Gold and Silver Price Manipulation Part 4 of 11 by illuminati silver

Video transcript:

Today is Sunday 17th January 2016 and are addressing the issue of Gold and Silver price manipulation. In parts 1 -3 we highlighted the main advocates who have accused Governments and Central Banks of such manipulation. In this video we are going to address one of the ways in which that manipulation is alleged to take place.

The Gold Anti-Trust Action Committee (GATA) Which was officially formed in January 1999 and whose Chairman is the now well-known owner of the Metropole Café website – Mr Bill Murphy - has advocated that gold price suppression has been implemented by the major central banks (the U.S. Fed in particular) with government support and allied with the monetary power of the bullion banks.

GATA states that gold (and silver) prices need to be controlled as the gold price can pose a threat to Governments economic management, and the overall picture they are trying to present to the people. Couple this with ongoing media propaganda downplaying gold’s power as an investment and such interventions can probably be kept to a minimum.

So it is claimed that when the gold price threatens to get out of control and more drastic measures are needed to knock it back ‘flash crashes’ occur when huge futures transactions are implemented (often when major markets are mostly closed), the purpose being to knock prices sufficiently to trigger stop-loss computer trading and thus drive the price down further.

Dr. Paul Craig Roberts and David Kranzler give an example of how this is actually done - “The manipulation consists of the Fed using bullion banks as its agents to sell naked gold shorts in the New York Comex futures market. Short selling drives down the gold price, triggers stop-loss orders and margin calls, and scares participants out of the gold trusts. The bullion banks purchase the deserted shares and present them to the trusts for redemption in bullion. The bullion can then be sold in the London physical gold market, where the sales both ratify the lower price that short-selling achieved on the Comex floor and provides a supply of bullion to meet Asian demands for physical gold as opposed to paper claims on gold.”

So the primary venue of the Fed’s manipulation activity then is the New York Comex Exchange, where the world trades gold futures. Each gold futures contract represents one gold 100 ounce bar. The Comex is referred to as a paper gold exchange because of the use of these futures contracts. Although several large global banks are trading members of the Comex, JP Morgan, HSBC and Bank Nova Scotia conduct the majority of the trading volume.

Trading of gold (and silver) futures occurs in an auction-style market on the floor of the Comex daily from 8:20 a.m. to 1:30 p.m. New York time. Comex futures trading also occurs on what is known as Globex. Globex is a computerized trading system used for derivatives, currency and futures contracts. It operates continuously except on weekends. Anyone, anywhere in the world with access to a computer-based futures trading platform has access to the Globex system. It is alleged that it is the use of Globex which allows additional manipulation outside of normal trading hours to take place where the impact can be even greater.

So this is one technique used according to the authors of being able to drive down paper prices, acquire the physical and ship it overseas.

In the next video we shall highlight how the manipulation takes place in the LBMA or the London Bullion Market Association.

We hope you have found this video interesting and informative and if so, please give it a thumb up and share it on twitter. Also kindly visit our website regularly at www.illuminatisilver.com

Disclaimer:

Illuminati Silver owners come from a background of Banking, International Wealth Management and Economics. Having now retired from these worlds we are not qualified to give investment advice. Therefore, this and other productions must not be deemed to be giving such advice and merely represent the personal views of its owners.