Proof Positive of Gold Market Manipulation

From August 15, 1971, to November 15, 2018, if every business day you bought the London PM Fix and sold the AM fix the next day, the collective profits you would have skimmed from that constant trade would have been $3,208.17. That is represented above by the blue line. If, on the other hand, you had purchased gold on the London AM Fix every day and sold it at the PM Fix every day and kept doing that every day, you would have suffered a collective loss of $2,039.37. How can that disparity be but for some kind of futures paper market manipulation? If you have an answer, I would like to know.

Dimitri Spec, who initially crunched the numbers that revealed the time/price discrepancy in the paper markets for gold, sent me an email earlier this week to advise me that “The ‘classical’ Fixing Manipulation has disappeared.” The one chart below shows the intraday average 1993-2013. The other the current chart below right shows manipulation patterns since then that are now occurring later in the day. Indeed, looking at my chart above, you can see a decline in the profitability of the PM/AM next-day trade more or less coinciding with the change of manipulation pattern that Dimitri is talking about. Why the change in this pattern? Obviously, the manipulation hasn’t gone away but Dimitri thinks it may have s something to do with the fact that a lot of criticism leading up to the change.

The question is why there should be a time discrepancy if this is a true global market. Why shouldn’t there be pretty much a straight line over a 24-hour period of so many data points?

One person who isn’t such a believer in market manipulation is Michael Oliver. Or to the extent it exists, Michael is a firm believer, as am I, that eventually the laws of nature prevail and destroy those on the wrong side of the market. This past week, Michael put out the following unusual message to his subscribers:

MSA hardly ever sends out articles dealing with fundamentals.  In this case a subject that is hardly an issue on most investors’ minds, but one that is below the surface and reflective of the large reset that is about to occur in the coming few years.  Macro trend technicals (momentum kind, on an annual scale) have been arguing since 2016 (in our reports) that all four major asset categories will undergo major trend change and not of the gentle, incremental variety in the final analysis.  This process will be indicative of an underlying issue of the State, control, the individual and the struggle between those forces.  And those forces are now aligning again, only this time with a huge accumulated State-generated crisis as the core event that will be clear within the next year or two.”Michael then provided a link that discusses what is at the heart of so much of the changes we are about to face in the coming years—namely, the issue of money itself. The move by those who want complete control over our lives—the socialists and advocates of big government—as the solution to our problems is a cashless society. Germans who remember the horrors of hyperinflation are dead set against this direction, thanks be to God! https://www.bloomberg.com/news/features/2018-02-06/germany-is-still-obsessed-with-cash