The Beginning Of The End Of Precious Metals Manipulation: The London Silver Fix Is Officially Dead

Who knows what sculduggery maybe a foot but the official silver fix is coming to an end, what the new ‘fix’ will be, whether it be HFT or something linked to the SGE, who knows but the price won’t be left to free markets. Courtesy of Zerohedge:

Following a crackdown on precious metal manipulation by various European regulators (mostly Germany’s BaFin, recall “Precious Metals Manipulation Worse Than Libor Scandal, German Regulator Says”), which led to the shocking outcome that Deutsche Bank would pull out of the London gold and silver fixing committees, the London Silver Market Fixing company ended up with a most curious outcome: it would have just two members: HSBC and Bank of Nova Scotia. And, as an even more shocking result, overnight the London Silver Fix announced that after August 14, 2014 it will no longer exist – the first of many victories for all those who have fought for fair and unmanipulated precious metal markets.

From the press release:

The London Silver Market Fixing Limited (the ‘Company’) announces that it will cease to administer the London Silver Fixing with effect from close of business on 14 August 2014. Until then, Deutsche Bank AG, HSBC Bank USA N.A. and The Bank of Nova Scotia will remain members of the Company and the Company will administer the London Silver Fixing and continue to liaise with the FCA and other stakeholders.

The period to 14 August 2014 will provide an opportunity for market-led adjustment with consultation between clients and market participants.

The London Bullion Market Association has expressed its willingness to assist with discussions among market participants with a view to exploring whether the market wishes to develop an alternative to the London Silver Fixing.

Q&A

1. What will happen after 14 August 2014? Will the Silver Fixing cease to exist?

With effect from the close of business on 14 August 2014, the Company will cease to administer a Silver Fixing, and a daily Silver Fixing Price will no longer be published by the Company.

2. What will happen in the period up to that date?? Continue reading

HSBC and its Questionable Assets

HSBC, the bank involved in funding terrorism, laundering Mexican drug cartel money, off balance sheet derivatives and now, questionable asset prices on its balance sheet. This bank is insolvent, beyond any shadow of a doubt and will require a bailout/in. When, I couldn’t say but it’s on the cards. These questionable acts are all rubber stamped by the big accounting firms and financial regulation arms of government. The fraud, using mark to fantasy instead of mark to market ensures 100% value of the assets when it’s lucky they are worth pennies of the pound. Courtesy of The Telegraph(who have now removed the link):

Forensic Asia on Tuesday began its coverage of Britain’s largest banking group with a ‘sell’ recommendation, warning the lender had between $63.6bn (£38.7bn) and $92.3bn of “questionable assets” on its balance sheet, ranging from loan loss reserves and accrued interest to deferred tax assets, defined benefit pension schemes and opaque Level 3 assets.

The broker’s note is written by two of its senior analysts, Thomas Monaco (a former senior bank examiner at the Federal Reserve Bank of New York) and Andrew Haskins (previously worked at HSBC for 15 years).

In the report, the analysts apply what they describe as a “moderate stress test” to the balance sheets of HSBC’s major subsidiaries. Continue reading

All that Glitters Shouldn’t Be Fixed

Courtesy of The Daily Bell:

Take, for instance, the use of the word “ritual.” The gold fix is NOT a ritual. It is an arrogant abuse of power that involves the traders of gigantic insider banks agreeing between themselves on the price of the precious metal twice a day.

There is no need to “fix” the price of gold twice a day. It’s absurd. But it’s hardly a ritual. And how is it that a mainstream publication like this one can post an article about this price fixing “ritual” without even bothering to ask WHY? As in why not let the “market” fix the prices? Works for many other actively traded goods and services. Why, in London, is gold exempt? Isn’t that a reasonable question to ask? And yet it wasn’t. Here’s more: The five banks who oversee the so-called London gold fixing — Barclays Plc, Deutsche Bank AG, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale SA — have formed a steering committee that’s seeking external firms to advise how the process could be improved, according to the person, who asked not to be identified because the review isn’t public.

The fixing refers to a rate-setting ritual dating back to 1919 in which representatives of the five member banks speak by telephone from a couple of minutes to more than an hour about buying and selling gold. The method has faced scrutiny in recent months, with regulators in London, Bonn and Washington — who are already looking into manipulation of interest rates and currencies — investigating how prices are set in the market. Continue reading

Outrageous HSBC Settlement Proves the Drug War is a Joke

A quality article from Matt Taibi and one of the few mainstream writers who are shining a light on the malfeasance and malevolence of the system. Courtesy of Rollingstone:

If you’ve ever been arrested on a drug charge, if you’ve ever spent even a day in jail for having a stem of marijuana in your pocket or “drug paraphernalia” in your gym bag, Assistant Attorney General and longtime Bill Clinton pal Lanny Breuer has a message for you: Bite me.

Breuer this week signed off on a settlement deal with the British banking giant HSBC that is the ultimate insult to every ordinary person who’s ever had his life altered by a narcotics charge. Despite the fact that HSBC admitted to laundering billions of dollars for Colombian and Mexican drug cartels (among others) and violating a host of important banking laws (from the Bank Secrecy Act to the Trading With the Enemy Act), Breuer and his Justice Department elected not to pursue criminal prosecutions of the bank, opting instead for a “record” financial settlement of $1.9 billion, which as one analyst noted is about five weeks of income for the bank.

The banks’ laundering transactions were so brazen that the NSA probably could have spotted them from space. Breuer admitted that drug dealers would sometimes come to HSBC’s Mexican branches and “deposit hundreds of thousands of dollars in cash, in a single day, into a single account, using boxes designed to fit the precise dimensions of the teller windows.” Continue reading

“Hello HSBC, This Is JPMorgan – We Urgently Need Some Of Your Gold”

The smell of desperation is in the air…courtesy of Zerohedge:

What happens when 63.5K ounces of registered gold in your warehouse (16% of total) just has their warrants detached and the vault is about to finds itself 63.5k ounces of gold emptier? If you are JPM you call the gold vault with most inventory in town, that of HSBC, and politely request that they transfer as much eligible gold as they can on short notice – in this case a tiny 6,444.936 oz to be exact.

None of which changes the fact that in a few days, the inventory in JPM’s gold vault will drop to another record low of only 380K ounces and the JPM “rescue” pleas from HSBC and other Comex members will become ever louder and more desperate until one day they may just go straight to voicemail.

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JP Morgan Vault Gold Drops To New Record Low; Brinks Gold Plunges By 24% In One Day

The paper gold fraud continues, physical gold departs JP Morgans as well as the COMEX vault, a slow countdown to an event that will eventually change the worlds opinion on money for generations to come. Courtesy of the Hedge:

While we await the weekly CFTC commitment of traders report (delayed until Monday due to the July 4 holiday), we are happy to report that the JPM disconnect between the epic delivery requests and its reported gold holdings (for which the “Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness”) reconnected modestly, and as per the latest Comex update, another 6.8k ounces of gold was pulled from JPM’s 1 CMP world’s biggest gold vault, dropping its total gold inventory to a fresh record low.

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Perhaps even more notable is that on Friday, that “other” depository, Brink’s, saw 24% of its entire registered gold holdings, or 133k ounces, quietly get withdrawn. This, together with the moves in JPM and HSBC inventory, meant that total Comex gold holdings dropped by 116K ounces to a new low not seen for the first time since 2006.

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Finally, for that all important marginal source of paper gold supply or demand, ETFs,the two largest ones (GLD and IAU) have now retraced 50% of their “holdings” gain since the fall of Lehman.

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Someone more inquisitive than us may wonder: just where is all this gold being “withdrawn” to…