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The Manipulation of Gold Prices

Thanks for the info on Taking delivery in the futures market..Dr. James I may try that again in the near future.... After running into brick walls and high costs on my first try taking delivery.. I elected to purchase 1 kilo (good delivery) bars from my coin dealer at $20/oz over spot. Not a bad premium considering todays circumstances .. I was able to lock in my price and place my order on the date of my choice..... Because it is my understanding that after you make your delivery request say for the month of Feb.... the short side of the contract can deliver the gold (put it to me) on any day in Feb. of his choice.... While I have my price locked in and I'm protected by my contract I can't really sell the Bar untill I take delivery in as much as 28 days away...

My Coin Dealer make his 2% I save Brokage commissions, storage and delivery costs and I can take a Mini Bar every two weeks or so and dollar cost average in ...Win-Win ....But I would like to tweak those shorts a little in the future.... If I am missing something here please let me know

Jeff S.
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On Dec 05 04:34 AM James Conrad wrote:

> Sharefin is so filled with zealous determination to attack this article,
> that he is capitalizing on a mistake I made in verbiage for the first
> paragraph.
>
> First, when I say that the gold and silver shorting behavior is abnormal
> to commodity markets, I am talking about commercial short positions.
> The vast majority of speculators are always long on gold and silver.
> They are generally the victims, not the perpetrators. The so-called
> "commercials"... are the short sellers, and they are heavily represented
> by the big bullion banks.
> There is no other commodity, other than gold and silver, in which
> commercial short sellers create huge numbers of highly transient
> short positions in the middle of bull markets, ignore the fact that
> the market keeps rising, and keep adding to their short positions
> until the market comes crashing down. This has continued to happen
> in the midst of vastly increasing world demand for gold and silver.
> Take oil, as an alternative example. When demand was high, commmodity
> speculation was running rampant, and prices were exploding. Then,
> with demand destruction, prices crashed. In the gold market, we know
> that demand is soaring, but prices on the futures markets have, nonetheless
> crashed. This is abnormal price behavior. If this were only happening
> now, I would attribute it to the recent credit default event selling,
> but it is not unique to now. It has been happening, over and over
> again, for at least the last 21 years.
>
> Here's an example of how the gold market is played. In the beginning
> of last week, with the prospect of an avalanche of delivery demands,
> records indicate that commercial shorts added about 5,000 transient
> short positions. This crashed gold to the $700 range. In "olden times",
> when the non-leveraged longs did not exist, this would have prevented
> most deliveries from happening, as the longs panicked and sold their
> positions back to the short sellers, being unwilling to take more
> loans in order to take possession of a declining metal. This time,
> however, when the short sellers finally realized that they were dealing
> with a different "animal" and that non-leveraged longs would be filing
> their delivery demands no matter what, the increase in open interest
> abruptly closed, and a mini-panic began, sending gold prices up by
> over $100 per ounce, in a matter of only 3 days.
>
> This type of shorting behavior is not unique to last week. In July,
> just before the U.S. government initiated what I believe is its new
> policy of paying interest to foreign money center banks who agree
> to sequester eurodollars, 3 major gold shorting banks suddenly increased
> their short positions by close to 10 times what they were, just one
> month prior to that. It is now rather obvious that these banks had
> inside information from the U.S. Treasury or Federal Reserve. They
> knew what was going to be done to the dollar. No one without inside
> informatino would have increased their short positions by 10x, in
> a fast rising futures market, in the midst of exploding world demand,
> and at a time when no one else guessed that the dollar was going
> to rally. We can only guess the identity of these banks because,
> unlike futures markets in nations like Japan, U.S. futures regulator,
> CFTC, refuses transparency and will not agree to release the bank
> names.
>
> Finally, some of you have commented that one should not buy gold
> futures, because you are afraid of counter-party risk. I do not agree.
> COMEX futures contracts are backstopped by the entire membership
> of the exchange, and it is doubtful that the U.S. government would
> allow the exchange to go bankrupt, even if it meant releasing a small
> portion of Fort Knox gold to save them from uncovered delivery demands.
> The same is even more true of NYSE-Liffe, which has the entire wealth
> of the New York Stock Exchange membership backing it up. So, I think
> you will get your gold or silver, if you pay in full for your contracts,
> and take delivery.
>
> It is important to start buying gold and silver on futures exchanges
> for two reasons. First, it is the cheapest place to buy both metals.
> You can avoid all the hefty dealer markups if you buy futures and
> take delivery. Second, in order to end the manipulation more quickly,
> the short selling crew needs to be put out of business. They have
> accomplished what they have, over the last 21 years, by taking advantage
> of leveraged long desperation. If you are not leveraged, and have
> sufficient liquidity to really buy your contracts, you will be immune
> to their shenanigans. You can simply take delivery, put the gold
> into your safe deposit box or other safe place, and no matter how
> they manipulate the price in the short run of a few months to a year,
> the price will rise exponentially in the longer run. This is a mathematical
> certainty because of fundamentally flawed dollar dynamics, and a
> continuing worsening of the differential between world supply and
> demand for both metals.
>
> Now that the European central banks are refusing to sell gold, the
> supply has dried up, which is probably why some of more honest portions
> of various investment banks are forcing COMEX to make deliveries.
> If people continue to force the short sellers to make deliveries,
> the game will be over, because naked gold shorts no longer have easy
> access to real metal. Last week's delivery demand avalanche was coupled
> with the exit of many leveraged longs. Furthermore, it follows on
> hefty demands for delivery in late September. Another episode, hopefully
> even bigger, in the February delivery month, will, in all likelihood,
> sink the gold manipulators, and catapult gold into the stratosphere.
>
>
> Let me give you some facts about how to do this. First of all, you
> need to open a futures account. There are hundreds of brokers, but
> not all alleged futures brokers are really full fledged futures brokers.
> Many will refuse to facilitate delivery. For example, Interactive
> Brokers, OptionsXpress, ThinkorSwim, and many others only claim to
> handle futures. Such brokers refuse to deliver. RJ O'Brien, MF Global,
> E-futures, and many others on the other hand, DO facilitate delivery.
> Make sure you open your account at a brokerage houses that accommodates
> delivery, and doesn't just push you into the casino-like speculation
> game. Remember that in casinos, in the long run, only the house wins.
>
>
> DO NOT BUY COMEX miNY contracts. They ARE NOT SUBJECT TO DELIVERY
> DEMANDS! MiNY COMEX contracts are cash settled. If you don't have
> enough money to buy a full contract, buy the NYSE-Liffe mini-Gold
> and mini-Silver contracts. With NYSE-Lifee, you can take delivery
> of 32.6 ounces of gold, and 1000 ounces of silver. However, if you
> do have the cash, the standard 100 ounces gold and 5,000 ounces of
> silver are usually cheaper per ounce, and you can buy them either
> on COMEX or NYSE-Liffe. ALL 100 ounce and 5,000 ounce contracts are
> subject to delivery demands.
>
> Taking delivery and paying for temporary storage on gold, will set
> you back $25 plus about $12 per month storage for each bar at one
> of the COMEX warehouses. There will also be a charge from your brokerage
> house. Yes, I know, you won't leave your bars at the exchange, but,
> you will need to pay for a few days storage, before you pick them
> up, or have them delivered by Brinks, so they will hit you for the
> whole month minimum charge on each bar.
>
> Brinks, and a number of other gold delivery agents can take the bars
> and deliver them to you anywhere in the USA, or even overseas, at
> a relatively low cost, compared to the value of the gold. You can
> contact them for more information, or ask your brokerage house. Jim
> Sinclair, at JSMineset.com, is currently putting together a summary
> of delivery charges, from the various gold/silver delivery services.
> The costs of delivery are a few dollars cheaper on NYSE-Liffe, at
> least at HSBC, but the difference is not significant.

The Manipulation of Gold Prices

Great Article Offers plausible answers to :

Why the banks are not lending
Why we are not in hyperinflation despite all the new money that is being created
Why gold is not skyrocketing
Why the dollar has gotten stronger
Why commodity prices broke down
Why the stock markets are rallying instead of crashing


And he predicts the coming BKs of Insurance Companies…



Caution I don’t know this gentlemen and it is the first time I have read him…. I understand he is a PHD who writes a daily newsletter …but can’t seem to track him down…. If anyone out there knows his web address or email let us know might want to subscribe to his daily newsletter but I don't have have any more time to look ....So untill Conrad tells us more about himself...I will take this all with a grain of salt

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