The case of Andrew Maguire a London precious metals trader is a very curious one that has profound implications for the world financial system. Hidden in this ugly matter is a possible windfall not only for the big time investors but also the smaller investors that rarely comes along, but more on this later. The ugliest part of this affair is that there was an attempted murder of Mr. Maguire and his wife the day after he went on radio to discuss a deep reaching market manipulation. Before he went public public Maguire had contacted the Commodities Futures Trading Commission in November 2009, providing them with evidence of the price of gold and silver being manipulated. On February 3, Andrew outdid himself. He gave the CFTC a two day warning that the price of silver would be illegally manipulated on Feburary 5th upon the release of the non farm payroll data. On February 5th the market events unfolded just as predicted. In fact as these events were taking place, Maguire emailed a CFTC senior investigator 3 times with an outraged I told you so bent to the communications. Maguire flatly stated in one of the emails, "It would not be possible to predict such a market move unless the market was manipulated."
The culprit who attacked the silver market that day among others is an investment wing of JP Morgan Chase. Their silver and gold position was initially acquired when they bought Bear Stearns. On the silver side JP Morgan holds an extraordinarily deep naked short position. Investors speculate that JP Morgan Chase loses as much as 1 billion for every point silver goes up and conversely gain when the price goes down.
However all of the above is not the biggest news regarding this matter. After Maguire went public with all this the CFTC had a fiasco of a meeting with the biggest metal traders that Maguire was not allowed to attend. During the course of this meeting, Jeffrey Christian formerly of Goldman Sachs currently the head of a metals trading group called CPM Group let it slip out that for every so called 100 ounces of gold and for every 100 ounces of silver that is traded only one ounce of actual gold or silver actually exists to back up any given trade. Mr. Christian had his reasons but didn't think this was a big deal when in reality it is really the bombshell among bombshells in yet another all encompassing FUBAR financial situation that could rock, explode, implode, meltdown, really really really screw up our decidedly dysfunctional financial system. This particular matter not only could hurt and or ruin the usual countless innocent honest investors but also leaves the USA in a vulnerable position to have its financial system mortally wounded. There is much that needs to be said on this very profound matter but that will have to wait for the moment as well.
That should about cover all the key and outrageously juicy elements in a matter that is still to a great degree under a mainstream media blackout. Oh yeah one more thing, JP Morgan is under investigation for manipulating the gold and silver markets by the DOJ and SEC but it's just another day for the Wolves of Wall Street doing their thang.
Why what JP Morgan has done and is doing can be very harmful to our country and how this mess can benefit some of you will be addressed shortly in part 2 on this subject.
For those that want all the grimy details here are the URL's to
Andrew Maguires emails to the CFTC
Kings World News Interview with Andrew Maguire and Adrian Douglas.