In These New Times

A new paradigm for a post-imperial world

Banker Manipulation Of Gold And Silver Prices Further Exposed

Posted by seumasach on November 20, 2008


steve watson


18th November

Commodities experts are in agreement that the price of gold and silver is being manipulated by bankers and government officials in order to halt a mass abandonment of paper currencies and the debt based economy.

The New York Post today carries a column by John Crudele declaring that there is a global run on gold coins and that demand is not being met by government mints.

“The price that the government charges coin dealers has recently been increased by as much as 10 percent for a 10-ounce coin.” Crudele comments, also pointing out that gold purchases that were easily filled immediately six months ago are now subject to two week waiting periods.

“There’s another more puzzling aspect to the recent gold rush.” Crudele writes, referring to the fact that the market price of gold is declining, despite the increase in demand.

Crudele quotes Bill Murphy, chairman of the Gold Anti-Trust Action Committee who states:

“Gold should be moving up… How could there be such a dichotomy between the historic high premium for coins all over the world and the low Comex price?”

Figures released by the Labor Department today show that prices of gold and silver tumbled in October by the most on record, with the gold price heading for its first annual decline in eight years.

Gold futures for December delivery declined $7.20, or 1 percent, to $734.80 an ounce at 9:33 a.m. on the Comex division of the New York Mercantile Exchange. Silver futures for December delivery dropped 4.5 cents, or 0.5 percent, to $9.285 an ounce.

Reports are attributing this to a dampening of inflation concerns, however Bill Murphy maintains that “the US government and the banks that hold bullion are intentionally keeping the price down.”

Murphy and the GATA has been attempting to expose the blatant manipulation for a number of years now. “The gold market is managed by certain central banks and their agents, the bullion banks” he wrote in 2005. “It is a price-fixing case involving some very powerful people and institutions … in fact it is a Gold Cartel.”

Murphy and others have revealed how the IMF and the central banks have sought to suppress the gold price over the last 10 years in order to maintain their monopoly over an economy based on debt and fiat paper currencies.

We have previously reported on how the official COMEX gold future numbers are completely divorced from reality and banker manipulation is rife.

Recently, influential private investment advisor Martin Hennecke echoed these sentiments declaring that the anomalous price trends were partly a result of temporary deleveraging as well as, “manipulation as the central bankers and the politicians don’t want you to panic out of their debt and go into gold.”

Hennecke and other investors such as Jim Rogers have predicted that gold prices will explode towards $2,000 an ounce with future hyperinflation resulting from the global central banks’ insistence on printing their way out of economic turmoil.

Last week more evidence of the manipulation of precious metals emerged with Silver market analyst Ted Butler obtaining a letter from the U.S. Commodity Futures Trading Commission to U.S. Rep. Gary G. Miller, Republican of California. The letter virtually confirmed Butler’s speculation in September that the smashing of the silver price this year involved JPMorganChase’s takeover of Bear Stearns in March.

Butler writes:

“Bear Stearns held the largest concentrated short position in COMEX silver (and gold) futures at the time of its forced merger with JP Morgan in March. That position was not discovered until the publishing of the August Bank Participation Report followed by the October 8 letter from the CFTC to Congressman Miller. Furthermore, Bear Stearns had no legitimate backing to the short silver position, either in actual metal or cash. Otherwise it could have been delivered against or bought back, just as would have happened were it a long position.

“The price of silver at the time of Bear Stearns implosion was $20 to $21 an ounce. A free-market covering of a concentrated short position of this size would have driven silver prices to the $50 or $100 level and would have exposed the long-term manipulation. Rather than let the free market deal with the required short covering of such an uneconomic and unbacked short position, government authorities arranged to have the short position transferred to JP Morgan. This was undertaken by the U.S. Treasury Department, along with taxpayer guarantees against loss to Morgan worth billions of dollars. This was done, no doubt, to save the financial system from imploding. This was also patently illegal, as it aided and abetted the silver manipulation.”

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