So They Really Do Manipulate The Price Of Gold and Silver …



The sit­u­a­tion real­ly is get­ting real­ly, real­ly, real­ly weird. And then some.

If I did not know bet­ter I would say some­things gonna blow. After the now infa­mous let­ter from Greg Smith enti­tled “Why I Am Leav­ing Gold­man Sachs” to the New York Times, anoth­er open let­ter has been post­ed around same time, this time to the CFTC (Com­mod­i­ty Futures Trad­ing Com­mis­sion), but this time from JP Mor­gan Chase. Here’s a taster:

I believe I have worked here long enough to under­stand the tra­jec­to­ry of its cul­ture, its peo­ple and its iden­ti­ty. And I can hon­est­ly say that the envi­ron­ment now is as tox­ic and destruc­tive as I have ever seen it.”

If this is true — the impli­ca­tions are scary (and some­one is going to be fired in the morning…“I don’t care…Just fire some­one!”)

Of most inter­est to us Gold/Silver Bulls is that there is direct men­tion of con­trived manip­u­la­tion and even co-coor­di­nat­ed efforts from the Big 5 Invest­ment Banks to actu­al­ly dri­ve down the price of gold and sil­ver. The Bernanke (“Bilder­berg” Ben as he is now known) inci­dent (tes­ta­mo­ny — Feb 29 — leap year day) where Gold dropped 100 USD in a day (yes I was trad­ing at the time and watched the ver­ti­cal drop yel­low line with a sick­en­ing stom­ach sourced, nau­se­at­ing swelling and spin­ning sen­sa­tion ris­ing up through my body — get­ting gid­dy and heady — as only a trad­er could know — espe­cial­ly as I had just put in two large buys min­utes before …Bug­gerus Max­imus!) is explic­it­ly men­tioned which is a good thing:

Jan­u­ary is right around the time we start­ed increas­ing our short posi­tions quite sig­nif­i­cant­ly again and this most recent crash in gold and sil­ver dur­ing Bernanke’s speech on Feb­ru­ary 29th is of notable impor­tance, as we along with 4 oth­er major insti­tu­tions, orches­trat­ed the vio­lent $100 drop in Gold and sub­se­quent drops in sil­ver.”

I do lots of trades and every now and then you won­der “Is it me?… Or maybe I just can’t cut the mus­tard to trade any­more.” and then “Maybe I should just apply for that part-time job I saw in the win­dow of the florists”. Then you find out some­one is manip­u­lat­ing the bloody mar­ket. The game is rigged. Well ulti­mate­ly they won’t win THIS game with gold — that is why I am play­ing this game.

Seri­ous­ly, for years I read, and heard about the manip­u­la­tion of the Gold mar­kets, prices being con­trolled and my atti­tudes was that it can’t be true. As I get old­er I have to admit that that was naive to say the least.

If this let­ter (see below) is a hoax at least it will make peo­ple think. If it is true, maybe we could see a turn around in Wall Street men­tal­i­ty of staff who are actu­al­ly as sick­ened (maybe even more — I know how it is to work in a hell-hole cor­po­ra­tion) as we are! Maybe we will have a stream of whis­tle blow­ers come out of the woodwork…Weird, weird times my friend.

Here is the full open let­ter:

From: Z A N
JPMor­gan Chase

Com­ment No: 57019
Date: 3/14/2012

Com­ment Text:

Dear CFTC Staff,

Hel­lo, I am a cur­rent JPMor­gan Chase employ­ee. This is an open let­ter to all com­mis­sion­ers and reg­u­la­tors. I am email­ing you today b/c I know of insid­er infor­ma­tion that will be damn­ing at best for JPMor­gan Chase. I have decid­ed to play the role of whistle­blow­er b/c I no longer have faith and belief that what we are doing for soci­ety is bring­ing val­ue to peo­ple. I am now under the opin­ion that we are actu­al­ly putting hard work­ing Amer­i­cans unaware of what lays ahead at extreme mar­ket risk. This risk is unnec­es­sary and will lead to wide-scale mar­ket col­lapse if not han­dled prop­er­ly. With the release of Mr. Smith’s open let­ter to Gold­man, I too would like to set the record straight for JPM as well. I have seen the dis­rup­tive behav­ior of supe­ri­ors and no longer can say that I look up to employ­ees at the ED/MD lev­el here at JPM. Their smug exu­ber­ance and arro­gance per­me­ates the air just as pun­gent­ly as rot­ting veg­eta­bles. They all know too well of the back­door crony con­nec­tions they share inti­mate­ly with elect­ed offi­cials and with oth­er insti­tu­tions. It is appar­ent in every­thing they do, from the mea­ger attempts to manip­u­late LIBOR, there­fore con­trol­ling how almost all deriv­a­tives are priced to the inher­it and fraud­u­lent com­modi­ties manip­u­la­tion. They too may have one day stood for some­thing in the past in the client-employ­ee rela­tion­ship. Does any­one in today’s mar­ket real­ly care about the pro­tec­tion of their client? From the ruth­less and scan­dalous treat­ment of MF Glob­al client asset funds to the exces­sive bonus­es paid by com­pa­nies with bur­geon­ing lia­bil­i­ties. Yes, we at JPMor­gan that are in the know are fear­ful of a cas­cad­ing cred­it event being trig­gered in Greece as they have hid­den deriv­a­tives in excess of $1 Tril­lion USD. We at JPMor­gan own enough of these through coun­ter­par­ty risk and out­right prop trad­ing that our entire IB EDG space could be anni­hi­lat­ed with­in a few short days. The last ten years has been mar­ket by inflex­ion point after inflex­ion point with the most notable com­ing in 2008 after the acqui­si­tion of Bear.

I wish to remain anony­mous as of now as fear of ter­mi­na­tion mounts from what I am about to reveal. Robert Got­tlieb is not my real name; how­ev­er he is a trad­er that is involved in a law­suit for manip­u­la­tive trad­ing while work­ing with JPMor­gan Chase. He was acquired dur­ing our Bear Stearns acqui­si­tion and is known to be the noto­ri­ous per­son short­ing in the sil­ver future mar­ket from his trad­ing space, along with Blythe Mas­ters, his IB Glob­al boss. How­ev­er, with that said, we are manip­u­lat­ing the sil­ver futures mar­ket and play­ing a small­er (but still mas­sive­ly manip­u­la­tive) role in manip­u­lat­ing the gold futures mar­ket. We have a lit­tle over a 25% (give or take a per­cent­age) posi­tion in the short mar­ket for sil­ver futures and by your def­i­n­i­tion this denotes a larg­er posi­tion than for spec­u­la­tive pur­pos­es or for hedg­ing and is beyond the line of manip­u­la­tion.

On a side note, I do not work direct­ly with accounts that would have been direct­ly impact­ed by the MF Glob­al fias­co but I have heard through oth­er col­leagues that we have involve­ment in the hid­ing of client assets from MF Glob­al. This is anoth­er fraud­u­lent effort on our part and con­sti­tutes theft. I urge you to for­ward that part of the inves­ti­ga­tion on to the respec­tive author­i­ties.

There is some­thing else that you may find strange. Dur­ing month-end Decem­ber, we were all told by our man­agers that this was going to be a dis­mal year in terms of earn­ings and that we should not expect any bonus­es or pay rais­es. Then come mid-late Jan­u­ary it is made known that every­one received a pay raise and/or bonus, which is inter­est­ing b/c just a few weeks ago we were told that this was not like­ly and expect­ed to be paid noth­ing in addi­tion to base salary. Jan­u­ary is right around the time we start­ed increas­ing our short posi­tions quite sig­nif­i­cant­ly again and this most recent crash in gold and sil­ver dur­ing Bernanke’s speech on Feb­ru­ary 29th is of notable impor­tance, as we along with 4 oth­er major insti­tu­tions, orches­trat­ed the vio­lent $100 drop in Gold and sub­se­quent drops in sil­ver.

As reg­u­la­tors of the free peo­ple of this coun­try, I ask you to uphold the most impor­tant job in the world right now. That job is judge and over­seer of all that is jus­tice in the most sen­si­tive of com­mod­i­ty mar­kets. There are many mid­dle-income peo­ple that invest in the phys­i­cal assets of sil­ver, gold, as well as min­ing stocks that are being finan­cial­ly impact­ed in a neg­a­tive way b/c of our unscrupu­lous shorts in the pre­cious met­als com­mod­i­ty sec­tor. If you read the COT with intent you will find that com­mer­cials (even though we have no busi­ness being in the com­mer­cial sec­tor, which should be reserved for com­pa­nies that tru­ly pro­duce the met­al) are net short by a long shot in not only sil­ver, but gold.

It is rather sur­pris­ing that what should be well known lia­bil­i­ties on our bal­ance sheet have not erupt­ed into wider scale scru­ti­niza­tion. I call all hon­est and coura­geous JPMor­gan employ­ees to step up and fight the crony­ism and wide-scale manip­u­la­tion by report­ing the truth. We are only help­ing real­i­ty come to light there­fore allow­ing a real val­u­a­tion of our bank­ing indus­try which will give investors a chance to prop­er­ly adjust with­out being total­ly wiped out. I will be con­tact­ing a lawyer short­ly about this mat­ter, as I believe no oth­er whistle­blow­er at JPMor­gan has come for­ward yet. Our deep­est secrets lie with­in the hands of hon­est employ­ees and can be revealed through hon­est reg­u­la­tors that are will­ing to take a look inside one of Amer­i­ca’s best kept secrets. Please do not allow this to turn into anoth­er Enron.

Kind Regards,
‑The 1st Whistle­blow­er of Many

I eager­ly await the devel­op­ment of this sto­ry with bat­ed breath.

P.S. Gold is still floun­der­ing around 1,650 USD/Oz, dazed and con­fused (but not for long!).

© Copy­right MMXII