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Gold Manipulation - For Adults Only

MP3: Discussion between Jay Taylor and David Jensen on Monday November 3, 2014.


1. Petrodollar - Russia, China, and other countries are forced to structure a new monetary system due to the unsustainbility of the Western monetary system and central bank policy.

  • Russia's assets seem to be a target of interest (again) for Western banking interests (again).

  • False crisis created in Ukraine by US State Department neocon Victoria Nuland and George Soros to vilify Russia.

  • Central issue is failure of Western debt-based, centrally planned monetary system

2. Shanghai Gold Exchange and Shanghai Metal Exchange physical metals premia vs. LBMA pricing:

SGE Gold: +0.7 % premium vs LBMA
SGE Silver:+12.3% premium vs LBMA
SME Palladium +16.6% premium vs LBMA
SME Platinum +6.1% premium vs LBMA

3. What is happening with Palladium? 2014 shortage estimated by Standard Bank at 2 million oz. (vs. 6.5 million oz. mine supply) yet the price has been driven down.

Russia has delayed buying by state metals agency Gokhran http://www.reuters.com/article/2014/09/29/palladium-russia-gokhran-idUSL6N0RU1ID20140929 until 2015.

Russia has been acting very carefully in its overt actions not to disrupt the financial markets.

Russia and the BRICS can see the West is being destroyed by its central bank monetary system and policy and don't need to act to achieve its goals of separation from Western coercion.

4. Gold and silver shortages as gold backwardation of 0.5% and silver backwardation of 2% (measured by 'gold basis' = spot price bid - futures price offer) www.zerohedge.com/news/2014-11-03/gold-and-silver-supply-and-demand-2-nov

  • Backwardation, argued to not be possible for gold with its enormous stock-to-flow ratios and with 170,000 tonnes of gold above ground, are now seen in the markets with spot gold trading for a premium to near futures prices. Simply arbitrage away spot premium (sell gold in spot market, immediately buy future position and pocket the difference in price).

Backwardation extinguishment only possible if confident in value of currency and assured return of gold sold in futures market.

At the margins, indication of decline of trust in currency if not immediately arbitraged away.

5. Dealing with gold manipulation - a matter for adults

  • The very possibility of central bank, bullion bank, and government manipulation of the gold market is repugnant to most.

  • However, adults don't ignore information because they don't like it.

  • There is also Normalcy Bias: http://en.wikipedia.org/wiki/Normalcy_bias

  • Characteristic of humans ignoring danger when facing a potential crisis.

  • How do media and many individuals deal with gold and silver market manipulation allegations? They deny it and mock the concept as 'conspiracy' theory - a term introduced in the 1960s to discredit people who said that the Warren Commission story on JFK's assassination did not add up. As a result, most in the media have been trained to dispose of matters which question the 'mainstream' view by calling it 'conspriacy theory'. Most media personnel have not responded with competent research and reportage on the topic of gold manipulation - instead they have scoffed instead of probing deeply with statistical data of price trading patterns http://investmentresearchdynamics.com/proof-that-gold-is-manipulated-using-paper-gold/ on the New York and London virtual gold markets nor have they analyzed market structure data showing 100:1 paper to gold leverage in London on the LBMA - and the implication of trading unlimited virtual gold.

  • Dimitri Speck statistical work on gold manipulation: http://goldsilverworlds.com/price/gold-and-silver-price-manipulation-explained-by-dimitri-speck/
  • The concept of gold manipulation / theft of national gold is not new - it arose in 1974 with an article in The National Tattler alleging that US gold reserves had been stolen by a group of bankers and stored in Holland.

  • The informant for the story, Louise Auchincloss Boyer who was the 30-year secretary to Nelson Rockefeller, fell out the window of her 10th floor apartment to her death 3 days after the story was published. Nelson Rockefeller became Vice President of the U.S. 6 months after Louise Boyer's death.


  • The story and Louise Boyer's death triggered a national outcry in the US and public demands for a gold audit. The result was what are viewed as sham photo ops of small portions of the US gold reserves and no actual audit and assay of the US gold stock held by Treasury which hasn't occurred since the mid 1950s.
  • We also know that the LBMA gold markets are levered 100:1 through unallocated gold positions that are traded at approximately 180 million ounces per day (total gross daily trading volume) at 10x the end of day 'netted' trading volume which is 600x daily global gold production.

  • It is known that the Bank of England and Bank for International Settlement (BIS) are at the center of the LBMA gold trade as physical gold market makers.

  • We know that the LBMA gold fix was operated by the Rothschild Bank in London from 1919 until 2005. Introduced the trading of unallocated virtual gold contracts which separated direct trading of physical gold from the markets and substituted paper trading of 'virtual gold' spiking down gold prices in the 1990s.

Essential to understand that the markets have been crippled by substituting trading of real gold and substituted paper virtual gold which will leave people in crisis when the paper market fails. The false price signal from the paper gold markets drives Western investors from gold just as they need positions to protect themselves:

"... Whenever destroyers appear among men, they start by destroying money, for money is men's protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. ..."


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