April 18, 2012
Major Gold And Silver Price Suppression Now A Weekly Occurrence. So What?
Over the past four weeks, the prices of gold and silver have experienced a major decline once each week. Last week, the suppression occurred on Friday, April 13 during the last 15 minutes of COMEX trading, between 1:15 and 1:30.
How is it possible to identify this event as a manipulation rather than just the actions of a free market? Unfortunately, that is becoming quite easy to detect. Significant price moves resulting from market developments rarely occur in a vacuum. If investors were worried about falling demand for commodities, you would see price declines in a number of industrial metals as well as precious metals. If investors perceive a greater likelihood of another round of quantitative easing, the value of the dollar would tend to drop as US stock markets rise with gold and silver prices.
Last Friday, there was no particular news that should have led to a major impact on gold and silver prices. There were no sympathetic moves in other markets in conjunction with the decline in the value of precious metals. So, what did happen?
In the 15 minutes before the COMEX close, 10,000 gold contracts changed hands. Normally a high percentage of COMEX trading occurs within the first two hours of a trading day. The trading of 10,000 contracts going in to the close is highly unusual, to say the least. These 10,000 contracts represent one million ounces of gold, valued at well over $1.6 billion.
At all times in the COMEX market, there are posted bids and asks. An investor makes a transaction by accepting either the posted buy or sell price. Since the price of gold declined about 1% during the last 15 minutes of trading, that shows that almost all of the high volume of trades were made by sellers hitting bids.
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