Gold and Silver Prices Are Set In Libor-Like Daily Conference Calls Between a Handful of Big Banks

The “Fix” Is In?

There is increasing evidence that the gold market is manipulated.  The amount of physical bullion may be greatly over-stated, and gold may be manipulated in the same way that Libor rates are:

The Telegraph noted Monday:

[Bank of England executive] Paul Tucker told MPs that Barclays’ abuse of the Libor system may be only one part of the banks’ dishonesty over crucial financial information, suggesting that other markets should now be investigated.

An official inquiry into Libor – which helps determine interest rates for householders and businesses – should be broadened to include several over markets where banks are trusted to report their own data, he said.

***

The Libor scandal could be repeated in a number of other “self-certifying” markets where prices are determined, he said.

“Self-certification is clearly open to abuse, so this could occur elsewhere,” he said.

A Financial Services Authority inquiry into Libor should be extended to other self-certifying markets, he said. The Treasury said last night that the review, led by Martin Wheatley, was free to examine markets other than Libor.

***

Some markets in gold and oil are also based on self-certification.

Mainstream commentators are starting to publicly discuss manipulation in the precious metals markets.  See this, this and this.

Avery Goldman noted last year:

On March 15, 2011, the Commodity Exchange (COMEX) and the New York Mercantile Exchange (NYMEX) advised the CFTC that they had approved J.P. Morgan’s application to become a licensed vault facility, using a “self-certification” process. The newly licensed vault, located at 1 Chase Manhattan Plaza, NY, NY, is ready to roll as both “weighmaster” and depository, for delivery of gold, silver, platinum and palladium contracts, as of March 17, 2011, two days later.”

ETFs, bullion banks, storage facilities and other holders of gold that are “self-certifying”  – without any checks by third party auditors – have been caught misreporting and raiding even allocated precious metals accounts, and using the loot to speculate or pay off other debts.

As such, manipulation in the self-certifying portions of the oil and gold markets could have a huge impact on assessing the true health of financial institutions, the economy as a whole, and the assets of individual investors.

Yesterday, the Guardian reported on the stunning similarities between the daily “fixing” of the gold price and of the Libor rate:

London’s financial sectorwas last night bracing itself for another official investigation into alleged price-fixing following reports that a US regulator is considering launching an inquiry into the City’s gold and silver markets.

The Commodity Futures Trading Commission is discussing whether the daily setting of gold and silver prices in London is open to manipulation, according to the Wall Street Journal, which stated that the CFTC is examining whether prices are derived sufficiently transparently.

The system of setting gold prices in London is unusual and involves a twice-daily teleconference involving five banks – Barclays, Deutsche Bank, HSBC, Bank of Nova Scotia and Société Générale – while silver is set by the latter three. The price fixings are then used to determine prices worldwide.

***

The fixing of the gold price in London dates back to September 1919, when the process involved NM Rothschild & Sons, Mocatta & Goldsmid, Samuel Montagu & Co, Pixley & Abell and Sharps & Wilkins.

At the start of each gold price-fixing, the chairman announces an opening price to the other four members who relay this price to their customers. Based on orders received from them, the banks declare themselves as buyers or sellers at that price.

Provided there are both buyers and sellers at that price, members are then asked to state the number of bars they wish to trade.

***

If at the opening price there are only buyers or only sellers, or if the numbers of bars to be bought or sold does not balance, the price is moved and the same procedure is followed until a balance is achieved. The silver fix dates back to 1897.

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  • gozounlimited

    A new report from analyst Josh Rosner of Graham-Fisher and Co. describes JPM-Out Of Control.

    (David Dayen) Obviously this contrasts with Jamie Dimon’s spotless reputation (at least in Washington) and his bold talk of a “fortress balance sheet.” Yet as you read the report, it’s hard to see the bank as anything but a criminal racket just days away from imploding, were it not propped up byimplicit bailout guarantees and light-touch regulators. Rosner paints a picture of a corporation saddled with pervasive internal control
    problems, which end up costing shareholders, and which “could materially impact profitability in the future.” He calculates that since 2009, JPM has paid out $8.5 billion in settlements for its outlaw activity,
    which equals nearly 12% of net income over the same period. read more: http://www.nakedcapitalism.com/2013/03/david-dayen-out-of-control-new-report-exposes-jpmorgan-chase-as-mostly-a-criminal-enterprise.html

    • http://www.facebook.com/profile.php?id=1676832039 -Richard Simpson-

      You’re far too kind when referring to regulators as ‘light-touch’. They’re obviously complicit in the corruption, themselves… not only failing to regulate the industry, but in many cases, acting to regulate the consumer market in favor of the industry, through favorable legislation.

  • http://www.facebook.com/people/Gordon-Johnson/1374212093 Gordon Johnson

    I wonder if they distinguish physical metals from paper metals’ contracts in this price procedure?

  • http://www.bulliontradingllc.com/ BullionTradingLLC

    Better to hold as much physical gold for yourself as you can! Keep it hidden from the system: http://www.bulliontradingllc.com

  • A F

    Practically EVERY morning between 8 AM and 10:30 AM (New York time) the price of gold gets banged downward. It is sometimes rising for many hours up until that time,and then, bang, it gets smacked down. If that isn’t manipulation, I don’t know what is.

  • A F

    Practically EVERY morning between 8 AM and 10:30 AM (New York time) the price of gold gets banged downward. It is sometimes rising for many hours up until that time,and then, bang, it gets smacked down. If that isn’t manipulation, I don’t know what is.

  • Undecider

    This is news?

  • some small banks are honest

    goldman sacs is no better-i’ve recently seen them cut a rating on a gold miner ,to sell it from hold and a couple a days later the stock soars 6 %. quite clearly they just want others to sell out so they can scoop up the stock cheaper and bag the quick profit—-hows that work?—-insider info from london tells them that gold price will be higher in a few days———scams out of the fact no one is stopping or arresting them, the jewish control london and all big banks …….people have been used like slaves to steal from for decades

  • Katy Henderson

    THE CFTC EMPLOYEES SHOULD BE ARRESTED TOO FOR THEIR CRIMINAL COMPLICITY IN THESE CRIMES AGAINST THE AMERICAN PEOPLE AND THE WORLD. ARREST THEM ALL! And should these little weasils even think to FINE their partners in the crime–the BIG banks–it still hurts them none and benefits only them selves, unless they grow some balls and actually SHUT THESE BANKSTER THUGS DOWN–which we all know won’t happen–simply, the American People and Loyal Sheriffs and Authority’s should go ARREST THEM ALL and Lock them up in their FEMA CONCENTRATION CAMPS like they INTEND to do to the American People when their “Rigged Economy” Implodes. Are we not all exhausted with the many MANY Crimes and Crooks that have invaded everything Federal and Bank?! Enough already!

  • Katy Henderson

    Watch and listen to the Video with Ann Barnhardt—”If you are still in these markets, you’re either stupid or on drugs!”

  • Katy Henderson

    If there were “ACTUAL REGULATORS” and “ACTUAL PUNISHMENTS” for the BEYOND CRIMINAL ACTS of these TBTF Bank JACKASSES—then the crap they are doing to make a BILLION BUCKS here and there, WOULD BE STOPPED! PERIOD! And we would never, EVER, here of this kind of behavior again because NO ONE would ever want to commit such outrageous CRIMES after having witnessed the Round up, ARRESTS and MAJOR PROSECUTION of these JACKASSES and the REPO of ALL THEIR ILL GOTTEN GAINS….which by the way, was SO LARGE A HALL that many people actually benefited who had previously been left homeless due to the actions of these JACK ASSES! The end.

  • Katy Henderson

    On March 15, 2011, the Commodity Exchange (COMEX) and the New York Mercantile Exchange (NYMEX) advised the CFTC that they had approved J.P. Morgan’s application to become a licensed vault facility, using a “self-certification” process.

    **********************
    Q. Does Jamie Dimon, of JP Morgan Criminal Notoriety, “always” LICENSEE HIMSELF and BANK for anything? For instance, did he also license himself to drive a car? To fly an airplane? To practice medicine and does he hold a self-certification Liquor License?

    These questions should be asked, or is it just that the NATIONS Banking and Financial matters are the LEAST important of all things? I’d care to wager that many people the world over would not think so.

    Apparently, if Jamie Dimon and JP Morgan are the EXAMPLE set forth before all the American people and the world, then I’d dare to say that in fact, it is APPARENTLY okay to license oneself IN ANY MATTER YOU CARE TO DO SO and all people of America and any country SHALL NOW DO THE SAME. Hell, why didn’t we think of this before?! Why, BRAVO Mr. Dimon, you have indeed freed us all and showed us the way! Brilliant!!

    THEREFORE, WE THE PEOPLE, shall, FROM THIS DAY TO THE NEXT, HENCEFORTH, and Using Jamie Dimons’ of JP MORGAN notoriety and fame, Most Exquisite of all EXAMPLES and in fortitude of PUBLIC TRUST– SHALL NOW COMMENCE and MOST HAPPILY too, I dare say, will RECOGNIZE EACH and EVERY American Citizen’s OWN SELF-CERTIFICATION and LICENSING of ANYTHING you can imagine! Being sure to give proper credit where credit is due, of course, to none other than the most high of Banking Criminal Enterprises and certainly one of the most Recognized in the NATIONS BANKING, JP Morgan and Trust… but of course. I trust we shall all now recognize it for what it truly is–as in– what NEW SHIT IS THIS! Seriously!

    THE COMEX and NYMEX, do they accept ANYONE’S SELF-APPROVAL to participate in everything? This sounds rather like a Bank officer allowing a consumer to self-approve their OWN HOME LOANS, and CAR LOANS and FARM LOANS. Hell, after all the examples set by the current world TBTF Bankster Thugs–we might be better off doing just that! Or “lets play the Nations banking and markets ponzi board game schemes for a billion, shall we?” Seriously!

    This is truly one of those WTF moments! And yet no surprise as far as Criminal Racketeering would go. The WHOLE FINANCIAL SYSTEM OF THE US/ WORLD IS ONE GIANT PONZI BULLSHIT SCHEME DESIGNED AS THE BIGGEST FARCE TO EVER HAVE BEEN DONE TO A PEOPLE.. EVER… HANDS DOWN! Now Bend Over! And take it like a serf!

 

 

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