Readers of my blog have known for quite some time now that I grew increasingly agitated with the charlatans pumping the gold and silver price suppression memes over two years ago and have been quite vocal about it on many occasions. I want to be clear about this point before I continue. My beef isn’t with people who buy gold and silver or who feel that a portion of their portfolio should be devoted to gold or silver ownership. My beef isn’t with people that make well thought out arguments for holding gold and silver either.
My beef is with the many that I have repeatedly called for providing misleading and incorrect information to unsuspecting investors looking for information on the relative merits of owning these metals. Their influence on spreading incorrect, fear-ridden, greed-driven and flat out WRONG information has spread so far that you would be hard pressed to run a Google search on the topic of gold and silver ownership without being met with page after page of conspiracy theories, most of which are just cut and pasted from one site that usually starts the story while the others fall in line and are more than happy to propagate whatever the story of the day might be.
I have often called the usual suspects out on my blog to, not surprisingly, be met with dozens of hate e-mails and venomous comments. Funny thing though, not once when I question these guys about their data or information does anyone bother to correct me. Instead they simply regurgitate the meme and continue to propagate the myth. The logic in this circle has always been if you repeat something enough, people will accept it as truth but the fact it is copied, pasted and shared among the gold and silver bug community doesn’t make it true.
One of my targets has been alleged “whistleblower” Andrew Maguire. Anyone who has been following the precious metals over the last 3 years knows who he is by now. For that haven’t heard about him, he’s the guy who was the alleged “whistleblower” that the folks over at GATA (Gold Anti Trust Action Committee) trumpeted out as their ace in the hole. He was supposed to blow the entire lid off the alleged scam behind the precious metals price suppression.
An active contributor to the comments section of my own blog, and a blogger himself, Bullion Baron from the blog space www.bullionbaron.com wrote a piece about Andrew Maguire recently questioning the facts behind Maguire’s most recent allegations that Maguire made on King World News. I won’t get into it here but that piece worth reading discusses the inconsistencies in Maguire’s information that he often spews at King World News in response to Eric King’s leading questions. (Bullion Baron’s piece can be read here).
I’ve questioned Maguire’s “off” statements in the past before as well. In fact, I’ve often called him a charlatan who is living off his ego after he was appointed “whistleblower” despite the fact that the US Department of Justice called his evidence unreliable when they dismissed any price fixing claims against JP Morgan and HSBC.
The courts did not name the whistleblower by name but made the following findings. It can be inferred that given that Maguire has been the only alleged whistleblower to have actually come forward, and given the court’s summation of the material that this individual was indeed Maguire. Why? Because the evidence summarized in the ruling is what Maguire indicated had taken place. In other words, what was presented at the hearing was pretty much what Maguire claimed had been going on when he decided to come out as “the whistleblower”. I mean let’s be real and use common sense. He’s the only alleged whistleblower to have come out with the allegations summarized in the court’s decision reads in part; (Emphasis is mine)
3. Allegations of Additional Uneconomic Trades
In addition to the manipulative trades made on June 26, 2007 and on August 14-15, 2008,the Complaint alleges that JPMorgan used its dominant COMEX short position to bring about trades that were “inconsistent with trying to obtain the best sales price execution, but consistent with trying to move prices down by aggressively selling in a compressed period to receive less on the sales transactions.” (Id. ¶ 121; see also id. ¶¶ 5-6, 96-109.) In support of this allegation, the Complaint discusses instances of unexpected “heavy selling” which occurred between April 2009 and August 2010. (Id. ¶¶ 121-23.) These instances were allegedly brought to the attention of the CFTC Commissioner by an unidentified “market professional . . . registered with the National Futures Association,” who was “a long time participant in the COMEX silver futures markets.” (Id. ¶ 122.) An unnamed “whistleblower”5 also allegedly contacted the CFTC on February 3, 2010 to report that JPMorgan would be making an unidentified “signal . . . indicating its intent to depress COMEX silver futures and options contracts two days later.” (Id. ¶ 125.) On February 5, 2010, this whistleblower contacted the CFTC “to confirm that the silver manipulation was a great success and [had] played out EXACTLY as predicted.” (Id. ¶ 126.)
Footnote: 5 It is unclear from the Complaint if the unnamed “market professional” registered with the National Futures Association is the unnamed “whistleblower.”
Moreover, the statements made by the unidentified “market professional,” (Compl. ¶¶ 121-23), by the unnamed “whistleblower,” (id. ¶¶ 125-26), and by the “bragging” JPMorgan traders, (id. ¶ 176), are not sufficiently factual to show that JPMorgan was the proximate cause of the price fluctuations during the Class Period. The unidentified market professional, for example, is alleged to have brought a series of trades to the attention of the CFTC, but the market professional is not alleged to have named JPMorgan as a party to these trades. (See id.¶ 122.) Indeed every one of the market professional’s statements are made in the passive voice alleging that, “there was heavy selling of silver and gold;”“[t]here were large sellers who came into both the gold and silver markets to drive the prices down;” and so on. (Id.)
By comparison, the unnamed whistleblower who contacted the CFTC in November 2009 does specifically name JPMorgan, but only to assert conclusory and speculative allegations that JPMorgan and its co-conspirators “manipulate[d] and suppress[ed] the price of COMEX silver futures and options contracts.” (Id. ¶ 123; see also id. ¶¶ 124-127.) The Complaint alleges no other information about this whistleblower or about the details of the manipulation that the whistleblower is purported to have observed. Indeed, the whistleblower’s statement is itself speculative as to JPMorgan’s role in the causation: “[h]ow would th[e price fluctuations] be possible if the silver market was not in the control of [JPMorgan and its co-conspirators] . . . . ?”(Id. ¶ 127 (alterations made in Complaint).)
For the reasons discussed supra, the statements by the “bragging” JPMorgan traders are also insufficient to support the allegation that JPMorgan caused artificial prices in the COMEX silver futures market. (See Op. & Order Section V.A.3(b).) The Complaint alleges no information about the date or the language of the remarks deemed to be “bragging;” the identity of the traders who made these remarks; which of the many trades that took place over the two and-a-half year Class Period were the subject of the traders’ bragging; and no information about whether the traders were acting at the instigation of JPMorgan to move silver prices on the market. Cf. Harris, 572 F.3d at 72 (stating that “legal conclusions, and threadbare recitals of the elements of a cause of action, supported by mere conclusory statements” are not entitled to presumption of truth).
You can see that even the courts found the “whistleblower” and his evidence to be unreliable. I am inferring that the whistleblower referred to is indeed Maguire. In a nutshell, thie so-called whistleblower couldn’t name the traders, couldn’t attach them to JPMorgan and couldn’t verify their claims. Read the paragraph’s above .. I think the message about the validity of the inside scoops can be ascertained.
Long before this decision however, I wrote a piece questioning exactly who this guy (Maguire) was and why it was so difficult for him to come clean about his past. That blog piece was picked up by other blogs and websites via link sharing but in combing through the many comments to my own piece and on the websites that decided to pick it up, NOT ONE individual was able to provide any answers to my questions. I also wrote another piece titled Silver Whistleblower Goes Tout. That piece also got a ton of comments but again, nobody was able to steer me to a legitimate curriculum vitae that actually proves who this guy is or whether his claims of being who he is are actually true.
Given the amount of faith that the gold and silver perma-bulls have placed in Maguire’s commentary, we need to keep pressing for his real background. If he is given a platform to speak on behalf of the few who are privy to the the price-fixing community then I think it’s fair that he comes clean, especially since silver is down over 50% from the highs and from when he emerged on the scene claiming that forthcoming events would force the price of gold and silver to explode. Many people bought based on these outrageous claims. Many unfortunate people are left holding the bag.
A satirical post about Andrew Maguire being a Federal Reserve Plant sought to turn the table on Maguire, showing through satire how easy it is to label someone a ‘bankster shill’. Quite easily one can make the argument, as that piece did, that we can come to the same conclusion about Maguire that he comes to about the bullion banks. However my concern runs deeper than that.
As I discussed in my post about Maguire turning trading tout, I wrote that Andrew Maguire turned shill when he decided to run a trading service touting his trades for sale. You will also start to notice that this service is also being touted now in many of Maguire’s interviews at King World News, enticing signups of course. (One of the arguments I’ve had about the perma-bulls is that the ALL seem to have something to sell you). Don’t believe me? Read the big promo add about how much money he’s made for his clients in his latest interview with Eric King at King World News HERE. Those are some returns and given the climate of the metals market of late, he has had to be telling his client’s to go short while at the same time promoting the coming rise in metals prices to the readers of that site (just like every other guest of Eric King by the way).
The fact that Andrew Maguire's "trading service" is openly promoted now in all his interviews and the fact that he has apparently ramped up his attack on the bullion banks with incorrect information as highlighted by Bullion Barron, deserves to be written about if for no other reason than to protect the unsuspecting public who has already been duped buy this guy’s false and misleading information.
The reality is .. How can someone be labeled a whistleblower if we don’t actually know who he worked for, when he worked there and what actual inside information he was privy to? Let me put it to you this way. If I’m a day trader working from my home and I happen to go out for a coffee at a bar where big bank traders hang out and overhear them talking about how they took a penny stock to $20.00 from $1.00 based on nothing and then shorted the stock at the top into retail momentum I might get a chuckle. If I was caught into that momentum trade and heard that these SOB’s just conned me, I would be pissed. But, would that make me a whistleblower if I started to speak about it? No. It makes me a party to hearsay. There is a big difference.
Now, if Maguire got caught up in buying all the rubbish out there from GATA and the other dozen or so that propagate their memes then happen to take a beating on a long silver trade after a market correction I might be tempted to blow the whistle on what I heard in a bar when two bullion traders were celebrating a big win on a short trade. Could this actually be what Maguire’s story really is? Is he just a pissed-off trader who took a huge loss only to come to GATA with information that consisted of second hand information that he overheard in a bar? A true whistle-blower is someone who took part in the conspiracy and then decided to come clean. That’s the difference and that is something that Andrew Maguire did not do.
Here's a guy who is heralded as being an independent bullion trader of over 30 years having worked for the infamous Goldman Sachs! Here’s his limited bio from his trading service website.Meet the expert
Andrew Maguire – Precious Metals
Andrew is an accomplished veteran of the markets. He has 30 years trading experience, both as an institutional and independent trader, the last 19 years of which have been as a metals specialist. Andrew is the driving force behind the MetalsTrades services for Coghlan Capital.
YET...... Nobody can verify this guy's actual background AND, more importantly based on my own investigations, probably doesn’t even hold a licence to provide financial advice. He is certainly no licenced broker as evidenced by the myriad of disclaimers attached to his trading service. I mean, anyone who actually reads the disclaimer can draw this inference on their own.
I apologize for printing the entire disclaimer but I do so to emphasize my point:
YET, this guy is touted as a professional trader of over 30 years and promotes a "trading service" where he provides what appear to be, by virtue of the disclaimer “hypothetical trades” with “hypothetical” results. You can see how I come to the reasonable conclusion that he doesn't even have a licence that allows him to legally provide that financial advice ... yet HE CHARGES A FEE for pretend trades and treats it like a video game to skirt the law. It really makes my blood boil.
Risk Disclaimer: (all emphasis is mine)
"Coghlan Capital is not a registered investment advisor or advisory service. It does not tell or suggest which securities or currencies should be bought or sold. The analysts and employees or affiliates of Coghlan Capital may hold positions in the stocks, currencies or industries discussed here. There is a very high degree of risk involved in trading stocks, futures and forex. Coghlan Capital assumes no responsibility or liability for any trading or investment results. Facts, statement and charts posted to the company website (www.coghlancapital.com) may unintentionally include inaccuracies. All content posted is for educational purposes ONLY and independent advice should be sought from a professional to confirm validity and accuracy of any claim made. Such set-ups are not solicitations of any order to buy or sell.
Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding trading decisions. You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g., the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
No assumption should be made in relation to the performance or accuracy of the methods shown. No claims are made as to the success or profitability of any posts made within the company website.
The MetalsTrades and DayTrades services provide insight as to trades that traders affiliated with Coghlan Capital may be taking. These trades are published for educational purposes only and should NOT be taken as instructions to buy or sell any commodity, option or currency. THESE SERVICES ARE INSTRUCTIONAL ONLY AND DESIGNED TO FAMILIARIZE MEMBERS WITH HOW AND WHEN TRADES ARE TAKEN BY A PROFESSIONAL TRADER.
All Trading involves risk. Leveraged trading has large potential rewards, but also large potential risk. Be aware and accept this risk before trading. Never trade with money you cannot afford to lose. All forecasting is based on statistics derived from past performance of any trading methodology is no guarantee of future results. No “Safe” trading system has ever been divided and no one can guarantee profits or freedom from loss.
Before you make any investment or trading decisions, you should carefully inform yourself about the opportunities and risk. Apart from the financial aspects, this might also include the fiscal and legal ones. Please particularly note that the past performance of a trading system or trading strategy is not indicative of future results. See also CFTC RULE 4.41
U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Again, I apologize for continuing to beat a dead horse here but this stuff is just so blatant and wreaks of lies and deception that I must speak out to protect the little guy who has taken a huge beating in the gold and silver market because they bought into the deceptive practices touted by Maguire and those like him. It disturbs me to no end that this guy gets away with this stuff yet nobody other than Jeff Christianson (who actually worked for Goldman Sachs and whose video appears in my post linked above) has had the balls to call him out on it.
This isn’t about where the price of silver or gold for that matter is headed. It has nothing to do with fundamentals or technical analysis. This is about trying to get answers for the people that have held their physical metal during a vicious correction because of the information that Maguire and guys like him tout. It’s for the guy who bought silver at $45.00 – $50.00 an ounce or gold at over $1900 an ounce and is sitting on massive losses because they believed what was told to them by the likes of Andrew Maguire and perpetuated by those that propagate his conspiracy theories.
Therefore I issue this challenge to Andrew Maguire.. .POST PROOF OF YOUR BACKGROUND, a Curriculum Vitae with contactable references. Verify your background is as claimed and prove you are who GATA have made you out to be and I will promise to never write another word about you again. In fact, I will even provide you with a free banner advertisement spot on my blog for your “trading service” for a full year.
If Andrew Maguire wants to keep his title of whistleblower despite the fact that his evidence has already been deemed unreliable by the courts, then he should have no problem accepting this challenge. All he has to do is PROVE that he really had INSIDER direct knowledge of price fixing schemes and isn’t just a jealous or disgruntled day trader who overheard a couple of real bullion bank traders boast about a massive winning trade in the local pub, one that he was probably on the other side of.
My challenge can’t be clearer. Tell the world exactly how you are an insider that blew the whistle off the so-called price-suppression schemes and keep in mind that the courts already dismissed your evidence because you didn’t name traders, couldn’t tie them to the bullion bank you alleged they were from and you couldn’t even recall WHEN you heard them bragging.
Tell the people what your real connection is to the bullion banks you claim to know so much about. Otherwise, please stop please stop misleading investors and individuals by continuing to allow yourself to be labelled a whistleblower because based on what we know and what the courts have already ruled, nothing can be further from the truth when it comes to that ‘title’.