Home › 6a) Gold & Monetary Metals › 6a.) GoldCore › Gold traders on trial: Only buy physical
Permanent link to this article: https://snbchf.com/2022/07/flood-gold-traders-trial-only-physical/
Donate to SNBCHF.com
Donate to SNBCHF.com Via Paypal or Bitcoin To Help Keep the Site Running
Please consider making a small donation to Snbchf.com. Thanks
Bitcoin wallet: bc1qa2h6hgd0xkuh7xh02jm5x25k6x8g7548ffaj3j
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
SNB Sight Deposits: decreased by 8.2 billion francs compared to the previous week
18 hours ago -
Swiss Franc at risk as inflation diverges from SNB forecasts
3 days ago -
The Swiss National Bank vs. the Federal Reserve: The Fed’s Capital Losses in Perspective
7 days ago -
EUR/CHF Price Analysis: Pullback possible amid mixed signals
7 days ago -
Swiss Franc extends losses on Swiss interest rate outlook
13 days ago
Main SNB Background Info
-
SNB Sight Deposits: decreased by 8.2 billion francs compared to the previous week
18 hours ago -
The Secret History Of The Banking Crisis
2017-08-14 -
SNB Balance Sheet Now Over 100 percent GDP
2016-08-29 -
The relationship between CHF and gold
2016-07-23 -
CHF Price Movements: Correlations between CHF and the German Economy
2016-07-22
Featured and recent
-
The Best Advice I Can Give Anybody in Their 40’s and 50’s
-
“Wir Grüne senken die Inflation!”
-
Bitcoin corrects higher and finds willing sellers against a key hourly moving average.
-
Los Mejores Discos de JUDAS PRIEST (ft. Tony Hernando)
-
Bitcoin: Vorsicht! Kommt alles anders?
-
Schon wieder eine Nachzahlung? ️ #betriebskosten
-
Connecticut’s Housing Shortage Is Rooted in Government Policies
-
NZDUSD tilts to the downside and in the process retests its key 200 day MA
-
AUDUSD sellers push toward lows for the day and the key 200-day MA
-
USDCAD rotates to the upside. Sellers took their shot earlier today to take more control.
More from this category
- Connecticut’s Housing Shortage Is Rooted in Government Policies
18 Mar 2024
- Janet Is Yellin’ Nonsense. Stagflation Is around the Corner
18 Mar 2024
- Marx, Class Conflict, and the Ideological Fallacy
18 Mar 2024
- Heightened Speculation of a BOJ Move Tomorrow did not Stop the Nikkei from Rallying or Yen from Slipping
18 Mar 2024
- Week Ahead: Central Banks
16 Mar 2024
- The Twilight of the Antifederalists
16 Mar 2024
- Failing to Make the Case for Race-Based Reparations
16 Mar 2024
- Swiss Franc at risk as inflation diverges from SNB forecasts
16 Mar 2024
- From Athens to Vienna: Understanding a System of Ethics
15 Mar 2024
- Will Oklahoma’s Legislature Embrace Sound Money? Maybe
15 Mar 2024
- Sebag and Natural Money
15 Mar 2024
- Euro’s Recovery to $1.09 Looks Vulnerable while Yen Falls to New Lows for the Week After Strong Pay Raises Confirmed
15 Mar 2024
- Zurechtkommen mit der Komplexität des Klimawandels. Eine genauere Betrachtung der wissenschaftlichen Methode und ihrer Einschränkungen
15 Mar 2024
- Why We Don’t Need Government Funding for “Moonshots”
15 Mar 2024
- Protectionism Doesn’t Decrease “Food Insecurity”; It Increases It
15 Mar 2024
- The Michigan Verdict Is “Groundbreaking” as in Burying the Law
15 Mar 2024
- The Myth of National Defense Spending
14 Mar 2024
- Why the Bubble Economy Isn’t the Real Economy
14 Mar 2024
- Covid Showed Us Who Really Rules America
14 Mar 2024
- How the US Regime Subsidizes Immigration—both Legal and Illegal
14 Mar 2024
Gold traders on trial: Only buy physical
Published on July 15, 2022
Stephen Flood
My articles My videosMy books
Follow on:
This week has brought the issue to the fore as three former JP Morgan employees stand trial for “racketeering conspiracy as well as conspiring to commit price manipulation, wire fraud, commodities fraud and spoofing from 2008 to 2016”.
JP Morgan Chase & Co. has long been known to have an oversized influence on the gold paper market. Accounting for upwards of 65% of the derivative contracts in precious metals put through U.S. banks. This is three times that of the next largest Citigroup. Inc.
This week the criminal trial for three of JP Morgan Chase & Co.’s most influential precious metal traders started in Chicago.
.
Gold Market Manipulation with Spoofing Trades
One of three on trial is Michael Nowak, former managing director for JP Morgan Chase & Co., who ran their precious metals business for more than 10 years. Bloomberg also described him as once the most powerful person in the gold market.
Mr. Nowak made hundreds of millions of dollars in profit trading precious metals at JP Morgan. He was also a board member of the body that runs the London gold market.
He now faces a slew of charges on manipulation of the gold market with spoofing trades. As we have always reminded readers, the banks – central or otherwise, never have your own best interest at heart.
We detail some of the alleged crimes below but remember our refrain about gold…if you or Goldcore don’t hold it then you don’t own it.
Spoofing is planting large fake orders to buy or sell futures contracts and then cancelling the order before the deal’s execution.
The intent is to create false sentiment in the market. Then the trader can manipulate the actions of other market participants and change the price of a security, thereby making a profit.
The infographic below from the Wall Street Journal shows an example of how a trader can profit from a spoofing scam using the oil futures market as an example.
.
However, lofty expectations and profit at any cost, plus their use of
It is estimated that traders working for Norwak placed more than 50,000 spoofing trades over a decade. Edmonds has also pleaded guilty for the manipulation of silver contracts.
We note that spoofing as a business practise requires leverage and the willingness to cheat. Goldcore refutes both these items.
Spoofing became more prominent through the 2000s as algorithms improved, causing the rise in high frequency trading, which allowed for very quick execution of trades.
Regulation around high frequency trading lagged the industry and not until The Dodd-Frank Act in 2010 really defined and made it illegal. But it has taken even longer for the government to investigate and crack down on violators.
The Dodd-Frank Act was new U.S. legislation after the 2008 financial market meltdown.
One of the most well-known cases of spoofing is the ‘flash crash’ in 2010. This was when almost $1 trillion erasing in market value from U.S. stock markets. In a matter of about 10 minutes, the DJIA (Dow Jones Industrial Average) plummeted almost 1000 points, then recovered almost 600 points over the next 30 minutes.
A London-based trader determined in 2015 the primary cause of the flash crash was spoofing. He entered a very large order for e-mini S&P 500 stock index futures contracts with the intent to cancel the order prior to execution.
His large order stampeded certain high-frequency algorithms into aggressive selling executed that triggered the massive market declines.
In 2020 after years of investigation, the US government ordered JP Morgan to pay US$920 million to settle spoofing claims in the precious metals futures market.
If you don’t hold it then you don’t own it
JP Morgan is not alone in its manipulation of the precious metals market. ‘In 2021, two Bank of America Corp. precious-metals traders were convicted in Chicago. A year earlier, a jury found two from Deutsche Bank AG guilty, while others reached plea agreements and cooperated with authorities.’ (Bloomberg).
JP Morgan is the largest bank in the space and the trading desk worked as a group to manipulate the market.
Hence U.S. prosecutors have also added charges under the Racketeer Influenced and Corrupt Organizations Act. They are usually reserved for gangs and the mafia!
Also, manipulation in the gold paper market is an ongoing battle. Also, not knowing the intent of the counterparty is always a factor. We are unaware of spoofing in the physical metals market nor can we envision how global banks could attempt such actions.
This is why we always recommend to those who wish to hold gold and silver as part of a balanced portfolio, to buy physical gold. As we said earlier, if you or GoldCore don’t hold it then you don’t own it.
On Sunday we released the second episode of our hit new show The M3 Report. The M3 Report brings the viewer the best of GoldCore commentary analysis, fantastic guests, Chart Watch, and bonus clips from industry experts.
Presented by our very own Dave Russell the show takes an irreverent look at financial markets and the double speak of policy makers, to help you better understand what’s really going on with your money.
In this latest offering Dave and the team take on inflation, they ask is the futility of inflation simply the futility of central bankers?
Dave discusses this (and more) in the exclusive interview with Dr. Marc Faber, whilst Gareth Soloway brings us some brilliant chart analysis in Chart Watch.
And don’t miss Trading Places! What would you do if you were Head of the Fed? We asked six of our favourite guests. We’re not ruining anything by saying that no one wants to be Head of the Fed!
If you haven’t already then make sure you’re subscribed to GoldCoreTV, so you’ll be the first to see new releases!
Full story here Are you the author?Follow on:
No related photos.
Tags: Commentary,Economics,Featured,Geopolitics,Gold,gold price,gold price prediction,gold price today,inflation,JP Morgan,News,newsletter,Precious Metals,S&P 500,silver,silver price,SPX,stock market