The Great Gold Price Scandal

A cura di Walter Snyder, Swiss Financial Consulting

Manipulation of the gold price has been going on for decades, and no one has gone to prison or been fined. Banks that tried to fix the silver price were found out and fined, but the BIS, central banks and their accomplices have carried on their illegal practices under the noses of the regulators with impunity. Price discovery in the gold market has been eliminated. This is scandalous.

This Newsletter has found nothing new as there are numerous articles about the gold fraud. One need only do a basic search on the Internet to see lots of websites dealing with the problem and how the price is manipulated. Of course there are reasons why the gold price has been held low, and they have to do with the goal of the central banks to make fiat currency the only currency available so that sovereign debt can be increased at will and with it fiat currency multiplied infinitely. Therefore gold and silver have to be eliminated as currencies.

If the law of supply and demand were to hold in the gold market, the price would be US$ 5,000.00 per ounce or a lot more, perhaps even US $ 10,000.00 per ounce. The manipulators create a huge supply of paper gold in order to overwhelm the demand in the market by selling certificates, perhaps even as many as 500 based on a single ounce of physical gold. The fine print in the contract guarantees a payout in fiat currency, the US dollar, should the seller not be able to furnish physical gold. So the BIS shorts a million ounces early in the morning when the market is just waking up and drives the price of paper gold down and then buys back the certificates at a lower price as soon as the price has gone down, thereby making a neat profit.

This is criminal, but it goes unpunished since the central banks want to eliminate gold as a currency, and the respective regulators allow London, New York and Chicago to continue this malpractice. The problem for the central banks is that India and China have been buying up physical gold in great quantities. It is not really known how much gold the PBoC has amassed, but the Chinese are clearly planning on putting the Renminbi on a sound footing as soon as the moment is ripe to dethrone the US dollar as the main global reserve currency. Investors should be prepared and have some physical gold in their portfolios. Paper gold will be only paper.

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