Forum Post: Silvergate - Precious Metals Price Manipulation Whistleblower Revealed By GATA
Posted 13 years ago on Oct. 23, 2011, 10:26 p.m. EST by MonetizingDiscontent
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Silvergate - Precious Metals Price Manipulation Whistleblower Revealed By GATA
Video of Bill Murphy, Chairman of GATA, revealing a whistleblower source(Andrew Maguire) who has warned the CFTC Enforcement Division of market manipulation by JPMorganChase in advance of it happening and witnessed JPM traders bragging of their exploits can be viewed here.
http://www.youtube.com/watch?v=nmgbekhrQxo
"Murphy explained that despite the Enforcement Division receiving detailed information in December 2009 the manipulation continues unabated as can be seen by the way gold was taken down this week to rob holders of April gold call options in the strike range of $1100-$1150 as the hammering made them expire worthless."
"GATA believes that this new evidence and smoking gun will be a watershed event in liberating the gold market from its shackles of price suppression."
"As dramatic as this revelation was at the CFTC hearing there was another bombshell exposure during the hearing. This was the testimony that GATA Board member, Adrian Douglas, was able to deliver during the hearing while assisting Harvey Organ with his testimony. Adrian was able to introduce arguments that the London Bullion Market Association (LBMA) OTC gold market is nothing but a massive paper gold Ponzi scheme. What was then astonishing is that the bullion bank apologist, Jeffery Christian, of CPM Group, who has always been staunchly against GATA endorsed Adrians comments as being exactly right and went on to confirm that the LBMA trades over 100 times the amount of gold it actually has to back the trades."
I just came across this. Although its from last year, its news to me. I wonder what ever came of it.
Read more at the above link.
A gold bubble. I tried to tell some of my friends over a year ago that gold was overvalued. I'm not an expert but what a lot of people don't realize is that there's plenty of gold around despite stories of an "increase in demand." Gold is comparatively rare, but there's more than enough still in the ground to meet demand. The problem is it's very expensive to mine. If gold is below a certain price, it's too expensive to dig up and the mine stays closed. Once it goes above a certain price, then it becomes profitable and the mine is opened (or a new one is started) and starts producing again, thereby satisfying demand.