Ex-Goldman trader blows whistle on silver and gold market manipulation by JP Morgan (Done for Fed)

New York Post ^ | April 11, 2010 | Michael Gray

[JustTheTruth]

Metal$ are in the pits

Posted: 2:10 AM, April 11, 2010

There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.

The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.

Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.

"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said. <...>

"HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.

<...> Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.

Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal. ... [exerpt only]

[Marty62]

I’m calling for a Special Prosecutor to investigate Soros,Fed, Obama connection to this story.

[ckilmer]

Hmm. Ok looks like you might be right.Here's another article on the same thing.

might be why soros has doubled down on gold.

[ex 98C MI Dude]

Could very well be. The current question is two-fold. Where did all the gold that was exported come from, and how much did we import?

[Rockitz]

It seems that every conspiracy theory, true or not, is surfacing in recent weeks and makes me suspicious of a pump and dump media blitz. I just think that before we take off for the moon due to Obama’s hyperinflation-inviting policies, the elites will crush precious metal prices and buy it up on the cheap from weak hands.

[ckilmer]

its the import part that I’m not so sure of. and in general to get a real handle on the situation you would have to compare net gold imports and exports from one year to the next.

I have only a passing understanding of this stuff.

[patriciaruth]

balanced portfolio.

When everything is at risk of catastrophic decline in value, what do you put in your ‘balanced’ portfolio?

[patriciaruth]

And what if most of the gold in Fort Know is electroplated tungsten?

[Pelham]

Gibson’s Paradox occurs under a gold standard.

[ckilmer]

And what if most of the gold in Fort Know is electroplated tungsten?
////////
Now you’re talking.

[SierraWasp]

On MarketWatch.com today.

[Kenny500c]

From today’s interview with Marc Faber:

“If you have manipulation to keep the price down, it eventually goes ballistic. So, all the people that are bitching about the manipulation of silver and gold should be happy that it is manipulated because it still gives them an opportunity to buy it at a depressed priced,” Faber said.

http://www.kitco.com/reports/KitcoNews20100412J.html

But you heard it here first.

[coloradan]

Jason Hommel has already minted silver rounds that say “Thanks for the cheap silver!” on them.