swissaustrian
Yellow Jacket
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Just like yesterday, the CRIMEX is in lala land. Totally out of nowhere, gold fell right at the opening bell (8 am ET) :flail:
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It's all so unbelievably obvious. The CFTC knows what's going on... and nothing will ever happen.
http://kingworldnews.com/kingworldn...al_Buying_in_London_Reverses_Gold_Market.htmlToday 25 year veteran Gabelli Gold Fund manager, Caesar Bryan, told King World News the Southern periphery countries of Europe will experience a turbulent period that will be worse than the Great Depression. Gabelli & Company has over $31 billion under management and Caesar Bryan has managed the gold fund since its inception in 1994. Caesar also said physical buying in London helped turn the gold market around. Here is what Bryan had to say about the situation: “Well, I think the gold market was looking fine from yesterday. Then we had reasonable payroll numbers here in the US and that took the gold price down. But then we had a sudden reversal which is quite interesting. My understanding is the PM fix in London saw some physical buying and was fixed a few dollars higher than gold was trading on a spot basis.”
Caesar Bryan continues:
“Then there was some good follow through (to the upside). On a longer-run basis, we are sitting on the moving averages and gold is fine. We are in a bull market. We’ve suffered a number of nasty corrections since 2001. I believe we have had about seven corrections of over 20%. One of 30%, at the time of the Lehman crisis.
I think there is a tussle between physical buyers and players in the paper market and so far the physical buyers are having a little win today...
Now down $33... Quite a dump gold is taking!
I looked at the usual sites (Turd, ZH, kitco, 24hgold) and have seen NOTHING about why gold is down so much!
Note in this next chart that if one simply bought gold and held it only during the open and close of the US daily fix, one would have lost 70% of one’s money during the same period of time that gold rose in price by more than 500%.
(...)
For example, take a hypothetical gold investment fund starting with $100m in 2001, use it to buy gold only at the US AM fix and sell at the US PM fix until the present, and it would now be left with just $31 million, almost a 70% loss in just under ten years. Over the same time period, gold prices have risen over 590%.
(...)
Here we might ask a simple question: How is it possible that an asset that rose across all world markets by more than 500% fell during active trading in the most important market of them all (by volume) by 70%?
(...)
We can easily see the startling difference in the chart below. It compares the results of a simple 'buy and hold' investment in gold over the past ten years vs. a more active (and clever) strategy that both shorts gold during the daily hours and then buys gold long for the overnight session:
(...)
This strategy captures both the daily losses and nightly gains into a single, combined monster gain that has returned over 5,000% over the past decade with very few drawdowns, handily beating the price of gold itself by a factor of ten.
Again, how is it possible for a single strategy to be such a reliable winner without being competed away to zero? A very simple explanation is that an entity that does not care about potential losses simply and reliably sells gold into the daily markets.
Chris Martenson said:...
When a strong emotional response surfaces during a conversation of ideas, it usually means that beliefs are in play -- neither facts nor logic. Experience has taught me that when someone becomes dismissive or angry or hostile when the idea of price manipulation is discussed, it's best to simply drop the conversation and move on. No combination of logic or facts is effective against a deeply-held belief. It's better to wait until some new evidence calls that belief into question, opening the door for revisiting the topic.
...
Financial writer Paul Mylchreest's latest Thunder Road Report, titled "Caught Red-Handed," documents the last seven months of the gold price suppression scheme as a function of computer trading algorithms operating worldwide but most heavily in the London and New York markets. Mylchreest writes: "The gold price on Reuters/Bloomberg screens is not really the gold price since the 'gold market' is not a market for physical gold per se. Instead, the price on your screen is a hybrid price of some physical gold that is heavily diluted in the price-discovery process (deliberately) by a far larger amount of 'paper' gold in several forms, notably unallocated LBMA accounts, Comex futures and options, many exchange-traded funds (I would exclude Sprott and the Central Fund of Canada, both of which trade at premiums to net asset value), and billions of dollars of OTC gold derivatives."
Mylchreest's report draws heavily on and credits GATA's work and is posted in PDF format at our Internet site here:
http://www.gata.org/files/ThunderRoadReport-03-28-2012.pdf
F...in GREEN :rotflmbo:
... After plunging $20 right after the crimex opening.
I am still waiting on Silver to recover from the today's plunge.
Wont be today by the looks of it.. In all honesty, I think silver probably takes time off till this fall.
...
The Journal noted this morning's strange and seemingly uneconomic smash down in the gold price and strained mightily to attribute it to a mistaken "fat finger" trade -- even though the "mistake" would have involved more than a billion dollars' worth of gold and this sort of thing lately has been happening practically every other day.
...
But at least these odd movements in the gold market have become so blatant as to command even the Journal's attention, to the extent that the newspaper is compelled to contrive excuses and distractions. That's progress.
...
Wall Street Journal said:...
The CME Group Inc.'s Comex division recorded an unusually large transaction of 7,500 gold futures during one minute of trading at 8:31 a.m. EDT. The sale took out blocks of bids as large as 84 contracts in one fell swoop and cut prices down to $1,648.80 a troy ounce. The overall transaction was worth more than $1.24 billion.
...
One indicator that the transaction was a mistake was its size. At 750,000 troy ounces, such large trades are rarely conducted amid very thin trading volumes. Monday trading was expected to be quiet as market participants in China and Japan are out on holiday and many European traders are preparing for a holidays there.
"No one who has the account size and the money to trade thousands of gold contracts would do it in one transaction -- that's just stupid," said one trader. The collateral required to purchase 7,500 contracts is about $75.9 million in cash that the trader would have deposited with his broker.
...
Still, not everyone agreed Monday's slip in gold was caused by a keystroke error. Chuck Retzky, director of futures sales for Mizuho Securities USA, said that silver prices suffered a similar leg down at the same time as gold, tumbling 35 cents to $30.805 a troy ounce, but other markets like Treasurys, currencies, and stocks were unperturbed.
"To do it both in gold and silver tells me that it wasn't a trade done in error," Retzky said. He added that the sale could have been caused by a trader looking to cut back holdings on the last trading day of April, as fund managers often time purchases and sales for particular reporting periods.
Traders continue to chatter about the so-called "FAT FINGER" trade in gold that occurred early this morning, a trade which dropped the gold price $15 in minutes and consisted of an order of 7,500 contracts. Many seem to agree that it was a trade placed in error.
The problem is that we also witnessed a similar surge in the volume done in the nearby silver pit at the exact same moment. Note the time right after the 5:00 AM hour (Pacific time) on the following 5 minute chart and see how large the volume was compared to that for the remainder of the session.
No matter who did the trade, ( I remain of the opinion that this was a raid designed to knock the metal lower in hopes of creating a cascading running of downside sell stops), the fact is that it failed miserably. ...
Banging the close
1) A form of market manipulation where a trader uneconomically buys or sells futures contracts during the closing period. This is done to benefit futures positions purchased earlier in the day or positions in a derivative that is cash-settled based on the futures settlement price of that day.
2) Violating bids or offers to artificially mark the closing price.
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