Whistle Blower Comes Forward With Solid Proof The Price Of Gold And Silver Is Being Manipulated

[TalkingDog]

http://www.inteldaily.com/2010/04/gold-manipulation/

Back in November 2009, Andrew Maguire, a former Goldman Sachs silver trader in Goldman’s London office, contacted the CFTC’s Enforcement Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.

Maguire told the CFTC how silver traders at JPMorgan Chase openly bragged about their exploits - including how they sent a signal to the market in advance so that other traders could make a profit during price suppression episodes.

snip

On February 3rd, Maguire gave the CFTC a two day warning of a market manipulation event by email to Eliud Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.

snip

And it wasn’t just that Maguire predicted that the price would be forced down. It was the level of precision that he was able to communicate to the CFTC that was the most stunning. He warned the CFTC that the price of silver was to be taken down regardless of what happened to the employment numbers and that the price of silver would end up below $15 per ounce. Over the next couple of days, the price of silver was indeed taken down from $16.17 per ounce down to a low of $14.62 per ounce.


/snip

I don't know anything about gold or gold prices, but I do know that if this is true, the pooch is screwn.

[DJ13]

1. The government may be involved

Or at least deliberately looking the other way, as part of their containment strategy on keeping the financial institutions afloat involve keeping a lid on certain commodity prices.

Gold and silver would be at the top of that list.

[WCGreen]

2. and the Beat Goed On....

Laddy Laddy Dah...

[KansDem]

3. What does this mean?

I mean, I don't have much gold or silver around the house, but I wonder what this is all about.

And didn't we taxpayers bail out JPMorgan-Chase?

Why, yes, we did!

[MadHound]

4. I don't know if the pooch is screwn,

But I do know that I wouldn't buy metals right now. This isn't the first time that various folks have manipulated the metals market. The Hunt brothers tried to corner the silver market in the early eighties, an effort that resulted in a massive crash that effected the metals market for the next decade or more.

Right now the big crash is going to come in the gold market, they're pumping up a huge bubble, mostly on the gullibility of apocalypse folks, that's why all those Goldline ads and such are being pushed in the RW media, Rush, Beck, etc. The price is going to crash and the idiots are going to be left holding the bag.

[TalkingDog]

7. Maybe I should have said: Their pooch is screwn.

I figured using a Freeperism would suggest whose pooch, but sometimes I tend to not think through my cunning plans.

[indepat]

10. This bunny seems to recall the Federal Reserve Bank arranging a $1B+ loan

to the Hunt brothers in a time of a severe credit crunch, maybe as thanks for allegedly gaming (illegally?) the silver market. Someone please correct as needed. :P

[anigbrowl]

13. Absolutely...talk about history repeating itself

The only thing that surprises me is that traders in this market would be oblivious to the historical precedent and lay themselves open to being caught so easily. I strongly agree that the precious metals market is being abused and that a lot of naive buyers are going to be crying into their beer pretty soon...although chances are they'll blame Obama for ruining the party.

I will add a caveat that the sources on this report are thing, and that an allegation is not the same as evidence. Assuming all the emails are legit and accurate, it would still take time for the CFTC to build a case before taking action. Their record in the past has been mixed (IMO). I'm keeping an open mind for right now.

[pokercat999]

14. Not only will the price crash, but a lot of "investors" will find

out the do not actually have any physical gold, only paper for gold that does not exist.

[thecrow]

17. At least it will be a bag of gold

:)

[Hubert Flottz]

5. The people in America are STILL being played like a cheap fiddle

For instance...as soon as the market starts to recover the price of gasoline starts to shoot right back toward $4.29.9 a gallon. I thought the democrats might protect us if they ran the show, but so far the gouging goes on. Nobody said shit about the part the Oil speculators have played in the rapid erosion of our economy.

[WhiteTara]

8. where is gas $4.29.9 a gallon?

In NW Arkansas, it is 2.79.9

[laughingliberal]

12. Well, let's see. It's $3.05 here and it's not summer, yet

We've seen a nice increase this past month and we're not at the traditional big jump time of year for another month.

[cui bono]

16. They said when it shoots up to that. But I've seen $3.27 in SoCal. n/t

[Hubert Flottz]

19. Here a couple of years ago...

And it looks like it's headed to $4.29.9 again if the crooks on Wall Street aren't arrested for theft.

[Johonny]

21. The argument I heard

was that higher taxes on the rich help prevent this. Since they have less speculation capital to spend. Low regulation plus low taxes on the upper tax brackets tend to lead to higher amounts of market speculation. In some respects the loss of Bushes tax cuts will help mitigate this some what. Although actual raising upper tax margins would help more, small taxes on stock/commodity transaction would help some, and of course more regulation of the market could help some. At least some of this Democrats have set to do, some they propose to do and some doesn't sound likely. Either way it's already than it was for 8 years under Bush.

[progressoid]

6. pooch screwn? Naw, shit like this has been going on for a long time.

On the plus side, if it gains any media coverage, maybe the RWers will eat some crow and call for more government regulation and oversight.

[damntexdem]

9. Was the whistle blower's whistle gold or silver?

But it wasn't the pooch who was screwed, it was a bunch of betters ... errr, investors in precious metals.

[xchrom]

11. Recommend -- if they're fixing prices over 'here' they're fixing prices over 'there'. Nt

[safeinOhio]

15. You can make a fortune in gold

just count the number of ads for gold on radio. Number goes up sell. Number goes down buy. Not rocket science.

[Festivito]

18. Early in Bush admin's 8 years, gold jumped about 4X.

$1,000 bought 4 ounces at the end of Clinton, then quickly jumped so that same thousand bought 1 ounce.

Later, when the banks stole nearly everything with their derivatives, I figured they either manipulated the price or invested in gold.

By manipulating the price they threw people into the housing market instead of the commodities market. That lead to the bubble they then fostered with those derivatives and with trade deficits (that followed Clinton's trade surpluses).

It was a great way to drown democracy in a bathtub and pave the way for aristocratic families to hold control for generations to come.

[chill_wind]

20. K & R. n/t