RAID!! GOLD SMASHED TO $1738
Gold and silver were greeted with waterfall declines on today’s COMEX open, as surprisingly, gold received the brunt of the cartel’s attack.
http://www.silverdoctors.com/is-jp-morgan-shorting-paper-metals-while-acquiring-massive-physical-stockpiles-of-gold-silver/
( this would be quite ironic.... )
As silver investors are likely aware, leading silver analyst Ted Butler has openly speculated whether JP Morgan’s alleged massive short silver position is held on behalf a client such as the Federal Reserve (with the intent to prop up the dollar by suppressing gold and silver) or the Chinese government (with the intent of acquiring physical gold and silver bullion at a discount due to their massive paper short position on the futures market).
The Doc has long privately wondered whether the bullion banks’ PM short positions could actually be leveraging their own physical bullion accumulation by artificially suppressing the paper futures price.
These thoughts originate in our following of Jim Sinclair, who has always maintained that the bullion banks will be the one’s making the lion’s share of the profits in this great secular gold and silver bull market. One thing the bullion banksters are not is dumb, and they can see the writing on the wall for the US dollar as well as any SD or ZH reader.
New commentary from a bullion insider who claims to have personally managed the movement of 27 million ounces of gold from HSBC’s vaults into JP Morgan’s seems to substantiate Sinclair’s claims.
The industry insider has come forward claiming that JP Morgan’s paper short position is in fact a hedged trade(as Blythe Masters claimed here)- and claims that JPM is in fact MASSIVELY LONG PHYSICAL GOLD AND SILVER HELD IN THEIR OWN PRIVATE VAULTS while short the paper futures market. Is JP Morgan actually a double agent shorting the paper metals market for their own benefit?
The claim is not only rational, but it also would perfectly explain why the CFTC has opened three separate investigations into silver market manipulation, and has yet to charge anyone with manipulation of silver.
Clearly, if JP Morgan’s commodities desk was accumulating massive physical gold and silver inventories in their own personal vaults, they would be able to claim their paper short position is a legitimate hedge- essentially leveraging their physical position against the paper COMEX futures market itself.
Miles Franklin’s David Schectman states he has been in contact with the insider, who claims JPM is massively long physical gold and silver bullion stored in their own warehouses:
Whereas Ted Butler focuses on JP Morgan and “the Big Four Commercial Banks,” and their perpetual “short” position in silver (and gold), I don’t recall him ever suggesting that they actually own the physical silver to offset their short positions.
My friend Trader David R flatly states that this IS the case; he has seen the silver with his own eyes in London. In fact, he asked me to come with him last year and told me he would bring me to the vaults and personally show me the silver. Last winter he emailed me and said, “I will be going to London in May; if want to come along, I am sure I can get you a tour of a few of the major banks vaults (JPM included) and you can see all of the gold and silver for yourself ?”For those inquiring minds wishing for a little background on this mysterious gold trader David R:
I worked at some of the largest bullion banks in the world over my career and I ran all types of books and did a lot of business with Central Banks around the globe. I was involved in the largest gold hedge ever done in the history of the world back in 1996. This has been my life for the past 18 years. From 2000 to 2006 I was the gold trader at Barclays London. I have worked for AIG, Barclays, and UBS, some of the biggest bullion desks in the world.
I worked for three of the major bullion banks for 11 years and was in charge of Barkleys gold book and the hired 42 Brinks trucks to move our 27 million ounces of gold out of HSBC ‘s vault and into JPMs vault when HSBC raised storage costs on us, I am 100% positive that it’s there. I know we had 27 million ounces of gold on our daily balance sheet and the other big banks all had around the same amounts.
David R left Barclays and moved to Manhattan to work for one of the largest and most successful privately held hedge funds in NYC. He was in charge of the precious metals trading department, and supervised dozens of the most talented precious metal’s traders in NYC. I was told by a reliable source that every metals trader worth his salt would kill to work for that firm. The traders were not salaried, they worked on commission and they all made BIG money. That is where I met David. He gave me a personal tour of their trading department. His understanding of the gold and silver industry and his resume is as good as it gets.
The trader states that JPM is indeed massively long physical precious metals and set to vastly benefit from the coming mania, precisely as Jim Sinclair has long predicted:
They buy the physical silver at the same time they sell the future (on Comex) futures trade in contango (higher price than spot physical) they get zero interest rate cash from FED so borrow the money for free, they own the vaults to store the silver…. so as the future comes to maturity they can either settle against their physical long or roll the future to collect more free contango…. This is pure arbitrage paid for by the FED. This has been going on for over 30 years and why shouldn’t they be allowed to have 25% of the Open Interest? There is no manipulation because they are short the futures and long the physical and have “ZERO” price risk, but nice profits! It’s brilliant trading and completely 100% legal and that’s why they will never be charged with manipulation because there is none going on. Sometimes it’s just that easy!
David R states there is no massive shortage of physical silver- it is just being hoarded by the bullion banks in their own private vaults ahead of dollar devaluation and collapse:Let’s go and visit their vaults and you can see all the physical silver there… Lease rates are at full carry +. There is no shortage what so ever and the banks are charging 40 bp for storage because they cannot find any more space to put it all, you can take all the physical you want! The JPM manipulation is not a manipulation, but a way of trading that has been going on for years. JPM is short futures (due to contango) and long physical. People need to understand that metals are just a derivative of the interest rate market and once people do, they will get a better understanding why the market moves the way it does.
I explained to you what HSBC and JPM do on the silver. They get $ from the FED for free. They own all the storage vaults, so they do not have to pay the fees for storage. They then own the physical silver in their vaults and sell the futures contracts (which are in contango) at a much higher price than OTC price so then hold the both till delivery. Since there is no cost for $ and no cost for storage, they made a fortune on earning the contango of the silver and gold market. It’s a brilliant strategy, which has made them a fortune.
If you sat with me for a day I could show you how this market really works.
Miles Franklin’s David Schectman states he has known David R for over four years, that he is legitimate and the real deal, and that although David states JPM’s short silver (and gold) positions are NOT naked, it is massively bullish for both metals, stating:
He is absolutely convinced that gold and silver are going MUCH, MUCH higher. He told me last week that with the Fed’s latest “open-ended” QE edict, the dollar and bond market are done, finished and the bull market in gold is guaranteed! As far as he is concerned, Bernanke has sold out our kids and grandchildren and it no longer makes any difference who occupies the White House!
He is absolutely convinced that gold and silver are going MUCH, MUCH higher. He told me last week that with the Fed’s latest “open-ended” QE edict, the dollar and bond market are done, finished and the bull market in gold is guaranteed! As far as he is concerned, Bernanke has sold out our kids and grandchildren and it no longer makes any difference who occupies the White House!
As mentioned previously, if JPM is shorting gold and silver futures with the intent of eventually breaking the futures market/ physical price link to the metals, this would explain motive (pure profit- always the ONLY motive for a bankster), as well as the reason why the CFTC has been unable to charge JPM with manipulation of the silver market- even though they routinely fleece the specs using their algos and raids.
and....
http://www.scribd.com/doc/29364741/Tungsten-Genesis
60 Tonnes Of Tungsten Filled Gold Bars Found In Asian Depository
Sunday, September 23, 2012 20:23
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http://www.scribd.com/doc/29364741/Tungsten-GenesisMaybe now people will start to believe, in light of 10 more Tungsten filled gold bars being found. This is just the beginning! 400oz bars have been massively counterfeited and the gold stolen, this is the largest true wealth robbery in the history of the world.
Think about it, imagine you own a 400oz gold bar, and you worry it may be counterfeit. What do you do? If you drill it and you find its fake, you’re out almost $700,000. You cant just seal it back up and pass it off. Or you could use ultrasound and figure out its fake, but then what, pass it off? If the next guy checks hes coming to you!
So no one wants to check, and the last thing want to do if they find a fake is to report it on themselves cause then people distrust them. This is going to be an epic scandal when it comes out that the GOLD IS GONE! ITS ALMOST ALL GONE PEOPLE! ITS BEEN STOLEN!!!
THE US HAS NO GOLD AT ALL! They’ve been 100% loooooootttteeddd… You think the FED and the wall street gang stop their theft on wall street stealing trillions in fiat? You think these bankers forgot that GOLD is the only real money in history? LOL, they convinced everyone to take their paper for long enough to loot the planet of its gold!
and.......
http://www.scribd.com/doc/29364741/Tungsten-Genesis
for the full story....
London Gold Pool
was the pooling of gold reserves by a group of eight centralbanks in the United States and seven European countries that agreed on 1 November1961 to cooperate in maintaining the Bretton Woods System of fixed-rate convertiblecurrencies and defending a gold price of US$35 per troy ounce by interventions in theLondon gold market.The central banks coordinated concerted methods of gold sales to balance spikes in themarket price of gold as determined by the London morning gold fixing while buying goldon price weaknesses. The United States provided 50% of the required gold supply forsale. The price controls were successful for six years when the system became no longerworkable because the world's supply of gold was insufficient, runs on gold, the Britishpound, and the US dollar occurred, and France decided to withdraw from the pool. Thepool collapsed in March 1968.The London Gold Pool controls were followed with an effort to suppress the gold pricewith a two-tier system of official exchange and open market transactions, but this
gold window
closed in 1971 with the Nixon Shock, and resulted in the onset of the gold bullmarket which saw the price of gold appreciate rapidly to US$850 in 1980
http://www.zerohedge.com/news/2012-09-24/get-your-fake-tungsten-filled-gold-coins-here
Get Your Fake Tungsten-Filled Gold Coins Here
In the aftermath of the recent stories about Tungsten-filled 10 ounce gold bars discovered in midtown Manhattan, there have been two broad sentiments expressed by the precious metals community: i) that this is as many have expected, and that of the physical inventory in circulation, much is fake (particularly that held in official hands, either via ETFs or in sovereign repositories which for various reasons still can not be publicly assayed) and ii) is the comfort that while it is relatively easy and cost-effective to use tungsten to falsify larger gold bars and bricks, those who own primarily gold coins are safe as for some reason, it is less economic, feasible or widespread to counterfeit smaller precious metal denominations. Sadly, while i) may be true, ii) is patently false. The proof comes courtesy of a firm called ChinaTungsten Online which proudly markets its broad "tungsten-alloy services" including, you guessed it, the gold plating of various tungsten formulations among them "gold" bricks, bars and, yes, coins. Oh did we mention a Chinese company openly advertizes its tungsten gold-plating and precious metals replication services, something which the tabloid media openly mocks as improbable conspiracy theory. Well, as they say, it is only conspiracy theory until it becomes conspiracy fact.
From the website's Tungsten Heavy Alloy Scan Gold Coin section:
Tungsten is the only lower value metal that has a specific density close enough to gold to fabricate passable counterfeit pieces of the same size and weight as genuine Pictures of tungsten fake gold coins and ingots. Over the years, there have been a few isolated reports of smaller tungsten fake gold coin found to have been drilled to remove some of the gold which was replaced with tungsten. However, tungsten fake gold coin is far more profitable to fabricate larger original bars of tungsten that are then scanning gold.
Because the existence of counterfeit tungsten fake gold coin could have such a huge impact on the financial markets, there is a huge potential for deception and misinformation to be passed around.Be very careful about automatically believing any story you may hear. For your own protection, tungsten fake gold coin would be better to take physical possession of the smaller sizes of tungsten fake gold coins and now, and know that what you own genuine solid tungsten fake gold coin.
Notice: Chinatungsten Online (Xiamen) Manu.& Sales Corp. is a very professional and serious company, specializing in manufacturing and selling tungsten fake gold coin and other tungsten related products for more than two decades. We are a professional tungsten fake gold coin manufacturer. Our tungsten gold fake coin is only for souvenir and decoration purpose. Here we declare: Please do not use our tungsten fake gold coin and other fake gold coin products for any illegal purpose. We can provide all kinds of tungsten fake gold coin as your requirements.Our tungsten fake gold coin products are qualified.
Pictures of Tungsten Fake Gold Coins:
Therefore, if you are interest in tungsten fake gold coin, please feel free to contact sales@chinatungsten.com, or telephone 86 592 512 9696.
Well at least the company that markets itself as proving "all kinds of tungsten fake gold coin" has extensive disclaimers. The point is that anyone wishing to, can procure tungsten-plated gold coins with one simple telephone call.
Of course, for those for whom gold coins are not enough, the Chinese firm is happy to provide every other imaginable formulation. Such as Tungsten fake gold bars:
Detecting a high-quality tungsten fake gold bar would be extremely difficult. It would likely require significant and material alterations to the bar being tested and this would negatively affect the marketability if its hallmark veracity were vindicated. Some applications require the tungsten to be fake gold. The main reasons for tungsten fake gold bar are to protect the wire from corrosion or to solder it to other metals.
Besides, tungsten alloy products could also made as tungsten fake gold bar which posses a better electric conductivity, and contribute greatly to the world industry development. Also tungsten fake gold saves the energy and poses no pollution threat to the environment and thus to achieve a sustainable development.Notice: Chinatungsten Online (Xiamen) Manu.&Sales Corp. is a very professional and serious company, specializing in manufacturing and selling tungsten fake gold and other tungsten related products for more than two decades. Our tungsten fake gold product is only for souvenir and decoration purpose. Here we declare:Please do not use our gold-plated tungsten alloy products for any illegal purpose.Pictures of Tungsten Fake Gold Products
There are many more options, for those who are so inclined, to reinforce their inventory of gold-plated tungsten products on the company's website. And naturally, in addition to the bolded applications of tungsten gold bars, one can conceive of some more. Especially in verticals in which the actual end product does not exist, and all that does exist is a receipt claiming gold is at the end of a rehypotehcation chain. One wonder how many invoices CIF Liberty 33 or various other gold ETF secret "warehouses" one could find upon rummaging through the garbage behind the firm'sheadquarters in Xiamen.
With all that said, perhaps the best use of the abovementioned services would be for a contingency case in which the government of country X, Y and/or Z were to decide to replicate a certain 1930's executive order in a global coordinated attempt to devalue the fiat system not on a relative basis, something which fiat printers are more than capable of, but on an absolute basis by confiscating all the gold in circulation. It just might make such a confiscation more complicated if all the usual suspects were to hand over to said governments not gold but gold-plated Tungsten, which in turn would make the endgame, i.e. the terminal currency devaluation of fiat, that much more problematic.
It would be truly ironic if in the end the same Tungsten that is now the bane of precious metals dealers everywhere would be the reason why central bank X, Y and/or Z was unable to destroy its currency sufficient fast.
Note: Zero Hedge does not advise, encourage nor endorse its readers to hypothetically exchange their gold inventory for a comparable but worthless yet prominently positioned inventory of "rehypothecated" pseudo-equivalent products - note that only bankers have been known to rehypothecate valuable assets into worthless liabilities - in advance of an even more hypothetical physical gold confiscation order endorsed by the authorities.
and.....
http://www.zerohedge.com/news/2012-09-23/gold-counterfeiting-goes-viral-10-tungsten-filled-gold-bars-are-discovered-manhattan
Gold Counterfeiting Goes Viral: 10 Tungsten-Filled Gold Bars Are Discovered In Manhattan
A few days ago, our report on the discovery of a single 10 oz Tungsten-filled gold bar in Manhattan's jewelry district promptly went viral, as it meant that a tungsten-based, gold-counterfeiting operation, previously isolated solely to the UK and Europe, had crossed the Atlantic. The good news was that the counterfeiting case was isolated to just one 10 oz bar. This morning, the NYPost reports that as had been expected, in the aftermath of the realization that the sanctity of the gold inventory on 47th Street just off Fifth Avenue has been polluted, and dealers promptly check the purity of their gold, at least ten more fake 10-ounce "gold bars" filled with Tungsten has been discovered.
and......The Post has learned as many as 10 fake gold bars— made up mostly of relatively worthless tungsten — were sold recently to unsuspecting dealers in Manhattan’s Midtown Diamond District.The 10-oz. gold bars are hugely popular with Main Street investors, and it is not known how many of the fake gold bars were sold to dealers — or if any fake bars were purchased by the public.
As is to be expected, the Post story is weak on details: after all, any dealer who admits to having allowed Tungsten to enter his or her inventory can kiss their retail business goodbye, as customers will avoid said Tungsten outlet like the plague, for the simple reason that suddenly counterparty risk has migrated from Wall Street to the Diamond District. The one named dealer is the same one who already made an appearance in the previous story on Tungsten in gold's clothing.
One gold dealer discovered that four of the 3-inch-by-1-inch gold bars he bought — worth about $72,000 retail — were counterfeit.“It has the entire street on edge,” said Ibrahim Fadl, 62, who has been the owner of Express Metal Refining, a Midtown gold-refinery business, for the last 11 years. “I and the others on the street work off of trust; now that trust is strained.”Fadl, a Columbia University graduate with a master’s degree in chemical engineering, and who has more than 40 years in the industry, purchased the four fake bars from a well-known Russian salesman with whom he has done business.
Ah yes, those pesky Russians: always happy to do the Fed's bidding, because who really gains from the loss of confidence in physical gold?Fadl became suspicious when he offered the salesman a deep discount for the investment-grade gold bars and he quickly accepted it, a source tells The Post.
Fadl said he did his due diligence “by X-raying the bars to ascertain the purity of the gold and weighing the bars, and the Swiss markings were perfect.”Tungsten is an industrial metal that weighs nearly the same as gold but costs a little over $1 an ounce. Gold closed Friday at $1,774.80 an ounce.
We wish Fadl all the best in his liquidation sale. Others, for logical reasons, are far less willing to step forward:
A second 47th Street refiner, who wished to remain anonymous, said he was burned recently when he bought six gold bars that turned out to be mostly tungsten, with just a gold veneer. He would not comment, though, on who sold him the bogus bars.The counterfeiting so far appears to have impacted solely PAMP (Produits Artistiques Métaux Précieux ) gold bars, madeby MTB, whose CEO can hardly be too happy that some "Russian" has made it a life mission to destroy the credibility of any gold stamped with the PAMP stamp.Raymond Nassim, CEO of Manfra, Tordell & Brookes, the American arm of the Swiss firm that created the original gold bars — with their serial number and purity rating stamped clearly into them — said he reported the situation to the US Secret Service, whose jurisdiction covers the counterfeiting of gold bars.He said his company “is supporting and cooperating with authorities any way we can.”
Nassim thought the culprit must be a professionally trained jeweler to have pulled off the caper.“The forger had to slice the original bar along the side, hollow out the gold and insert the tungsten ingot, and then reseal and polish the bar, Nassim said.
The case of gold counterfeiting has already taken NYC by storm:
At an industry dinner Thursday night hosted by Comex, the New York-based metals exchange, the room was abuzz with talk about the bogus gold bars, according to Fadl.Which was also to be expected. What is also to be expected is that as more and more stories of Tungsten making it into broader gold circulation, that retail sales of physical gold will certainly be impaired as end consumers become far more cautious about what they buy.And while we await more information, especially from the Secret Service, who is "on top" of this case, which we assume implies that gold is after all money, we leave readers with our conclusion from Tuesday: "with false flags rampant these days, we would not be surprised if this is merely yet another attempt to discredit gold, this time physical, as an undilutable medium of warehousing wealth. So buyer beware: in a time when everyone is broke, triple check before exchanging one store of wealth for another."
http://www.shtfplan.com/headline-news/chart-dollar-index-headed-for-rapid-collapse-over-next-3-to-4-weeks_09182012
“Dollar Index Headed for Rapid Collapse” Over Next 3 to 4 Weeks
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If you think the Federal Reserve’s quantitative easing will only affect the US dollar, think again. Now that the United States has officially begun it’s third round of money printing to the tune of at least $40 billion monthly, central banks around the world will also act to ‘defend’ their currencies in kind.
Moreover, because everyone is joining the fray, all of that extra money will make its way into key resource stocks and commodities, adding further upside price pressure to essential goods like food and fuel.
It’s a race to the bottom, and the losers are the 99.9% of us who aren’t being kept in the loop.
Moreover, because everyone is joining the fray, all of that extra money will make its way into key resource stocks and commodities, adding further upside price pressure to essential goods like food and fuel.
It’s a race to the bottom, and the losers are the 99.9% of us who aren’t being kept in the loop.
Quantitative easing is really another word for currency wars. A weak U.S. currency puts continued pressure on the Japanese Yen, the Chinese Yuan, the South Korean Won, the Australian dollar and other currencies.
Cheap money also fuels speculation and this money quickly drifts into commodity markets and the ETFs that help propel commodity market speculation. This is inflationary for food prices.
The lower the U.S. dollar the greater the intensity of currency wars.The break below the key uptrend line on the Dollar Index chart was an early warning of the third round of quantitative easing (QE3).
The most important question now is to use the chart to examine the potential downside limits of a QE3 weakened U.S. dollar.There are two ways this may end – neither of which is going to be good for the average Joe:
…
The weekly close below this uptrend line was the first signal of a major change in the trend direction. It came before the announcement of QE3, last week.
…
The third significant feature is historical support near 74.5. This is the upper edge of a consolidation band between 73.5 and 74.5. This is the downside target for the Dollar Index following a fall below 79.
This target can be reached very rapidly over three to four weeks. A rapid collapse of the U.S. dollar puts immediate pressure on other dollar-linked currencies.
There is a very low probability the U.S. dollar will resume its uptrend. The move below the value of the uptrend line and a fall below 79 confirm that a new downtrend has developed.
The weakness in the U.S. Dollar will hurt export dependent economies and companies.
CNBC
- The Fed et. al. continue to print, so much so that prices for food, gas, utilities and other key commodities that are linked to US dollar movements will rise exponentially. This rise in prices will accelerate the pressure on consumers as more jobs are lost in an ever progressing, self reinforcing economic death spiral. The pressure of rising prices, even though the Dow Jones may reach 20,000 or 50,000 points, will be so great that American consumers simply won’t be able to pay their bills or put food on the table.
- The Fed and their brethren around the world won’t be able to print fast enough to maintain stable financial markets, leading to stock market crashes in Europe, Japan, China and the United States, which then leads to a shift of capital to US Treasury bonds, ironically strengthening the dollar. A weak US economy that isn’t creating jobs and is adding tens of thousands of people to an already overburdened social safety net every week will eventually lead to confidence being lost in the US government’s ability to repay its debts. As we noted in 2012 Predictions of a Mad Tin Foilist, the end result will be a currency crisis, or de facto default by way of hyperinflating away our debt.
Both scenarios are virtually the same, as both will end with complete and utter destruction of Americans’ wealth.
Despite the mainstream notion that inflation is under control and most of the money is sitting on the sidelines with banks, all we need to do is look at the price increases for consumers since private and public bailouts begin in late 2008. Gas has doubled. Food is up over 25%. Electricity costs and the cost of just about every other non-debt based asset has steadily risen.
This is not going to stop.
While timelines remain elusive because of never ending government intervention into financial markets and economies, the policies being instituted by central banks around the world can only lead to continued degradation of paper currencies and the rise in prices of all goods linked to those currencies.
In January of 2010 we suggested a strategy of buying physical commodities at today’s lower prices and consuming those commodities at tomorrow’s higher prices. The trend for fiat paper money and physical assets has not changed and is, in fact, more pronounced now than ever before.
The US dollar is being systematically weakened until it no longer exists as a viable means of exchange. When this happens you’d better be prepared to operate in a society where traditional money is replaced with mechanisms of exchange like precious metals, food, critical supplies and production skills.
You can begin taking simple steps to prepare now. The collapse of the existing global paradigm is accelerating and if you’re not ready for it the price you’ll pay will be severe.
Despite the mainstream notion that inflation is under control and most of the money is sitting on the sidelines with banks, all we need to do is look at the price increases for consumers since private and public bailouts begin in late 2008. Gas has doubled. Food is up over 25%. Electricity costs and the cost of just about every other non-debt based asset has steadily risen.
This is not going to stop.
While timelines remain elusive because of never ending government intervention into financial markets and economies, the policies being instituted by central banks around the world can only lead to continued degradation of paper currencies and the rise in prices of all goods linked to those currencies.
In January of 2010 we suggested a strategy of buying physical commodities at today’s lower prices and consuming those commodities at tomorrow’s higher prices. The trend for fiat paper money and physical assets has not changed and is, in fact, more pronounced now than ever before.
The US dollar is being systematically weakened until it no longer exists as a viable means of exchange. When this happens you’d better be prepared to operate in a society where traditional money is replaced with mechanisms of exchange like precious metals, food, critical supplies and production skills.
You can begin taking simple steps to prepare now. The collapse of the existing global paradigm is accelerating and if you’re not ready for it the price you’ll pay will be severe.
It doesn't help that many people like to throw around the "we can always borrow from China" excuse either. It's like the dollar is weaken and not many are that concerned about it because "We're America and we'll always be on top." (sigh)
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