Gold Panic Selling

August 14, 2016

After 15 years of “each day worse than the next” market manipulation – much of which, is done overtly – the thing that amazes me most is how few people care.  Sure, hundreds of millions of Americans – and billions of foreigners – have neither the resources, intelligence, nor motivation to question authority; much less in the opaque world of international finance.  And quite obviously, one of human nature’s greatest flaws is the inability – or desire – to fight the consensus.

That said, survival instinct is man’s most powerful urge – and the last time I looked, the first amendment still allows the freedom of speech.  Let alone, when the internet – and social media – enables the anonymous dissemination of truth.  Thus, in a world where billions have been negatively impacted – in many cases, irreversibly so – by the callous, self-serving actions of a handful of sociopaths, how is it that so few discuss the obvious?

To think, I wrote of the PPT’s “dead ringer” algorithm, which supports the “Dow Jones Propaganda Average” on a daily basis, nearly 4 ½ years ago.  Seven or eight  hundred “dead ringers” later – including yesterday’s – I have yet to see anyone, even Zero Hedge, comment on this blatantly obvious manipulation tool.  Let alone, that fact that it’s timing coincides with the Fed’s 10:00 AM EST “open market operations.”  Which “coincidentally,” is “key attack time #1” for Precious Metals; i.e., when the physical markets close.

Yesterday’s “dead ringer” bottoming pattern was delayed by two hours (I call this a “variations thereof” algorithm) by the horrific U.S. retail sales report.  However, the Dow’s damage was limited at the PPT’s “downside limit” of minus 50 points, before the prototypical rise into the close.  Conversely, the Cartel was forced – by said retail sales report – to go into immediate action at 10:00 AM EST with a prototypical “Cartel Herald” capping algorithm (which I also wrote of 4½ years ago, but haven’t seen a single other person mentioned), before viciously attacking at the 12:00 PM EST “cap of last resort” – at the long-standing “lines in the sand” at $1,350/oz gold and $20/oz silver, no less.

As for the 12:00 PM EST “cap of last resort,” I coined it roughly a decade ago – and yet, no one, from Zero Hedge to the most diehard anti-manipulation enthusiasts, has so much as commented on this egregiously obvious “key attack time.”  To wit, here are charts from the past three weeks – starting with the nearly identical attack patterns of the last two days.  To that end, there’s been at least one major silver raid (of at least 1%) on every day but one – nearly always, between 10:00 AM EST and 12:00 PM EST – despite the price being completely unchanged over the three-week period.

FYI, the one day when a 1%+ attack didn’t occur – July 27th – was the day when the horrifyingly weak, vastly “less than expected” 2Q GDP report was published.  And yet, even then, silver’s rise was clearly capped – at LOL, exactly $20/oz – by a 12:00 PM EST “Cartel Herald” algorithm.  And BTW, nothing about these charts is unique to the past three weeks; as no matter how far back one goes – and I’m talking, 15+ years – the patterns are the same.

Why do I go through the monotony of such detailed explanations, you ask?  Yes, part of it is to document such criminality for posterity.  However, as GATA has been doing for the past 15 years, my principal reason is to empower readers with the knowledge that attacks like yesterday’s have NOTHING to do with fundamentals, and EVERYTHING to do with an increasingly desperate powers that the be’s attempts to maintain a dying status quo.  Which in most of the world, has already been lost; and shortly, will die in the “first world,” too.

As for fundamentals, this week featured countless “PM-bullish, everything-else-bearish” headlines – which is why the Cartel, PPT, and other “manipulation operatives” were so blatantly obvious.  Let alone, with an historic election less than three months away, in which the criminal Clintons must be supported.

Such as, for example, yesterday’s miserable Chinese investment figures; Europe’s 0.3% 2Q GDP growth; and America’s minus 0.3% core retail sales, as well as declining  producer prices, import prices, consumer comfort, and government tax receipts.  And oh yeah, the BLS’ massive downward revision” of years’ worth of wage “growth” data.

Not to mention, plunging interest rates and commodity prices, notwithstanding the latest desperation short squeeze of crude oil – “coincidentally,” as prices fell below the industry-destroying level of $40/bbl – based on the latest round of production cut “rumors.”  Which, like all others before it, will quickly die on the vine.  Frankly, the only economic data that rose were business inventories – resulting in the highest automobile inventory-to-sales ratio since the 2008 crisis (when GM and Chrysler were “bailed out”); LIBOR, the interest rate that more interest rates are tied to than any on the planet; and healthcare premium expectations, as 2017 shapes up to be the year in which Obamacare’s massively destructive nature shows up in full force.

To that end, this week’s “panic selling” of Precious Metals on Wednesday, Thursday, and Friday – culminating with yesterday’s “mystery” seller of $5 billion of gold futures at EXACTLY 12:00 PM EST, with no other market moving, and not a shred of, LOL, “gold bearish” news – exemplified just how desperate the powers-that-be have become.  Let alone, as the “commercials” sport record high (naked) short positions, amidst physical markets that refuse to materially decline.

Interestingly, King World News’ interview of a “major” – but quite obviously, anonymity-seeking – swap dealer, produced the conclusion that it was Bank of International Settlements covertly intervening.  Which makes sense, given that the “Central bankers’ central bank” is well-known for such manipulative actions, to “protect” its criminal members.  Such as, for example, it’s December 8th, 2011 initiation of “Operation PM Annihilation II,” when gold surged above the key round number of $1,750/oz following a “surprise” ECB rate cut…

…resulting in the now infamous headline that showed up simultaneously – to be later in the day taken down, neither acknowledged or denied.  Which is particularly interesting, given that neither the UK nor the U.S. subsequently reported a decline in their official gold reserves…


As for today, is it said “commercial” short positions that have the powers that be so scared? 

Particularly in light of the increasingly obvious fact that no physical metal stands behind them?  Or the prospect of Donald Trump taking over?  Or, simply, the imminence of global financial and monetary collapse?  Likely, all of the all above.  As by definition, no one “panic-sells” assets that are rising.  Much less, the world’s best performing asset class – as gold is at, near, or well above its all-time high in most global currencies.

No, the only panic we’re going to see in the Precious Metal market in the coming years – and perhaps, months – is buying, when the entire world realizes the paper shorting “emperors” have no clothes; as they turn up the printing presses full force, in a last, futile attempt to prolong history’s longest, most destructive fiat Ponzi scheme.

Andrew ("Andy") Hoffman, CFA joined Miles Franklin, one of America's oldest, largest bullion dealers, as Media Director in October 2011. For a decade, he was a US-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005. Since 2002, his focus has been entirely on precious metals, and since 2006 has written free missives regarding gold, silver and macroeconomics. Prior to joining the company he spent five years working as an investor relations officer or consultant to numerous junior mining companies.

Gold was first discovered in U.S. at the Reed farm in North Carolina in 1799, a 17-pound nugget.
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