For Now, Basel III Regulations Impact Upon Gold Prices Are Much Ado About Nothing

For now, Basel III regulations impact upon gold prices are much ado about nothing for gold owners. At the end of May, a lot of excitement was buzzing among gold owners that gold prices were about to go ballistic with the enforcement of Basel III regulations at the end of June 2021 in which many authors published articles in which they stated that unallocated gold would be given no credit as collateral to banks and only allocated physical gold would be given credit as a zero risk asset against which borrowings could happen. In addition, many in the gold community stated that these new regulations would require banks to hold additional reserves against unallocated gold, an asset class with very shady origins and often believed to contain large amounts of rehypothecated gold. In fact, the unallocated gold asset class was likely the asset class that provided a gateway for bullion bankers to commit all kinds of shenanigans in manipulating gold prices in derivative markets, with manipulation almost always being lower. (Editor’s Note: There will be a critical update that clarifies the information in this article to be released about mid-July to Premium Rokfin and skwealthacademy patrons only).

Unsurprisingly, this information led many gold analysts to hail this development as monumental for all gold owners, with some even predicting large spikes in gold prices immediately manifesting with this new regulation. Contrary to many of my colleagues, I dismissed expectations of a significant Basel III regulations impact upon gold prices and assumed a much more level-headed approach and informed my skwealthacademy patrons at the start of June, that regarding the end of manipulation for gold prices in the immediate term, to not expect any higher spikes in gold prices and that all this chatter was just white noise and much ado about nothing. In fact, I warned my patrons that with an important FOMC meeting immediately following a G20 summit meeting scheduled in the same month as the start of Basel III regulations to be wary of a gold price smash, though I admittedly got the depth of the smash incorrect (it was greater than I thought it would be).

So why were so many of my peers excited about this development and still hailing this development today as a monumentally important piece of legislation to end gold price manipulation, and why do I still remain skeptical? To begin, bankers will never willingly pass legislation that frees gold of price manipulation in derivative markets and to believe this was the intent behind this piece of legislation is incredibly naïve in my opinion. How many times do we need to be fooled by behavior on the surface level that appears to be beneficent that only turns out to be malevolent before we refuse to be fooled again? From understanding recent history of attempts to curtail precious metal price manipulation, it was self-evident that the Basel III regulations impact upon gold prices was going to be non-existent upon the immediate term following its passage.

Remember when ex-Goldman Sachs man Gary Gensler became Chairman of the Commodities Futures Trading Commission and informed the world in 2008 that he was going to get to the bottom of silver price manipulation in silver futures markets. Immediately, just as with occurred with the Basel III regulations announcement and gold analysts, silver analysts hailed this investigation as groundbreaking and of monumental importance to freeing silver prices from incessant price manipulation in derivative markets. Silver analysts wrote, now that the head of a powerful US regulatory agency has vowed to stop silver price manipulation, do you really believe that bankers will dare manipulate silver prices with the knowledge that their behavior is being scrutinized under a magnifying glass?

On the contrary, I immediately published in a research newsletter that I was producing back then, that such sentiments were absurd, and even though some precious metal analysts whom I respected genuinely believed that Gary Gensler was being upfront and honest in his endeavor to stop silver price manipulation. Instead, I pushed back against this consensus and stated it was patently absurd to believe that a Goldman Sachs lifetime company man would actually go after the very colleagues at JP Morgan with whom he had been in bed his entire life, and the system that had made him a multimillionaire, to end silver price manipulation. A year passed, and no progress occurred in stopping silver price manipulation. Another year passed, and again, no results occurred. I did not need a year or two to pass and observe Gary Gensler giving every silver owner lip service that he was still in the process of investigating the silver price manipulation scam to understand he was a man of no integrity whose statements should be interpreted as lies rather than taken at face value.

In fact, even after two years and literally zero results, some of my peers in the silver analysis field still incredulously gave Gensler the benefit of the doubt and wrote articles stating that Gensler was closing in on the bankers responsible for executing silver price smashes. Five years later, in 2013, after promising to stop price manipulation if it were happening in silver derivative markets, despite clear mountains of trading data and evidence that supported this conclusion, provable in a legal court of law beyond doubt, Gensler closed his investigation, stating he had found zero evidence of any silver price manipulation behavior, a despicable lie that was proven as such by a near billion dollar settlement in September 2020 in which JP Morgan bankers admitted guilt in manipulating gold and silver prices for eight years in the futures markets. And even though they only admitted guild for eight years, given that the exact same type of silver price smashes occurred for years prior to the timeframe included in JP Morgan’s admission of guilt, only a complete idiot would believe that bullion bankers were not smashing silver prices for years before this period as well.

Furthermore, I’ve already published two articles about the curious case of John Edmonds, a JP Morgan banker that was arrested more than three years ago for repeatedly smashing gold prices on behalf of JP Morgan, including this one, and who was scheduled to be sentenced to prison back in December of 2018. However, due to leaks that he was cooperating with the Feds in fingering other JP Morgan bankers involved in this criminal racket in order to win a lighter sentence, Edmond’s sentencing had been repeatedly delayed. It was believed that Edmonds’s decision to sing like a bird led to the arrest of four more JP Morgan bankers, among them, Christopher Jordan and Michael Nowak, and at the time of their arrest, it was comically reported that Jordan and Nowak could receive up to 30-year prison sentences for their involvement in JP Morgan’s criminal racketeering activities. I laughed when I read about the possible severity of their sentences because no banker ever had been sentenced to 30-years in prison for their criminal behavior, no matter how immoral, and my expectations were for a one-year sentence in a minimum security prison reminiscent of a country club with release after just a few months for “good behavior”.  Clearly, Michael Nowak was a “made man” in the world of banking, and he was integral to the global scheme to smash gold prices in derivative markets to protect the global hegemony of the US dollar as he had also been appointed to serve on the board of the LBMA (London Bullion Market Association, the precious metals authority in the UK).

If I were a betting man, given that John Edmonds resided lower on the totem pole than Michael Nowak, and with his possible ability to implicate the head boss, JP Morgan CEO Jamie Dimon, I would bet that John Edmonds would mysteriously hang himself in prison while awaiting trial before Michael Nowak would ever receive a 30-year prison sentence. To this date, I can find no further information about Nowak’s sentencing, which likely means he’s walking about as a free man today on bail while appealing his charges. Regarding John Edmonds’s sentencing, I wrote the US Justice Department to receive more information but received no reply. Furthermore, the information that exists on the US Justice Departments own website regarding this case has not been updated since a notification that Edmonds was to be sentenced to prison on 24 June 2020, though this evidently has not happened.  I wonder if anyone even knows if Edmonds and Nowak are still alive or dead, because I’m near certain that there are executives of JP Morgan that would prefer them to be dead. At this link, you can read the latest update about Michael Nowak’s case posted on the US Justice Department website.

Since the US Justice Department seems incapable of sentencing bankers to prison that admitted guilt to engaging in criminal racketeering, this is why I stated in early June that I had zero faith that the Basel III regulations would significantly change anything about banker price manipulation of gold. Certainly, the US Justice Department made a good show about being hard on banking crime, by prosecuting Nowak under the criminal RICO racketeering act, an act usually reserved for the worst of worst criminals in America. But action is the only thing that means anything. In the hood, we have a saying of “my word is bond” that means that if we make a promise to you, you never have to ask us again to fulfill it because it is as good as done once we issue our word. In the collision of the banking world and the US Justice Department, one’s word seems to mean nothing, and for this reason, the only event that should be assigned significance is observed actions and outcomes.

And from my observations of trading behavior in the few days that have passed, I can guarantee you that literally nothing has changed as of yet regarding bankers’ manipulation of gold prices in derivative markets, even though the legislation already passed a few days ago.  All the expectations of a significant Basel III regulations impact upon gold prices have not yet come to pass. Do I think there is a possibility that things will change in the future? Sure, this is always a possibility. But just as I will not believe that John Edmonds and Michael Nowak will ever serve time in prison until I watch video of them being marched into a cell by prison guards and the door slamming behind them, I will not actually believe that Basel III regulations will significantly alter gold price manipulation and radically shift bankers’ gold positions away from paper gold into physical gold, despite written laws that seemingly make this shift inevitable, until I actually observe significant changes in gold price manipulation behavior.

Unfortunately, in the shady criminal world of banker gold price manipulation, this is the only credible conclusion to ever draw. Given the increasing censorship of my presence on Silicon Valley big tech social media platforms, please bookmark and visit this site frequently to read all my new published content, bookmark my podcast site here for free podcasts, and follow me on the Patreon and Rokfin platforms for access to all premium content I publish, including premium long-format podcasts, videos, articles, and daily financial analysis. To donate to our cause to keep freedom alive, please visit my gofundme campaign here and you may donate ETH here: 0x82e9F62fa5CD4E374274018376C73C76c6c4baDd

J. Kim

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