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Posted on 04/11/2010 8:17:32 AM PDT by 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]
(Excerpt) Read more at nypost.com ...
lol I thought it was something more sinister.
Caviar 4 star hotels for the bankers and pols while they destroy the greatest country in the universe.
The Federal Reserve and Treasury are despicably corrupt. Our government no longer works. The corruption it too widespread. I fear for our country.
YES!!!!!!!!!!!!! But they won’t and we all know why.
There is no such thing as a balanced portfolio anymore. There are only assets that will rise with inflation or get crushed by it. The silver market is heading for a major meltdown that may see the price of the poor mans gold bit triple digits. There is no central bank hoarde of silver to tap
when all the traders short the dolla and go long silver and then exercise their contracts to take delivery. Where is JP of HSBC going to get 28 million ounces on such short notice. They’ll try to settle for a
cash premium but the long won’t bite for less than 50 per ounce when it happens
Then the panic will spread to the gold pits a d it halleluah time. This will result in a global reset where all paper fiat currencies bite the dust and only gold and silver are left standing. The question is will people se the handwriting on the wall before it’s too late or just be led to financial slaghter? Time is exceedingly short. Maybe just months or even weeks.
bump
Given a losing position, the best move an individual trader in metals can do is take delivery.
So when do we start getting mad at the bankers and currency manipulators who have been robbing from us and the Federal Treasury for years?
I hope you make money on your investment in gold and silver.
And how many of those bars are leased to other central banks?
How many of those bars are really tungsten filled phonies?
Inquiring minds want to know.
EXCERPT With the US financial system teetering on the brink, it emerged that the chief executive of failed bank Washington Mutual may end up with a "golden parachute" of more than $13 million - for 18 days he held the job.
Alan Fishman was handed a $7.5 million signing bonus when he joined the barely solvent bank on Sept. 7, according to a Securities and Exchange Commission filing. Shockingly, his employment agreement also provided for a $6.15 million lump-sum severance payment if he were canned without cause, the filing shows.
Fishman ended up being in charge of the biggest bank failure in US history. The former chief executive of Brooklyn-based Independence Community Bank had been hired to help the bank rebound from soaring mortgage losses.
That plan went down the tubes when depositors started to quickly withdraw their money and federal regulators rushed in to shutter the bank and sell off parts of its banking operations to JPMorgan Chase for a song.
The eye-popping development came as congressional lawmakers, trying to put bitter partisanship aside, resumed negotiating a proposed $700 billion rescue of the nation's destabilized banking network. The package calls for limits on so-called "golden parachutes" for departing executives.
JPMorgan CEO Jamie Dimon said he was unaware of Fishman's status. "I would assume at this point that Alan is an employee of the holding company [which WaMu still owns]," he said. "We're not buying it, we're not responsible for it, and I really don't know what's going to happen to him."
Good question....VERY good question!
This needs to be said again. This is the whole fulcrum of the current federal government, and has been for a VERY long time.
Death to fractional reserve banking.
I was reading a thread on ZeroHedge yesterday that claimed JPMorgan got WaMu for...NOTHING, for FREE, essentially.
The bankers ARE the bandits, and the gov just sits around wanting there take.
We don’t HAVE a country anymore. It’s been sold. To China? To the Arabs? To the UN? who knows?
Take delivery on all gold and silver purchases.
Greenspan said a lot of things, in his earlier life, that he eventually turned his back on. He realized that to line his own nest he would have to stop fighting the bandits and start facilitating.
Short answer is that they would not. IMO, gold and silver are high right now considering the current risks of Inflation in the U.S. and globally. Inflation cannot occur in a environment were there is a glut of goods to buy. Wage inflation cannot occur where there is high unemployment.
As to levered sales, this is how it is currently done in the forex markets. It's always been levered. The concerns noted are more about the exchange traded funds or ETF's that are sometimes suspiciously levered when purchasers appear to believe erroneously that they actually hold a 100% ratio of physical gold or silver. This is not always or even often the case IMO, which is why I stay away from them.
As far as I am concerned, gold and silver are too high right now and due for a pullback.
No, because it's a fractional reserve banking system and the fraction or ratio of assets to green paper has continuously been on the decline.
And oil and natgas. And I already have and expect much more in the near future.
When the music stops, only one out of 100 in the gold market will have a chair.
CIGA Nam Vet
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