Is the price of gold, and possibly silver, manipulated? The available evidence answers “yes”, since it applies to past decades. The pattern clearly suggests that it's still happening today. In general, manipulation has consisted of suppressing the price of gold, while suppressing the price of silver is a tactic used to achieve a lower price of gold. In my column two weeks ago, I pointed out that a significant number of transactions in the gold market were not transparent.
This provides an opportunity to manipulate the price of gold. However, the important questions that need to be answered are who has the legal authority, the financial influence and the monetary incentive to want to reduce the price of gold. The answer to these three questions is EE. UU.
The price of gold was fixed compared to that of the United States. Dollar for much of the history of this country, almost 200 years. But, in 1933, President Franklin D. Roosevelt had signed an executive order for Americans to hand over their gold to the U.S.
The treasury in a fully compensated mandatory reimbursement program. This government action created a possible public image that the U.S. The dollar may no longer be “as good as gold”. Therefore, in order to make the public sleepy, it was necessary that the United States,.
The government will prevent the price of gold from rising. The Gold Reserve Act explicitly authorized the ESF to trade in gold and currencies to stabilize the US exchange value. With subsequent amendments, the Secretary of the Treasury is authorized to use ESF assets, with the approval of the president, to “trade gold, currencies and other credit and securities instruments”. Therefore, the United States,.
The government has been allowed, without any supervision by Congress, to manipulate the price of gold for the past 88 years. Even this additional supply of gold did not reassure the market. In November 1961, the United States, Germany, the United Kingdom, France, Italy, Belgium, the Netherlands and Switzerland established the London Gold Pool to provide 240 tons of gold (7.7 million ounces) to help meet global demand for gold. The Treasury provided half of the gold earmarked for this brazen price suppression effort.
President Richard Nixon announced that the United States,. The Treasury would “temporarily” suspend all gold repayments, a suspension that remains in effect today, more than half a century later. The government closed the gold trading window in 1971, the volume of gold futures contracts traded on Commodities Exchange, Inc. This exchange allowed major market participants to sell short-term gold contracts without having the physical metal needed to fulfill an expiring contract.
In essence, this created the impression of much larger physical gold inventories than those that actually existed, which had the effect of keeping the price of gold low. Several years ago, researcher Jessica Cross estimated that 15 to 25 percent of all central bank gold reserves were leased and were no longer in the custody of central banks. Another researcher, Frank Veneroso, projected that between 25 and 50 percent of all reserves declared by central banks were leased. The government should buy and sell physical gold on world markets, and that activity would be closely monitored and reported, affecting prices.
The government would have to manipulate gold prices through measures taken by others. The financial influence of the United States. The government can effectively force cooperation to manipulate gold prices. Among those most susceptible to cooperation would be the 25 main trading partners of the Federal Reserve Bank of New York, the IMF, the Bank for International Settlements and allied central banks.
Major trading partners could earn commissions by executing trades to achieve U.S. objectives. The government, especially if the government provided guarantees to cover any significant losses that these partners may suffer. If a major trading partner did not want to participate in such operations, they could lose their status as the principal trading partner of the Federal Reserve Bank of New York.
Obviously, there is an enormous amount of documented manipulation of the price of gold over the decades, either directly by the U.S. The government or by other parties with close ties to the U.S. The government would incur the greatest financial losses of any entity (government, business or personal) if the price of gold rose. There is an opportunity to manipulate the price of gold.
The government also has the legal authority, the means and the motive to do so, in addition to a long history of having done so in the past. If you want to review even more documentation about the U.S. Government manipulation of the price of gold, a good source would be the Gold Antitrust Action Committee, especially Chris Powell's compilation. There are several factors to consider, but in general, bullion priced coins that have been manufactured for a long time or are no longer produced tend to sell closer to the value of the metal than newer products.
Unfortunately, the gold and silver markets are no stranger to manipulation by big players. Experts have long pointed to evidence of gold price manipulation by the Federal Reserve and other central banks around the world. The main motivation behind these undermining efforts is to artificially tilt the price of gold in favor of major holders based on their investment strategies. For the past seven or eight years, with the elimination of the upturn rule, central banks and large institutions could short sell the gold and silver markets without the ability of buyers to leave their position.
By short selling on the paper market, price discovery fell far short of what the real price should have been. The paper shorts sold far exceeded the physical quantity of gold available. The market crash in March of this year meant that the shorts were suddenly unable to cover and the physical market lacked the supply necessary to cover all the shorts. Gold was then free to find its real price based on supply and demand, without manipulating the paper that had been suppressing the price.
Central banks supported manipulation to prop up the US dollar as the world's reserve currency. If the price of gold rose too high, the US dollar would fall in value, casting even more doubts on fiat currencies, of which the US dollar is the leader. Major gold investors believe that the market is being systematically manipulated. Some believe that gold prices fall at the whim of central bankers, while others blame big banks and the way they use derivatives and high-frequency trading to lower the price of gold.
To a large extent, this view revolves around the idea that long-term gold manipulation cannot be traced in a meaningful way. The price of gold has been “manipulated” by central bank authorities, in particular the Federal Reserve, for decades in a broader plan to maintain the U. Watch the video to hear what precious metals advisors Todd Graf and Joe Elkjer have to say about the possibility of a Russian gold exchange, how it could benefit the market and what it means for the price of gold in the future. Unfortunately, the strategies used by these Western banks to devalue gold affect much more than just gold.
Gold has come into the spotlight, as fund managers and institutional investors are starting to invest in gold due to concerns about the US dollar and zero interest rates. Investing with a long-term mindset allows you to overcome small fluctuations intentionally created in the gold market. Western governments in particular—such as the U.S. Treasury and its Exchange Rate Stabilization Fund, the United States Federal Reserve, allied governments, and central banks—manipulate gold daily, sometimes hourly, to control and essentially artificially reduce the value of gold.
Once China releases a central bank currency backed by gold, the manipulation is likely to disappear and the price of gold will “reach a new low,” he said. To this day, experts consider gold manipulation strategies to be one of the most serious crimes in progress in financial history, especially considering how lucrative they are for Western countries and disproportionately devastating for others. The dollar system for the West, and some other system, perhaps a gold-backed system for the rest of the countries, he said. Western bankers have become so good at deceptively trading derivatives that gold seems stable over the long term.
This is because people use gold as an alternative source of money or as protection against fluctuations in their government's currency. . .