Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Stock Market Rescued by the Fed Again? - 24th Sep 21
Are Amazon Best Cheap Memory Foam Mattresses Any good? Bedzonline £69 4ft Small Double ECO Example - 24th Sep 21
Evergrande not a Minsky Moment - 24th Sep 21
UK Energy Firms Scamming Customers Out of Their Best Fixed Rate Gas Tariffs - 23rd Sep 21
Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Should School Children be Jabbed with Pfizer Covid-19 Vaccine To Foster Herd Immunity? - UK - 23rd Sep 21
Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
Trading Crude Oil ETFs in Foreign Currencies: What to Focus On - 22nd Sep 21
URGENT - Crypto-trader event - 'Bitcoin... back to $65,000?' - 22nd Sep 21
Stock Market Time to Buy the Dip? - 22nd Sep 21
US Dollar Bears Are Fresh Out of Honey Pots - 22nd Sep 21
MetaTrader 5 Features Every Trader Should Know - 22nd Sep 21
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21
Is This the "Kiss of Death" for the Stocks Bull Market? - 14th Sep 21
Where Are the Stock Market Fireworks? - 14th Sep 21
Play-To-Earn Cryptocurrency Games Gain More and Is Set to Expand - 14th Sep 21
The CashFX TAP Platform - Catering to Bull Investors and Bear Investors Alike - 14th Sep 21
Why every serious investor should be focused on blockchain technology - 13th Sep 21
SPX Base Projection Reached – End of the Line? - 13th Sep 21
There are diverse ways to finance the purchase of a car - 13th Sep 21
6 Tips For Wise Investment - 13th Sep 21 - Mark_Adan

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

COMEX and Gold Bullion ETF Manipulation, Bill Murphy Grounds for a Class Action Law Suit

Commodities / Gold & Silver 2009 Jul 12, 2009 - 05:41 AM GMT

By: Brian_Bloom


Dear Bill,

The recent article by Adrian Douglas, if true, evidences outrageously unacceptable behavior on the part of all three of the COMEX – which appears to be cheating on its contractual obligations to act as a clearing house – the investment banks which are selling short and have no intention or ability to deliver physical gold as and when deliver falls due and those ETFs which do not have 100% gold backing.

As I understand it, the very purpose of an ETF is to allow private individuals to own gold without the need to address the logistical issues of storage and delivery. Failure of an ETF to honor such a commitment would constitute breach of contract. Further, in Australia we have a law known as the Trade Practices Act. That Act contains a clause which specifically prohibits “misleading and deceptive conduct”.

I imagine that the USA has a similar law. Arguably, even if an ETF’s Prospectus states that it will not have 100% backing of gold, it would need to demonstrate precisely why it was formed in the first place and it would need to demonstrate that it was honoring whatever commitments it had made – both express and implied. For example:

Why would anyone in his right mind buy shares in a gold ETF if he/she knew a priori that that ETF had no intention of being a custodian of gold? Regardless of what its Prospectus says, would not a “reasonable man” have some minimum expectations that investment in a Gold ETF would be a proxy for investing in gold as opposed to a piece of paper that purports to represent gold?

It seems to me that someone needs to act to put a stop to this disrespectful attitude to the law of contract in particular and the rule of law in general. It seems to me that, if Adrian Douglas is correct, this behavior on the part of both COMEX and the ETFs is grounds for a Class Action Law suit. The plaintiffs might constitute any/all shareholders in ETFs which are behaving this way; and all aggrieved participants in the gold futures markets on COMEX. (The meaning of “aggrieved” is open to interpretation.) The defendants would be those ETFs which are guilty of misleading and deceptive conduct, those ETFs which are demonstrably dishonoring their contractual obligations, the COMEX and those organizations which are selling gold short on COMEX and failing to deliver physical gold as and when they are called upon to do so (probably the large investment banks); and all the directors of these organizations in their personal capacities

I am not a lawyer, but this seems to me to be a slam dunk lawsuit – if Adrian Douglas is correct.

My understanding is that the primary purpose of the Gold Anti Trust Action Committee is to expose and put a stop to the manipulation of the gold markets. Well, is the evidence sufficient to allow GATA to orchestrate as Class Action? Such a Class Action will put a stop to this behavior once and for all.

Yours Sincerely

Brian Bloom

Beyond Neanderthal is a novel with a light hearted and entertaining fictional storyline; and with carefully researched, fact based themes. In Chapter 1 (written over a year ago) the current financial turmoil is anticipated. The rest of the 430 page novel focuses on the probable causes of this turmoil and what we might do to dig ourselves out of the quagmire we now find ourselves in. The core issue is “energy”, and the story leads the reader step-by-step on one possible path which might point a way forward.  Gold plays a pivotal role in our future – not as a currency, but as a commodity with unique physical characteristics that can be harnessed to humanity's benefit. Until the current market collapse, there would have been many who questioned the validity of the arguments in Beyond Neanderthal. Now the evidence is too stark to ignore.  This is a book that needs to be read by large numbers of people to make a difference. It can be ordered over the internet via

Copyright © 2009 Brian Bloom - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Brian Bloom Archive

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


12 Jul 09, 11:45
etf and gold manipulation

Excellent analysis from B.Bloom. I am "shocked" if this deceptive behavior within the comex and the etfs has transpired. We need definite answers for the sustainability of free, honest and open markets. kherr,CFA

Post Comment

Only logged in users are allowed to post comments. Register/ Log in