Saturday, July 6, 2013

Whose Gold Is JP Morgan Dumping Now?

by Mark McHugh

Author’s Note: This piece is unfinished, but the data presented here is simply too important not to publish. 

They say phrasing allegations in the form of questions reduces one’s liability when reporting a story (or something like that). For example, it’s not cool to say something like, “The US Treasury is actively suppressing gold prices by dumping metal on the COMEX via JP Morgan.”  No sir.  That would be implying that US Treasury Secretary Jack Lew, who took office less than one hundred days ago, is nothing more than another crony capitalist scumbag who cares more about his offshore accounts and hedge fund buddies than his country.  So even if Jack held a closed-door meeting with Jamie Dimon and a bunch of hedge fund managers on May 2, and since then hedge funds have taken record short positions in paper gold, it doesn’t prove that Treasury dumped more gold in the last 30 days than the US mint has sold this year. Fine.  We’ll keep the answers that make perfect sense in the form of a question. 

This is  from yesterday’s (May 30) CME group metals delivery report:


All but 1,600 of the 455,000 troy ounces of physical gold delivered (net) on May 30 were procured by an entity (or entities) known only as customers of JP Morgan.  Note that the Morgue’s house account was a buyer, as was everybody else excepting RJ O’Brien.  Contrary to financial media reports, what we’re seeing is actually broad-based buying in gold and highly concentrated selling.  So that seller must be either very desperate or very, very dumb.  Maybe both.  The question is does the American public have the right to know if their government is actively manipulating the market?  And whose responsibility is it to tell them?

Perhaps this would be a good time to remind people that while everyone has an opinion on the price of gold nowadays, if you don’t have gold to sell your opinion doesn’t count.  Somebody with yellow metal has to validate the gyrations of the  confetti-flinging momos at the COMEX, or the whole  ”price discovery mechanism” myth gets exposed for the circle jerk it is.

Could it have been anybody other than Treasury?

As popular as circle-jerking over pretend gold is in the US, it never really caught on in Hong Kong, where the average IQ is 9 points higher.  You may have heard that the operators of the Hong Kong Mercantile Exchange (HKMEx) closed last week, announcing plans to cash settle outstanding metals contracts and getting arrested shortly thereafter.  When was the last time a high-ranking US government official got arrested?

Apparently it is the duty of the US Treasury Secretary to tip off hedge funds.  It’s called the wealth effect.  If such things were illegal wouldn’t Hankenstein Paulson be serving time for telling his pals of his plan to place Fannie and Freddie in conservatorship while publicly denying such a plan as an option?

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