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800,000 ounces of notional gold into the London Fix (or COMEX open) was just Dumped into the market

In what world is it rational to decide that dumping 800,000 ounces of notional gold into the London Fix (or COMEX open) makes sense? In the space of 4 minutes, almost 2 million ounces notional wer flushed into the gold futures markets dumping the price of gold to 3-month lows.

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http://www.zerohedge.com/news/2013-10-11/massive-sell-order-...

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DJP333's picture

Interesting

that this was done when the Commodity Futures Trading Commission, which oversees commodity markets, has ceased most of its operations due to the government shutdown.

http://www.dailypaul.com/302265/financial-regulator-shutdown...

"It’s not pessimistic, brother, because this is the blues. We are blues people. The blues aren’t pessimistic. We’re prisoners of hope but we tell the truth and the truth is dark. That’s different."

So...The Rich get Richer

...and the commonfolk shrug at the falling prices of gold.
( most can't even consider owning physical gold)
Guess the "fat-cats" will be feathering their nests for the coming crash.
Thank You Tom Rankin and Oceanoz for your explanations on "notional gold", a Gerald Celente favorite till he got burned.
"The boozer's in prison & the criminal isn't, & only the rascals have dough":

http://youtu.be/AQjw5F6SnzE

"Beyond the blackened skyline, beyond the smoky rain, dreams never turned to ashes up until.........
...Everything CHANGED !!

It's nice when you can

It's nice when you can manipulate the prices at will and go long or short and make money. What a scam. Get rid of the "paper gold" and let's see what physical gold really trades at.

"In reality, the Constitution itself is incapable of achieving what we would like in limiting government power, no matter how well written."

~ Ron Paul, End the Fed

Cyril's picture

Et hop! Et voila!

Et hop! Et voila!

circa 25 metric tons dumped in 4 minutes.

Meh, that's just twice as much as Cyprus gold holdings or Syria's, no biggie. Almost nothing to see.

http://en.wikipedia.org/wiki/Gold_reserve#Officially_reporte...

Nah, that's not manipulation.

It's just that mysterious dude behind his trader desk, ya know, he just can't stand the yellow color.

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Cyril's picture

Right?

Right?

"Cyril" pronounced "see real". I code stuff.

http://Laissez-Faire.Me/Liberty

"To study and not think is a waste. To think and not study is dangerous." -- Confucius

Notional Gold...

Unallocated gold

Unallocated gold is a bookkeeping device by which a bank or other enterprise provides you with notional gold. The gold is a liability to you on their balance sheet. It is synonymous with gold 'accounts' and its holders are unsecured creditors.

It arises from an important legal difference between the terms under which banks look after their customers' valuables. Unallocated gold is formally a deposit, which becomes the bank's property and its liability to you as a depositor. The alternative agreement style - known as allocated - obliges the bank to hold your gold as your outright property, under a custodial or safe-keeping contract.

Under the law a liquidator returns your formal property to you if a bank fails. But where it is your asset - like unallocated gold (not your property) they almost certainly cannot return it to you. Instead you would be in a pool of unsecured creditors waiting to see what cash the liquidators might raise in selling all the bank's assets. This sale would include non-performing loans, derivative and bond portfolios, and whatever stock of gold you might think was backing your unallocated gold account.

Read More: http://www.bullionvault.com/help/Definitions/definition_unal...

Something like this would

Something like this would also spook some of the smaller players into selling prematurely.

To climb the mountain, you must believe you can.

Farage: Britian has Done this Before: Britain Dumps Gold 1

Nigel Farage:

LISTEN AT 2:50:

Tony Blair had "announced" a dumping of Gold onto the Market a number of years ago that cost British BILLIONS;

This shows undeniably that there are those that are using government to sell out their citizens to other interests.

American Patriot Party.CC
http://www.americanpatriotparty.cc

Educate Yourself. Educate Others.

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FB: https://www.facebook.com/pages/American-Patriot-Party-CC-Nat...

RichardTaylorAPP - Chair - American Patriot Party.CC

John Locke #201, 202, 212 to 232; Virginia and Kentucky Resolutions 1798; Virginia Ratifying Convention 6-16-1788; Rights of the Colonists 1772.

Did they actually sell it?

The article says "into the futures market". Did they actually sell the gold or just write contracts against it?

= = = =
"Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job."

That means: For each job "created or saved" about five were destroyed.

Somebody put a price on future gold options. Fool's Gold!


http://youtu.be/i2dFWtciNtY Picking up the pace?

Someone put out a contract.. for a price. For exactly the same price... at exactly the same time... someone bought it. Somewhere in New York City? Hey, this stuff was made in New York City!!!

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

We Are Winning The Info War!

BOOM!

SteveMT's picture

That's a good deal for buyers.

The deals just keep getting better and better.

Amen

to that, friend!

not your property...

Unallocated gold is a bookkeeping device by which a bank or other enterprise provides you with "notional" gold. The gold is a liability to you on their balance sheet. It is synonymous with gold 'accounts' and its holders are unsecured creditors.

It arises from an important legal difference between the terms under which banks look after their customers' valuables. Unallocated gold is formally a deposit, which becomes the bank's property and its liability to you as a depositor. The alternative agreement style - known as allocated - obliges the bank to hold your gold as your outright property, under a custodial or safe-keeping contract.

Under the law a liquidator returns your formal property to you if a bank fails. But where it is your asset - like unallocated gold (not your property) they almost certainly cannot return it to you. Instead you would be in a pool of unsecured creditors waiting to see what cash the liquidators might raise in selling all the bank's assets. This sale would include non-performing loans, derivative and bond portfolios, and whatever stock of gold you might think was backing your unallocated gold account.

Live in Liberty
Tom Rankin

ah...Tom....didn't see your post...I posted the same but with

link for further reading....

What is notional gold?

Never heard of it but thanks for the article.

I have no idea what is going on.

Maybe all that money the Fed has pumped in is causing all the markets to do crazy things.

Something big is probably around the corner but I see these lows in metals as nice buying opportunities.

"We have allowed our nation to be over-taxed, over-regulated, and overrun by bureaucrats. The founders would be ashamed of us for what we are putting up with."
-Ron Paul

Gold held in a certified warehouse

that will not physically change hands. Ownership will change through the certificates.

bigmikedude's picture

Like Mark Twain said above -

"Fools Gold" Lol

Another interesting article about the smash

"Stop Logic" Gold Slam Was So Furious It Shut Down CME Trading Again"

http://www.zerohedge.com/news/2013-10-11/stop-logic-gold-sla...

Don't forget what happened yesterday...

Just a normal selling of 600,000 ounces. See article below.

"Here is What Happened Today As Gold Was Breaking $1,310"
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/...

Another Attempt To Keep Gold Prices Artificially Low

This can not work forever, eventually Gold & Silver will go through the roof.

The government and the Fed

The government and the Fed are doing all the same things it did from 1990-2007 which led to the meltdown, except on a larger scale. I am betting on the people who called the housing bubble. I just bought some leveraged ETFS this morning for gold, oil, and a reverse banking index, betting on banks collapsing.

Tyranny trying to keep Freedom down.

Looks like tyranny is getting desperately obvious.