Another Day, Another Manipulation – Gold

Just got this fresh off the Barry Ritholtz blog and he is a big name to follow.

“Long-time trader Andrew Maguire told told King World News this week that 2 JP Morgan whistleblowers have handed over evidence of gold and silver manipulation by their bank:

Very recently [Commodities Futures Trading] Commissioner Chilton assured me, and I’m going to quote him exactly, “I can’t appropriately express my frustration and disappointment with how we’ve handled the silver investigation

And, as you know, I’m prohibited from actually saying much.  That said, I will not let September go by without speaking out if the agency doesn’t do so.”


I was also contacted by two JP Morgan employees who told me they had a large amount of documented evidence of market trading abuses in gold and silver by their bank (JP Morgan). [And they handed it over to the CFTC.]”

It is all starting to make sense especially with JPMorgan and Zerohedge following their gold vault holdings closely till it ran dry ( JPM Eligible Gold Plummets By 66% In One Day To Just Over 1 Tonne, Total Gold At Fresh All Time Low, Zerohedge 19 Jul) and they sold the building that houses its gold vault in New York (18 Aug).

It is funny that the investigations came to naught so far even though the Guardian did report in March that Gold Could Be the Next Libor Scandal. (

Personally I do not think anything will come out of it. There is too many at stake to risk. We are not talking about credit derivatives and aluminium warehouses that are 2-3 degrees separated from the man on the street. Gold is a far more universal instrument and I somehow do not think they are willing to risk a public outcry and have compensation queues stretching across the country.

Yet, I am aware of suspected suicides due to the gold plunge in April this year.  So lets sit back and watch this story develop in the next few weeks when mainstream media picks it up.