Seeking Alpha

Gold fix manipulated for a decade, says study

  • A draft research paper from Stern Professor Rosa Abrantes-Metz and Moody's Albert Metz finds from 2004 on, frequent spikes (usually down) in spot gold prices around the time of the 3 PM London time call to set the afternoon fix. These price movements weren't observed during the morning gold fix call, nor were they apparent prior to 2004.
  • “The structure of the benchmark is certainly conducive to collusion and manipulation, and the empirical data are consistent with price artificiality,” they say in the still-unpublished study (Bloomberg's Liam Vaughan reports).
  • At the moment, they say there's no clear reason why the patterns didn't begin until 2004, or why they're more prevalent in afternoon action, or why the moves tended to be downward.
  • ETFs: GLD, IAU, PHYS, SGOL, UGL, DGP, GLL, DZZ, UGLD, DGL, GLDI, DGZ, AGOL, DGLD, TBAR, UBG, GLDE, GYEN, GEUR, GGBP
Comments (38)
  • gwaterloo
    , contributor
    Comments (102) | Send Message
     
    maybe all the paranoid gold bugs aren't so crazy after all
    28 Feb, 09:51 AM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (3241) | Send Message
     
    Just because we're paranoid doesn't mean they aren't out to get us.
    28 Feb, 09:54 AM Reply Like
  • d.chavo
    , contributor
    Comments (38) | Send Message
     
    What happens in the dark will eventually come out in the light. Obviously, this was done with the blessing of the Federal Reserve and other western central banks as they try to fool people into getting them to spend their hard earned money. Anyway, sooner or later the Comex will be exposed for the sham it is. 60, 70, 80 ,90 owners per each available ounce of gold. LMAO! If gold was so worthless why are there so many owners per each available bar for delivery? HMMM!!!!
    28 Feb, 09:55 AM Reply Like
  • Ben Hanson
    , contributor
    Comments (403) | Send Message
     
    Insert witty comment about tulip bulbs and beanie babies here.
    28 Feb, 11:37 AM Reply Like
  • stopthe
    , contributor
    Comments (105) | Send Message
     
    That's still a better ratio than the fractional reserve "banking" system, where there are only 8 dollars available for delivery for every 100 dollars promised.

     

    There is no such thing as a deposit account. A "deposit" is a loan to the bank, which is why they can legally default on it. Good luck getting anything from the FDIC, which is similarly leveraged.

     

    Paper gold is still safer than paper paper.
    28 Feb, 01:22 PM Reply Like
  • Mattster
    , contributor
    Comments (162) | Send Message
     
    lol at those who buy gold proclaiming that fiat currency is just paper and unsafe while at the same time they hand their money to London manipulators
    28 Feb, 09:59 AM Reply Like
  • Cameron Swinehart
    , contributor
    Comments (303) | Send Message
     
    That is why you take delivery of physical gold.

     

    London manipulators yes, but what about the central bank manipulators? Now that is a far more insidious act.
    28 Feb, 03:05 PM Reply Like
  • mike_simms
    , contributor
    Comments (101) | Send Message
     
    Fiscal irresponsibility, promotes commodities. Until they realize the current actions of spending by the fed is going to drive refuge to gold, they will have to continue to intervene with manipulation. The best way to control the price of gold is with common sense government spending and responsibility. So be assured more manipulation will continue.
    28 Feb, 10:09 AM Reply Like
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    huh? the fed doesn't spend anything.
    28 Feb, 10:11 AM Reply Like
  • TheLastSpartan
    , contributor
    Comments (110) | Send Message
     
    No, they don't spend anything. They just facilitate the spending by the government... which is pretty much the same thing. You are just grasping for straws.
    28 Feb, 10:20 AM Reply Like
  • tyouth
    , contributor
    Comments (44) | Send Message
     
    They don't spend money, they spend (yours and mine) value.
    28 Feb, 12:06 PM Reply Like
  • stopthe
    , contributor
    Comments (105) | Send Message
     
    As long as America has no serious military challengers, the petrodollar system will remain intact, and it doesn't matter how many dollars we print.

     

    Any analysis of the gold price that doesn't account for the geopolitics of the petrodollar is woefully misinformed.

     

    The price of gold has nothing to do with the US deficit or debt.
    28 Feb, 01:26 PM Reply Like
  • mike_simms
    , contributor
    Comments (101) | Send Message
     
    Jake the fed controls the money supply. Period. And when I say fed I don't just mean Yellen or Bernanke (Federal Reserve). The fed is the government, of course it includes congress who by spending wastefully and like children can ruin an economy. It's not a hard concept, spend to much and you have too much debt. Devalues your currency and makes other currencies or commodities more valuable.
    28 Feb, 10:43 AM Reply Like
  • stopthe
    , contributor
    Comments (105) | Send Message
     
    "Spending wastefully" does not ruin the economy. Please demonstrate how this is so. Just another right-wing bumper sticker with no basis in fact.

     

    In case you haven't noticed, the economy depends on spending. Therefore there is no "wasteful" spending when it comes to the economy.
    28 Feb, 01:27 PM Reply Like
  • ddearborn
    , contributor
    Comments (124) | Send Message
     
    Hmmm

     

    "the fed is the government" That is a false statement. the "FED" is NOT a government agency. The "FED" is in NO way answerable to either the government or the people of the United States. If you doubt this read their charter and the numerous court cases in which their total independence is outlined.

     

    The sole exception being that the Chairperson and deputy Chair are nominated (not necessarily chosen by however) the President and approved by the Congress.

     

    The Federal Reserve is a PRIVATE FOR PROFIT BANKING CARTEL. Unless of course you don't consider the 6% interest they are earning on our money "profit". The FED has never been fully audited. The Federal Reserve member banks have many major stockholders who ARE NOT US CITIZENS.

     

    The current head of the FED is a dual citizen Israeli. The Deputy Chair is an Israeli citizen who holds a US passport who just left his job as head of the Israeli bank. Many of the Largest stock holders in the member banks are Jewish with familiar sounding names.

     

    When the FED was "lending" money during the height of the "crisis" trillions went to foreign entities and individuals. The FED regularly lies in testimony before Congressional panels. The FED is a criminal banking cartel that has taken the value of the US dollar in 1913 at its inception down to about 3 cents in value today.

     

    The FED is a major national security threat to the United States and must be terminated immediately.
    1 Mar, 05:10 AM Reply Like
  • ProfEd
    , contributor
    Comments (6) | Send Message
     
    Guess they can sign you up fora case of those $600 hammers. A government 30 trillion in debt in a nation with a collapsing infrastructure and insolvent retirement programs has wasted the wealth of several nations.
    4 Mar, 01:03 PM Reply Like
  • Mark916
    , contributor
    Comments (19) | Send Message
     
    I'm just glad I haven't been buying that barbaric gold but have been putting my money into the modern money that is bitcoin.
    28 Feb, 11:58 AM Reply Like
  • Ninja Trader
    , contributor
    Comments (633) | Send Message
     
    Mark916,

     

    Not a good idea to get us goldbugs started on Bitcoin.
    28 Feb, 12:43 PM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    Mt. Gox, Fort Knox...it will be the same thing. When the public gets to see what is in the vault, it will be a lot of nothing. The Fed will say...those nasty bankers (that happen to own the Fed) swindled us out of all the public's gold. How could we have known? Then every 2 faced Congressman will form a committee, wring their hands, and announce a new spending plan to make it all right. The Prez will say he thought the money guys had it worked out where he could blow a trillion a year to buy votes...and Jaime will be in his bunker in Singapore still richer then us.
    28 Feb, 01:25 PM Reply Like
  • stu silver
    , contributor
    Comments (822) | Send Message
     
    bitcoin is finished. as soon as it was recognised by the mainstream, that was its doom. The usa feds have seen to that. But unlike bitcoin if you hold real money in physical gold and silver, no one can take your ounces of real wealth.
    28 Feb, 04:04 PM Reply Like
  • ddearborn
    , contributor
    Comments (124) | Send Message
     
    Hmmm

     

    I don't like Obama even though I voted for him. But lets be clear here; Obama is not blowing a trillion a year. In our system of government it is the Congress which controls the purse strings. Therefore it is the Congress which is blowing a trillion dollars a year, not the President.
    1 Mar, 05:12 AM Reply Like
  • minecanary
    , contributor
    Comments (411) | Send Message
     
    It seems to me, Obama just gave a few hundred thousand workers a 30% raise last week w/no input from Congress.
    1 Mar, 08:39 AM Reply Like
  • Stephen Mayo
    , contributor
    Comments (311) | Send Message
     
    It is fun the watch the educational effects of a free market on all the youngsters playing bit coin musical chairs.

     

    As in any Ponzi scheme, someone will make some dough.
    1 Mar, 08:49 AM Reply Like
  • Coffee Joe
    , contributor
    Comments (69) | Send Message
     
    I'm a gold bug, but besides the growing pains, Bitcoin or some form of it is here to stay
    3 Mar, 07:22 AM Reply Like
  • 6151621
    , contributor
    Comments (1167) | Send Message
     
    SA, I'm glad you acknowledge this is possible and don't filter out the result. My question to the editors is why do your index of daily performance no longer show gold / gld performance?
    28 Feb, 12:25 PM Reply Like
  • Momintn
    , contributor
    Comments (3818) | Send Message
     
    Many things go down in the afternoon. Why would you think gold should be any different? People who buy disappear, probably headed home.
    28 Feb, 12:39 PM Reply Like
  • Ben Hanson
    , contributor
    Comments (403) | Send Message
     
    Well, that confirms it. I'm staying the heck out of gold. I always thought of it as a pure speculation play, but if it's a MANIPULATED speculation play, there's not a lot to recommend it.
    28 Feb, 12:46 PM Reply Like
  • stu silver
    , contributor
    Comments (822) | Send Message
     
    why not buy something that is vastly undervalued? No rigging scheme can last forever and id say we are pretty close to this one ending judging by the delays on getting delivery of coins and bars, the german gold issue and comex having not delivered any gold for getting on for a year. When this scheme fails, and it will, watch the price rocket.
    28 Feb, 04:04 PM Reply Like
  • Brian58
    , contributor
    Comments (96) | Send Message
     
    Still going on as we speak. Dollar at low of day and so is gold.
    28 Feb, 12:47 PM Reply Like
  • rae100free
    , contributor
    Comments (3) | Send Message
     
    Those of us who have watched the gold market for years, and have taken the time to look at the volume, location, timing and traders, have been aware of the curious way many big swings in price happen. When coincidence occurs so many times with sudden swings in the gold market supporting bank balance sheets, you know things are not really coincidental. The Fed is complicit in this. After all, they are not a branch of the government. They are the trunk of the economic tree and the big branches are the banks they represent. All the paper trading makes manipulation easy and sooner or later holders of leases and gold securities are going to want to see the yellow stuff up close and personal. When that happens, and the banks con no longer mask their fraud, all hell will break loose.
    28 Feb, 01:01 PM Reply Like
  • jznzfs
    , contributor
    Comments (9) | Send Message
     
    I'm somewhat new to the gold thing. I don't get in too deep and try not to get too greedy......or impatient. So far, it has been kind to me.
    28 Feb, 01:02 PM Reply Like
  • psbjr
    , contributor
    Comments (34) | Send Message
     
    Looked at a daily one-minute chart of the SPY, IWM, or QQQ recently. The U.S. stock market is obviously being manipulated as well. The big banks with their high-speed trading systems are running a casino on the stock market and they're the house.
    28 Feb, 01:24 PM Reply Like
  • stopthe
    , contributor
    Comments (105) | Send Message
     
    I have never understood why anyone -- even the goldbugs -- care about the price of gold.

     

    A true goldbug understands that the price of gold is irrelevant. A true goldbug does not hold gold as an investment vehicle. The only thing that matters is how many ounces you have. I mean physical ounces, not bullshit paper ounces.
    28 Feb, 01:30 PM Reply Like
  • filipo
    , contributor
    Comments (2734) | Send Message
     
    There's some name calling in this article:
    http://bloom.bg/1fwjNBa
    28 Feb, 05:14 PM Reply Like
  • goldy1asb
    , contributor
    Comments (39) | Send Message
     
    May have been manipulated. The history of gold price fixing is well-known and finally people are starting to recognize it.
    28 Feb, 10:26 PM Reply Like
  • Stephen Mayo
    , contributor
    Comments (311) | Send Message
     
    $.02

     

    In some fashion, I believe all markets are manipulated.

     

    No need to buy gold if you trust the government, the feds, and the value of paper.

     

    And remember, its just insurance.

     

    If gold hits $300,000 per ounce consider your capital gains tax!

     

    How will you go liquid? Who can make change for a single $300,000 coin?

     

    If any of this happens, life will be very interesting. Meanwhile a cup of coffee will cost $2,600.00.
    1 Mar, 08:47 AM Reply Like
  • CassandraSees
    , contributor
    Comments (291) | Send Message
     
    I think you just answered your question - - $300,000 is only 115 cups of coffee at $2600 - - At today's standard of about $2.00 for an average cup of coffee, times 115 equals only $230 in paper dollar bills - - If gold does go to $300,000 and everything else goes up as well, at least you will have enough money to buy a very pricey wheel barrel to carry all your paper dollar bills in - - But your current paper dollar bills of $230 won't even buy a cup of coffee if gold does go to $300,000 ;-)
    4 Mar, 09:47 PM Reply Like
  • HumbleViking
    , contributor
    Comments (10) | Send Message
     
    Pretty obvious why no spike observed in the morning fix --- USA markets not open at that time.
    4 Mar, 09:08 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|