The Smoking Gun | Proof of Manipulation in the Gold and Silver ‎Markets

Last week in our Weekly Wanderings, we brought you the story of Andy Maguire’s whistle-blowing testimony to the CFTC (Commodity Futures Trading Commission).

Despite the importance of this financial news, it has received virtually zero coverage by the mainstream press. However, the alternative media, via the internet and the blogosphere have covered the story in detail. So much so, that King World News, which carried an exclusive scoop interview with Andy and Adrian Douglas of GATA, was subject to an intensive denial-of-service cyber-attack for several hours. Kudos must go to Eric King, who has been building up a huge worldwide readership for his pungent and informative interviews with highly placed people around the globe, particularly those connected with the precious metals markets. If you are at all interested in these markets, I cannot stress enough the importance of checking out Eric’s site regularly.

In this article I will summarize what has happened last week in connection with this story, which reads like the plot for a Hollywood thriller.

As we said last week, Andrew Maguire, a long-time precious metals trader in London, contacted the CFTC some time ago, explaining to them how the precious metals market was rigged – providing full evidence for his claims. Last week, there was a hearing of the CFTC to examine the position limits for precious metals trading. Bill Murphy and Adrian Douglas of GATA were in attendance, as was Jeff Christian, representing the bullion banks. During the hearing, Andrew Maguire was identified as having sent e-mails to Bart Chilton, a CFTC commissioner, and Eliud Ramirez, head of the commission’s enforcement division, alleging that JPMorgan had used its massive metals positions to manipulate the commodities markets.

In one e-mail, Maguire wrote, “It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits,” referring to last week’s CFTC hearings.

Andy confirmed also that he knew JPM metals market traders in London, as the community of metals traders is small, and most participants are known to each other. Several of the JPM traders have bragged openly about their actions to manipulate the markets. Andy has come forth with this information at considerable risk to himself and his family. He and his wife were victims of a hit and run accident, just after he made this information public. Coincidence? I don’t think so….

Now a most extraordinary event occurred at the CFTC hearing. Just to set the scene, GATA have been toiling for 10 years to find evidence to show that the physical gold market is fraudulent, and that physical gold is being counted multiple times.At the hearing, Bill and Adrian must have felt that all their birthdays had come at once! Jeff Christian, who was presented to the hearing as an expert in precious metals trading representing the bullion banks, made the astonishing admission that the physical gold market at the LBMA (the London Bullion Market Association) was really a paper market, and that the paper was leveraged against the physical market at 100 to 1!

Now what are the implications?

·Firstly, GATA’s claims have now been substantiated – and by a member of the cartel!

·Secondly, many people (and/or institutions) who think they own physical gold definitely do not. If they tried to take delivery, 99 out of 100 would not obtain it.

·Thirdly, what has been stated above must be true in spades for silver – the silver market is much smaller.

·Fourthly, this revelation makes an enormous short squeeze in the metals likely, if not imminent.Andy says he has been contacted by wealthy individuals out of Asia who have asked for confirmation that the short positions are naked. Getting this assurance, they are now planning an attack from the long side against these markets.

Get ready for the mother of all short squeezes in the metals!! The time to take delivery of physical gold and silver is now!!


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