Precious Metals Cartel Goes Public On Manipulation

I have written about the Precious Metals Cartel (PMC) and their manipulation on several occasions.

"You will notice that in 2010 there was over 800 MILLION ounces of silver being hoarded in ETFs. This figure is probably much higher 2 years later. 

The amount stored in ETFs is likely a drop in the ocean compared with the Shadow Silver Market (this is shadowy market used by the precious metal cartel, they keep their physical off the books and trade amongst themselves so that no one knows just how large their speculative silver hoards really are). Often these transactions will even take place face to face at "stacker meetups" where these Paper Money terrorizing cells  gather to talk about how they will "take down the system, 1 silver ounce at a time". 

The precious metal cartel hoards silver (and gold!) in ETFs as well as stacking physical in order to restrict supply and manipulate the price higher." - Paper Money Shield

Normally they try and hide their activity, participating in Over-The-Counter (OTC), bullion for cash transactions, that are difficult to monitor. They then gather in informal settings to brag about their purchases over a beer or coffee with other like minded PMC criminals and plan their next artificial price floor, which they achieve by taking physical off the market and leveraging naked paper longs on the Comex.

"Rather than having to buy physical gold to defend this line, the PMC uses gold futures contracts on the comex and similar markets to leverage the capital they have to buy, buy, buy. This leverage allows them to spend much more than they really have in cash to buy gold, manipulating the price higher using artificial demand.

In the meantime they spread propaganda about the short side being unable to deliver on the physical gold contracts, even though they have a warehouse full of gold to do so... where is the PMC's warehouse full of paper money to make good on their promise to take future delivery?" - Paper Money Shield

Normally they would achieve their goals through informal communication channels or various price signals they've learned to insert in the market when they are going to initiate one of their raids to 'take up' the price. However, the PMC is starting to become more brazen and on this occasion have rolled out a spokesperson in the mining industry to try and initiate a coordinated freeze of physical metal supply to the market. See this clip where First Majestic CEO & President Keith Neumeyer calls for other mining companies to stop selling their silver in order to artificially force up the price:

"...look we're gunna suspend production for 1 month, right around the world, just for just 1 month. That would send ripples through the entire system. Supply is already tight, but it would be extremely interesting to see what would happen in the situation like that."

"I would suggest we all get together and do exactly that, I think it would be very exciting thing for all the silver companies to form a semi cartel..."

Of course silver has many other industrial applications other than speculative investment, which these hoarding "stackers" engage in, so by withholding supply to the physical market this cartel is taking aim at the injured and sick (who need the metal for medical purposes). It's use in the production of renewable energy products such as solar panels might also be affected, resulting in further fossil fuels being used to pollute the air we breathe. 

These silver manipulators, the PMC, must be stopped. It's time to call these activities for what they really are, acts of terrorism. It's time we put the increasing power of national security agencies to good use and give these terrorists the punishment they deserve.

- Paper Money Shield

Norway's New Paper Money Is A Work Of Art

Thanks to a currency comrade who pointed this fiat lover to the new banknotes coming to Norway. The redesigned notes are a magnificent sight to behold featuring images by architecture firm Snøhetta and graphic design company The Metric System. 

The new notes will replace designs introduced in the 1990s and early 2000s and will feature images depicting popular Norwegian culture. You can see them all here, but just a taste of the delectable designs is below:

Not only are these notes quite literally works of art, but they are limited in mintage. As you well know the earth's resources are limited in quantity, as is the materials required to produce these notes so they can't be created ad infinitum. They are also usually limited by time, as you've already read the designs on Norway's earlier notes only lasted 10-20 years. So get these while you can, stack them physically and wait for their value to rise.

What's more beautiful than a shiny rock? Human produced works of art of course! We have a picture gallery of other paper notes available here.

In love of paper money,

- Paper Money Shield

Naked Paper Longs Protect Artificial Gold Floor

In what has become a regular occurrence over the past couple of years the Precious Metals Cartel (PMC) have initiated protection of the artificial gold price floor using naked paper gold longs.

As you can see from the chart, gold is in a natural decline, but continues to be defended each time the price reaches US$1180 an ounce.

Rather than having to buy physical gold to defend this line, the PMC uses gold futures contracts on the comex and similar markets to leverage the capital they have to buy, buy, buy. This leverage allows them to spend much more than they really have in cash to buy gold, manipulating the price higher using artificial demand.

In the meantime they spread propaganda about the short side being unable to deliver on the physical gold contracts, even though they have a warehouse full of gold to do so... where is the PMC's warehouse full of paper money to make good on their promise to take future delivery?

Not only do the PMC attack gold to defend this floor, but there's usually coordinated action that also results in them attacking the value of the US Dollar. See this chart for the damage they've done to a clear uptrend.

The US Dollar should be trading at much higher levels given the past...

It's time to break the PMC's hold on the US Dollar. Buy physical US Dollars, store them safely in preparation for the long term bull market that will eventually return!

- Paper Money Shield

Fiat Backed Standard as Gold Returns to Circulation

Salutations my fiat fautors!

Over on a site called Screwtape Files (a site known for it’s scrutinisation of gold market nutters, but they still smell like closet gold lovers to me!) one of their metal loving members has come up with the following theory to explain the new US notes:

1. Shut down the government (in name) once it became evident a failed bond auction was on the horizon, due to debt ceiling (or whatever). 

2. Use political gridlock as the reason for things falling apart, socialize the idea of default through media, in all countries (evidence of this in Australian media - now you know why they need the Pentagon employees back at their desks). 

3. At any crescendo, announce the USG has plenty of gold, and much more than the 8,000 tonnes (where do you think the GLD gold has been going? ;p), they will value it at market price to address any concerns on their debt. 

4. Resume as normal, only this time Triffen's dilemma is solved. If gold is revalued higher then this time it only boosts the US economic position. Everyone has a nice new currency with golden references to remind them how cool the government is. 

You’ll note (pun intended) that the theory they've proposed includes a suggestion that gold will be revalued higher... the problem is they have this whole system backwards.

It is fiat currency, the US dollar, which holds value, being backed by the full faith and credit of the US government. No metal holds this title. It is only through the creation of paper US dollars to pay down the debt that they will be able to alleviate the concerns over debt repayment. How anyone thinks gold could help is beyond me!

I have reached out to some fiat insiders who reside in Washington DC. It is their opinion that the new design of the $100 bill may in fact be tied to gold, but not in the way most conspiracists believe.

The new US currency will not be notes backed by gold, but gold backed by notes. The US is secretly increasing their official gold holdings so that they can reintroduce gold back into circulation. The fiat backing will ensure that the gold coins in circulation retain their value with each coin being backed with freshly printed $100 notes (the valuable notes stored in vaults for safe keeping). It will not be so different to the recent introduction of physical bitcoins, where the circulating metal represents the value of the fiat currency it's backed by.

It’s quite possible that the US has secretly been buying more gold (redeeming it from the GLD ETF), which would explain the recent collapse in price as they hyperinflate the US supply of the useless metal in preparation for its return to circulation! The price will strengthen once it's announced the circulating gold will be backed by US dollars.

- Paper Money Shield

Is Andrew Maguire a US Federal Reserve Plant?

Greetings my fiat friends. I trust that paper is keeping you well? None of the hyperinflation promised by the precious metal advocates? No real need for the barbarous relic that is gold? No. That's what I thought. 

Normally my inbox is filled with naught but threats from the precious metals cartel as well as cease and desist emails from Ben Bernanke's secretary, asking me politely to refrain from daily notes of praise for the great man. Today I bring you a letter of a more serious nature. Frank Fiatstein writes in questioning, just who is Andrew Maguire? He is certainly not known by myself or my unnamed insider paper advocates as a double agent, but would I tell you if he was?

I would encourage you to share your thoughts in the comment section below, especially if you have any insight into Mr Maguire's shady history...

- Paper Money Shield

Dear Paper Money Shield,

I am an investigative journalist looking into the murky world of precious metals. Your site has been a valuable resource and you are obviously highly connected in the paper money world.

I have come across some admittedly circumstantial, but highly compelling, evidence that a Mr Andrew Maguire is not all that he purports to be, and it is not favourable to your side. I believe that Mr Maguire is a US Federal Reserve plant, a double agent spy. Can you confirm or deny this? It seems to me that manipulation is not just on the goldbug side. Consider the following facts:

1.       Mr Maguire came out of nowhere only a few years ago, with no previous involvement in the internet gold community. Google searches reveal nothing.

2.       Mr Maguire is said to be a former Goldman Sachs trader. We all know GS has planted many former employees in government positions seeking to influence them to suit itself.

3.       Jeff Christian, who also worked at GS, could not find anyone in the precious metals industry who had heard of Mr Maguire and Mr Maguire has failed to provide a CV listing his employment in rebuttal.

4.       Searches on London newspapers such as the London Times, The Guardian, The Sun, and The Telegraph, for confirmation of the supposed hit-and-run that sent Andrew Maguire and his wife to the hospital give no results, which is strange for such a dramatic event which involved hospitalization, a head-on at full speed (with the driver hitting 2 other cars as he sped off), and police helicopters.

5.       Mr Maguire supposedly has deep contacts in the precious metals market, yet did not inform his readers that a price smash was coming, causing them to lose a lot of money.

The lack of a prior history and inability to provide a CV are calling cards of a fake identity, created quickly. The hit-and-run adds the necessary drama to get the attention of the silly emotional goldbugs, and is brilliant psychology which is designed to cast Mr Maguire as a martyr – how most goldbugs see themselves and thus create a connection between them and their misinformation agent.

The last piece of the puzzle came into place for me with Mr Maguire’s inability to warn of the gold price smash. Clearly his brief is to engage in Psy Ops to screw the goldbugs over with illogical theories about how the precious metals markets work (which don’t accord with reality, creating cognitive dissonance within the goldbug mind) and then get them to lose money buy just telling them to hold precious metals forever. Clearly the end objective is to demoralise goldbugs so they will never buy precious metals again.

The reference to him working at Goldman is probably the only correct part of his cover story. It is not coincidental that he led his followers into the trap of being long while his former employer said, just before the biggest smash in the gold market (suspicious in itself), that the gold price would fall and to go short. GS needed silly longs to execute their short strategy against and Mr Maguire obliged.

Being a paper money advocate, I doubt you will be prepared to reveal your paper master’s brilliant double cross of the goldbugs in what I think will end up being GoldGate. While the advantages of paper money are clear to me and anyone with half a brain, and the silly goldbugs deserve to lose their money, I nevertheless am bound to seek the truth. It seems to me the paper money advocates do not have clean hands in this matter. I challenge you to publish this email and come clean.

Yours sincerely,

Freddy Fiatstein

Gold bubble has reached equivalent 1980 peak

Thank you to all the closet Paper Money lovers who have linked to my site over the past couple of weeks, I hope you have enjoyed reading the truth about the precious metals cartel and the hypocrisy they dish up to the unsuspecting public on a daily basis.

In a previous post I wrote about the bear market in the USD. The purchasing power of the US Dollar has fallen dramatically over the past 100 years, but this bear market will end. It is only a matter of time. When the Dollar starts rising strongly this will likely trigger the end of the precious metals bubble as gold's purchasing power starts to decline.

Many of the precious metals cartel claim that gold is not in a bubble, but we only have to look at an inflation adjusted chart to workout that it is.

Inflation adjusted gold price shows bubble in metal as extreme as 1980 peak

The next time you see a claim from the precious metals cartel that gold is not in a bubble, ask them one simple question... 

"Was gold in a bubble at the peak in 1980?" 

Once they answer in the affirmative you can show them the above chart to prove that gold is in fact, once again, in a bubble when you've adjusted the 1980 peak for inflation.

They will probably try and find a way to discredit the above chart, claiming that the inflation figures are wrong or coming up with wild claims that differing factors driving the gold market today means that it will go higher. Others still will try and claim that gold will be remonetised, but this is nothing more than speculation and it's unlikely central banks will once again relinquish control of the money supply to a useless barbarous relic.

One must concede to the facts. Gold is as overvalued today as it was at  the 1980 peak. From these high levels we are likely to see gold fall to 1/3 of it's current price, maybe even less. The cost to mine the metal is probably a good place to start, which is currently around $700-800 as per the chart in this previous post, but it could fall much further. 

Some Australian iron ore miners recently found out the hard way that commodities can fall further than any imagined "price floor" and with 170,000 tonnes of gold mined to date and above ground as ready supply their is no guarantee the cost to mine will provide a price floor. Indeed such an abundant supply of gold is likely to lead to people to cart wheelbarrows of gold to their local dealers in order to exchange it for Paper Money.

Accept no substitutes to real, Government backed, publicly trusted, Paper Money... avoid the gold bubble and backup your truck to load up on crisp, freshly printed notes.

- Paper Money Shield

P.S. If you didn't already notice I put up a page last week displaying some pictures of various paper notes which may interest you...

Bill Murphy, GATA Chairman, Market Manipulator!

As I've pointed out on this blog previously, the hypocrisy of the precious metal cabal is almost unbelievable if you didn't observe it for yourself. Claiming that those shorting the metal are manipulating the price when they are hoarding it in much larger quantities to force the price higher. Claiming that there is a cartel pushing down the price when it is they who are trying to force the metal higher through resistance.

Bill Murphy would have to be one of the most vocal commentators out there claiming that precious metals are being manipulated, but what of his own past?

You may or may not be aware that Bill Murphy has actually been convicted of fraud and manipulation himself (from Mineweb):

Gata chairman Bill Murphy pulls no punches when he rails against the "gold cabal", but his critics think it's a case of the pot calling the kettle black since he was drummed out of the futures industry on similar charges nearly a decade ago. 

NEW YORK -- Nine years ago, Gold Anti-Trust Action Committee chairman Bill Murphy and his two brothers had their Commodity Futures Trading Commission registrations permanently revoked and paid a massive fine to settle a Comex fraud case. 

The issue resurfaced in the backlash following Murphy's circulation of a Royal Bank of Canada report that amounted to a summary of Gata's claims of a conspiracy to suppress the price of gold. Critics of the abrasive conspiracist say his invective-laced vendetta against the bullion banks looks rather rich in the circumstances of his own CFTC settlement on nearly identical charges, and continued reluctance to admit his guilt. 

Settled in February 1993 at a total cost of $650,000, the case stemmed from accusations that Trading Resources Inc, a futures commission merchant and commodity pool operator owned by the Murphy brothers, had engaged in "non-competitive trading and fraud in the trading of copper futures and options contracts for [its] proprietary and discretionary customer accounts... from October 1987 through February 1988."

What?

Yes that's right. One of the most renowned precious metal advocates who claims the precious metals are manipulated was in fact a manipulator himself (and might I add, still is!! Read on...). He continues to manipulate the precious metals higher today by spreading half truths and rumours.

Often you will hear him quoting from his many "secret sources" (vague sources such as "The London Trader") that something will happen within a particular time frame, rarely it does, and this is simply one of many tactics employed to get gullible people to buy more physical, restricting the market in an attempt to push up the price.

Murphy was banned for life:

Murphy has a case for sympathy considering that the big firms retained their CFTC and LME registrations, while he has been banned for life and remains locked out of futures trading until 2003.

Is it any wonder he has turned to a new method of manipulation, trying to get those around him to buy Gold in order to push up the value of his physical holdings. No longer able to manipulate the futures market he turned to other ways to make money.

I would not be surprised if once he has traded out of his worthless metals that he turns around and starts PATA (Paper Anti-Trust Action) in order to start boosting the purchasing power of his cash. As I pointed out a couple of days ago, the USD has been in a long term bear market, but it will eventually turn around and head much higher in purchasing power terms (a new USD bull market will begin).

Bill Murphy is manipulating your minds. Beware.

- Paper Money Shield

Speculators try slamming gold through resistance

As I've previously identified on Paper Money Shield, we regularly see the precious metal cartel trying to manipulate the price higher in order to benefit themselves. An important overhead technical resistance has been formed at around the $1800 level and the cartel will do anything in their power to try and push the spot price higher:

If they can push the price through the $1800 barrier then there's a good chance they will be able to convince even more suckers people that the price is going to new highs, even though as I've recently discussed the price is well above a fair price set by production cost of the metal.

During trade today we saw what I refer to as a "raid". 

During a raid the precious metal cartel engage the services of professional "paper market" (the cartel uses this description of any market where one is not trading physical assets) traders on the gold exchanges (such as the COMEX) to buy lots of contracts centered around a specific point in time (often during quiet periods or right at the start or end of trading sessions on a particular exchange for maximum effect). They do this in order to overwhelm sellers and slam the price higher (usually in order to scare out stops creating a squeeze higher as they're triggered), take for example this spike:

Clearly this raid was an attempt to send the price shooting above resistance, but luckily on this occasion they were not successful. We must be ever vigilant of the cartel, they have many devious tactics in order to manipulate the price. 

Another tactic they've been known to use is trying to make the COMEX default by taking delivery of their registered warehouse precious metal stock. Funny how a group so publicly against the paper markets such as the COMEX will use them extensively behind the curtains.

We must do what we can to stop these financial terrorists from disrupting the important and long trusted paper markets used by the majority.

It is unacceptable that the majority be put out by the overbearing opinions and actions of a few who choose to play the markets in this unfair manner!

- Paper Money Shield

Precious metal manipulators hoard the metal

One thing we have already established on Paper Money Shield is that the precious metals cartel is extremely devious. They use selective charts and accuse others of manipulation, which I pointed out in a recent post, while it's in fact themselves who are up to no good.

Look no further than the evidence provided in this chart from CPM Group (a reputable company, who are often painted differently by the precious metal cartel):

You will notice that in 2010 there was over 800 MILLION ounces of silver being hoarded in ETFs. This figure is probably much higher 2 years later.

The amount stored in ETFs is likely a drop in the ocean compared with the Shadow Silver Market (this is shadowy market used by the precious metal cartel, they keep their physical off the books and trade amongst themselves so that no one knows just how large their speculative silver hoards really are). Often these transactions will even take place face to face at "stacker meetups" where these Paper Money terrorizing cells  gather to talk about how they will "take down the system, 1 silver ounce at a time".

The precious metal cartel hoards silver (and gold!) in ETFs as well as stacking physical in order to restrict supply and manipulate the price higher.

Often you will see the precious metal cartel complaining about those shorting the market with mere fractions of the amount of silver hoarded in ETFs and physical. For example take this Silver Doctors article where they complain about a mere 16.5m ounces of silver being used to send the price lower:

A miniature replica of the May 2nd, 2011 drive by shooting was just completed, as silver was knocked down the proverbial mine-shaft moments ago, dropping nearly a dollar in nano-seconds on Monday’s Asian open. Volume data indicates that 3,297 contracts, or 16.5 million paper ounces of silver were dumped on the market.

If those shorting the metal can manipulate the price down with a small 16.5m ounces, imagine what the precious metal cartel can do with more than 800m ounces (and as explained this only accounts for recorded silver, not taking into account the Shadow Silver Market)!

The goal of these hoarders is to drive the price higher and then trade their metal into a larger amount of fiat currency. Ultimately, like we all do, they just want more Paper Money, but go on extensive misinformation campaigns in order to achieve their goals. They are driving a grass roots movement into precious metals to further their cause for a greater amount of fiat money and will stop at nothing to get what they want.

Accept no substitutes. Paper Money is what you should be holding, the currency of choice when it comes to regular use. Gold and silver aren't real money in today's modern world. They are mere barbarous relics and as once described by the great Bernanke only held for traditional purposes.

- Paper Money Shield

Precious metal terrorists destroy Paper Money bank

Reported in Spiegel Online today was news of a "bank robbery":

Thieves in Germany would seem to have been a bit overeager in their attempt to crack open a cash machine using explosives on Sunday night. The resulting blast destroyed the entire bank branch, causing hundreds of thousands of euros in damage.

 

They have reported this as a robbery gone wrong, but in fact this has all the earmarks of a "hit" from one of the underground precious metals terrorist cells.

Rather than peaceful co-existence with Paper Money outlets these terrorists instill fear and doubt into the masses, making them think twice before entering a bank to deposit or withdraw their important savings.

To avoid retaliation against their own physical metal distribution points they often keep businesses to an online/telephone order only model. A precious metals peddler/vendor without a physical outlet is very likely to be involved with such acts as the bank bombing described in the above article. We must be ever vigilant.

I mentioned in a recent post that these terrorists have threatened to and committed acts of violence in the past:

While not always specified, often the cartel is reference to major US banks such as JP Morgan who we at Paper Money Shield hold in good standing as founder and part owner of the Federal Reserve Bank.

Attacks on reputable banks such as JP Morgan is a regular tactic of the precious metal cartel who are trying to push the price higher. They use such violent suggestions such as killing JP Morgan with a silver bullet. Unthinkable that such suggestions should be allowed on the internet. They should shut these precious metal terrorists down once and for good.

Such violence should not be endorsed.

Today I will leave you with a quote:

"On the Internet, inside information is currency, and there will always be counterfeiters among us"

- J. Michael Straczynski

One must be careful what one reads on the internet as these precious metal manipulators have infiltrated many places you would least expect.

- Paper Money Shield