Former US Treasury Official – Fed Orchestrated Gold Plunge

Today a former US Treasury Official told King World News that the U.S. Federal Reserve orchestrated Thursday’s massive gold plunge which shocked market participants.  Dr. Paul Craig Roberts also warned that we are on a path which will send the U.S. into “total chaos.”  Below is what Dr. Roberts had to say in this powerful interview.

Eric King:  “We had the Fed out with two straight days of propaganda and that was followed up by a smash in gold and silver.”

Dr. Roberts:  “Yes, that’s true.  It shows how irrational markets are.  In fact, there was nothing new in the Fed’s statement.  The markets have known for a long time that at some point the Fed is to taper down its bond purchases and eventually stop them.

So the lack of any real information in the statement makes the market reaction seem puzzling.  And it actually suggests that the too-big-to-fail banks had inside information, the Fed’s statement, and used it to short the stock, bond and gold markets….

“They (banks with inside information) cleaned up on this Fed statement.  It’s entirely possible that’s what the Federal Reserve is doing is orchestrating events that make huge profits for the banks, and that this is the way it recapitalizes them.”

Eric King:  “What were your thoughts on the gold and silver smash?”

Dr. Roberts:  “Well, it’s clearly intended to drive down the price because they always pick the most unlikely time that anybody who wanted to unload a position for best price would never pick (to sell).  They pick a time when unloading a position like that is guaranteed to drive the price down the most.

That’s the giveaway that they are trying to drive it down.  The other giveaway is the amounts that are suddenly unloaded at one time.  No real investor would unload any position in that way.  So these are obviously orchestrations (by the Fed) and that is the intent (to manipulate gold and silver lower).


Incredibly Important Developments In Gold & Silver Markets

Today King World News is reporting on incredibly important developments taking place in the gold and silver markets.  Acclaimed commodity trader Dan Norcini spoke with KWN about the action in both of these key markets and provided two tremendous charts.  Below is what Norcini had to say in his interview.

Norcini has been stunningly accurate in his predictions of the movement in the gold and silver markets.  Now the acclaimed trader discusses these incredibly important developments in both of these markets below:

Eric King:  “I will hand it off to you on the COT (Commitment of Traders Report).  Dan, you can give out the numbers there, but I told you I thought there was a 50,000 contract shift by the commercials (this week, which will be reported in next week’s COT report).  So they should (now) be net long (gold) 30,000 to 35,000 contracts.  I told you I thought it was (the year) 2001 since they had been long.  You went and checked the history and indeed it was.”

Norcini:  “Yes (the commercials were last long gold in 2001).  We don’t have the detailed breakdown to data that far (back), that we do since they revised it going back to 2006, but nonetheless we can get a pretty good insight into who was positioned where.

Of course gold was in a bear market for 20 years before it was turning, but when you look at the positioning of speculators, they had been driving that market down.  The funds were short and the commercials were long (back in 2001) (see chart below).


But what basically happened was the commercials were positioned on the long side of the gold market at the very bottom in November of 2001.

If you go back and look at a monthly chart (see below), it’s kind of interesting because that was the bottom (in 2001 when commercials were net long gold).  From that moment on the gold market never (broke below) that low.  Gold was trading around $274 an ounce and it never again went down to that level.  That’s noteworthy.


Generally, Eric, I don’t like to make a big deal out of these COT reports because way too many people (attempt to) use them as some sort of “Holy Grail,” but I think at this point, because of the dramatic shift we’ve seen now, we are going to have to start paying attention to positioning of these traders from this point forward.

Based on this most recent (COT) report the hedge funds were still net longs in this (gold) market, and the commercials were still net short.  But that did not cover Wednesday, Thursday or Friday’s activity.  And as we know, that was huge volume on Thursday, some of the biggest volume we’ve seen in gold for a long, long time….

“There was a big change internally in this market and a huge shift in the composition of who was on what side (of the gold market).  My suspicions are like yours.  I would not be the least bit surprised when we see next Friday’s (COT) report, to see that maybe a 50,000 contract shift, from basically the commercials being net short 15,000, to perhaps being net long by 30,000 contracts, and the hedge funds (now being) on the net short side of this market.


Stunning Volume On Gold & Silver Smash In Suspect Trading

Today one of the savviest and well connected hedge fund managers in the world spoke with King World News about the smash in the gold and silver markets and what to expect going forward.  Outspoken Hong Kong hedge fund manager William Kaye also discussed the stunning volume in the gold and silver markets, as well as the suspect nature of the trading, and the propaganda coming out of the U.S. Federal Reserve.  Kaye, who 25 years ago worked for Goldman Sachs in mergers and acquisitions, had this to say in his tremendous interview.

Eric King:  “We are in the midst of a massive gold and silver plunge here, Bill.  What are your thoughts on the action we are seeing?”

Kaye:  “It’s the end game of a fantastic manipulation of the markets.  I’m looking at my screen now as we talk, Eric.  I’m in L.A. (Los Angeles), but we are still in Asian (trading) time with London just coming in at the moment, and we’ve traded over 94,000 contracts.

So passing the baton to London we will have already traded 100,000 contracts.  A normal night (during Asian trading) would be 20,000, to put that in perspective.  So the question is, who is selling all of these contracts at levels that are multi-year lows?  Who’s so keen to sell?….

“And if you need to sell, why are you selling at the worst time of day?  Why are you selling in Asian time, which is always the thinnest section of trading?  Why don’t you wait for London and Chicago to take over?

And the answer is very obvious:  These markets are clearly and blatantly being manipulated.  The people doing it have clear price objectives.  My guess is they want to see a print below $1,300 (on gold) before they are done.  That will allow people (trading for the bullion banks) to make profits on their shorts.

The bullion banks, from the Commitment of Traders Reports that we’ve seen plus other information that we’ve gathered, strongly indicates that the banks, which are the  centerpiece of this conspiracy, have shifted rapidly from being on the edge of default, as ABN AMRO has already done, to being net long, and in some cases being very net long.

So they (bullion banks) have taken the opportunity that’s been provided by the cover from what would appear to be official intervention, in what I suspect is the Fed and possibly the ECB, to take the other side of that trade.  Now they are extremely net long and that sets the stage, in addition to a very promising technical picture, for a very powerful rally as we look at next week, into July and beyond.