Comments on: JS Kim Uncovers Four Parallel Markets for Gold: Asia Futures, NY Futures, Physical Bullion, Physical Coins

By: Why the IMF’s Announced Sale of 191 Tonnes of Gold Will Prove to Be Irrelevant | The Underground Investor

Thu, 18 Feb 2010 06:54:01 +0000

[...] than a year ago, I wrote an article describing the beginning of a disconnect between gold futures markets in Asia with those in London and New York, as well as the disconnect between physical gold and silver prices with the spot prices established [...]

By: Gold is NOT the Ultimate Asset Bubble | The Underground Investor

Gold is NOT the Ultimate Asset Bubble | The Underground Investor — Fri, 12 Feb 2010 04:54:00 +0000

[...] Freedom, Reinterpreted for the 21st Century” that is six months old; the other titled “JS Kim Uncovers Four Parallel Markets for Gold” that is over sixteen months old. In the first article, I essentially reviewed and updated [...]

By: Bankers and Economists Say Gold is a Bubble. Here’s Why You Should Ignore Them. | The Underground Investor

Mon, 28 Dec 2009 08:02:55 +0000

[...] the remainder of that article, which you can find here, complete with all graphs, I presented compelling visual evidence of enormous discrepancies in the price of gold between [...]

By: Will CFTC Chairman Gary Gensler Really Curb Manipulation Schemes in the Futures Markets, or is it Another Smoke & Mirrors Game? | The Underground Investor

Fri, 10 Jul 2009 02:34:45 +0000

[...] fact, this is the exact revelation that I explained nearly nine months ago when I explained the massive disconnect between physical gold prices established by supply and demand and the prices of g… In the past, there have been many instances in which gold and silver’s price have plummeted on [...]

By: J.S.

J.S. — Tue, 16 Dec 2008 16:52:30 +0000

SJ,

Thanks for the link. I’ll be sure to check it out.

By: SJ

SJ — Tue, 16 Dec 2008 13:35:37 +0000

You’ll enjoy reading this: THE SECRET GOLD TREATY
http://www.bibliotecapleyades.net/sociopolitica/esp_sociopol_gold.htm

As for the China/COMEX price discrepancy, in a free market arbitrage would have anyone and everyone selling the dear and buying the cheap, earning the difference. Either we are looking as massive spot manipulation, or a very restrictive China contract. Being that the USA owes China so much money, IMHO it’s perhaps HSBC and Morgan that are acting as agents of the PRC, facilitating the “manipulation” for the earnings benefit of the PRC, in exchange for some trade, monetary, or fiscal considerations. This makes the most sense to me, as there is a shadow fiscal government running all such matters, e.g., where did the $2T go???

By: william shoppoff

william shoppoff — Wed, 22 Oct 2008 18:08:52 +0000

There isa saying. Don’t fight the fed especially when they are this corrupt.

By: Andrew P

Andrew P — Wed, 22 Oct 2008 03:16:53 +0000

HI John,
This is really good. Anyone who has followed your column’s and articles for the last couple of years knows you know your markets.
We may not like it, actually recognising that the free market is perhaps not as free as we would like to believe it is. However let knowledge set us free. It is up to us now, ignorance will get us nowhere.

By: J.S.

J.S. — Wed, 22 Oct 2008 02:00:41 +0000

Eddie K,

graphing the above charts against the major currencies would be interesting, just not in dollars. however the artificially manufactured rally in the US dollar by the US Treasury and the Exchange Stabilisation Fund no doubt has contributed to this persistent weakness in gold (in the paper market) as gold is priced in US dollars.

By: nilloo randeva

nilloo randeva — Sun, 19 Oct 2008 17:33:36 +0000

very thought provoking, definately something very fishy is going on

By: J.S.

J.S. — Sun, 19 Oct 2008 16:00:03 +0000

Stan,

I agree with you 100%. Why did the SEC ban naked shorts on first selected financial stocks, and then again, on more than 700 financial stocks while naked shorting of gold and silver was allowed on COMEX in the futures markets as the firms that establish the largest short positions against gold and silver in the futures markets never buy the physical silver and gold to back their short positions?

Unethical price fixing schemes in stock markets (the banning of shorts against financial stocks in essence was a temporary price fixing scheme) are obvious bailout plans for executives of these companies that allowed them to dump their shares at prices 70% higher than they would be able to receive in a free market.

Since futures contracts are so highly leveraged, the firms that have established the largest short positions against gold and silver in futures markets would not have the capital to be able to assume these massive short positions against gold in the futures markets if they were actually required to buy the massive amounts of gold and silver that are represented by the futures contracts through which they establish their shorts.

And what ever happened to the regulations like lock limits that were designed to stop blatant manipulation in futures markets? If lock limits had existed for the past several months, regulators would have not allowed futures markets in gold and silver to trade for weeks on end given the current behavior we are experiencing. If you go back and read the lock limit laws that were abolished years ago, you would discover that there is little doubt that these laws would have “locked” gold and silver futures markets for weeks on end now.

Nobody seems to be discussing the reasons why lock limit laws were abolished especially since the reasons they were established were to prevent blatant manipulation of commodities markets. We must ask why laws that would prevent blatant manipulation of futures markets would be abolished? I think most of us know the answer.

By: H.

H. — Sat, 18 Oct 2008 21:45:54 +0000

Nice work. It’s really become so brazen it’s almost comical. Even more so with silver. Little over a month ago silver was going for $19 an ounce. Now spot is $10, but if you actually want to buy some and take delivery, there’s a 60-70% markup over the spot price. It’s like saying the spot price of a new Mercedes is only $1000, but you’ll also have to buy the tires which are $25,000 each.

By: stan atkinson

stan atkinson — Sat, 18 Oct 2008 20:07:07 +0000

I understand Butlers’ emphasis on concentrated shorts. And even though he has mentioned “naked” short sales, no one seems to be emphasizing this feature to the CFTC. That in my mind is the obviously blatant illegal feature of the concentrated shorts behavior. Why can’t some regulator audit the underlying borrowed inventory immediately? This would seem to be a not to onerous task and could yeild immediated results.

Thank you for pointing out the timing issue. I trade silver on the comex (not very successfully) and have lately been trying to get in harmony with and think like the criminals. Maybe then I’ll make some money.