May 22 – Gold $1576.40 down $12 - Silver $28.17 down 13 cents
"We have more credit exposure than other people, and we think when we put that credit exposure on, it was actually very good," said Dimon, 56. "We bought some triple-A securities that we think are as good as gold." … CEO and Chairman of JP Morgan Chase, Jamie Dimon
GO GATA!
Sometimes I feel like Sherlock Holmes, and at other times like Chief Inspector Clouseau on his bad days. Today, it is the latter. My first instinct yesterday that the bizarre, singular weakness in silver was a signal by The Gold Cartel that gold would be under pressure in the very near future(Just what Andrew Maguire explained to the CFTC more than two years ago). But then, with the late action and strength in the shares, I went the other way … that the share strength was the real signal for the day and that The Gold Cartel changed their very short term game plan. Yes, I know, sometimes there are better things to do during a day, but this is part of what I do … and while wasting time here and there, it has helped me figure out the gold and silver markets for over a decade. But, not today … at least as far as what The Gold Cartel had in mind all along!
When I woke up this morning and saw gold down more than $10, I second guessed myself … that I should have stuck with what the silver weakness really meant for gold this Tuesday. That was right on, for about an hour. But, abracadabra, gold then went up on the day, with silver more than 25 cents higher, and the shares continuing their surge up. So, just as the signs yesterday were wishy-washy, so was the action early today early today as to what The Gold Cartel was really up to. In the strangest of ways, both of the anal analyses about yesterday’s gold/silver/shares activity were on the money to some degree, for a while anyway….
That was written three hours ago. Gold has fallen apart and silver is now down on the day. Sometimes, it does not pay to be creative when dealing with The Gold Cartel. Being an optimist, like I usually am, often does not pay off. Understanding the cabal’s historic market manipulation drill does, as per my smarter colleagues…
When gold was on its butt early on, a Café member pro of pros sent me this:
2%... 1%... FLAT... DOWN HARD... ?
Looks like James Mc's "surge control" algorithm is operative again over the past several days (Thursday, Friday, Monday, Tuesday). Richard
It was not so fast at first for "Richard", but he was right on the money by the close.
James Mc has had this garbage Gold Cartel market manipulation crap nailed for what seems like an eternity…
Cartel rope-a-dope
Bill, While last Thursday's 3% rally was exciting the aftermath is textbook cartel. Other than the slight twist of +3% instead of +2% they turned to their old rope-a-dope routine, which was 3%, (Thursday) 1%, (Friday) steady (Monday) and finally down hard. (plan A attack at 3:00 AM today) Once I saw Friday being capped at 1% I was resigned to the probability of the cartel's tried and true method of quelling excitement. Even when gold briefly escapes the boundaries of 2% and 1% they are there to isolate, and frustrate fresh longs correctly seeing a breakout. If history repeats there's a 99% probability that there's no way in hell they will allow any claw-back rally today, and your time will be better spent going to the gym or sorting out your sock drawer.
Prior to last Thursday the last time gold had a gain exceeding 2% (meaningfully) was way back on October 25th of last year. Prior to that the last one was September 2nd. That's over 6 months of gold being imprisoned in market-rigging daily limits. From December 29, 2011 to February 27th, 2012 gold rallied $268, or +17.5%, without the benefit of a single day exceeding 2%. Oddly enough (or not) the average weekly gain during that period was also +2%. Anybody not really understanding cartel behavior would have never guessed gold had been charging higher, which is exactly what MOPE is all about.
The worldwide paper money creation is adding hundreds of dollars, Euros, or whatever you denominate gold in to the true price of gold every month. The fictitious number that appears every time you hit the refresh button on "Kitco gold chart" is a figment of the bankers illusion. At some point a $10,000 POG cannot be achieved within the constraints of 1% daily gains. If the cartel has any hope of exerting continued controls on gold an expanded daily limit of +5% would be highly advisable. James Mc
The gold open interest rose 5638 contracts to 435,213, a new recent high by a good margin. The Gold Cartel is going all out to stomp all over gold for ALL the reasons presented to you for some time. Same with silver, as its OI went up 979 contracts to 113,893.
Two of my favorite people out there are Adam Fleming and James Turk. They are two of the finest men you’ll ever meet and have both been huge GATA supporters for over a decade. What class acts! Our Gold Rush 21 conference, with the price of gold at $436, was truly legendary and one of the most enjoyable experiences of my life…
Adam Fleming, Chairman of Wits Gold and Fleming Family & Partners (yes, related to Ian Fleming of James Bond game), discusses the gold bull market with GoldMoney's Chairman James Turk. Topics include metal price action, the eurozone's debt crisis, and mining in South Africa. Both men think that we are the "in the foothills" of a long precious metals bull market, and that the gold price is in some ways cheaper than it was back when they spoke at GATA's Dawson City conference in 2005, owing to all the quantitative easing – or more bluntly, money printing – that central banks have engaged in since the financial crisis of 2008.
Adam points out that gold bull markets usually result in a 1:1 Dow/Gold ratio, something that he expects to see happen in the coming years. In other words, it's still a great time to buy gold. Adam is pessimistic about the eurozone, and thought plans for European Monetary Union were delusional, on account of the differences in culture and political economy between different European Union countries. He also discusses his mining experience in South Africa, and why – contrary to much negative press the country gets – it is actually still a great place to live and work. He expects companies to increase their mining investments in the Witwatersrand Basin, and thinks that this region will remain the world's premier gold mining location. This video was recorded on May 18 2012 in Jersey, British Channel Islands.
European Central Bank secretly distributes infinite money
Submitted by cpowell on 07:15AM ET Tuesday, May 22, 2012. Section: Daily Dispatches
10:10a ET Tuesday, May 22, 2012 Dear Friend of GATA and Gold:
The Financial Times reports (see below) that the European Central Bank has secretly distributed E100 billion to Greek banks and billions more in secret to other European banks and, in doing so, has gained great "sway over eurozone politicians" -- you know, the people actually elected to run their countries.
Infinite secret money is infinite secret power, and it's great that the FT is interested in this aspect of central bank secrecy. Is it too much to hope that the FT someday will show similar interest in the secrecy imposed by central banks on their interventions in the gold market, interventions detailed by GATA here?:
By Ralph Atkins Financial Times, London Monday, May 21, 2012
There has been no official announcement. No terms or conditions have been disclosed. But Greece's banking system is being propped up by an estimated E100 billion or so of emergency liquidity provided by the country's central bank -- approved secretly by the European Central Bank in Frankfurt. If Greece were to leave the eurozone, the immediate cause might be an ECB decision to pull the plug.
Extensive use of "emergency liquidity assistance" (ELA) to help banks in the weakest economies has been one of the less-noticed features of the eurozone crisis. Separate from normal supplies of liquidity and meant originally as a temporary facility for national authorities to use when banks hit problems, ELA proved a lifesaver for the financial system Ireland and is now even more so in Greece. As such, it has given the ECB -- which has ultimate control over the facility -- considerable power to determine countries' fates…
*The yield of the 10 yr T note rose to the stunning meager amount of 1.77%.
*DOW up early for no reason. Gold down for no reason. PPT and Gold Cartel take a bow. That was this morning. The DOW and DOG have now gone negative and falling fast.
*Perhaps more Chief Inspector stuff, but yesterday with Facebook in the toilet, the shares of Apple really surged??? Today with Facebook still reeling, JPM rose 5%. Will leave it at that...
No I won't, as the US stock market is sinking and under siege at the moment. The BF operators, Counterparty Risk Management Policy Group, and PPT are struggling. The Facebook issue might be bigger than we think in terms of the public confidence in the market. As you know, my smeller tells me this JP Morgan issue is a BIG deal for the market ... and so is the over hyping of Facebook.
My bet is the BF operation went too far this time. We shall know if that is the case within weeks.
That was written only 15 minutes ago. The DOW, after being up 50, went down 50 and was in TANK mode, when it mysteriously recovered to end the day in flat territory, for no apparent reason, yet AGAIN. I ended my presentation in Las Vegas explaining that all our markets were manipulated and to watch for late DOW rallies for NO APPARENT REASON. Today's market action had PLANET GATA analysis written all over it.
THIS IS GOING TO END VERY BADLY, unfortunately. The market manipulators are out of control and gone WAY too far.
WHEN WILL ANYONE OUTSIDE OF THE GATA CAMP get into the nitty gritty of really how our stock market operates in Amercia? The sickness of the whole deal is beyond comprehension. What we are dealing with here is Enron, Madoff, and MF Global TIMES 100 PLUS. WATCH!!!
Both the XAU and HUI were very firm early and then tanked substantially, despite the strength in the overall market. The XAU lost 1.60 to 150.78 and the HUI sank 4.65 to 405.60.
Gold was first hit this morning with the standard PLAN A Gold Cartel attack when they reported for work at 3 AM NY time. Then they went to their PLAN B following a weak PM Fix of $1582.50 ... then to their PLAN C follow-up mauling in the Access Market, as gold traded as low as $1566. All of what we have seen the past two days was explained to the attendees at the Las Vegas Money show. I suggested, if they were interested, to watch how The Gold Cartel operates … that it was that obvious. Sure didn’t take long for GATA’s case against the cabal forces to become evident.
Financially, this is still a horror show, at least if you have your money in many of the gold/silver shares. That is just a fact of life. Yes, a historic move to the upside is coming, so hanging on is key. However, when? I wish I knew. In January at the Cambridge House in Vancouver the venerable JP Schumacher, who gave Ferdi Lips' speech at Gold Rush 21 because Ferdi was ill, said he thought the shares would be dead until fall … and he is a gold fund manager. That assessment has been right on the money so far.
With Facebook, JPM, and Europe under siege, we must be prepared for ANYTHING in the short term.
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