A Lesson In Gold Price Suppression

April 12, 2018

If Comex digital metal prices were back down today solely upon easing war fears, I think we'd all be relieved and fine with it. But when you realize that yesterday's "market" action was simply just the latest act of The Criminal Banks, you might feel otherwise.

Again, we've written about this a million times and if you haven't yet listened to yesterday's podcast, you should do so right now. Check the charts, too. Note the amount of volume it took to move price up during Comex hours versus the amount of volume needed to maneuver it back lower on the Globex. You might also go back rand reread the seminal piece on price manipulation through open interest, written about a year ago: https://www.tfmetalsreport.com/blog/8252/econ-101-silver-market-manipulation

So, in the end, it's just another chapter in the sordid history of Bank price manipulation and suppression. Well, not even a chapter, really...just a footnote, instead, as this has all taken place in just two days. Price was ramped on heavy volume yesterday, only to be shoved back to Tuesday's level on light volume. See below:

And what is the primary tool The Banks use to accomplish this? Their untethered ability to create from thin air as many new Comex gold contracts as necessary, literally at a moment's notice. In this latest example, The Banks created a whopping 32,161 contracts on Wednesday. This increased the total OI by nearly 6.5% and it represented 3,216,100 ounces of digital gold or almost precisely 100 metric tonnes!

One Hundred Metric Tonnes!

And please don't fall for The Apologist Shill bullshit of how this is hedging for mining companies. Do you really think that some mining CEOs had left standing orders with The Bullion Banks to immediately sell forward a year's worth of production on any sudden, war-related spike in price? Give me a break! But this is what The Apologists and Shills want you to believe!

So now today, with war fears slightly easing and the dollar rising, the price of Comex digital gold is rapidly falling. I have a last of $1342, which is a full $27 or 2% off of its highs of yesterday morning. As The Specs unload the digital gold exposure that they just bought yesterday, The Banks gleefully buy back and cover the shorts that they just created. And you'll surely see this in the open interest report tomorrow where, no doubt, total Comex gold open interest will fall backward by at least half of what was created yesterday.

It's a scam! It's a fraud! And it's all plain to see except by those who are either willfully blind or supporting an agenda.

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Craig Hemke

Our Ask The Expert interviewer Craig Hemke began his career in financial services in 1990 but retired in 2008 to focus on family and entrepreneurial opportunities. Since 2010, he has been the editor and publisher of the TF Metals Report found at TFMetalsReport.com, an online community for precious metal investors.

The term “carat” comes from “carob seed,” which was standard for weighing small quantities in the Middle East.