The Latest Gold Fraud Bombshell

Originally posted by LieBuster

gold also has no function, it doesnt pay dividents and it doesnt have an interest rate

time will tell but i'm hopeing for a dip in the price of silver/gold so i can get some more.

I was waiting for that too, but IMO that time has came and went..

I was hoping for at least under $1000, but I missed the boat at $1065 or whatever was the low lately and it slapped me in the face, so I just plugged my nose and got in..

Cross your fingers

reply to post by whiteraven

Originally posted by WR:

The Latest Gold Fraud Bombshell: Canada's Only Bullion Bank Gold Vault Is Practically Empty

Lenny Organ who was the person to enter the vault of ScotiaMocatta, says "What shocked me was how little gold and silver they actually had." Lenny describes exactly how much (or little as the case may be) silver was available - roughly 60,000 ounces. As for gold - 210 400 oz bars, 4,000 maples, 500 eagles, 10 kilo bars, 10 one kilogram pieces of gold nugget form, which Adrian Douglas calculates as being $100 million worth, which is just one tenth of what the Royal Mint of Canada sold in 2008, or over $1 billion worth of gold. As Orgen concludes: "The game ends when the people who own all these paper obligations say enough and take physical delivery, and that's when the mess will occur." - zerohedge

Update: Either to cover it's own obligations, or on behalf of client orders, or both, the Bank of Nova Scotia stopped a whopping 1.7 tons of Gold on the May GC.

30 April 2010
Guess Who Is Taking Delivery of 1.7 Tonnes of Gold from the Comex

Its delivery time for the May Gold contract on the Comex, and the statistics yesterday showed some interesting buying.

Bank of Nova Scotia 'stopped' 699 big contracts, and issued 100 contracts, for a net takedown of roughly 1.7 tons of gold, the bulk of which was supplied by J.P. Morgan.

As you may recall, the Canadian bullion bank Scotia Mocatta is a subsidiary of Bank of Nova Scotia. Socita Mocatta was recently involved in a bit of a scandal when some investors went to visit 'the vault where their gold was stored' and found it to be surprisingly, perhaps shockingly, undersupplied.

Is BNS acting to back up their paper, or are large investors asking for their bullion in advance? Either way, its an act of good faith on the part of BNS to take the delivery, and probably very smart to do it now.

While cash settlement may be an option, it is not ethical, and BNS is known for its high ethical standards towards its customers, unlike some of its more famous American cousins in the gangs of New York.

Nothing to see here, move along. Its all perfectly normal. No one really has to have what they sell and store for you anymore. Unless they are honest. - Denver Dave

Link

It's appears the physical market is beginning to overwhelm the paper scheme thanks to GATA' well publicized exposé on the fractional reserve bullion trade, which happened to dovetail perfectly with a global focus on sovereign debt risk.

With the "safe-haven" dollar up against other majors, and Gold up against the dollar, I can only draw one conclusion: Push comes to shove, Gold remains the ultimate safe-haven currency.

reply to post by OBE1


I am thinking along the same lines.

Gold keeps making highs against other major currency, gold looking like total breakout now vs USD

Might even add to my baby .1 unit and make it a bold .2 total. It seems like it is time for its next run up.

Possible DOJ investigation of JP Morgan

Breaking from King World News

Audio transcription...email from the Dept of Justice Antitrust Division:

Generally the Commodity Futures Trading Commission investigates these types of market manipulations, however, the suggestion that JP Morgan Chase may be signaling other traders warrants further analysis. The Department of Justice will carefully consider the issues you raised, and you can be assured that if we conclude that silver traders have engaged in anti-competitive conduct, we will take appropriate enforcement action. - Link

GATA:

On KWN, Ted Butler reveals Justice Dept. probe of Morgan silver rigging

10:15a ET Saturday, May 1, 2010

Dear Friend of GATA and Gold (and Silver):

In his weekly interview with Eric King of King World News, silver market analyst Ted Butler announces that the Anti-Trust Division of the U.S. Justice Department has told a Butler newsletter subscriber that it is investigating a complaint of silver market manipulation against JPMorgan Chase & Co. - Full Text

News just out, so no reaction from precious metals pundits & newsletter writers....yet.

Got Silver ?

Originally posted by GreenBicMan
Might even add to my baby .1 unit and make it a bold .2 total. It seems like it is time for its next run up.

A little late responding cause I don't really know what to say except maybe good on ya & best of luck. Apparently you missed your 850 entry target.

I'm all in here...hoping to see a pull-back from 1185ish, and a range at least until the 15th of May....the day escrow closes on a home I sold over in Cali. If so, I'll be making a substantial allocation around that time.

reply to post by OBE1


Can't win them all.

Get in where you fit in.

Criminal and civil probes under way into Morgan silver trading

11:25a ET Saturday, May 8, 2010

Dear Friend of GATA and Gold (and Silver):

The New York Post tomorrow will report that the U.S. Justice Department has begun a criminal investigation of JPMorgan Chase & Co. in regard to trading in the precious metals markets and that the U.S. Commodity Futures Trading Commission has begun a civil investigation. - Link

Much speculation on what caused the vertical flagpole in yesterday's Silver trade.

[atsimg]http://files.abovetopsecret.com/images/member/6ae263ec048a.png[/atsimg]

Pending public disclosure of confirmed criminal & civil investigations into the "illegal" trading activities JPM may help solve the riddle

Originally posted by jtma508
Information supplied by GATA, Andrew Maguire and others have long pointed out that the precious metals market is leveraged at least 100-to-1. Remember the morgage derivatives market? Same thing. So if investors choose to take delivery of their metals, for every one hundred people who put down money to buy gold or silver only one would actually get what they paid for. The rest would get paper. Or alternatively, each would get 1/100 of what they had paid for.

i don't know if it's 1/10 or 1/100 or even 1/1000 when it comes to silver and freely admit it could go down 50% if we pull out the depression but to me the fun will only start if countries, like banks start to distrust each other and then demand the balance of payment be made in silver/gold like it was not so long ago and then i can see silver/gold going to the moon and US citizens being forced to sell the gold to the goverment.

However this time i'm not sure those bits of paper they give you in return will ever be worth much if indeed it goes that far so plan ahead, get the popcorn and ask yourself why running an audit on fort knocks is now a national security isue if they have nothing to hide

Originally posted by OBE1


[atsimg]http://files.abovetopsecret.com/images/member/6ae263ec048a.png[/atsimg]

Pending public disclosure of confirmed criminal & civil investigations into the "illegal" trading activities JPM may help solve the riddle

I love this one so i take it they are pretending to own a lot of gold.

How active do you think the PPT is in pulling the PM down when markets across the word tank like they did in 2008 and we were about to go over the clif because silver/gold did diddley squat and logic would sugest that as the only real safe haven they should had gone balistic.

My own theory on this is who wanted paper metal if it was all about to blow up and no one realy had the time to buy the real stuff which indicates a massive disconect between these products else the powers that be are so powerfull that they can hide, lets say a 50% rise in the paper product.

The trouble with physical silver or gold is i don't think many of us will make a profit because to make a profit you need to sell it and even if it went up by a factor of ten and people are rushing to buy it then would we surender the security for bits of paper unless we needed the money.

what do you think.

I think they will "thow gold under the bus" to protect the security of the big players as well as the average man or woman. The vast majority of the money of the big investment houses, etc. is in some form of paper or another. The "average man" may have little or no savings or net worth, but what he has will not likely be mostly in gold. The few "gold bugs" out there represent a small crowd that will be sacrificed to appease the anger of the masses and preserve the sagging value held by big players. It doesn't matter that gold is "logical" and fiat currency is "madness." This is true, but people so often forget that rational analysis will only tell you so much. The market runs on emotions and will bellow like a wounded beast if attacked.

One hope that gold will preserve or increase in value is the unregulated nature of international markets. If the dollar goes into meltdown, that will strengthen gold internationally. If this happens, it means the big players have been too mortally wounded to exert their traditional control. In such cases mthe value of gold would skyrocket outside the US, and US holders would be forced to give it up in a ludicrously undervalued forced "buyoff." Let's say you hid your gold and kept it in such a scenario. You'd probably be able to trade it on a black market of sorts, but there you run into all sorts of problems: lack of pricing transparency means values will be capricious and perhaps meaningless; the illegality will be difficult to hide; the potential for "rip-offs and hassles" that come with any kind "street transaction" will be there; you will go to sell and end up with a gutfull of lead and the other guy will take off running down a side-street, etc.

Originally posted by LieBuster

Originally posted by OBE1


[atsimg]http://files.abovetopsecret.com/images/member/6ae263ec048a.png[/atsimg]

Pending public disclosure of confirmed criminal & civil investigations into the "illegal" trading activities JPM may help solve the riddle

I love this one so i take it they are pretending to own a lot of gold.

If you look closely you'll see that I posted a SILVER chart. That vertical at line at approx 12:20 ET represents intense, unusual buying pressure, and today's COT data shows there was a sharp decrease of 3480 contracts in Silver open interest during that particular Comex session.

Translation: Price spiked because "something" spooked the commercial side of the ledger (JPM,GS,HSBC) into covering a large number of contracts.

I speculated the market could be reacting to a pending NYT article scheduled to be published on Sunday. As it turns-out, I wasn't the only one....

JP Morgan's Alleged Manipulation of the Silver Market
By Adam Sharp
Monday, May 10th, 2010

On Friday, something strange happened in silver markets.

I was sitting at my desk, eating some Fritos and daydreaming about the weekend.

Suddenly, silver spiked 5% and I was jolted out of my pleasant daze.

The move happened fast and silver barely budged for the rest of the day. Clearly, something happened. Action like that shown in the chart below doesn't just occur naturally in the market. - Full Text

How active do you think the PPT is in pulling the PM down when markets across the word tank like they did in 2008 and we were about to go over the clif because silver/gold did diddley squat and logic would sugest that as the only real safe haven they should had gone balistic.

In the 2008 drubbing we saw serious rounds of forced selling. Even good assets were liquidated to cover margin requirements elsewhere. Last week the equities market took a couple serious hits with no ill effect on precious metals, in fact Gold/Silver and related stocks managed to gain ground....in-spite of a strong dollar. Very bullish action.

what do you think.

I think folks should continue to hold their hard earned devaluing dollars in savings accounts if that's what they're comfortable with. Makes the bankers happy too.

Personally, I still prefer to count my wealth in ounces

Originally posted by silent thunder
I think they will "thow gold under the bus" to protect the security of the big players as well as the average man or woman. The vast majority of the money of the big investment houses, etc. is in some form of paper or another. The "average man" may have little or no savings or net worth, but what he has will not likely be mostly in gold. The few "gold bugs" out there represent a small crowd that will be sacrificed to appease the anger of the masses and preserve the sagging value held by big players.

They would be throwing themselves "under the bus" my friend.

When it comes to Gold, it always puzzles me how rumor and stigma are perpetuated by the uninformed.

Most of the Gold produced to date is owned by central banks, commercial banks, large funds, and the very wealthy both foreign & domestic. The wealthy have always owned Gold. Proportionately, very little is owned by the general public, especially the American public, primarily because Joe-QP has been well indoctrinated against Gold ownership, he simply doesn't understand it, and quite frankly, your post is a stellar example.






[edit on 10-5-2010 by OBE1]

Wow! Bix may have uncovered the smoking gun here. Seems like all of the toxic roosters are arriving home at the same time.

NEW DEVELOPMENTS IN THE CFTC SCANDAL

On September 17, 2010, CFTC Administrative Law Judge George H Painter issued a "Notice and Order" announcing his retirement from his position. In this notice Judge Painter wrote of a conspiracy at the highest levels of the CFTC (within the ENFORCEMENT DIVISION) where a long time judge of 20 years has been conspiring with past CFTC Chairs to RIG THE ENFORCEMENT OF THE LAW by NOT finding ANYONE guilty of market manipulation. Here are Judge Painter's own words:

"There are two administrative law judges at the Commodity Futures Trading Commission: myself and the Honorable Bruce Levine. On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant's favor. A review of his rulings will confirm that he has fulfilled his vow. Judge Levine, in the cynical guise of enforcing the rules, forces pro se complaints to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case"

A copy of Judge Painter's letter can be found below with a stamp proving that it was received and filed by the CFTC on October 13, 2010.

Full Text

Originally posted by whiteraven
Lenny Organ who was the person to enter the vault of ScotiaMocatta, says "What shocked me was how little gold and silver they actually had."

Was there some reason he would have known how much gold they were actually 'supposed' to have? IT sounds like he may have just assumed there was more than he saw.

reply to post by OBE1

OBE1
I think that document
needs it's own thread.

boon

reply to post by boondock-saint

Hi boondock. Here's some back-up commentary published today by our Swiss friends at The Daily Bell.

Retiring CFTC Judge: We Covered Up Market Manipulation

Dominant Social Theme: Please don't look at the man behind the curtain.

Free-Market Analysis: We are well aware of the corruption that inevitably arises when regulatory democracies persist and like tumors begin to swell. The United States is perhaps the world's most powerful regulatory democracy, and likely its most icily corrupt. Nevertheless, it is absolutely startling to find a senior judge (see article excerpt above) at one of America's most important financial regulatory agencies – the Commodities Futures Trading Commission – bluntly accusing a former CFTC Chairwoman (Wendy Gramm, wife of former Senator Phil Gramm) and a fellow judge of deliberate malfeasance, apparently over decades. Sub dominant social theme: "This kind of thing doesn't happen in the US!"

Continued

Unfortunately I'm not much of a thread author. I typically lack the time & focus required to properly follow-up and contribute. My apologies. By all means, I hope you, or any other interested member will feel free to circulate this news in "Breaking", or whichever forum deemed appropriate.

In light of the obvious political ramifications, it's doubtful this story will ever see the light of day (USMSM). But who knows, maaaaaaaybe John Crudele from The NY Post, or some reporter from The Huff Post will eventually "break it" to the masses. I'll be scanning various news sources, and precious metals websites as time allows.

Well folks, this isn't the first time I've had to eat my words, and I'm sure it won't be the last. Truth is...this time they taste pretty good. I was out and about all day and missed this segment produced by none other than CNBC.

Link

This from The Washington Post

Link

Hopefully, this story will achieve the stature it deserves and ultimately apply pressure on CFTC chairman Gary Gensler. His agency has been moving at glacial speed on it's investigation into price manipulation on the Comex, and on the implementation of new position limit rules as specified by Dodd-Frank financial reform bill.

May this news become a boot on his neck.

When this story received coverage by a couple of MSM sources yesterday, it was predictable that Judge Painter would need to be discredited in some fashion....ASAP. The only question was tactical.

In TPTB's war against truth and transparency, what better allies than The Wall St. Journal, and a soon-to-be ex-wife ?

Case Sheds Light on Judge
OCTOBER 21, 2010

WASHINGTON—An administrative law judge at the Commodity Futures Trading Commission heard and decided cases during a period when his wife said he struggled with mental illness and alcoholism, court records show.

Administrative law judge George H. Painter, 83 years old, issued rulings as recently as Feb. 26, 2010. A range of medical problems led to a 21-day stay in a geriatric psychiatric ward in June, according to Montgomery County (Md.) Circuit Court records filed by his wife's lawyer. Those records were filed in an effort by his wife to seek guardianship over the judge.

Nicholas J. Schor, an Olney, Md., psychiatrist, wrote on Aug. 26, 2010, that Judge Painter's disability was "profound" and it prevented him from making or communicating any responsible decisions, according to court records.

Judge Painter's lawyer, Jean Galloway Ball, said in an interview he is capable of "managing his person and property." A CFTC spokesman declined to comment.

The disclosure comes as the CFTC takes on a bigger role due to the Dodd-Frank financial-regulation law passed in July. The law gives the CFTC broad authority to tighten regulation over some of the financial instruments blamed for contributing to the 2008 financial crisis.

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Next stop...Shutter Island ?