Coverage on the Deutsche Bank silver settlement
We brought Craig Hemke on the show to discuss the recent settlement by Deutsche Bank settlement. The case against Deutsche Bank focused on the manipulation of silver fix. While no specific details are available in terms of settlement amount the biggest question is what will this lead to and what information will Deutsche Bank provide to the authorities?
Note – This interview was recorded slightly before the news on a settlement for the gold fix broke.
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Craig Hempke, do you REALLY think it will make a difference if the price of gold is fixed in China versus London? Don’t you know that human nature is the same everywhere you go on the planet? People are common as are their motives and the machinations they create. Nothing ever changes. Almost none of it is ever original. The only difference is that once gold is priced in Shanghai and you don’t like what they are doing…you won’t get any input into the topic anymore. Because nobody in China is going to listen to Turd Ferguson complain about COMEX or the new Chinese exchange either.
You are a dreamer I think.
I completely agree – human nature is the same in all humans, and history shows this. We should not expect anything more.
Unless dogs take over. We can trust dogs. 😉 Unless it’s a slab of steak unattended on the kitchen table – it’s a gonner. But gold will be safe. 😉
“Appear weak when you are strong, and strong when you are weak.”
― Sun Tzu, The Art of War
I think that news leaked, may have been leaked on purpose. Maybe not. Either way, this news to me is just a distraction on the real picture for gold – global debt, global lying, paper money that were *designed* as IOU’s with the promise of gold in the bank, is no longer true. I hate it, but it is what it is, so I’m gonna start stackin.
Part of reason why this settlement came about is that gold miners no longer hedge production. The irony would be that gold bullion as an asset becomes very liquid, more so than now, but very low volatility where the price changes very little.
Well ya can call me a dreamer, and that may be true, but you CAN be dreaming like I’m dreaming too!
Craig is one of the best voices in the PM industry today…period.
Agree
Disgree. He is all about gold bug propaganda and pushing an agenda. Do you even listen to what he says? The guy sounds nuts when you string together all the gibberish. But he is good for the show because there are true believers here so I will hold my tongue on further comments.
For 4 oz…& David……just for giggles…..as they are obviously naive. Here is Turd.
https://m.youtube.com/watch?v=q-6w8nZ-0sk
Farmer I C,
Your lost when it comes to finance.
That’s what makes a market Chartster! We all have our own philosophy and they don’t have to agree with each other.
Maybe you should read something common sense on the subject of a Chinese gold fix Chartster because a lot of the bugs (Silver Doctor and KWN types) are labouring under a whole lot of mythology and illusion where this topic is concerned.
Martin Armstrong addresses it today in a short blog titled “Understanding China and its Coming Gold Fix”. In that article he notes that any deviation from global pricing creates arbitrage opportunities and pricing differentials that could be extremely harmful to the Chinese economy.
That is just one of the reasons that no sober economist has any real concerns that China is “fixing” gold priced in its own currency. Actually, a competitive fix will do wonders for the market and as with all competitions it probably means gold prices will moderate downward, not shoot for the moon.
So we will see a more transparent market and a better pricing system but the whole paper versus gold thing is not going to be any more meaningful next year than it is right now. They trade futures contracts over there too as you should know. Nobody is trying to kill the spec market for gold because it is simply too valuable.
Secondly, Martin points out that China is anxious to float its currency internationally and gold is seen as an important element in accomplishing that goal to gain acceptance and create a sense of market credibility.
Part of this will entail opening their markets to allow the free flow of capital.
Manipulating the price of gold up or down obviously bears on the function of the currency but its rife with problems as the sword cuts both ways for currencies. A higher currency is hard on exporters, a lower currency can lead to capital flight, domestic inflation etc etc.
Balance is still the desired outcome…even for the Chinese. They are not in any case going to be in a position to dictate the world price unless they miraculously end up in a similar situation as the US was following the Second World War where the bulk of freely available gold was held by a single country in a few large vaults.
So we should dispense with all the irrational talk on this topic and actually try to understand what the end game is really about. Martin makes a better case than almost anyone else I have heard other than Rickards.
Understanding China and its Coming Gold Fix — Martin Armstrong
https://www.armstrongeconomics.com/markets-by-sector/precious-metals/gold/chinas-coming-gold-fix-april-19th-2016/
The irony is too good when the convicted fraudster criticises allegations of fraud that have been proven in court.
If only your comment were related to the topic I could add something to the conversation.
Meanwhile, over at USA Watchdog, Greg is interviewing Rob Kirby who regales us with his idea that as soon as China has enough gold they will back the Yuan with metal. I don’t think Kirby has any idea how preposterous that sounds at a time when not one single Central Bank on planet earth has a gold backed currency nor does he appreciate the problems that the US experienced prior to Nixon the closing of the gold window. It is possible they might create a soft peg at the most but even that is unlikely as most pegs don’t hold for long. Just the idea that Yuan might be redeemable for gold though or that China would actually honor all the demands at the first sign of trouble is beyond crazy. I don’t think the Chinese would even consider undertaking such a risky proposition and losing face as a result. It will NEVER happen.
“appreciate the problems that the US experienced prior to Nixon the closing of the gold window”……….Beginning of the problem, with a Country that over spend on GUNS AND BUTTER.
Great comment from Craig today.
The big thing that most are missing is the physical gold exchange in Shanghai that starts next week. To price physical gold with a currency, it cannot be fiat. It has to be backed by gold! So the world is soon to be on the gold standard. That’s why the US treasury is issuing ” inflation proof bonds ” and it’s why other countries are issuing gold backed bonds. It’s because the currency is gold backed! Maybe that’s why every country has been forced to join AIIB. He who holds the gold, makes the rules!
https://politicalvelcraft.org/2016/02/01/shanghai-shock-april-19-2016-yuan-based-gold-standard/
Silver – modified Schiff fork breakout:
Forked again? Not if the bulls manage to push it up just a few points tomorrow.
Zoomed-in:
In re: London Silver Fixing Ltd. – Antitrust Litigation
By California Lawyer | Thursday, April 14, 2016 at 2:39 pm
Our resident legal expert, California Lawyer, has taken time to completely annotate the legal documents surrounding the DeutscheBank civil settlements in the gold and silver price manipulation case. Please be sure to review this entire public thread.
http://www.tfmetalsreport.com/blog/7566/re-london-silver-fixing-ltd-antitrust-litigation
CFTC…….CRIMEX will be next…………….
Reuters:
http://www.reuters.com/article/deutsche-bank-lawsuit-metals-idUSL2N17H1OS
The silver price was advancing on the lawsuit settlement, I’m wondering if the gold price will be affected, given that this is a much larger market.
Things are just getting started for silver and that is good news for the miners – both gold and silver.
SLV:GLD
ditto
True, nobody will have to admit anything but where there is smoke, there is usually some fire on the way. This comes from my old Boy Scout experiences.