*****Graphs Showing The Manipulation Of Gold*****

Gold-Eagle reports that a new gold war.

(emphasis mine) [my comment]

A NEW GOLD WAR? - Addendum

NY MANIPULATION of the spot POG

It has been one week since the GOLD-EAGLE published my analysis of
the conflict between the gold market's overseas trading and its NY activity. If a pattern is more than a chance relationship among elements then it should prove predictive of subsequent events...

...
Now let's look at the new data additions. This week's data strongly support the previously identified trend.
For 4 out of 5 trading days the overseas trading resulted in an increase in price at the London AM fix. And just as convincingly, for 4 out of 5 trading days, the Kitco-reported NY spot closed below the London AM fix.

...
So, there we have it. An identified pattern, which strongly suggested NY MANIPULATION of the spot POG, has predicted activity during the week following its discovery.

Look for a future article where I will tackle the societal structures that make such an event possible, hard to detect and extremely difficult to shut down.

Goldensextant reports about the Preemptive Selling in COMEX Gold.

June 18, 2001. Guest Article: Mike Bolser Updates His Study of Gold Manipulation on the COMEX
Preemptive Selling in COMEX Gold: An Update
By Michael Bolser

This article updates an earlier study, Anomalous Selling in COMEX Gold 1985 to November 2000, which I published in late 2000. It validated Dr. Harry Clawar's earlier findings of consistent, predictable COMEX selling against a rising overseas market component. Dr. Clawar has since published updated conclusions, which reveal that in four out of five trading days over a one-year period the COMEX closed lower than the London AM fix. My earlier study utilized the concept of preemptive selling, a condition that occurs when the dominant forces on the COMEX sell gold three times lower than the same day's decline on London market.

The World Gold Markets


...

E-goldprospecting explains about the Hong Kong gold market.

The next large market to trade is Hong Kong, its pricing is reflected in the ACCESS quotes. The Hong Kong market is venerable in itself, having first traded gold in 1910, when British banks thought that they might need a mechanism for trading gold in the Orient. Presently it is the launch site for gold headed to mainland China, one of the fastest-growing gold markets in the world. As a matter of fact, the entire Asian market has been so active in recent years that American and European gold traders who travel there talk about it in wistful tones normally reserved for the American market of the late 1970s and early 1980s. This market is highly influential in Asia, due to the fact that Hong Kong is where Japanese investors, banks, and financial houses occasionally hedge their orders and make their physical purchases. It is also in a time zone that fits perfectly with the business day of traders in Saudi Arabia and the rest of the Persian Gulf, especially the new and quickly growing market in Dubai.

If Hong Kong gold is moving, it is usually because they are buying or selling of the Middle East investors. Large quantities of Hong Kong gold are also manufactured into jewelry for export throughout Asia. For the most part, Hong Kong serves as a convenient midpoint in a trading day because it fills the gap between markets in the United States and Europe.

[The Hong Kong gold market is the only place sharp unnatural selloffs never occur.]

My reaction: For anyone who keeps track of gold prices on a daily basis, the manipulation is as clear as day. For anyone out there who still doubts that gold prices are being heavily suppressed by the US and the UK, I have included a dozen gold charts I have saved up during the last few months (nearly all of May and June). By looking at these charts of the 24-hour spot price of gold, the meaning of "four out of five trading days over a one-year period the COMEX closed lower than the London AM fix" becomes perfectly clear.

Time zone color code

To help make the manipulation of gold even more crystal clear, I have added a time zone color code.



Green: Period when the Hong Kong gold market is open, but before the open of the London gold market. This is the only time of the day where gold prices are NEVER attacked (ie: no sharp selloffs).

First Blue: Period after the London gold market opens, but before the Hong Kong market closes. Generally, nothing to dramatic happens here, however there are occasional sharp selloffs.

Yellow: Period when only London physical gold market and NY GLOBEX are open. While the London is a physical market (which makes more difficult to manipulate), London is deeply involved in the suppression of gold. It is central banks dump their gold onto the market (via leasing or direct sales).

First Orange: Period after COMEX gold trading begins, but before the London market closes. The orange and red is where gold rallies are killed and brutal selloffs occur. Consistently, gold will go into the orange/red in rally mode and come out the other side in a selloff. It is also where gold prices go off a cliff as a result of relentless selling in the NY paper gold markets. (Any rallies in this first orange time zone are due to the London physical gold market being open)

Red: Period when only the COMEX gold market (NYMEX) is open. There is one day (May 21) that gold actually managed to rally in the in the red. That day also saw an abnormal surge in open interest on the COMEX, whish means someone was shorting the hell out of gold at the same time as the price was rising. (See *****Who sold 65 tons of COMEX gold in the last two days?*****)

Second Orange: Period after the COMEX closes until the Sydney gold market opens.

Second Blue: Period after Sydney gold market opens but before Hong Kong market opens. Again, most of the time nothing drastic happens here, except for the occasional sharp selloffs.


3 Things to look for in the graphs below:

1) In the charts below, gold prices repeatedly spike downwards due to intense selloffs. Notice that these downward spikes never, ever happen in the green time zone.

2) All the big sharp upwards spikes in gold prices only happen when the physical gold markets are open. The Sydney, Hong Kong, and London are the physical gold markets.

3) Notice how the orange/red time zones seem to suck the life out of gold prices, while the green/blue time zones seem to put gold into rally mode.




See How Governments Manipulate the Gold Market (Tuesday, March 3, 2009)



See Increasingly Blatent Attempts to Suppress Gold Prices Are Evidence Of Desperation (Thursday, April 30, 2009)


MAY



See Travelling And Gold Breaking Upwards (Tuesday, May 12, 2009)


See *****Gold Prices Breakout Despite Suppression Efforts***** (Wednesday, May 20, 2009)




See *****Who sold 65 tons of COMEX gold in the last two days?***** (Friday, May 22, 2009)




See *****Clear Manipulation Seen In COMEX Gold Open Interest***** (Thursday, May 28, 2009)

See *****Comex And London Gold Vaults Being Emptied***** (Friday, May 29, 2009)




See More Strange Action In Precious Metals (Sunday, June 7, 2009)


June




July

This entry was posted in Background_Info, Currency_Collapse, Gold, Market_Skepticism, Wall_Street_Meltdown. Bookmark the permalink.

19 Responses to *****Graphs Showing The Manipulation Of Gold*****

  1. Numonic says:

    The good news is that the govt. has lost the ability to chew gum and walk at the same time, meaning they've lost the ability to keep the market and economy propped up while keeping gold and other commodity prices down, which is why gold and the DOW are moving together but it's interchangable, one day they may focus the printing press on the bonds and gold, the next it may be stocks and gold but the one true thing is they don't have the power to drive any of the prices they want very far. It's like I said before, if they had the ability to drive gold prices way down, they would use some of that ability to prop up the stock market or bonds. The fact is the printing press is no match for the deleveraging/defaulting of debt. The debt deleveraging will exacerbate, that means the govt. will have more holes to plug with the printing press and what we will see while the govt's printing press is more busy trying to plug the new holes appearing, it will not be able to focus on keeping the stock market up or stable, it will not be able to focus on keeping gold prices down or bond prices up. So we'll see rising gold, a lower stock market and rising yields on bonds because the printing press will be focused on plugging other new holes in the economy.

  2. Anonymous says:

    No question, the evidence of massive gold selling during the London and Comex hours is overwhelming. While this is true, it is also true that anybody who wishes to accumulate gold on a regular basis must welcome these regular gold sell offs as they create opportunities to acquire gold at low prices. Who would benefit if the government would abstain from the gold market? Definitely not those who wish to acquire gold. Only those who already own tons of gold could possibly object against the government taking gold prices down. Why would these people object against low gold prices? Most likely because they wish to to sell their gold for a lot of Dollars (buy low and sell high).

    Let's hope that gold prices stay low for many more years! Gold going to the moon would indicate economic hardship.

    P.S.: Does anybody object when the government regulates the price of water? Or electricity? These price regulations are also a form of manipulation. There is no question that the majority of people would welcome government manipulation of basic utilities like bus fares, electricity, water etc. Why should gold be an exception? After all, the main purpose of gold is to produce golden wedding rings. The government issues marriage licenses. Is it so surprising that the government wants to keep the price of wedding rings affordable?

  3. Numonic says:

    Well Anonymous there is a downside to manipulating prices lower and that's "shortage". If prices continue to be manipulated lower, it will cause those things with minipulated low prices to dimish quicker and also discourages producing more as lower prices is telling the market that there is already too much supply and that's what causes the economic hardship, not the rising prices. So those who don't own gold would not benefit from a cheaper gold price as that price would be a manipulated price telling the market that there is more gold than there truly is and those who wish to aquire gold will not be able to because there will be no gold to aquire. Gold can be $1/oz but if there is only 5 ounces of gold in the world, what good is gold being $1/oz?

    But I agree that these dips are opportunities to buy gold/silver cheap but at the same time gold/silver is allot cheaper than it's going to be already so you should be buying at any of the prices we've seen thus far, even at the record highs gold/silver is still very cheap to what it will be in the near future.

    Also I hope you're not buying gold/silver to one day trade it for dollars, if you plan on doing that, you will end up selling your gold/silver too early. I don't see gold/silver reaching a top in dollars, if it ever does reach a top it'll be at a price you'd be foolish to trade for dollars. Gold/Silver will rise so far above the value of dollars that you'll be looking at dollars the way you look at gold/silver today, dollars will loose so much value, you'll think that it's being manipulated lower. The ugly truth is that it won't be manipulated lower and that that incredibly low value of the dollar will be the true value.

  4. Jane says:

    Dear Eric,
    So as a trader, can we say that we should short gold just before NY market opens?

    Hitting 4 out of 5 is not too bad, slowly we can become rich by this formula too.

  5. stibot says:

    Those subjects selling gold on NYMEX.. can do they the same in Hong Kong?

    Is it the same paper which is traded on several exchanges? Or each exchange is allowed to trade its papers only?

  6. Anonymous says:

    Dear Eric:

    Thanks for the chart and illustration of gold manipulation. Within the article yu mentioned that the green zone

    " This is the only time of the day where gold prices are NEVER attacked (ie: no sharp selloffs)."

    however, thing happened on July 6th within the green zone is a bit weird...could you explain that for me, please?

    Many Thanks,

    Max

  7. Anonymous says:

    Anonymous asked:
    "Dear Eric,
    So as a trader, can we say that we should short gold just before NY market opens?"

    Well, that would kinda be bad if the manipulation suddenly collapsed wouldn't it? Why not go long when NY closes and then you'd be hedging against a sudden rise like Eric expects?

  8. . says:

    It appears that articles such as those recently commented on are indeed being heard, given --ironically-- the sudden pattern drop on Hong Kong time this morning that turned their premise on its head.

  9. Martijn says:

    Eric, here is some more on agriculture.

  10. Anonymous said...
    P.S.: Does anybody object when the government regulates the price of water? Or electricity? These price regulations are also a form of manipulation. There is no question that the majority of people would welcome government manipulation of basic utilities like bus fares, electricity, water etc. Why should gold be an exception?

    The regulation/manipulation o price of water or electricity is differant in one very significant way: IT IS KNOWN. The public (ie: voters) can review the performance of regulators of water/electricity and show their approval of the process ballot box. However, the manipulation of gold is hidden, and the degree of government involvement is unclear (ie: how much initiative is coming from Wall Street firms?). The public isn't aware it is happening, and therefore can't express its opinion about it. The lack of accountability in the manipulation of gold makes it wrong, period.

    -----

    Jane said...
    Dear Eric,
    So as a trader, can we say that we should short gold just before NY market opens?

    Actually, this is part of the manipulation process. By repeatingly hitting gold during certain hours, manipulators create expectation gold will fall. Traders then short gold, making their job easier.

    If you want to try to take advantage of the situation by shorting gold just before the NY market opens, go ahead, but you are playing with fire. At some point, manipulators will lose control (ie: default on a gold delivery) and the price of gold will spike.

    -----

    stibot said...
    Those subjects selling gold on NYMEX.. can do they the same in Hong Kong?

    They can, but, since Hong Kong is a physical market, they run the risk of being require to deliver large quantities of gold.

    -----

    Anonymous said...
    however, thing happened on July 6th within the green zone is a bit weird...could you explain that for me, please?

    Maybe someone read this entry and decided to hit gold during Hong Kong trading?

    -----

    Anonymous said...
    Well, that would kinda be bad if the manipulation suddenly collapsed wouldn't it? Why not go long when NY closes and then you'd be hedging against a sudden rise like Eric expects?

    That is a better idea.

    -----

    . said...
    It appears that articles such as those recently commented on are indeed being heard, given --ironically-- the sudden pattern drop on Hong Kong time this morning that turned their premise on its head.

    Yes, the selloff was strange a coincidence. I is first time in the hundreds of days I have watched gold that I have seen a drop like that in the Hong Kong market.

    -----

    mr pinnion said...
    one hell of a coincidence that the gold price should drop in the hong kong market like that after your post.

    Agreed.

  11. Numonic says:

    Yeah those shorting gold/silver right now will get hurt in the near future because the govt. is aiming the printing press gun at gold/silver to drive the price down but while the gun is shooting at gold/silver, commodities and bonds the gun is away/unfocused on teh stock market and the worsening economy. The govt. is going to have to take the aim off of gold/silver, commodities and bonds to aim the gun at the stock market and economy and when this happens gold/silver will rise again and the bonds will fall. The game is not over just yet. The fact that gold/silver and commodities are lower and bonds are higher is proof the govt. still has something in it's arsenal, even though the stock market is taking a beating. But I don't think the govt. would want stocks and the economy to decline much faster than it is so it's going to try to stop this and this requires moving the crosshairs of the printing press from gold/silver, commodities and bonds to stocks and the economy. When this happens gold/silver and commodities will rise along with stocks and bonds will fall. But our debt problem is so bad that the crosshairs of the printing press will soon no longer be able to focus on stocks, bonds or commodities and will focus on the gaping holes massively appearing. the printing press will be overwhelmed and this is where we will see the end: Stocks down, Bonds/Dollar down, Commodities up. I see this fast approaching with all the bad news coming out. This next switch from commodites down, stocks down, bonds/dollar up to commodites up, stocks up, bonds/dollar down may be the last one. The only thing making a move in the opposite direction after this will be stocks(which will go from up to down), everything else will continue on their same path. Before this year ends stocks will make new lows, bonds will fall sharply(even more sharply than it did in early June), gold/silver will pass record highs and oil will rise high meanwhile the govt. will be busy trying to keep states from defaulting and massive debt from defaulting but will fail. They will be able to stop some debt in some places from defaulting but they will be overwhelmed by debt defaults much more than they are now and it will show.

  12. Numonic says:

    Again companies that need to raise cash(which will be all) will have to raise prices or close down. The false idea that companies pass on is that they can lower their prices and this will attract enough people to come and buy enough products for the company to make enough money to stay in business but the truth is even if they sold all their products(at these lower prices) they still wouldn't make enough to stay in business. If they just raised prices high enough when the debt collectors come to reposess they'll probably only have to give up some of their products and will be able to stay in business, although with higher prices but they will be able to stay in business and I'm sure if they are selling something that is neccessary for most people, they will be able to get buyers for their products. But it doesn't seem like people are doing this, instead they rather play the lower prices game and end up going out of business. They're choosing starvation over weakening the dollar. This won't last long, starvation will push people over the edge and people will choose to eat rather than maintain the strength of the dollar, so prices will rise to keep store shelves stocked. Even though people complain of the glut of stores/companies and businesses we have in this country, i think we are running low of them. I read someone say that you can't even get a decent salad or glass of orange juice in Florida but I have a feeling pretty soon, those screaming of us having too many companies and stores will soon realize that we are running low of these shops and products and shops will realize that they have to start raising prices because they are one of the few companies still remaining. In fact the same expected result for lowering prices(to attract more customers) will happen with the massive reduction of shops as more customers will be forced to shop at certain stores as those stores will be the few still open. It will be the reduction of stores that will attract more people to one store and not the lower prices and companies will realize this and raise prices so to be able to make enough money to keep store shelves stocked and to stay in business. Even at current prices, selling all your inventory isn't enough to raise the cash you need to stay in business so lowering prices isn't a good way to try to make money to stay in business, prices have to rise to ultimately stop this deleveraging. I honestly don't think we are far away from this while some deflationists do. I don't think inventory is as high as some deflationists believe they are. It won't take 10 years to deplete our inventory, I don't think we have even 2 years worth of inventory left especially with China and other emerging countries buying up everything and the world being depleted of it's producers as all the producers become consumers. So in 2 years we can very much see inventory gone. And companies will be forced to do what they have to do to keep store shelves stocked or watch many people starve and the only way to keep those last store shelves stocked is to raise prices. If companies don't make enough they'll be forced to close down. Prices must rise and they will.

  13. stibot says:

    What is the need for having money to suppress gold's price? They are selling so they can even obtain money from selling paper gold.

    I understand money are needed for bailouts, propping the stock market, but till someone is buying paper gold, seems to me boys do not need money to suppress price of paper gold.

  14. Numonic says:

    Stibot i already explained how the printing of money and more money is used to drive the price of gold and silver down. If you missed it here it is again:

    "But here's how to understand why gold and silver prices in the spot market will rise. In the spot market the supply of gold and silver is measured as the supply of debt for that gold and silver. If we are headed for massive defaults on debt, this enormous debt will be destroyed just as massive debt is being destroyed all over the economy. So all that over leveraged debt is going to end and the debt will shrink. Now since the supply of gold and silver is measured as the supply of debt for it, the more debt that is removed(defaulted) the less supply of gold and silver will be registered in the market. Their plan backfires. Because credit WAS so easy to create with a paper currency, the plan was to flood the market with credit to make it look like the market was being flooded with physical gold and silver and this is how they manipulated the price down but now that credit is contracting due to an over stretched Federal Reserve Note( which most thought impossible being that the currency is paper and seemingly so easy to produce) the manipulation will come to an end. That enormous skyscraper of debt in the gold and silver market will be evaporating and as the supply of the debt is removed, the market registers it as if the physical supply of gold and silver is being removed because the supply of gold and silver in the spot market is measured by the amount of debt. See how their original plan backfires? If there is allot of debt for gold, then the market registers it as if there is allot of physical gold but if the debt for gold decreases, the market will register it as if the physical gold supply is decreasing. And if gold is near $1000 now without any real visible traces of defaults like you said and we all know how over levereaged gold and silver is in the spot market, the spot price of gold and silver has a long way up to go. Spot gold and silver will reach astronomical prices. But WARNING! do not put your money in these paper markets because as I said, the rise in price will be due to massive defaults, so if you put your money in it you will not get your money back (the bond/trust you hold will be illiquid) but everyone that bases their price of physical gold and silver on the spot price will raise their prices just as much and you win holding the physical metal, even if you can not trade the metal for cash because of the massive shortage of cash, the metal is liquid as it's intrinsic value is high due to it's industrial properties(gold and silver) that makes infrastructure easier to help rebuild a collapsed poor economy. Gold and Silver is for the poor, don't let anyone else tell you otherwise."

  15. Numonic says:

    Stibot basically, because there was a massive expansion of debt over the years, this expansion of debt increased the number of people with the right and need to withdraw physical cash. Although in minor transactions, physical cash is still used. And these minor transactions haven't grown but the amount of people making these minor transactions have due to the expansion of credit giving a right to more and more people to withdraw physical cash for these minor transactions. This happened in the gold market too as the debt in the gold market expanded, even the minority of investors that did settle had trouble settling and defaults happened. 1% of 100 going to 1% of 1,000,000,000 makes that 1% a large number. And this causes a cashflow problem as there is not enough cash to settle for that 1% now. This leads to defualts. So the market moves from offensive to defensive. Before the debt reached that tipping point, settlement was not a problem but now the more debt that they issue in the gold market(meaning the more short sells they make) the more they increase that debt and create a bottleneck for cashflow as the 1% is increased to include more and more people with a right and need to withdraw physical cash. Because of this, they must now print more Fed Notes as they increase the amount of people with the right and need to withdraw those Fed notes which they have been doing not only in the gold market but throughout the entire economy with easy credit. Also because credit is getting harder to come by due to the defaults, demand for physical cash is increasing, and this is not bullish for the dollar even though it sounds like it. It's dollar bearish because a demand for cash leads to higher borrowing costs which are then past on to consumer prices and higher consumer prices are dollar bearish. this demand for cash from all parts of the economy effects the demand for cash from each part of the economy which leads to defaults in all markets that have demand for cash even if minor.

  16. stibot says:

    I think i understood. There are many people around which think they own gold, but during cracking/defaulting most of them will be left with paper promise. Therefore 99 % of gold will dissappear so gold will be scarce and becomes expensive.

    And you suggest it is already on such path with banknotes.

    But in short term (till no obvious cracks and propaganda still shouting green shoots) Boys can sell more paper gold since they do not need money for it and this is probably well-tested method how to distress longs and Boys need to close their shorts.

    I know you are being frustrated when people do not catch the point. I've experience mostly all do not even admit it has some sense to spend money on PM in my country. But -- I ordered some gold/silver several times from Germany and people from shop are often sorry for late responses because they are too busy these days.

  17. Numonic says:

    Yeah Stibot it's simple. If we are in a period of massive debt destruction then how can the gold/silver market which is full of debt not be effected by this. And when debt is destroyed the yield on the debt rises, as the yield is the risk premium.

    I rarely find people that say exactly what i am saying but today this guy on this radio show that I listen to said it. And here, you can listen to him say it. Download this radio show:

    http://allamericangold.com/ptg14jul09.mp3

    And go to 41 minutes and 15 seconds and the guy talks about how businesses that are still in business need to charge tripple than what they did last year just to keep the lights on and those that didn't are out of business.

    Also check out this youtube video of "Too Much Debt, Not Enough Income or Confidence"

    http://www.youtube.com/watch?v=qQXASgJZSD4&feature;=pyv&ad;=3485734883&kw;=dollar

    The guy makes two columns. One for "not enough income" case and one for "not enough confidence" case.

    In the "not enough income" column he says: "Domestic goods and services become cheap" (I say maybe to people using currency other than the dollar) but he also says underneath that "debt payments become expensive". In 3 min and 9 seconds he talks about how inventory gets depleted and is going to have to be restocked BUT TO RESTOCK YOU HAVE TO BORROW MONEY!!!!(He also mentions most of this inventory is from China anyway). But this is my point, To restock shelves you have to borrow money but borrowing money will become more expensive, where will this money come from to pay the rising borrowing costs? Obviously the only way is by raising prices. He also talks about companies trying to raise cash and so far they are doing it by issuing more stock, obviously this isn't enough and the other means to raise cash will be by raising prices of their products. Lower prices are the opposite of what these companies need to do to stay in business. They will soon realize this when the majority of businesses are closed down because of this failed business plan. Expect rising prices.

    But the guy wepollock on youtube is on point.

  18. Anonymous says:

    I'm loving it. The longer they keep the price down the more i accumulate. You can do short term trades all you like and i am guilty of the same occasionally when there are just screaming anomalies that must be capitalized upon. But folks, we all know where we are going long term and one day i believe getting your hands on physical will be pretty difficult...so accumulate..accumulate..accumulate while they are doing us this big favor.

  19. Anonymous says:

    What if: The large hadron collider on the French / Swiss border, is infact a machine that can create Gold.
    Leafd goes in - Gold comes out.

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