking, and talking, and talking) about it, how much information do we really have about what is actually going on?  » Read more


Jaroslav Machacek/Shutterstock

How To Protect Yourself & Profit From This Manipulation

Also: is the bottom in for precious metals?
Friday, October 16, 2015, 6:45 PM

Executive Summary

  • What the Great Gold Smash of 2013 tells us
  • Was $1,075/oz gold the bottom? Is the bottom indeed in?
  • Is a new bull trend ahead for precious metals?
  • How to hedge against -- and speculate on, for those who dare --  future manipulation attempts

If you have not yet read Part 1: EXCLUSIVE: The Smoking Gun Proving Silver & Gold Manipulation available free to all readers, please click here to read it first.

Now let's look at the great gold smash of 2013.

There were three separate operations I saw on or around the gold smash of 2013:

Operation #1: On April 12, gold had already broken below the 1525 support level to close at 1501 after dropping $100 over the two preceding months.  After a long decline followed by a support break, the market was in a very fragile state.  Sunday rolled around, and “someone” chose this moment to unload $95 in 13 volatility events over the course of just 13 hours.  This avalanche decisively drove gold down $150 in just one day.  This engineered follow-through using volatility events coming immediately after the support break resulted in the total annihilation of the longs.  Price still has not recovered from that move.

Operation #2: two days after the $150 drop, another 3-event $23 assault completely failed.  Price did not move at all.  In fact, it rallied on the day.  Why?  Why didn't we get another $150 drop?  Well, 1325 turned out to be strong support.  Buyers came out in droves to pick up the lower-priced gold.  And so when gold dropped $23 due to the volatility events, COMEX buyers snapped up the lower priced gold, and as a result the assault completely failed.

Operation #3: two months later, another 1-event $24 assault had only a very minor effect.  Price fell that day a few bucks, which was regained the day following.  Support was not quite as strong, but the market was clearly not in a fragile state at that point either.  This assault failed as well, since there was no support break and no price reset lower.

Here are three events, in relatively close proximity to one another, but under three different sets of “chart circumstances” which provided three different outcomes.  One worked, two others didn't.  The difference, I maintain, was where the market was at each point.  Fragile markets appear vulnerable to volatility events.  Strong markets are not.

Now let's look at the most recent event: July 20, 2015... » Read more


Konstantin Sutyagin/Shutterstock

4 Factors Signaling Volatility Will Return With A Vengeance

Buckle up. It's going to get bumpy.
Wednesday, May 20, 2015, 8:43 AM

No one could have predicted the sheer scope of global monetary policy bolstering the private banking and trading system. Yet, here we were - ensconced in the seventh year of capital markets being buoyed by coordinated government and central bank strategies. It’s Keynesianism for Wall Street.

The unprecedented nature of this international effort has provided an illusion of stability, albeit reliant on artificial stimulus to the private sector in the form of cheap money, tempered currency rates (except the dollar - so far) and multi-trillion dollar bond buying programs. It is the most expensive, blatant aid for major financial players ever conceived and executed. But the facade is fading. Even those sustaining this madness, like the IMF, are issuing warnings about increasing volatility. » Read more


Kevin Grant/Shutterstock

The Fed Is Destroying the World One Saver At A Time

Bernanke's new blog offers bloviating proof of that
Monday, April 6, 2015, 11:25 PM

I must confess to a deep-seated anger at just how insultingly stupid the world has become. As a sufferer of crisis fatigue I can be caught exclaiming You have got to be kidding me!!? several times per day, or perhaps shouting How dumb do they think we are?

Three choice outbursts came last week as I read Bernanke’s new blog and came across statements like this one:





Eric Sprott: Global Gold Demand Is Overwhelming Supply

Setting the stage for much higher prices ahead
Sunday, November 16, 2014, 11:11 AM

Precious metals have had an especially tough go of it over the past month. Both gold and silver are back in price territory last seen in 2010.

Eric Sprott returns to the program to discuss the facts as we know them in this market, and what's likely to happen from here. Specifically, he explains the tremendous imbalance currently seen between global supply and demand for precious metals. In his view, prices will have to correct upwards -- prodigiously -- to bring the two back in alignment. » Read more


The New Game-Changers for Gold & Silver

A new parade of reasons to expect higher prices soon
Wednesday, June 12, 2013, 8:19 PM

Executive Summary

  • Large players (and likely price manipulators) now have incentive for precious metals prices to rise
  • Investor demand for bullion remains at record highs
  • Competition for bullion from the East continues to heat up
  • Central banks buy more bullion as Comex inventories deplete
  • The key signs to know when it will be time to sell your gold & silver

If you have not yet read Part I: Is Gold at a Turning Point? available free to all readers, please click here to read it first.


Much has been written across the Web (including here at about whether or not the precious metals markets are manipulated in price by big players (major multi-national banks such as JP Morgan). Without delving into the many arguments on both the pro and con sides, Chris and I are of the opinion that sufficient data exists to convince a reasonable observer that price manipulation in the PM markets is indeed real, or, at the very least, highly probable. (For those remaining doubters out there, have a look at the evidence here, here, and here, and let us know if you have a rational, non-manipulative explanation.)

One of the most glaring signs of likely manipulation has been the massive short positions that a small number of large banks (JP Morgan being the most prominent among them) have held for many years, particularly in the silver market [measure positions as % of world silver production]. And not only were these unlimited positions allowed, but this cabal of banks was allowed to naked-sell PMs short (i.e., sell metal without actually owning it first). On the other side of the coin, the long side, position limits were enforced, and there was no similar ability to buy more metal than one could pay for. This imbalance of rules certainly provides the mechanism by which PM prices could be artificially jockeyed more easily to the downside. In this context, a decline from the high $40s to the low $20s looks more understandable.

Well, a very important part of this story has just shifted. The CFTC (Commodities Futures Trading Commission) publishes a monthly report illustrating the positions taken in Comex Futures Contracts

After nearly ten years of being net short in Comex gold futures, U.S. banks have been recently decreasing those short positions, and for the first time since 2004 (with the exception of a single month in 2008) they have flipped to become net long gold in May (see bottom chart below)... » Read more

Daily Digest

Daily Digest 3/14 - Endless Government Manipulation, The Price Of Green Energy

Thursday, March 14, 2013, 9:43 AM
  • The graph Bernanke should look at before ‘exiting’ anything
  • Charlie Rose: Jeremy Grantham
  • Mark Faber: Endless Government Manipulation
  • Inflation Targeting Revisited; Three Major Fed-Sponsored Bubbles; Who Benefits From Inflation?
  • 1,000 companies going bankrupt in Italy every day as country faces full-scale ‘credit emergency’
  • Young inventor’s flash idea to scare off lions
  • Detroit City Council continues to fight governor's EFM plan
  • U.S. to let spy agencies scour Americans' finances
  • It's Going To End Badly
  • Thieves Blight Nigeria's Swamps with Spilt Oil
  • Deepwater rig worker weeps as he admits he overlooked warning of blast that set off America’s worst environmental disaster
  • The Price of Green Energy: Is Germany Killing the Environment to Save It?
  • Japan's Methane Hydrate Gas Extraction Is First In The World
  • Greenland's resources boom still more talk than action
  • Analysis: Antibiotic apocalypse
  • Pentagon weapons-maker finds method for cheap, clean water

  » Read more


Gold's Regular Morning Mugging

A broad daylight crime-in-progress?
Tuesday, February 19, 2013, 8:38 PM

Not everyone is a morning person. And few people like Mondays.

But if you're a precious metals investor, mornings especially Mondays are brutal.

The Evidence

The precious metals are routinely sold off at or soon after the 8am morning open of the New York NYMEX exchange.

Below are the daily gold price charts (source: Kitco) for each Monday (or Tuesday, if Monday was a holiday) since early this year. The current day's gold price is noted by the bright green line. The morning takedown is highlighted by the orange oval. » Read more


The Trends to Watch in 2013

Probabilities are becoming more certain
Monday, January 7, 2013, 11:26 PM

Rather than attempt to predict the unpredictable – that is, specific events and price levels – let’s look instead for key dynamics that will play out over the next two to three years. Though the specific timelines of crises are inherently unpredictable, it is still useful to understand the eventual consequences of influential trends.

In other words: policies that appear to have been successful for the past four years may continue to appear successful for a year or two longer. But that very success comes at a steep, and as yet unpaid, price in suppressed systemic risk, cost, and consequence. » Read more


Off the Cuff: Willful Blindness

Our leaders are ignoring signs of both success & abuse
Wednesday, December 5, 2012, 7:34 PM

In this week's Off the Cuff with Mish & Chris podcast, Mish and Chris discuss:

  • Willful Blindness of the Fiscal Cliff
    • Our politicians choose the wrong path despite models for success
  • Gold Manipulation
    • Price discovery is broken in today's markets. Patient bullion holders will be eventually rewarded.
  • America's Growing Demographics Problem
    • Fewer workers making fewer real products
  • Money Printing Forever
    • Why it's the surest bet