Concrete Evidence of Gold Manipulation

If you’re familiar with the detrius that spews out of the gold and silver blogosphere on a daily basis, you’ve probably heard the breathless ranting lately about deliberate downward manipulation in gold prices.   Usually, it looks something like this interpretation:

“Friday morning started off with a “bang” or should I more correctly say a FRAUD!  Over a 4 minute span right at the open, 2 million ounces of gold were sold…My point is this, no one (or VERY few) even have this amount of gold to sell and NO ONE (truly no one) would ever, EVER sell in this fashion unless they wanted to crush the price.  This was not “real gold” that was sold.  No, these were contracts, pieces of paper with no gold or anything else backing them which were sold…strictly to push the price down. “

Today, if you got up early, you saw these manipulators in action again – RIPPING the price of gold higher in the super-illiquid hour of 4am Eastern time, by buying 20,000 COMEX contracts in a span of roughly 10 minutes.

Paper Bull Raid!

Paper Bull Raid!

That’s the equivalent of 2 million ounces of gold – roughly 2% of total annual gold mine production bought in a span of mere *minutes*.  That’s almost THREE BILLION dollars worth of gold bought in short order, obviously designed to do only one thing:  drive the price higher.  After all, the Precious Metals Charlatans have already given us the script (excerpted above), right?  Let me re-write it for you:

“Thursday morning started off with a “bang” or should I more correctly say a FRAUD!  Over a 10 minute span in the middle of the night while the regulators were sleeping, 2 million ounces of gold were bought…My point is this, no one (or VERY few) even have this amount of money to spend on gold and NO ONE (truly no one) would ever, EVER buy in this fashion unless they wanted to jack the price.  This was not “real gold” that was bought.  No, these were contracts, pieces of paper with no gold or anything else backing them which were bought…strictly to push the price up. “

Yet somehow I doubt we’ll see the precious metals patriots telling it like it is and complaining about today’s vertical price action in illiquid hours.   Nope – that wouldn’t fit their campaign of misinformation designed to deceive their readers into buying gold and silver*.

So remember the absurdity of declaring that when you see a chart like this, it’s manipulation:

gold_1017_flip_crop

but when you see a chart like this, it’s just noble patriots decrying the end of fiat-money slavery:

gold_1017_crop

And just in case my attempt at tongue-in-cheek education by counterexample here still hasn’t hit home, those two charts are, of course, mirror images (over the X-axis) of this morning’s blatant PAPER BULL RAID in gold.

So the next time you read Zerohedge, Bill Holter, Harvey Organ, Jesse’s Cafe, Turd Ferguson, GATA, King World News, Andrew Maguire, etc etc etc ranting about manipulation when the price of gold goes down, show them today’s chart and ask them if they’re writing letters to the regulators when the price action is to the upside…  #RhetoricalQuestion

I guess I’ll be the only one to email the CFTC’s Bart Chilton and see if I can get a comment on exactly who was trying to manipulate gold higher this morning…

-KD

disclosure: no positions in gold or silver.

*note: I don’t care if you buy gold and silver.   Buy all the gold and silver you want – it doesn’t bother me.  But don’t do it because you are being lied to and mislead by charlatans with an agenda who profit by deceiving you.

 

 

Kid Dynamite is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com. If you click on my Amazon.com links and buy anything, even something other than the product advertised, I earn a small commission, yet you don't pay any extra. Thank you for your support.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus
Kiddynamitesworld Blog