Gold strategy in the current economy

[MSE refugee]

Wrong, the wise have always favoured cockup, as opposed to conspiracy theories.

Anybody who can be influenced to buy gold because of half baked assertions of manipulation, should not have got involved with backstreet lobotomists.

..._

Yes you are quite correct the bullion banks are completely trustworthy and honest in their dealings.

No wrongdoing has ever been proved against them nor will it ever be,they do God's work.

You are very wise not question authority as they always know what is best for us.

[DiggerUK]

Gatagoons

....they do God's work.....you are very wise not to question authority.....

The masters of the universe have done an impeccable job, doing what they always do. No surprises there.

It's the Gatagoons who lack any "authority". How can anybody accept that a conspiracy to manipulate gold prices is going on, when it has failed abysmally for over half a century to achieve it's goal; and at the same time have been discovered by those who visit back street lobotomists.

Golds security should be sought because it can't be manipulated.

..._

[Errol]

How can anybody accept that a conspiracy to manipulate gold prices is going on

http://www.zerohedge.com/news/paul-mylchreest-presents-various-visual-case-studies-gold-price-manipulation

This report provides proof of massive manipulation (suppression) of the gold price since the US sovereign credit downgrade on 5 August 2011. There are scores of “smoking guns” in the pages below. Rigging the gold market violates Section 1 of the Sherman Act and Section 9(a) of the Commodity Exchange Act under US law.

It explains in detail and illustrates in chart form exactly HOW the manipulation is taking place. Few portfolio managers or sell-side analysts have “deciphered” the modus operandi of the cartel banks (never mind financial journalists & the public). It’s a fractal-like pattern of interventions within interventions which are driven by repeating algorithmic trading programmes.

In-depth analysis of the gold price since 5 August 2011 shows that these algorithmic trading programmes operate across time zones (often on a 24/7 basis) and are particularly obvious during trading in London and (especially) New York. I’ve highlighted FIVE EXAMPLES of these algorithmic trading programmes which I term:

1. Set Up algorithm

2. Soft Capping algorithm

3. Hard Capping algorithm

4. Death Star algorithm

5. COMEX Covering algorithm

The intra-day and daily operation of these algorithms also fits into a weekly and monthly pattern of interventions, hence their fractal-like nature.

Working in tandem with these algorithms are specifically-timed “hits”. The gold price gets smashed, when it should surge, on key announcements, e.g. new monetary stimulus (rate cuts, LTROs, etc.). This is to prevent a link developing (in the minds of investors) between each new act of monetary desperation with the ultimate condemnation of a rising gold price. SIX EXAMPLES are explained in detail including the already infamous “Leap Day Smash” of 29 February 2012.

[DiggerUK]

....This report provides proof of massive manipulation (suppression) of the gold price.....Working in tandem with these algorithms

Having waded through 57 pages, against my better judgement not to, I see a lot of assertions, allegations, charts from Kitco.....and a quote from Elvis Presley.

Algorithms are one tool that hedgies and traders use to automate their trades, and are based on the same mathematical principles as those used by the 'Quants' who were in service to the masters of the universe; and, if memory serves me well, had a leading role in the current financial crisis that began in 2007.

Algorithmic buying and selling also works both ways don't forget, being set to trigger both buys and sells automatically. These are usually referred to as 'support' or 'resistance' points in reports that are a regular feature on all serious gold sites. Kitco in particular.

Are computers now part of the manipulation conspiracy? Was Hal 9000 real, and not some sci fi fantasy? Is Fat Finger the cover name for the Federal Reserves algorithmic programme? Should we begin to panic if I Robot opens up 'I buy your gold boutiques'

Please, get a life and stop this conspiracy theory nonsense, you will frighten the newbies.

..._

[DiggerUK]

.....When you have watched the gold market tick-by-tick for half a decade as I have, you simply know when something looks like manipulation.......

The market does what the market does. It is the boss.

To anybody who deals in fact, not fiction, it looks like normal market activity.

The report makes a great deal of a "takedown" in March 2008. Some "takedown", when we are looking at prices that are nearly double now!!!!

Manipulation my @rse.

..._

[Crashman Begins]

The market does what the market does. It is the boss.

To anybody who deals in fact, not fiction, it looks like normal market activity.

The report makes a great deal of a "takedown" in March 2008. Some "takedown", when we are looking at prices that are nearly double now!!!!

Manipulation my @rse.

..._

The Western governments needed to keep the price of gold down so it could flow where they needed it to flow. The key to free up gold was simple. The Western public will not hold an asset thats going nowhere, at least in currency terms. ( if one can only see value in paper currency terms then one cannot see value at all )

Edited May 7, 2012 by Crashman Begins

[200p]

Here's an exclusive on HPC.

You know that the Rich List came out recently.

See the charts attached.

Chart 1 Gold price, average annual numbers. Uptrending, OK. Old news.

Chart 2 What the top 200 richest people in the UK are worth (in total).

Chart 3 Chart 2 divided by Chart 1. It's like the dow/gold ratio.

This should make for some eyebrow raising moments. I suspect only a small percentage of the Top 200 realise this. If they don't they are going to slowly fall out of the Top 200 list - rich ones make note!

It would have been easier for a billionaire, to sell everything he/she has in 2000, sat on gold (on some beach somewhere), rather than doing what they do currently. I suspect this confirm trend to continue until the bull dies.

Edited May 7, 2012 by MrTReturns

[Fortune]

Here's an exclusive on HPC.

You know that the Rich List came out recently.

See the charts attached.

Very interesting charts. Thanks.

Would you say that the 'mega-rich' sheeple will be the ones buying gold (from me?) at 8000 GBP per oz? Hmmm nice.

[DiggerUK]

TBF there are interviews on here giving some credence to how the paper market in Gold doesn't reflect buying / selling pressures.

There are interviews everywhere that can be used to give credence to anything.

Facts are in short supply with the infamous claims of the Gatagoons.

What still amazes me, is how manipulation of a paper stock somehow equates to manipulation of what a goldsmith in Bangalore pays for gold to make jewelry.

It's just crackers to believe that.

I do acknowledge that governments try by all kinds of means to maintain a 'stable currency', but that's their job. Always has been throughout history, and will continue into the future. Nothing sinister about it. Gordon Brown selling the gold was not sinister, with the boom as it was, it pleased the masters of the universe greatly.

To maintain that it is sinister, you also have to believe that governments really do exist for the little peoples benefit, and acted out of character. Truth is they did what they always have done. Screwed us over.

..._

[warpig]

Don't be ridiculous, what about the London Gold Pool?

Having waded through 57 pages, against my better judgement not to, I see a lot of assertions, allegations, charts from Kitco.....and a quote from Elvis Presley.

Algorithms are one tool that hedgies and traders use to automate their trades, and are based on the same mathematical principles as those used by the 'Quants' who were in service to the masters of the universe; and, if memory serves me well, had a leading role in the current financial crisis that began in 2007.

Algorithmic buying and selling also works both ways don't forget, being set to trigger both buys and sells automatically. These are usually referred to as 'support' or 'resistance' points in reports that are a regular feature on all serious gold sites. Kitco in particular.

Are computers now part of the manipulation conspiracy? Was Hal 9000 real, and not some sci fi fantasy? Is Fat Finger the cover name for the Federal Reserves algorithmic programme? Should we begin to panic if I Robot opens up 'I buy your gold boutiques'

Please, get a life and stop this conspiracy theory nonsense, you will frighten the newbies.

..._

[warpig]

Can you expand on this, I don't see how this somehow disproves manipulation.

What still amazes me, is how manipulation of a paper stock somehow equates to manipulation of what a goldsmith in Bangalore pays for gold to make jewelry.

It's just crackers to believe that.

[Errol]

Detlev Schlichter - Why gold is my favourite asset - http://papermoneycollapse.com/2012/04/why-gold-is-my-favourite-asset/

[Errol]

India Folds On Gold Excise Tax: Indian Gold Restocking Imminent - http://www.zerohedge.com/news/india-folds-gold-excise-tax-indian-gold-restocking-imminent

the excise tax has been officially withdrawn, and the biggest source of gold demand is set to see gold imports unleashed once again.

[Democorruptcy]

Silver's having a mare.

How low are we going now it's bust the 30?

[Democorruptcy]

Look at that for a V recovery

[200p]

Very interesting charts. Thanks.

Would you say that the 'mega-rich' sheeple will be the ones buying gold (from me?) at 8000 GBP per oz? Hmmm nice.

Hehe they'll be a panic.

[DiggerUK]

Time magazine

Don't be ridiculous, what about the London Gold Pool?

I was wondering how long before this old chestnut came up.

This article from Time magazine is one of half a dozen that were run at the time.

Check out that date.

As I said, not the best kept secret conspiracy of all time.

..._

[DiggerUK]

Can you expand on this, I don't see how this somehow disproves manipulation.

If paper sales are sales of 'fictitious' gold, how can they affect the price of real gold that a jeweler in Bangalore buys.

Aren't most of the arguments about manipulation based on the premise that real gold isn't being traded.

Or are we on to the even older chestnut of there being no gold in central bank vaults.

..._

[Take Me Back To London!]

Look at that for a V recovery

Thanks for this and the previous silver report.

It does not like going under $30.

[warpig]

This article is dated 1 month after The Gold Pool's (TLGP) collapse, 6 years after it's inception. One tier of the second iteration of TLGP, was gold trading on the open market, so of course everyone knew about it. The point of mentioning the London Gold Pool, is the price of gold has been successfully managed in the past. Gold trading in the public domain caused a gold carry trade and eventually the Nixon shock. The rest is current history...

Why does it matter who does or doesn't know about the manipulation, the issue is that it happens. Yes HFT is part of the manipulation.

Time magazine

I was wondering how long before this old chestnut came up.

This article from Time magazine is one of half a dozen that were run at the time.

Check out that date.

As I said, not the best kept secret conspiracy of all time.

..._

[warpig]

Commodity exchanges in strategic time zones are interlinked, they function as one global market. Unless a futures trader requests physical delivery, not a single London Good Delivery Bar is moved from one vault to another, everything is settled in cash. The credibility of these exchanges, extends to the paper trades placed on them, even if there is an estimated [45|100]:1 ratio of paper to physical gold. Pseudo paper gold masquerades as the real thing and certainly effects the price of gold in Bangalor. If the market was reliant on just physical gold, the price would have to be multiples higher due to scarcity. Why should a market trade in virtual commodities, unless it's a mechanism for price control?

If paper sales are sales of 'fictitious' gold, how can they affect the price of real gold that a jeweler in Bangalore buys. Aren't most of the arguments about manipulation based on the premise that real gold isn't being traded.

Or are we on to the even older chestnut of there being no gold in central bank vaults.

..._

[DiggerUK]

.....The point of mentioning the London Gold Pool, is the price of gold has been successfully managed in the past.....

......Unless a futures trader requests physical delivery, not a single London Good Delivery Bar is moved from one vault to another....If the market was reliant on just physical gold, the price would have to be multiples higher due to scarcity......

That's my starting point for asking why the conspiracy arguments are still common coin, the fixing has never worked, and is well known. It is a tool of state to protect and maintain a stable currency, something that enterprise needs to rely on.

For me it is the state that is sinsiter, not what it has to do to maintain some sort of credibilty.

As an aside, it needs to be remembered that state fixng of gold's price is an imperfect art anyway; even Sir Isaac Newton failed to find a solution.

As to your second point, gold is bought and sold many times a day to be used as security in forex deals and, as you point out, never leaves it's hole in the ground. The ratios are unknown and can only be speculated on. LBMA members only reveal gold transfers, not gold traded, which reveals b()gger all. If the truth be known I suspect that is the bulk of gold business.

But if anybody needs physical, it's obtainable. And that applies equally to central banks, SPDR, me and you, there is no shortage. When demand for delivery is high then the pog will get a boost, but that is the market for you.

The flip side to that, is a drop in price if physical holders sell.

..._

[warpig]

The current gold market is a fractional system, where only a small percentage of tangible product exists. It's possible to have a run on the commodity exchanges, the same as you can have on the banks and people need to be aware of this. There is not enough physical gold in the system to satisfy current demand.

When the world was on an gold standard, it's fair to say the government acted within its rights to control the price of gold. However, as it now trades freely on the open market, any intervention is unwarranted and unjust IMO. Raising margin hikes 7 times in nearly as many days or selling 3/4 of the worlds annual production in 4 minutes has only one motive, to cripple the price. This is the work of nefarious governments, HFT algorithms, bullion and central banks with the sole aim of protecting the reputation of their currencies. Is this common knowledge? No. Is this part of some insidious plot to push investors in to bonds? Yes. Do I class this as a conspiracy to defraud the average investor? Yes I do.

That's my starting point for asking why the conspiracy arguments are still common coin, the fixing has never worked, and is well known. It is a tool of state to protect and maintain a stable currency, something that enterprise needs to rely on.

For me it is the state that is sinsiter, not what it has to do to maintain some sort of credibilty.

As an aside, it needs to be remembered that state fixng of gold's price is an imperfect art anyway; even Sir Isaac Newton failed to find a solution.

As to your second point, gold is bought and sold many times a day to be used as security in forex deals and, as you point out, never leaves it's hole in the ground. The ratios are unknown and can only be speculated on. LBMA members only reveal gold transfers, not gold traded, which reveals b()gger all. If the truth be known I suspect that is the bulk of gold business.

But if anybody needs physical, it's obtainable. And that applies equally to central banks, SPDR, me and you, there is no shortage. When demand for delivery is high then the pog will get a boost, but that is the market for you.

The flip side to that, is a drop in price if physical holders sell.

..._

[warpig]

There's a good interview with AEP here.

http://www.telegraph.co.uk/finance/g20-summit/5072484/Russia-backs-return-to-Gold-Standard-to-solve-financial-crisis.html

[R K]

He's a self-confessed unabashed metal head. He's as far from a contrarian as it's possible to be. He's so convinced by his position he repeatedly calls the oscillator bottoms as lows, rather than selling the counter-trend tops. Newbie errors.

There's a $100 move in gold on its way, but I suspect he'll be the wrong side of the trade.

$1614, as expected