Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Debt and Delusions – Part One
By: Gary Christenson

Turkey and Russia Highlight Gold’s Role as a Strategically Important Asset
By: Ronan Manly

The Metals Manipulators Are Being Manipulated
By: Avi Gilburt

GOLD And SILVER: The Ultimate Hedge Against Everything That Is Wrong In The Markets
By: Steve St. Angelo

Cash “Vanishes” From Bank Accounts In Ireland
By: GoldCore

Gold Seeker Closing Report: Gold and Silver Gain While Stocks Fall
By: Chris Mullen, Gold Seeker Report

China Takes the Long View on Gold-Silver... and So Should You
By: David Smith

The Gold Bull Era: Key Tactics Now
By: Stewart Thomson

Types of Gold Standards
By: JP Koning

Commodities Are Flashing a Once-in-a-Generation Buy Signal
By: Frank Holmes


GoldSeek Web

Indisputable Proof Paper Gold Markets are Massively Manipulated

-- Posted Thursday, 16 May 2013 | | Disqus

By JS Kim

What would you think if someone told you the following?

“Three times this week, I am going to tell you the low price of gold with near perfect accuracy, and one of those three times, I am going to tell you events that will precede the low and the exact time that gold prices will crash.”

You would likely conclude that either:

(1) I am somehow directly involved in setting the price of gold in paper derivative markets, or

(2) that since nearly perfectly predicting gold price movements three times in one week in a free market is impossible, that such an accomplishment would serve as indisputable proof that gold markets are rigged and manipulated by bankers, as none of my predicted price targets depended upon technical chart analysis of any kind.

So let’s summarize my calls regarding gold price movements on three separate occasions last week, and why I feel that the accuracy of these calls serve as indisputable proof that Central Bankers and their agent bullion banks manipulate the price of gold and silver.

(1) On Friday May 3, I told my clients that gold was going to waterfall by $40 to $1435 an ounce starting precisely at 8:30 AM in a “coordinated” attack planned by the Feds when gold was still trading at $1,475 an ounce in Asia, using a “false” unemployment data release to get the decline started. At 8:30 AM, gold started to waterfall decline all the way to a hair above $1,440 an ounce.

(2) On Sunday, May 5, with gold closing at $1,469.90 an ounce the previous Sunday and before Asian gold markets opened, I stated that gold would at least fall again to $1,430 an ounce or lower. On Tuesday, May 7, even when gold trended higher to $1,471 an ounce in Asia, I reiterated to my clients that gold would FALL to $1,430 an ounce in New York later that day. When gold declined close to $1,440 we closed out our initial GLD puts.

(3) On May 8, with gold trading at $1,455.70, I predicted that the bankers would knock gold down close to $1,400 an ounce. On Friday May 10, I amended this prediction, based on further data, to a raid that would result with gold falling to a range of $1,400 to $1,430. Gold fell to a low of $1,418.50 in NY trading that day, exactly in the range I predicted. We closed out the rest of our GLD and SLV puts that day.

For more details of the above calls, I have provided below a few sentences of the series of alerts I sent to our Crisis Investment Opportunities newsletter and Platinum Member clients last week:

On Thursday, May 2, 2013, I released this alert to clients during NY market hours:

“Were you to take a hedge against the monthly US non-farm payroll Friday gold and silver price slam that may occur tomorrow…we are looking at the May 24, 2103 puts on the GLD ETF that are trading at $2.85 a contract now at a strike of 142.00.”

I further updated our position on May 3, 2013 to our clients after reviewing more data earlier that day, many hours before the COMEX open in NY. Note that the price of gold was still $1,475 an ounce at the time of this updated release:

“With the release of fraudulent US non-farm payroll and employment statistics today at 8:30 AM NY time, this may present the best opportunity of the month for a COORDINATED banker attack and raid on gold and silver in the paper markets again, so beware of a potential raid again today…Though gold is up over $1475 an ounce in Asia [right now] and silver well over $24 an ounce at $24.12 again, the price movements in Asia do not matter if the bankers want to raid the price in paper markets in New York and London…I would not be surprised in the least if they go for a big raid in the range of a $40 to $50 drop in gold today.

So what happened several hours later that day? Precisely at 8:30 AM as I predicted, gold started a waterfall decline that bottomed a tad above $1,440, $35 lower than its price in Asia of $1,475 when I sent out the notice of a coming banker gold and silver raid. The banker raid in gold came within $5 of our target of $1325 to $1335 for the day.

On Sunday, May 5th, I released this statement to my clients:

It is “my belief that the bankers are looking to take gold down below $1450 to at least $1430.” Gold had closed at $1469.90 that previous Friday. Thus, for my prediction to come true, gold needed to fall a very significant $40 an ounce from its price at the time of my alert.

On Tuesday, May 7, I updated this with the following release to my clients:

“With gold closing at $1471 yesterday, another $30 to $40 raid would serve the bankers well as they could release more propaganda about the “risky” nature of gold and silver in the media with another mini-raid. I am thinking…that this push may come tomorrow [Wednesday]”

Regarding our open GLD put options, I stated, “We would take at least some profits from our GLD May 24, 2013 puts with a strike of 142 off the table right now…as these puts are now trading at about $4.05 a contract. Then ensure that you have an exit strategy to protect profits on the rest of your puts.” Having opened these puts at $2.85 a contract, this yielded a quick 42% profit.

On Wednesday, May 8, I sent this notice out to my Platinum clients:

“They [the banking cartel] think they can push the paper price down closer to the $1400 level…Furthermore, even though gold is presently trading at $1455.70 as I write this, and that means another $55 drop, this is exactly what the banking cartel is aiming for.”

On May 10, after acquiring more data, I amended my price target for an upcoming banker raid in PMs and informed my clients several hours before COMEX open that bankers plan to take the price of paper gold down to somewhere between the $1,400 to $1,430 level.

Thus, on two occasions last week, I predicted nearly the exact declines in gold price and predicted the exact days when the price declines would happen, and on a third day, came within $10 of the zone in which gold declined, all based on actions that I saw the Central Banks and their puppet bullion banks taking on previous days. Obviously in a free market, making such predictions with such accuracy would literally be impossible. This can only serve as extremely strong proof that gold and silver markets are NOT FREE by any definition of the word “free.”

Even so, through all this volatility, I never once advocated that my clients dump their physical gold and physical silver and try to buy back their stacks at lower prices. Why? Because during most of this time, the premiums to buy physical silver, especially 1 oz. silver coins, were at a minimum, 15% to 20% higher than the fake paper prices bankers were setting in their paper derivative markets. Because gold and silver inventories shrink rapidly with every subsequent banker raid on PM prices and demand continues to be elevated, as proven by JP Morgan’s collapse of COMEX gold warehouse deposits over the last several months, we can never be sure of when the day will arrive when one opts to sell out of their physical stack of PMs and then tragically, is unable to re-buy it. I believe this risk is not worth taking, and that people should only have used this banker raid to stack more at lower prices if possible.

Regarding the subject of mining stocks, yes, they have taken a brutal beating, and this sector of the gold/silver investment arena has yet to recover. Still, in time, it will. Please do not focus on the short-term losses in this sector due to the brutality of the recent raid on PM stocks but rather focus on the increasingly bullish fundamentals of the physical PM markets. We firmly believe that the proper approach is a long-term horizon, for when this Central Banking charade crumbles, and it will, the gains in ALL gold/silver assets are likely to be just as fast and furious to the upside as these banking raids were brutal to the downside. Patience is usually the Achilles heel of gold and silver asset accumulators, especially given the incessant meddling of Central Banks into gold and silver markets that causes enormous volatility.

During the times gold and silver accumulators stay fully vested in mining stocks, these are admittedly the most difficult periods to emotionally handle. We acknowledge this. However, we strongly feel as though this enormous volatility causes undue emotional distress in many gold and silver accumulators that fail to focus on the fundamentals of the physical markets, which always drive long-term price behavior and instead obsess about the excessive banker rigging of paper gold and silver markets that always drives the short-term waterfall declines. Understanding manipulation, however, is the key to remaining patient enough to reap the enormous rewards in PM markets that inevitably follow periods of excessive banker price manipulation such as the one we are currently experiencing.

I firmly believe that when these banker raids in the paper price of gold and silver fail in the future (see “Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire” here to learn why) that the confidence in global currencies such as the yen, the USD, the euro, and the pound sterling will plummet, and ultimately this rapid loss in confidence in fiat currencies is what will drive gold and silver rapidly to higher prices.

In conclusion, as someone that predicted huge declines in the gold spot price last week on three separate occasions, please understand that the same understanding of these banker gold and silver price manipulation games that led to the accuracy of my calls last week is also what leads me to conclude that the banking cartel price manipulation games in PM markets are unsustainable, on their way to imploding, and will eventually result in much higher prices in all gold/silver assets in the future. Yes, all gold and silver assets have suffered thus far this year in performance, but always remember that a focus on truth versus propaganda will always drive proper decisions when it comes to accumulating gold and silver assets and help one identify buying opportunities when they exist and further prevent one from being a “weak hand” that sells into banker manipulation ploys when Central Banks execute such fraud.

About the author: JS Kim is the founder of SmartKnowledgeU, a fiercely independent research and consulting firm that has been focusing on the best ways to buy gold and the best ways to buy silver since 2007 with a mission of helping to re-instate sound money to replace our fractional reserve banking fiat money that is the root of all global economic problems and instability today.

Our Crisis Investment Opportunities newsletter’s yields, every year, since our launch in 2007 (even in light of the underperforming miners) are as follows: +23.78%, +3.21%, +63.32%, +32.59%, -14.99%, +14.67% for a cumulative 2007-2012 yield of +169.68% versus the cumulative -6.98% yield of the S&P500, the -12.40% yield of the FTSE100, the -19.45% yield of the ASX200, and the +19.50% yield of the Philadelphia XAU gold and silver mining index during this same time period. Note that the only two positive yields during 2007 to the end of 2012 were both in gold and silver concentrated indexes and portfolios. At SmartKnowledgeU, we strongly believe that a focus on periodic poor short-term performance of gold and silver assets during times of heavy banking manipulation will always distract investors from the true inner-workings and realities of global financial markets.

-- Posted Thursday, 16 May 2013 | Digg This Article | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.