Gold and Silver Are Manipulated

The Guardian and Telegraph report that gold and silver prices are “fixed” in the same way as interest rates and derivatives – in daily conference calls by the powers-that-be.

Long-time trader Andrew Maguire told told King World News this week that 2 JP Morgan whistleblowers have handed over evidence of gold and silver manipulation by their bank:

Very recently [Commodities Futures Trading] Commissioner Chilton assured me, and I’m going to quote him exactly, “I can’t appropriately express my frustration and disappointment with how we’ve handled the silver investigation

And, as you know, I’m prohibited from actually saying much.  That said, I will not let September go by without speaking out if the agency doesn’t do so.”


I was also contacted by two JP Morgan employees who told me they had a large amount of documented evidence of market trading abuses in gold and silver by their bank (JP Morgan). [And they handed it over to the CFTC.]

We’ll have to wait to see if Maguire’s explosive allegations pan out.

As shown below, big banks have manipulated virtually every market  – both in the financial sector and the real economy – and broken virtually every law on the books.

Energy Markets Are Manipulated

The Federal Energy Regulatory Commission says that JP Morgan has massively manipulated energy markets in California and the Midwest, obtaining tens of millions of dollars in overpayments from grid operators between September 2010 and June 2011.

Commodities Are Manipulated

The big banks and government agencies have been conspiring to manipulate commodities prices for decades.

The big banks are taking over important aspects of the physical economy, including uranium mining, petroleum products, aluminum, ownership and operation of airports, toll roads, ports, and electricity.

And they are using these physical assets to massively manipulate commodities prices … scalping consumers of many billions of dollars each year.

Interest Rates Are Manipulated

Interest rates are rigged:

Derivatives Are Manipulated

The big banks have long manipulated derivatives … a $1,200 Trillion Dollar market.

Indeed, many trillions of dollars of derivatives are being manipulated in the exact same same way that interest rates are fixed: through gamed self-reporting.

Currency Markets Are Rigged

Currency markets are massively rigged.

Oil Prices Are Manipulated

Oil prices are manipulated as well.

Everything Can Be Manipulated through High-Frequency Trading

Traders with high-tech computers can manipulate stocks, bonds, options, currencies and commodities. And see this.

Manipulating Numerous Markets In Myriad Ways

The big banks and other giants manipulate numerous markets in myriad ways, for example:

  • Engaging in mafia-style big-rigging fraud against local governments. See this, this and this
  • Shaving money off of virtually every pension transaction they handled over the course of decades, stealing collectively billions of dollars from pensions worldwide. Details here, here, here, here, here, here, here, here, here, here, here and here
  • Pledging the same mortgage multiple times to different buyers. See this, this, this, this and this. This would be like selling your car, and collecting money from 10 different buyers for the same car
  • Pushing investments which they knew were terrible, and then betting against the same investments to make money for themselves. See this, this, this, this and this
  • Engaging in unlawful “Wash Trades” to manipulate asset prices. See this, this and this
  • Participating in various Ponzi schemes. See this, this and this
  • Bribing and bullying ratings agencies to inflate ratings on their risky investments

The Big Picture

The big picture is simple:

  • The big banks manipulate every market they touch
  • The government has given the banks huge subsidies … which they are using for speculation and other things which don’t help the economy. In other words, propping up the big banks by throwing money at them doesn’t help the economy
  • The big banks own the D.C. politicians … so Congress and the White House won’t do anything unless the people force change

Category: Bailouts, Gold & Precious Metals, Legal, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

11 Responses to “Banks Are Manipulating Gold and Silver Markets”

  1. Saying that “gold and silver prices are “fixed” in the same way as interest rates and derivatives” is a gross misrepresentation of the London Fix process, which unlike LIBOR and other rates, involves actual real client transactions being executed at the Fix price as well as the Fix price having to be arbitraged back to a global OTC spot gold market and Globex.

  2. Frilton Miedman says:

    Bart Chilton is a hero IMO – quite possibly the ONLY market regulator trying to do his job.

    There’s reason banks have lobbied against the CFTC’s Dodd-Frank position limits to stop entities from holding more than 10% of any given futures market.

    Grains, commodities, energy & materials have a direct effect on input costs, having the ability to manipulate those costs without public disclosure renders a trading entity omnipotent over equity valuations….the CFMA in it’s current form allows this.

    $145 oil in the Summer of ’08 while supply was up & demand was down, coincided with stretched consumer credit – TBTF’s holding non-disclosed short positions on the “triple A” CDO’s they were selling en masse would explain the record breaking wall ST bonuses paid out in ’09 – while the rest of us were being evicted or laid off.

    The timing of $145 oil was so conspicuous that the Pentagon investigated it for financial terrorism,

  3. A. Cy Lum says:

    Well, Mr. Ritholtz, bluntly, if the above, seemingly evidentiary-laden post, is tin-hat plausible (really ali foil) what, then, is this very informative, insightful, and sometimes incisive blog’s raison d’etre?

    Perhaps a morphing in to how one selects dividend players, or a du jour disruptive technology millieu?

    As I’m struggling to understand capitalism post 2008 I wonder and wander.

    The essence is how to make money; the “contest” is to invest wisely; the end is profit.

    EDIT: I nglected to add this tune:

    • Frilton Miedman says:

      1) This blog isn’t Ritholtz, it’s the Washington Blog, he’s a regular guest of TBP.

      2) This “tin foil” stuff comes in handy if you trade or manage assets and understand the mechanisms of futures manipulation vs supply/demand. (my above mention of $145 oil in 2008 preempting sub-prime defaults is applicable in any sector)

      At the point you opt to stop insulting the premise and consider it’s merit, you then put 2 & 2 together, screen futures traded assets for anomalous high/low valuations, the COT report comes in handy there too, then observe the sector it’s linked to, sort through assets there using P/E’s or other metrics for long/short candidates.

      • A. Cy Lum says:

        Thanks for that strategy Frilton. I do that in my own fashion and plug in components of the BDI. However, considering the “merit” of manipulated markets is, for me, akin to staring into a spook-designed looking-glass.

        So… filter, read, think, conclude, repeat.

        A. Cy Lum

      • Frilton Miedman says:

        While I agree there’s a supermarket tabloid-esque feel to his writing, he does take the time to back his reporting with a link to every single assertion. – I suggest reading them, they’re legitimate source, like the WSJ & NYT.

        None of what he says above is incorrect, futures manipulation is much more prevalent than most realize because the CFMA allows complete anonymity for position size & trade timing.

        That’s the reason Dodd-Frank position limits are so crucial.

        Again, it’s already proven that $145 oil was the doing of several of the biggest banks in 2008, who also made massive gains short the CDO market. more recent headlines have exposed Barclays & JP Morgan for energy manipulation, only because employee’s were dumb enough to brag of it in Emails.

        None of his assertions are embellished, while hard to believe, they’re not embellished.

  4. VennData says:

    This Washingtonian guy is a kook.

  5. [...] great role up of banks’ efforts to manipulate the various markets can be found here who provided the following [...]

  6. [...] on with the award winning series of “everything is rigged’ posts, here is a link to an informative piece at Barry Ritholtz’s blog.  The title is “Banks Are [...]

  7. [...] Almost all commodity prices are rigged. (Ritholtz) [...]

  8. jcs0007 says:

    Human nature never changes. Just as Lance Armstrong thought he would ALWAYS get away with cheating by using performance enhancing drugs…..just as Tiger Woods thought he would ALWAYS get away with cheating in his personal life…..just as Congressman Jesse Jackson Jr. thought he would ALWAYS get away from cheating…..the lowlife bankers at Goldman Sachs, Morgan Stanley, and others….think they will get away with cheating forever.

    There WILL BE a day that at least SOME of the bankers will get caught and prosecuted. It’s going to happen….and it is just a matter of time.

    What happens when it turns out that there is more than just a “co-location” of high frequency trading firms…..but rather some of those firms are actually “tapped into” some of the sources of trading. What happens then?

    The day is coming….