This week has seen a spate of stories concerning, as one commentator puts it “ criminal collusion on the commodity exchanges “ to keep down the price of gold.
 

Another distinguished analyst thinks that central banks and others have held the price of gold back with derivatives and massive short selling and doubts that this can continue.

 

Should it be the case that this is happening but cannot be sustained then gold will undoubtedly rise rapidly.

 

With central banks throughout the world printing vast amounts of new paper money, and have been doing so for several years the surprise is that the adjusted price of gold has not yet reached the heights it scaled some twenty years ago.

 

Could the conspiracy theory be an explanation why, despite the flood of paper money, golds´ upward path has been somewhat slow?

 

The US based Gold Anti-Trust Action Committee published an article in December 2006 that makes fascinating reading.

 

In essence it points out that the lending of gold by central banks is a closely kept secret and such lending depresses the price.

 

There seems no other justification for the secrecy surrounding these deals than the manipulation of the market and the enrichment through insider information of the financial institutions to whom these loans are made.

 

No accurate statistics about gold loaned by central banks are in the public domain, only estimates, but gold loaned out to the market can have a significant effect on the price.

.

Central banks and their borrowers, such as bullion banks, have the benefit of inside information not available to the investing public and there seems to be no safeguards in place to prevent the gold market being manipulated for their sole benefit.

 

This article poses many questions and possible answers and is well worth reading in full on http://www.gata.org

 

Interestingly enough it suggests that the International Monetary Fund be called upon to impose transparency upon these dealings.

 

We are still waiting for a reply to our query concerning the sale of 400 tonnes of gold by the IMF reported by the BBC world news service some weeks ago and still neither confirmed or denied.

 

Poacher turned gamekeeper comes to mind!

 

It is difficult to draw any other conclusion than that there is a question mark over the integrity of the major players in the gold market and that the individual investor has been left out in the cold without recourse to the reliable information sources that are available to the stock market players.

 

A further point to note is that insider trading is a criminal offence in most jurisdictions so the sooner some lawfully imposed disclosure procedures are introduced the sooner this, hopefully theoretical only, situation can be laid to rest. 

 

conspiracy gold gold bull market gold trend precious metals

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!