The current and open fraud regarding paper gold pricing in the COMEX has become as plain to see as the desperation spreading throughout the global financial system. As all markets — bonds, real-estate, stocks, crypto currencies, etc. — are unraveling in real-time all around us, we now have news revealing just how rigged the gold market has been by major banks and why gold has been falling in price along with all other assets. I swear, you can’t even make stuff up that is this distorted…
As risk assets tumble foreseeably into bear territory before a headwind of deliberately rising rates, precious metals have seen headline-making falls as well.
Below, we explain why.
Tracking the Paper Gold Price —The Standard Answer
In prior reports, we’ve noted that precious metals typically behave sympathetically when markets tank; thereafter, gold then surges north. We saw this pattern in October of 2008 and March of 2020.
Furthermore, when a Hawkish Fed pursues a temporary yet face-saving policy of rate hiking and quantitative tightening, this makes the USD the relatively stronger horse in the global currency glue factory.
And a relative rise in the USD, of course, is a headwind to gold.
Explaining the Paper Gold Price —The Rigged Answer
As we’ve openly argued for years, nothing embarrasses an otherwise discredited fiat currency like a rising gold price.
As I’ve described it, rising gold prices are a middle finger to debased currencies whose declining purchasing power are the DIRECT result of the failed and drunken monetary policies (i.e., mouse-click trillions) of a central bank near you.
Or as Ronan Manly more distinctly observed: “Gold to central bankers is like sun to vampires.”
And that, folks, is precisely why the big banks (under the direction of the BIS) are deliberately (and if law school serves me correctly) as well as fraudulentlymanipulating the paper gold price.
Facts vs. Manipulation
In the first quarter of 2022, we saw record high purchases of ETF gold, physical gold and central bank gold. Even Goldman Sachs’ head of commodity research was targeting $2400 gold this year.
Instead, the gold price has been falling as gold demand has been rising.
It reminds me of 2008 when mortgages were defaulting en masse yet the ABX index for sub-prime mortgages was rising.
In short, complete (and temporary) manipulations were going on behind the curtains of a few wayward banks, including Morgan Stanley.
Today’s gold behavior (i.e., surreal manipulation) is no different and no less of an insult to the natural forces of supply and demand, which central bankers have attempted to destroy for well over a decade.
But the jig will soon be up on these masters of open fraud and Wall Street socialism.
The Paper Gold Price & The Horse’s Mouth
For now, and in case you fear I’m just acting as a “gold bug” apologist, let’s go straight to the horse’s mouth and examine the confessions and facts of open price manipulation in the precious metal markets.
And I swear, you really can’t make this stuff up, it’s just that obvious and distorted.
In a recent article by Peter Hambro published by the British news site, Reaction, a 3rd generation gold insider (Petropavlovsk, Bank Hambros) made the open secret of paper gold price manipulation abundantly clear and incontrovertible.
It’s also worth adding that Mr. Hambro’s entire career was that of an heir to a banking dynasty all too familiar with the insider machinations of the London bullion markets and London Stock Exchange.
In short, when Mr. Hambro discusses gold price manipulation, it’s worth listening.
A Chart Says a Trillion+ Words
More importantly, and for those who prefer facts over human confessions or “gold bug whining,” the following chart from the U.S. Office of the Comptroller of the Currency (OCC) clearly reveals the extreme extent by which just a handful of highly pocketed (and central bank supported) banks like JP Morgan and Citi can use extreme turns of derivative-based leverage to short (i.e., keep a permanent boot to the neck of) the paper gold price:
Matthew Piepenburg is the author of Rigged to Fail: Blunt-Spoken Investment Solutions for Unsuspecting Investors and Gold Matters: Real Solutions To Surreal Risks.
Free Report: Top 5 Gold Stocks for a Bear Market
There’s still plenty of upside ahead for gold stocks.
Goldman Sachs says gold could run to $2,500 by the end of the year-especially with fears of a potential recession. And, according to Jeff Currie, Goldman Sachs global head of commodities research, as quoted by Bloomberg, “It’s a perfect storm for gold right now.”
So, where should we invest? Try these.