Gold and Silver Price Manipulation – Part 5 of 11 – by illuminati Silver

Gold and Silver Price Manipulation – Part 5 of 11 – by illuminati Silver

Welcome to illuminati silver, we tell you
the truth about silver. Today is Thursday 21st January 2016 and we
are addressing the issue of Gold and Silver price manipulation. In parts 1 -3 we highlighted
the main advocates who have accused Governments and Central Banks of such manipulation. In
video 4 we highlighted one of the ways in which this manipulation is alleged to take
place. In this video we shall mention another route which is via the LBMA or the London
Bullion Market Association. Once again, Dr. Paul Craig Roberts and David
Kranzler have a theory on how this occurs. This is how they describe it:
“In addition to the Comex, the Fed also engages in manipulating the price of gold
on the far bigger–in terms of total dollar value of trading–London Gold Market. This
market is called the LBMA (London Bullion Marketing Association) market. Whereas the
Comex is a “paper gold” exchange, the LBMA is the nexus of global physical gold
trading and has been for centuries. When large buyers like Central Banks, big investment
funds or wealthy private investors want to buy or sell a large amount of physical gold,
they do this on the LBMA market. The Fed’s gold manipulation operation involves
exerting forceful downward pressure on the price of gold by selling a massive amount
of Comex gold futures, which are dropped like bombs either on the Comex floor during NY
trading hours or via the Globex system”. Then the physical gold is bought via the LBMA
originally using the London Gold Fix mechanism. This mechanism was certainly singled out for
criticism. Here’s a little background to it:
The London Gold Fix was first held on 12th Sept. 1919 to kick-start London’s gold market
after the end of the First World War. For 85 years until 2004, the five member banks
of the London Gold Fix would meet face-to-face at the offices of N.M.Rothschild, the Chairman
of the Gold Fix, on St. Swithins Lane in the City of London.
Rothschild’s Bank chose to quit the gold market in 2004, explaining that “our income from
commodities trading in London has fallen as a percentage of our total income in each of
the past five years”. The London Gold Fix (which was changed in
2015) involved gold dealers from London’s five biggest bullion banks establishing a
common transaction price for a large pool of purchase and sale orders. They did this
twice each business day – first at 10:30am (known as the Morning Fix) and then again
at 3pm (known as the Afternoon Fix). The participating bullion banks acted both
on their own behalf and for those customers of theirs who had issued limit orders for
them to trade at the London Gold Fix Price. No-one knew what the Gold Fix would be before
it was declared. The Gold Fix established the price at which
the gross amount of gold on buy orders matched the gross amount of gold on sell orders – across
all the participating banks. The Gold Fix Chairman started the fixing process
by declaring a price – usually very near the ongoing spot market gold price.
Assuming this price the participant banks aggregate all the limit orders they have received
– both buys and sells – and declared to the Chairman the net quantity of gold they would
buy, or sell, at the proposed price. However this system had its critics:
On February 28th 2014, Bloomberg reported on a study co-authored by New York University
Stern School of Business, Professor Rosa Abrantes-Metz and Albert Metz, a managing director at the
rating agency Moody’s Investors Service. In their not then published draft research
paper, the two authors claimed that “The structure of the benchmark is certainly conducive
to collusion and manipulation, and the empirical data are consistent with price artificiality”
and that “It is likely that co-operation between participants may be occurring”.
The authors of the study refer to unusual price activity around 3:00 pm in London when
the afternoon setting of the gold price is taking place. They have not observed these
trading patterns during the morning fixing. Furthermore, large price moves during the
afternoon fixing were ‘overwhelmingly to the downside’. Screening intraday data from
2001 to 2013, they found those patterns from 2004 until the end of the data sample. In
a telephone interview, Professor Abrantes Metz said: “There’s no obvious explanation
as to why the patterns began in 2004, why they were more prevalent in the afternoon
fixing and why price moves tended to be downwards.” Thus, the two authors concluded in their research
paper that unexplained moves may indicate illegal behaviour by the five banks involved
in the gold fixing, working actively together to manipulate the benchmark.
Also in Feb 2014, an analysis conducted by a specialist consultancy called Fideres claimed
that Global gold prices may have been manipulated on 50 per cent of occasions between January
2010 and December 2013. Fideres’ research found the gold price frequently
climbs (or falls) once the conference call between the five banks begins, and peaks (or
troughs) almost exactly as the call ends and then experiences a sharp reversal, a pattern
it alleged may be evidence of “collusive behaviour”.
“[This] is indicative of panel banks pushing the gold price upwards on the basis of a strategy
that was likely predetermined before the start of the call in order to benefit their existing
positions or pending orders,” Fideres concluded. A new system was launched on 20th March 2015
called The LBMA Gold Price – to replace the historic London Gold Fix. ICE Benchmark Administration
(IBA) provides the auction platform, the methodology as well as overall independent administration
and governance of the LBMA Gold Price, with the LBMA itself holding the intellectual property
rights. The price continues to be set twice daily
(at 10:30 and 15:00 London GMT) in US dollars. Sterling and Euro prices are available but
they are indicative prices for settlement only. The IBA’s platform provides an electronic,
auction-based, tradeable, auditable and fully IOSCO-compliant solution for the London Bullion
market. There are twelve price participants who have
been accredited to contribute to the LBMA Gold Price: Barclays Bank, Bank of China,
China Construction Bank, Goldman Sachs International, HSBC Bank USA NA, JP Morgan, Morgan Stanley,
Societe Generale, Standard Chartered, The Bank of Nova Scotia – ScotiaMocatta, The Toronto
Dominion Bank and UBS. On the 1st October, 2015 the IBA introduced
a new commercial model for the LBMA Gold Price. In the next video we shall highlight a third
method of alleged gold and silver price manipulation. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
visit our website regularly at Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.


  1. Silver cannot hold $14 per oz, even in this terrible economy/ stock market. As of today, you can get silver bars for 60 cents over spot , any quantity , brand new from Gainsville coins online. Here is what im expecting to happen this year.
    Dow will continue to perform poorly , the FED will announce they are no longer planning to raise rates several times in 2016…this may cause a temporary spike in stock market…but silver will go LOWER. If silver cannot hold $14 in this month of Jan , theres no way silver will perform strongly for the rest of this year.

  2. when companies can sell silver for 29 – 60 cents over spot , and they still are making a profit, then I know that silver still has more downside on its price. barrel of oil used to be $ its $27..and dropping…this means fuel costs for mining companies, have fallen a whopping 75% …this means it costs less to mine metals …not the pumpers claim. There is no silver shortage , and silver is inexpensive for mining companies to extract from the ground due to deflation/ plummetting fuel costs.

  3. error…just checked rebounded today and is now around $30 per barrel…this is the strongest day oil has had since the start of 2016….it may be a dead cat bounce though….even the dow is up 230 points right now…but im confident the downtrend will kick in again, after this temporary spike up.

  4. I have two questions for the experts: LBMA stopped publishing GOFO rates
    (I think about one year ago). They claim it is to cost intensive. Q1)
    Is this a coherent reason or is there another motive? Q2) Can anyone
    recommend another good source for GOFO rates?

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