This Gold Slam is a Massive Transfer of Wealth from Our Pockets To the Banks

[Yossarian]

Article found here explains much of the mechanics of how it's done--primarily through futures-- derivatives--the great tool of the banksters-- and good old fashioned if crude and obvious market manipulation: http://seekingalpha.com/article/1343211-this-gold-slam-is-a-massive-wealth-transfer-from-our-pockets-to-the-banks

What I like about this article is that he backs up his claims with evidence--his charts demonstrate the trades being made, which are clearly designed to manipulate the market to benefit the very few at the expense of the many. He also laments the fact that those who have the ability and power to stop such manipulation and prosecute the manipulators clearly have no intention of doing so.

It reminds me of another article I read recently on the SOTT pages titled, "The Entire World Economy is a Ponzi Scheme."

Also, how about the "coincidence" of the timing of this artificially created precious metals crash and the Boston Marathon Bombing?

 

[LQB]

The manipulators know they need to be careful here. Here is an except from Franklin Sanders (of the Money Changer):

I'm writing Tuesday morning. In the 33 years I've been brokering silver & gold, there are five words I have never before yesterday heard from wholesalers: "We're not selling silver today." At least one major West coast retailer was not selling gold yesterday, and wholesalers well [were] selling "as long as we can get it."

See how thin the physical silver & gold markets really are? By thin is mean that there is very little product in the pipeline. Wholesalers won't take any chances.

The market is backwardated, but the backwardation shows more in availability than in price. A "backwardation" occurs when the price of metals for immediate delivery climbs above the price for future delivery. Normally, the interest and storage cost of carrying metal for future delivery makes futures prices higher, so a backwardation reveals demand for immediate delivery greater than anyone can meet. In this case, you can't buy at ANY price. .....

If this continues, retailers and wholesalers will not sell physical. When they resume, it will be at very high premium over paper spot price - thus creating a new market price for physical. This will make COMEX paper markets useless and irrelevant - major chaos will ensue. The manipulators will not let this happen unless they are ready for "Game Over".

 

[Yossarian]

Interesting. I also read today as well that physical gold and silver were very difficult to get and that demand for physical is way up. I'm convinced that the paper derivatives, especially futures and leveraged contracts are the method they use to artificially manipulate precious metals downward and gasoline and oil upwards. There's a major disconnect between reality and prices, I believe. This isn't over by a long shot.

 

[LQB]

Interesting. I also read today as well that physical gold and silver were very difficult to get and that demand for physical is way up. I'm convinced that the paper derivatives, especially futures and leveraged contracts are the method they use to artificially manipulate precious metals downward and gasoline and oil upwards. There's a major disconnect between reality and prices, I believe. This isn't over by a long shot.

Yes, when the big banks write naked short contracts, they are saying to the (paper) market that they have the gold to sell. In reality they don't but the US gov backstops them so the game can go on. In theory they can take the spot price to zero by implying infinite supply with massive short contracts. Since the COMEX has become a paper (bluffing) market, there is very little delivery of metal compared to the volume of "ounces" traded. So if the market for physical separates from the paper market, then the paper market is destroyed.

 

[Atuya]

I'm speculating here, no pun intended, but could we have just witnessed a literal reinterpretation of 'Die Hard with a Vengance'? Was there was an organized theft of the physical gold reserves while the city of Boston was distracted ?

Anyways, 'our pockets to the banks' might not be the correct analysis of what is going down. Paul Craig Roberts posits: _http://www.paulcraigroberts.org/2013/04/13/assault-on-gold-update-paul-craig-roberts/

Possibly the Fed fears a dollar crisis or derivative blowup is nearing and is trying to reset the gold/dollar price prior to the outbreak of trouble. If ill winds are forecast, the Fed might feel it is better positioned to deal with crisis if the price of bullion is lower and confidence in bullion as a refuge has been shaken.

In addition to short selling that is clearly intended to drive down the gold price, orchestration is also indicated by the advance announcements this month first from brokerage houses and then from Goldman Sachs that hedge funds and institutional investors would be selling their gold positions. The purpose of these announcements was to encourage individual investors to get out of gold before the big boys did. Does anyone believe that hedge funds and Wall Street would announce their sales in advance so the small fry can get out of gold at a higher price than they do?

If these advanced announcements are not orchestration, what are they?

I see the orchestrated effort to suppress the price of gold and silver as a sign that the authorities are frightened that trouble is brewing that they cannot control unless there is strong confidence in the dollar. Otherwise, what is the point of the heavy short selling and orchestrated announcements of gold sales in advance of the sales?

And he follows with:
_http://www.paulcraigroberts.org/2013/04/16/update-to-the-update-the-attack-on-gold-paul-craig-roberts/

Today we see the Fed protecting its protection of “banks too big to fail” with low interest rates by creating enormous sums of money in order to purchase both Treasury bonds and mortgage backed derivatives.

These Fed purchasers are at the expense of savers and CD and bond purchasers who receive a negative real rate of interest.

Now, to protect its bank rescue policy, the Fed is attempting to drive down the price of bullion, thus depriving Americans of any way of protecting their life savings from the inflation that the Fed’s money printing will ultimately cause.

Save a handful of corrupt banks, screw the American public–that is the Fed’s policy.
Like almost every other American institution, the Fed represents the mega-rich.

Anyone with open eyes can see that it is impossible for the US dollar to maintain its current exchange value and role as world money when its supply is being increased by $1,000 billion per year while the world is ceasing to use the dollar for international payments.

The attack on gold is a desperate attempt to protect the US dollar from the Fed’s policy of quantitative easing. But the attack on bullion has apparently failed. The price was driven down, but the demand for physical possession has hit new highs.