Gold Ambush at the Comex Corral
Darryl Robert Schoon
Prediction is an art. Heisenberg’s Uncertainty Principle is as operative in the realms of the unknown as well as in the known. But, sometimes, predictions are a slam-dunk such as the large number of put options placed on United and American Airlines in the days prior to 9/11 through Alex Brown Deutsche Bank, an investment unit with close ties to the CIA’s Buzz Krongard.
Note: Alex.Brown’s former Chairman, Buzz Krongard, was appointed Director of the CIA in 2011. Buzz Krongard’s successor, Mayo Shattuck III, who oversaw the purchases of the 9/11 puts resigned from Alex Brown Deutsche Bank on 9/12. For the story of the 9/11 puts, see Mark H. Gaffney’s series in the Foreign Policy Journal, Black 9/11: A Walk on the Dark Side.
In January 2013, analysts at Goldman Sachs predicted gold would fall to $1200. That Goldman Sachs would make such an apparently lucky out-of-the money prediction given the recent ambush of gold at COMEX wasn’t luck at all. Like 9/11, the COMEX ambush was planned and executed with military precision.
In his article at Sharps Pixley, Gold Crushed by 400 Tonnes of $20 billion of Selling on COMEX, former gold trader at NM Rothschilds & Sons and Credit Suisse, Ross Norman, describes how the ambush was carried out:
GOLD STOCKS AVAILABLE FOR DELIVERY WERE FALLING
Sandeep Jaitly’s Gold Basis Service confirmed that gold and silver were in ‘escalating’ backwardation prior to the COMEX ambush on April 12th. This means that physical supplies of gold and silver were becoming even tighter when the attack on the gold price began.
(Click on image to enlarge)
A failure to deliver by COMEX has been delayed though not averted by last week’s action. The paper money cartel is trapped in a fight to the death, its death. The ambush of gold at the COMEX corral is but their desperate attempt to extend their ponzi-scheme of credit and debt for a few more years.
THE USUAL SUSPECT: GOLDMAN SACHS
While the fund in Stamford Connecticut may have placed the $20 billion worth of gold shorts but, if they did, it is far more likely they acted as the agent of far-larger entity such as Goldman Sachs which had months before predicted gold would fall to $1200.
Goldman Sach’s January prediction of the fall of gold reminded me of an after-dinner conversation I had a few years ago in Europe. The conversation was with a gold trader at a major European bank and the topic of conversation was gold.
Gold had been falling for several days and I remember his excusing himself the previous evening and saying quietly, “I think it’s time to buy gold”. The next morning the price of gold began moving higher.
What he told me during that evening’s conversation bears repeating, especially after what has happened. He said that he had been watching gold’s movements in real time when a highly anomalous event caught his attention, the bid price of gold had been followed not by an equal or higher ask price but by a lower ask price and, as he watched, the price of gold began to fall.
He said he began watching for this anomalous trade and discovered when it occurred, it was always followed by lower ask prices which meant gold was being driven lower. The source of the anomalous lower gold ask price was always J. Aron & Co., the commodities trading arm of Goldman Sachs.
Note: Lloyd Blankfein, Goldman Sach’s CEO, worked as a precious metals salesman at J. Aron’s London offices before going to Goldman Sachs in New York.
TIME OF THE VULTURE GOLD STAGE III
In 2007, in my book, Time of the Vulture: How to Survive the Crisis and Prosper in the Process, I wrote:
When I was writing Time of the Vulture: How to Survive the Crisis and Prosper in the Process gold was in STAGE 2. The price of gold was then $650. Today in April 2013, gold is now in STAGE 3 where THE PRICE OF GOLD BECOMES INCREASINGLY VOLATILE. The price of gold is subject to increasing highs and lows as large investment funds move in and out of gold as global economic uncertainties wax and wane, a sign that gold is increasingly a haven in uncertain times.
The recent 20% fall in the price of gold indicates we are currently still in STAGE 3. STAGE 4 with its EXPLOSIVE ASCENT IN THE PRICE OF GOLD is next. When STAGE 4 happens is anyone’s guess as prediction is always an uncertain art - unless, of course, you’re Goldman Sachs.
Regarding STAGE 4’s eventuality, I wrote in Time of the Vulture:
GOLD’S DAY IS ALMOST HERE
In my youtube video at https://www.youtube.com/watch?v=D0duUjR_C4s, The Collapse and Emergence of Eras, I discuss the collapse of the present economic paradigm and the better world that will replace it. These are momentous times. The volatility of gold is an indicator that far greater changes are in motion than merely the price of precious metals.
Buy gold, buy silver, have faith.
About Darryl Robert Schoon
In college, I majored in political science with a focus on East Asia (B.A. University of California at Davis, 1966). My in-depth study of economics did not occur until much later.
In the 1990s, I became curious about the Great Depression and in the course of my study, I realized that most of my preconceptions about money and the economy were just that - preconceptions. I, like most others, did not really understand the nature of money and the economy. Now, I have some insights and answers about these critical matters.
In October 2005, Marshall Thurber, a close friend from law school convened The Positive Deviant Network (the PDN), a group of individuals whom Marshall believed to be "out-of-the-box" thinkers and I was asked to join. The PDN became a major catalyst in my writings on economic issues.
When I discovered others in the PDN shared my concerns about the US economy, I began writing down my thoughts. In March 2007 I presented my findings to the Positive Deviant Network in the form of an in-depth 148-page analysis, "How to Survive the Crisis and Prosper In The Process."
The reception to my presentation, though controversial, generated a significant amount of interest; and in May 2007, "How To Survive The Crisis And Prosper In The Process" was made available at www.survivethecrisis.com and I began writing articles on economic issues.
The interest in the book and my writings has been gratifying. During its first two months, www.survivethecrisis.com was accessed by over 10,000 viewers from 93 countries. Clearly, we had struck a chord and www.drschoon.com, has been created to address this interest.