Comment Text:
10-005
COMMENT
CL-0289810-005
COMMENT
CL-02898
CFTC Public Hearings on Metals Markets
COMEX data show that the price of gold and
silver are suppressed
There is a direct correlation of price suppression
and the positions of two US banks (BPR)
The Bank Derivatives Reports from Treasury
Dept. OCC indicates these two banks are
JPMorganChase and HSBC
Appropriate enforcement action is required10-005
COMMENT
CL-02898
Gold Market Behaves Like No Other!
COMPARISON OF GOLD, OIL & COPPER 2000-2010
Parameter
~GOLD OIL COPPER
1
10 year Low ($)
2 10 year High ($)
3
10 year maximum % Rise
4 10 year rise to date (2/16/2010)
5 Days when Intraday rise>2%
6
% of trading days intraday >2%
7
Days when Close >2%
8 % of trading days close>2%
9
Days when Intraday Loss>-2%
lO Days when Close>-2%
11
Closes gain>2%/Closes loss>-2%
12 Highest Daily % Gain
13 Highest Daily % Loss
14
10 year Cumulative up ($)
15 10 year Cumulative down ($)
16 Cumulative Up %
17
Cumulative Down %
258.1
1222
373%
333%
165
6%
102
4%
167
110
0.93
9.0%
-7.3%
6686
-5903
2590%
2287%
19.7
147
646%
291%
713
27%
487
19%
653
435
1.12
15.7%
-11.8%
1256
-1208
6376%
6132%
0.64
4.08
538%
392%
363
14%
309
12%
364
268
1.15
12.5%
-11.0%
37.04
-34.74
5788%
5428%
Gold has outperformed all financial assets in annual returns in the last 10 years yet:
>-2% down days outnumber >+2% up days
There are on average only 10 days per year where gain exceeds 2% compared to 49 days for
WTI and 31 for copper10-005
COMMENT
CL-02898
Waterfall Drops Occur Repetitively
at the Same Time10-005
COMMENT
CL-02898
Average Daily Gold Price Change over 16 Years
Shows Suppression Occurs on the COMEX after
the PM London Fix
lO00.H
1000.3
1000.2
i000.1
AMFixing
tPM Fixing
O Dimitri Speck
Geheime Goldpolitik
FinanzBuch Verlag 2010
999.9
............ ::
999.89/5/06
11/5/06
1/5/07
3/5/07
5/5/07
7/5/07
9/5/07
11/5/07
1/5/08
3/5/08
5/5/08
7/5/08
9/5/08
11/5/08
1/5/09
GOLD PRICE $/OZ
BANK NS/COMMERCIAL NS %
~
0 0
zrrl9/5/06
11/5/06
1/5/07
3/5/07
5/5/07
7/5/07
9/5/07
11/5/07
1/5/08
3/5/08
5/5/08
7/5/08
9/5/08
11/5/08
1/5/09
Silver Price cents/oz
Bank NS/Commercial NS
~=10-005
COMMENT
CL-02898
The Treasury OCC Reveal the Manipulators
Are JPMorganChase & HSBC
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
JPM & HSBC Share of Bank Gold Derivatives With
Maturity < 1 Year
Q4 2006
Q1 2007
Q2 2007
Q3 2007
Q4 2007
Q1 2008
Q2 2008
Q3 2008
Since November 2009 the CFTC now "suppresses" the names of banks in
the BPR if there are 4 or less banks in a category to prevent the public
knowing who is manipulating the precious metals markets10-005
COMMENT
CL-02898
Treasury Department Concedes Five Banks
"Dominate" the Massive Derivatives Market
Quote from Q4 2008 Bank Derivatives Activities report from
the OCC
Derivatives activity in the U.S. banking system is dominated by a small
group of large financial institutions. Five large commercial banks
represent 96% of the total industry notional amount and 81% of
industry net current credit exposure. While market or product
concentrations are a concern for bank supervisors, there are three
important mitigating factors with respect to derivatives activities .......
Despite a near meltdown of the financial system due to derivatives and
a bailout of the "five large commercial banks" this statement first appeared in
the OCC Bank Derivatives report in 2006 and is still used today.10-005
COMMENT
CL-02898
Conclusions
Price suppression occurs on the COMEX
A small numb.e, r of banks dominate the commercial
net short pos~t~ons
A small number of banks dominate the OTC
derivatives market
Solutions:
Hedgers should deposit 40% of short position in bullion
in COMEX warehouse
- Sign affidavit metal title is unencumbered and will
remains so while it is collateral for the short position
- Banks prohibited from speculation (Volcker Rule)
-"Speculators"
positions to be limited
